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Polish Economic Data
 
Labour Market in 2002
Like during previous three years 2002 year brought on a decline in both the number of employed in the economy and in the average employment in enterprise sector. According to the estimates as of the end 2002, total number of employed in the economy amounted to 14.9 million persons and was by 0.9 per cent lower than a year before. In enterprise sector the number of employed in enterprise sector (in the entities employing more the 9 persons) reached 4,999 thousand persons (1.9 per cent less than in 2001).
Average employment by sections in the enterprise sector (in thous.)
 
  2002 2001 2001 = 100
Total
4,912
5,138
95.6
Industry
2,481
2,629
94.4
- mining and quarrying
210
222
94.4
- manufacturing
2,045
2,181
93.8
- electricity, gas and water supply
226
227
99.9
Construction
422
481
87.7
Trade and repairs
828
828
100.0
Hotels and restaurants
87
83
103.8
Transport, storage and communication
514
550
93.5
Real estates and business activities
412
404
102.0
 
Average employment in enterprise sector amounted to 4,911.5 thousand persons, i.e. by 4.4 per cent less than a year before. Employment shrank at the highest degree in construction (by 12.3 per cent as compared to 2001), transport, storage and communication (by 6.5 per cent), in industrial manufacturing (by 6.2 per cent) and in mining and quarrying (by 5.6 per cent). Of industrial manufacturing divisions the most substantial deterioration was recorded in the manufacture of base metals (by 12.1 per cent), clothing and furriery (by 11.4 per cent), non-metallic mineral products (by 10.8 per cent), wood and wood products (by 10.3 per cent) and motor vehicles, trailers and semi-trailers. Employment in electricity, gas and water supply and in trade remained at the level of 2001. An increase in employment was recorded in hotels and restaurants and in real estates and business activities sections.
The main factors behind the deterioration in employment in enterprise sector in 2002 were:
 
- slowdown in economic growth,
- carrying out restructuring programmes (mining and quarrying, steel industry),
- increase in labour productivity,
- ending of employment protection periods in privatised enterprises,
- further globalisation of the economy resulting in combining of enterprises in order to take advantage of production scale,
- technological progress resulting among others in production increase without rise in employment,
- weak financial standing of enterprise sector, what results in cost reductions or bankruptcies.
 
Record number of unemployed persons registered in the labour offices reflects difficult situation on the labour market in 2002. As of the end of December the number of unemployed registered in the labour offices was 3,217 thousand persons and was by 101.9 persons higher (by 3.3 per cent) than a year before. Women accounted for 51.2 per cent of unemployed.

In 2002 2,550.2 persons were registered in the labour offices. At the same time 2,448.3 thousand persons were removed from unemployment rolls, mainly due to taking on intervention, public and seasonal works offered by the labour office. The number of unemployed without the right for unemployment benefit amounted to 2,678.3 thousand persons (83.3 per cent of total number of registered unemployment).

As of the end of December 2002 unemployed registered in the labour offices accounted for 18.1 per cent of economically active persons.

 
The major factors contributing most to unemployment growth - despite the ones resulting in decline in employment - were:
 
- considerable increase of the number of persons at working age - population boom (in the years 2001-2005 labour reserves will rise by 1.15 million persons)

- change in health insurance regulations (health insurance covers registered unemployed),

- high employment costs (insurance, insurance premiums and so on).
 
In 2003 considerable improvement on the labour market is not anticipated. The continuation of restructuring processes will adversely affect the number of work places offered. But on the other hand higher economic growth rate will probably contribute to lessening employment curbs in comparison with previous years. The number of work posts created in the service sector will gradually offset their drops in other sectors.

The creation of work places in small and medium seize enterprises as well as the implementation of - The first job - package allow to estimate employment to increase by 0.8 per cent in the national economy and by 0.4 per cent in enterprise sector.

Source: Ministry of Economy, Labour and Social Policy "A study of Poland's economic performance in 2002"

 
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