3.11 Current debates and reforms
The improvement of the situation on the labour market in Poland (decrease of unemployment, increase of employment rate, limitation of fixed-term contracts) contribute to a better situation of young people. However, not all barriers hampering the labour activity of young people have been removed. Many young people still face severe difficulties preventing them from starting an independent addulthood. In this respect, the young people not in education, employment nor training need to be mentioned (NEET).
According to Eurostat data (2023), they (NEET) account for 9.2% of all Europeans (UE27) aged 15-24 and 15.1% of those aged 25-29 (in Poland 6,9% and 13.0% respectively). Early school leavers from education and training (aged 18-24, 2023) account for 9.5% in Europe (EU27) against 3,7% in Poland. The employment rate of young people aged 20-29 (2023) is at the level of 65,9% in the EU27 and in Poland 69.3% (however in many countries it is significantly higher – 83.9% in the Netherlands, 76,4% in Austria, 76.8% in Germany and 75.8% in Estonia). The unemployment rate for young people aged 20-29 in the EU-27 was 7,4% and in Poland, 4,6%, and for people aged 15-24 it is significantly higher in the EU-27 reaching 14,5%, while in Poland – 11,4%.
Current issues and reforms regarding youth employment and entrepreneurship are linked to the following issues.
Better support for the process of youth transitioning from school to the labour market. This is to be achieved through, among other things, the education reform (effective from the 2017/2018 school year) and the modernisation of higher education study programmes (as a result the introduced reform of higher education from the 2018/2019). The main goals of those changes are the real inclusion of employers in the education and traineeship processes, at all stages of education, and approximation of the education and research process to the labour market and business needs. Significant emphasis is also on improving the functioning of psychological and pedagogical counseling for students and career counseling for youth and young adults.
Competencies of the future and lifelong learning. Improving the forecasting system in the area of demand for occupations and skills and competencies required in the labor market, including in the context of the requirements arising from the so-called "Industry 4.0" model, the European Green Deal (EZ³) plan, the growing demand for skills needed in the health, care and education sectors. Launching programs and services to improve the professional skills of young people and support continuing adult education.
Support for the development of young entrepreneurship and start-ups. The emphasis on developing innovative attitudes and launching start-ups is related to the development policy of the country, which is geared towards investment objectives and increasing the competitiveness of the economy, by increasing expenditures on science and development of new technologies, supporting Special Economic Spheres, Business Incubators and improving the functioning of the business environment, including tax preferences for young people (e.g., tax breaks for young entrepreneurs, the so-called "relief for start-ups", tax exemption for those under 26 years of age "No PIT for the young").
Measures to facilitate the reconciliation of working and private life. This is to be achieved through initiatives aimed at the development of childcare infrastructure and forms of childcare (i.e. programy Aktywny Maluch, Aktywny Rodzic), and the development of housing programmes for young people and families with children (i.e. Mieszkanie+ scheme, Mieszkanie na start ) Changes to the Labor Code in 2023 to allow separators to work from home using flexible work arrangements. The changes introduced in parental leave policies are also aimed at reducing the differences between employees with children and those without, as well as between women and men. These actions are closely connected to improving the situation of women in the labor market, where they earn significantly less than men, are overrepresented in low-paying professions, less frequently receive promotions, and occupy fewer leadership positions.
Support for disadvantaged groups in the labor market is primarily targeted at youth leaving the mandatory education system, NEET (Not in Education, Employment, or Training) individuals, and people with disabilities. These actions are carried out by various institutions such as employment offices, the Youth Labour Corps (OHP), within the framework of the EU Youth Guarantee Program, PFRON programs, and other initiatives funded by national and European funds. These programs aim to provide tailored support to help these groups integrate into the labor market and improve their employment prospects. It is important, in this area, to support the development of the social economy sector by implementing a system of accreditation of centres for support of social economy entities and allocating additional financial instruments for their development.
Limitation of various forms of temporary employment (under employment contracts and civil law contracts) and better protection of employees. In 2019, zero PIT was introduced for young employees up to 26 years old, but the minimum wage and hourly rate are constantly being raised. Consultations on the new labour law are ongoing. Particularly important in this context is the regulation of certain forms of work based on the use of modern technologies (such as platform work). This form of work is becoming more widespread in Poland and, as the experience of other countries indicates, this may lead to an increase in the percentage of people working based on unusual forms of employment. Starting from January 1, 2025, according to government announcements, civil law contracts (umowy zlecenia) will be subject to mandatory social insurance contributions. This change aims to ensure that individuals working under such contracts are covered by the same social security protections as employees, including access to pensions, healthcare, and other benefits.
Public policy in the area of employment and entrepreneurship (cf. documents such as the Strategy for Responsible Development until 2020 (with a forecast up to 2030), the National Employment Action Plans for the following years (Krajowe Plany Działań na rzecz Zatrudnienia) is aimed at better preparing young people for the labour market, creating attractive and development-promoting workplaces for young people in Poland as well as encouraging entrepreneurship and encouraging the establishment of new businesses. Priority is also given to creating conditions for better integration of working and private life by supporting the development of housing and social infrastructure (i.e. Mieszkanie+ scheme, currently new housing programs for young people), development of various forms of childcare (i.e. Maluch Plus, currently called Aktywny Maluch, Aktywny Rodzic) and by supporting the demographic development of the country and counteracting the poverty of families with children (Rodzina 500+ scheme: benefit in the amount of 500 PLN, monthly paid for every child under 18 years of age, currently called Rodzina 800+). An important aim is to stop the emigration of young people from Poland and to create conditions for the return of economic migrants to the country.
The COVID-19 epidemic has accelerated the pace of change in many companies related to the use of remote working and automation. Debates about the process of educating and preparing young people to enter the labour market address the digital skills needed for a changing work environment increasingly based on remote work. On the other hand, accelerated processes of automation and robotisation of workplaces may reduce the demand for labour and increase unemployment. The debates and reforms concerning the shortage of workers and demographic policies related to the ageing of the Polish society are gaining importance. In this context, activities aiming at appropriate preparation of young people to enter the labour market and equipping them with relevant competences for Industry 4.0 are of particular importance.
The results of the 2021 National Census of Population and Housing highlighted the significance of demographic policy for the Polish labor market. The observed phenomena include: depopulation, the threat of depopulation in most areas of Poland, accelerated aging of the population, the concentration of the population in metropolitan areas, and the gradual transformation of the country from an emigration country to an immigration country. A factor counteracting these demographic threats is proper labor market management (Szukalski 2023). In this context, the importance of a coherent and long-term youth policy is growing, including the issue of youth and young adults in the mainstream of policy and better coordination in the areas of education, employment, entrepreneurship, combating social exclusion and discrimination, at the national, regional, and local levels. Additionally, the previously mentioned solutions aimed at young people, including young refugees, are crucial to ensuring social protection, work-life balance, access to healthcare, housing, and childcare services.