Business

Sharp rise in Poland’s unemployment rate

05.02.2010 08:24

Jobless rate in Poland increased sharply last , reaching 12.8 percent in January, according to a preliminary report by the Labour Ministry.

The rate rose by 0.9 percent from December 2009 and is the highest since in Poland May 2007 when it reached 13 percent.

Labour Minister Jolanta Fedak thinks that the numbers are not too disturbing, however. "The rise \in unemployment is seasonal. It's difficult to judge now [if the trend will remain]. We need to wait until the spring to find out," Fedak said.

Many economists are surprised at the sharp rise, however, expecting 12.5 percent.

Unemployment benefits have increased increased since the beginning of the year. Poles who register at the employment office can now receive 717 zloty (178 euro), which is 142 zloty (35 euro) more than last year.

Labour market analysts predict that the upcoming months will bring further unemployment growth.

The official data on unemployment from the Main Statistical Office are expected at the end of February. (mg)

Comments: 8 Add new comment

John

05/02/2010 16:15:24

At the time where economy is showing growth of 1,7% it has unemployment rate increasing! Hmmm...It is a paradox.

Leszek

05/02/2010 20:40:08

Not really a paradox. Employment figures always lag behind growth.

05/02/2010 21:17:01

That's because westen European countries invested too much in Poland . If they took back then XXXXX

Jasiek

06/02/2010 02:22:23

There is something other than the factors of season and world economy.

The business circles must be taking the current surge in unemployment rate as a chance to hire inexpensive labour forces under the current business situation where the Polish economy, less dependent on export, healthier in finance than the other countries and more expectation for (surprisingly) massive public construction works for new motorways, railways, etc. - as massive as the old Nazi Germany proceeded with in terms of GDP, the budgets for which have been spared intact thanks both to the EU funds and Poland's economic prudence.

The problem is that the Polish employers are currently having a hard time to newly hire workers, not because the external economic recession but because the market mechanism is poorly working home and thus what New Keynesians call "stickiness" in labour cost is extremely persistent in the country that is still in the transition period from the ancien regime.

See the coal mine workers in Silesia and shipyard workers on the Baltic coasts for example, just they have little information how to choose but staying at mines and shipyards while there are chances to step towards new and easier lives.

They have little information because nobody tells them how to do in practise but certain groups in the Church who tempt the workers into a confrontationist and disintegrationist sentiment, or resentment to put it in another word, against the modern society including the government.

In practise, there is certainly hiding in the above paragraph a hint for the right first step for the government to take - a policy package of intensifying advertisement, education and red tape cutting in order to both give sufficient volume of information to the workers to construct motives to change mind to kickstart working differently elsewhere at home (not abroad) and fill the gap of needs, especially geologic and occupational ones, between workers and employers.

John, therefore the situation is not a paradox at all. If you were a coal miner in Silesia just following the leaders of the trade union shouting “Solidarity!” against the government, do you think you would ever really know and realise there is a chance of your new and better life with road construction in Wielkopolska?

GG, the WE countries invested into Poland so little in terms of GDP, which is the reason why the Polish economy is relatively healthy, with the controllable volume of debt capital.

jasiek

06/02/2010 12:49:31

wow!!!

magic mushies must be working well...

such diatribe have not read for a long while

i do not know what they teach you

but logic and reasoning is not your forte, panj jasiek

stevew

08/02/2010 09:59:46

the growth is driven by eu grants which do not necessarily translate in to jobs, as the grants slow and projects ease off people employed in them lose their temporary jobs. The cost of social taxes and income tax here for employers are far far too high, that plus rents which bear no reflection to reality of Poland rather Paris are why employers are not employing people . Employers saw the alleged crisis which never took place here as an excuse to slash costs at employees expense and the rise in unemployment reflects that. Also businesses are investing and modernising and techonology reduces the numbers of workers needed. Jasiek is right the handbrake on the economy of red tape, interference by the tax office in business is the main reason people arent opening up small businesses which are the powerhouse of any economy, they arent doing it because the costs of taxes rent and servicing this hideous bureacracy disincentivise people from opening a business, lower taxes to a flat rate reduce vat and remove the red tape and reduce the tax offices hideous powers and see the economy grow and unemployment decrease , the issue is the government dont want to decrease public spending or subsidising all their blasted companies they still own and of course they cant stop thinking business people are criminals and treating companies like piggy banks

John

08/02/2010 11:23:45

The worst enemy of the economy is a mass exodus of Poles from other countries returning to Poland, which might happend. Then, since no work is waiting for them in Poland, they would need to get unemployment benefits, which recently were increased to 750 zloty or something like that. One simple If 1.000.000 poles would return and 200.000 of them would get work, while others would have to get benefits, that would cost the state approx. extra 584 million zlotych each month. or 7 billion zlotych each year !

tetyana

12/04/2010 04:45:23

mho can tell me if its possible to get job in sphere of service in augustov[season].going to move to augustov from lithuania,know 3 languages but not Polish.thank you

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