On a slow slide
Deputy Economy Minister Jacek Męcina said that the jobless rate is at its lowest level since calculations were changed at the start of 2002, and was well below its peak in 2003 of 20.7 percent.
"I optimistically believe the jobless rate will be below 18 percent in December; according to my estimates it will be 17.5-17.6 percent," he added.
However, analysts insist that sweeping labor and social-welfare reforms are needed to find work for the country's three million unemployed. Slow economic growth and vast restructuring has taken its toll, but booming exports could mean a surge in demand for labor.
"The process of restructuring is nearing its end and now some companies have not many other ways to boost productivity than by employing new workers," said Jacęk Wisniewski, an economist at Bank Pekao in Warsaw.
But economists say that Poland still faces an uphill battle to bring its unemployment down to the EU average of 8.8 percent, as, according to World Bank Economist Marcin Sasin, as much as 10 percent of those without work are not actively seeking jobs. Many are the product of the communist system, do not have the necessary skills for the modern market environment and are unwilling to retrain. The small gap between minimum wage and social benefits is also proving a major disincentive.
"Nobody wants to work the entire month for an additional zł.200, so getting rid of Poland's structural unemployment problem will require real reforms," Sasin said.
The Civic Platform (PO), tipped to take power after September's elections, wants to revamp labor market rules and benefits to help the economy absorb new graduates.
PO leader Jan Rokita said that with unemployment among 20-year-olds around 40 percent and set to rise, reforms were not only required but also expected by Poles.
"With people desperate for job opportunities, the social acceptance for economic reforms is now higher than it has been since 1989," Rokita said. (Reuters)
"I optimistically believe the jobless rate will be below 18 percent in December; according to my estimates it will be 17.5-17.6 percent," he added.
However, analysts insist that sweeping labor and social-welfare reforms are needed to find work for the country's three million unemployed. Slow economic growth and vast restructuring has taken its toll, but booming exports could mean a surge in demand for labor.
"The process of restructuring is nearing its end and now some companies have not many other ways to boost productivity than by employing new workers," said Jacęk Wisniewski, an economist at Bank Pekao in Warsaw.
But economists say that Poland still faces an uphill battle to bring its unemployment down to the EU average of 8.8 percent, as, according to World Bank Economist Marcin Sasin, as much as 10 percent of those without work are not actively seeking jobs. Many are the product of the communist system, do not have the necessary skills for the modern market environment and are unwilling to retrain. The small gap between minimum wage and social benefits is also proving a major disincentive.
"Nobody wants to work the entire month for an additional zł.200, so getting rid of Poland's structural unemployment problem will require real reforms," Sasin said.
The Civic Platform (PO), tipped to take power after September's elections, wants to revamp labor market rules and benefits to help the economy absorb new graduates.
PO leader Jan Rokita said that with unemployment among 20-year-olds around 40 percent and set to rise, reforms were not only required but also expected by Poles.
"With people desperate for job opportunities, the social acceptance for economic reforms is now higher than it has been since 1989," Rokita said. (Reuters)
