3.6 Integration of young people in the labour market
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On this page
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Youth employment measures
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Flexicurity measures focusing on young people
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Reconciliation of private and working life for young people
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Funding of existing schemes/initiatives
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Quality assurance
Youth employment measures
Supporting the professional activation of young people experiencing unemployment or remaining outside the labor market is one of the most important issues and objectives of both European and Polish social policy. The wide range of services offered within the framework of active labor market policy and other initiatives in the areas of education, employment, and social support strengthens the position of youth in the labor market and prevents social exclusion.
Youth employment is supported through a range of services and instruments provided for in the Act of 20 April 2004 on the promotion of employment and labour market institutions. Many services and instruments addressed to young people are implemented through public labour market institutions i.e. Employment Offices and Voluntary Labour Corps Ochotnicze Hufce Pracy (OHP). It is worth stressing that during the first decades of market economy the youth unemployment rate was very high and that the services and instruments supporting young people were available also for young adults (under 30 years old). After 2015, total and youth unemployment in Poland started to fall. However, young people especially in the under-25 group still face difficulties in entering the labour market and maintaining stable employment.
In Employment Offices, those registered as an unemployed may avail of the following services or support instruments:
- job seeking and recruitment, job placement, vocational guidance;
- intervention works, public works, socially useful works, reimbursed costs of travel and accommodation, reimbursed costs of taking care of child under 7 or a dependent;
- improving qualifications: traineeships, training sessions, tripartite training agreements, apprenticeships for adults, scholarship for continuing education, co-founding post-university courses, founding the costs of exams and licences, training loans;
- co-founding the business activity start, loan for the business activity start, co-founding the business activity start based on the rules stipulated for social cooperatives.
- employment voucher, occupancy (housing) voucher, traineeship (internship) voucher, training voucher (these forms only for an unemployed under 30 years old);
- refund of social security contributions for unemployed people under 30 years of age who take up a job for the first time (valid for 12 months, after 12 months the employer must employ the person for another 6 months).
Young people are one of the main target groups for activation efforts carried out by employment offices. In the years 2015–2017, individuals under the age of 30 accounted for over 50% of the unemployed activated, and in subsequent years, their share decreased to about 46.5%. In 2021, nearly 126,000 unemployed individuals under 30 benefited from active labor market programs, including 72,300 individuals under 25. These figures represented 45.3% and 26.0% of all unemployed people who received active support. Young unemployed people made up almost 69% of participants in adult vocational preparation programs, over 58% of internship participants, more than 47% of training participants, and about 40% of participants in subsidized work. By the end of 2021, nearly 135,000 young unemployed individuals had benefited from the new labor market instruments (training, internship, employment, and relocation vouchers) introduced in 2014 (Praca dla Młodych, 2022).
The Voluntary Labor Corps (OHP) is a state institution focused on youth, especially those at risk of social exclusion and unemployed individuals under 25. The OHP’s care and educational institutions accept individuals aged 15–18 who are seeking care and opportunities for education and obtaining qualifications in professions in demand in the labor market. The OHP also recruits youth at risk of dropping out of the education system. Each year, over 30,000 young people receive this type of support in care and educational institutions, including education and training centers, training and education centers, and labor brigades.
Additionally, OHP units provide employment mediation (both domestic and international), career counseling, and vocational training. They implement numerous programs for young people funded by national and EU programs. Since Poland's accession to the European Union, OHP has carried out projects aimed at youth at risk of social marginalization and enabling them to acquire vocational qualifications. From 2004 to 2019, OHP supported over 116,000 young people through projects valued at a total of 608 million PLN.
ECAM – OHP have launched the Electronic Youth Activation Centre (Elektroniczne Centrum Aktywizacji Młodzieży -ECAM). It is a service platform for young jobseekers, those with learning difficulties or having problems with functioning in their environment. Through the ICT system, young people can receive specific information about the location of the nearest OHP unit, which can provide them with education or employment assistance. ECAM was created as part of the project “OHP as a Provider of Labour Market Services” thanks to European Union funds from the European Social Fund.[EG1] [EG2]
The Voluntary Labor Corps (OHP) also operates a national helpline at the number 19524, providing phone information about the assistance offered by employment offices and OHP – the Employment Services Information and Consultation Center "Zielona Linia" (Green Line).
State Fund for the Rehabilitation of Disabled People (Państwowy Fundusz Rehabilitacji Osób Niepełnosprawnych, PFRON) subsidises services and instruments addressed to people with disabilities offered by Employment Offices. Support can be provided to people with disabilities registered as unemployed and those who do not have an unemployed status but who are looking for work.
In 2017, PFRON launched three pilot programmes aimed at increasing the employment of people with disabilities in the open labour market (including young people). Each programme is expected to provide employment to at least 1,000 people.
• The Graduate programme, addressed to graduates and students in their final year at higher education institutions.
• The Stable Employment programme in administration and public services.
• The “Work-Integration” programme, addressed to enterprises and non-governmental organisations.
In 2022 PFRON has launched a new program "Independence-Activity-Mobility" Housing for Graduates (2022). This is a subsidy for renting an apartment or house for the period of job search and starting employment for a period of 36 months. It applies to adult graduates who have completed their education within the last 3 years.
Youth Guarantee system
The improvement of the labour market situation of young people is also largely due to the implementation of the Youth Guarantee Initiative. Implementation of the Youth Guarantee Initiative was launched in Poland in 2014. Among the addressees of the Youth Guarantee Initiative (Zaktualizowany Plan Realizacji Gwarancji dla Młodzieży) within Poland, four subgroups have been identified. The offer of the Initiative has been adjusted according to the subgroups needs:
- Persons aged 15 to 17 who are leaving school early – persons who neglect the schooling obligation (under 16 years old) or the educational obligation (under 18 years old).
- Persons aged 18 to 29 who are not in employment, education or training (NEET) – including those who require special support, i.e. those who are separated from the labour market, from disadvantaged backgrounds, and from rural areas.
- Persons aged 18 to 29 registered as unemployed – including registered students of extramural and evening study programmes.
- Unemployed youth and job seeking graduates of schools and higher education institutions within 48 months from the date of graduation or receiving vocational qualification, aged 18 to 29 – in terms of support of young entrepreneurship.
Since the implementation of the Youth Guarantee Initiative in 2014-2019, more than 4.3 million young people in district labour offices have been covered by the programme and 2.7 million have completed participation in the programme within 4 months of registration due to employment, training, vocational preparation and internship.
New edition of the Youth Guarantee Initiative. The Ministry of Family and Social Policy plans to continue a new edition of the Youth Guarantee Initiative (GdM). The new EU Council Recommendation of October 2020 on Strengthening the Youth Guarantee was placed much more emphasis on the preparation of digital competences of participants in activation activities under the programme (Council Recommendation of 30 October 2020 on A Bridge to Jobs - Reinforcing the Youth Guarantee and replacing the Council Recommendation of 22 April 2013 on establishing a Youth Guarantee 2020/C 372/01). Therefore, the draft update assumes that any candidate interested in participating will be able to undergo a validation of their existing competences at the beginning and, if deficiencies are identified, will have the opportunity to correct them by participating in a training course to improve digital competences. The financial source will be the European Social Fund (ESF), under the next financial perspective 2021-2027.
The new edition of Guarantees for Youth (2022) is addressed to young people in four subgroups:
- 15-17 year olds dropping out of school or neglecting compulsory schooling/education;
- persons aged 18-29:
a. registered as unemployed;
b. who are outside of employment, education and training (NEET);
c. who are unemployed and job-seeking school and university graduates;
- those who have left foster care;
- women under 30 years of age raising children.
The Minister in charge of labour (Minister Rodziny, Pracy i Polityki Społecznej) is the National Coordinator of the Youth Guarantee, while the Minister in charge of regional development (Minister Funduszy i Polityki Regionalnej) provides support in financial and organizational aspects. The key institutions implementing activities to support young people in entering the labour market are:
- District and provincial labour offices - labour offices are the primary institutions for supporting the unemployed in returning to the labour market throughout the country. Labor offices are local government units, subordinate to the provincial marshal (provincial labour offices - WUP) or the district starost (district labour offices - PUP)
- Voluntary Labor Corps (OHP) - is a state budgetary unit supervised by the minister responsible for labour. The main purpose of OHP's activities is to create conditions for the proper social and professional development of young people - with particular emphasis on activities addressed to young people from disadvantaged backgrounds, requiring assistance from state institutions.
- Bank of National Economy (BGK) - is a state financial institution specializing in servicing the public finance sector. BGK's mission is the efficient and cost-effective implementation of activities commissioned by the State, supplemented by the development of its own activities for selected market segments.
Implementation of the Youth Guarantee in Poland in 2021-2027 will be carried out within the framework of 16 regional programs, developed for each province depending on the diagnosed needs.
Social economy and solidarity. Young people in a difficult life situation and at risk of social exclusion may find support in various social economy entities. Currently, there are about 100 000 social economy entities in Poland. These are social enterprises (e.g. social cooperatives); reintegration units, i.e. units whose main objective is the social and professional reintegration of persons at risk of social exclusion (e.g. Vocational Activity Establishments, Occupational Therapy Workshops or Social Integration Centres); associations, foundations and entities in the economic sphere - non-profit companies and cooperatives whose objective is the employment of, for example, the disabled and the blind.
Flexicurity measures focusing on young people
In Poland, measures have been taken to increase the security of employees on the labour market, which involved counteracting the abuse of civil law contracts by employers, temporary work, and low wages. These changes relate significantly to the situation of young people in the labour market, as they are the most affected by these practices. Other activities increasing the safety of young employees on the labor market are: zero PIT (2019) for young people and programs supporting work-life balance.
Counteracting the abuse of civil law contracts and introducing a minimum hourly rate
In order to prevent the abuse of civil law contracts in employment and to protect the lowest paid workers, the Act of 22 July 2016 amending the Minimum Wage Act and certain other acts (Journal of Laws (Dz.U.), No. 1265, as amended) introduced into the legal framework a guaranteed minimum wage for specific civil law contracts (previously, it applied to only contracts of employment). From 1 January 2017, a minimum hourly rate of PLN 13 is applicable to each hour of commissioned work or services provided (including via self-employment). In subsequent years, the rate will be adjusted to a level corresponding to the increase in the minimum wage for employees. From January 2022, the minimum wage increased to PLN 3 010, the hourly rate to PLN 19.70. As of January 2023, the lowest wage will rise to 3,490 PLN gross, while the minimum hourly rate will be 22.80 PLN gross and another increase is planned for mid-year, due to high inflation. As of July 1, 2023, the minimum wage in Poland was 3,600 PLN, which is approximately 810 euros. Poland ranked 14th among 22 European Union countries in this regard (Hajec, 2023). From July 1, 2024, the minimum wage will rise to 4,300 PLN, with an hourly rate of 28.10 PLN for each hour of work or services provided.
Changes in the employment of temporary workers
In 2017, the Act on Temporary Workers and various other laws were amended. The changes are to enter into force on 1 January 2018.
The maximum duration of temporary work has been reduced. A temporary employment agency will be able to delegate a temporary worker to work for a single employer for a period not exceeding 18 months in total in any period of 36 consecutive months. At the same time, the employer will be able to avail of the work of the same temporary worker for a period not exceeding 18 months in total in any period of 36 consecutive months. The law also envisages strengthening the court measures available to temporary workers. They will be able, like other employees, to bring action before a labour court of their choice.
Protection of Young Workers
In 2023, new regulations came into effect regarding prohibited work for minors. The Regulation of the Council of Ministers from June 19, 2023, concerning the list of works prohibited for minors and the conditions for their employment in certain jobs, aims to align the provisions with current standards for work performed by minors and the core curriculum for vocational education in technical schools. The new regulation is designed to ensure safe practical training and professional preparation for minors in the out-of-school education system.
ZERO PIT - tax exemption for young people up to 26 (2019)
From August 1, 2019, there is a tax exemption for salaries of persons up to 26. The relief (or more precisely, tax exemption) will cover revenues from the service relationship, employment relationship, outwork, cooperative employment relationship and contracts, received by the taxpayer up to the amount PLN 85 528 in a tax year (as of 2024)
Reconciliation of private and working life for young people
Projects concerning the reconciliation of working and private life are carried out within the framework of competitions announced by the Ministry of Family, Labour and Social Policy.
In 2017, a practical web-based platform which provides comprehensive information on the mechanisms for reconciling working and private life was developed. It shows employers step by step how to introduce optimal solutions in this respect in their workplace. This platform was developed under the project “Family and Work – It Pays Off!” co-financed by the European Commission.
2017 (Q4) will see the announcement of the competition entitled “Implementation of Tools to Support the Fight Against Discrimination in the Workplace and Access to Employment in Small Enterprises” under Measure 2.1 Equal opportunities for men and women in all areas, including access to employment, career development, and the reconciliation of working and private life (Knowledge Education Development Operational Programme).
The Ministry of Family and Social Policy (formerly the Ministry of Family, Labour and Social Policy) initiates and is responsible for a number of measures aimed at helping to provide financial support and institutional care for a small child. Various forms of support for families with children are aimed at preventing family poverty as well as helping parents to combine working life with childcare.
A scheme supporting the development of childcare institutions for children under the age of 3 has been carried out by the Ministry of Family, Labour and Social Policy since 2011 (Maluch Plus). It envisages co-financing from the state budget – through an open tender – of initiatives for creating new or keeping the existing available places by various entities (public and non-public) in various forms of childcare institutions (crèche, children’s club and daycare provider). The "MALUCH+" program for the development of childcare institutions for children up to the age of 3 has now been replaced by the "Active Toddler 2022-2029" program. The program is funded by both European and national funds.
Family500+ is a state social policy programme implemented in Poland since 1 April 2016 to help families raise their children through monthly child-rearing benefits for each child up to 18 years of age in the amount of PLN 500, regardless of income (the rate is increased in the case of a child with disabilities to PLN 800). As of January 1, 2024, the amount of the child support benefit was increased to 800 PLN per month per child (Rodzina 800+). Additionally, starting from January 1, 2024, new supportive benefits for individuals with disabilities, including children with disabilities, were introduced. The amount of these benefits is linked to the level of independence and the degree of support specified in the disability assessment.
Family Care Capital is a new benefit for parents of children aged between 12 and 36 months - a total of PLN 12,000 for the second and each subsequent child (the solution came into force on 1 January 2022). Starting October 1, 2024, a new program supporting parents in their caregiving roles, called "Active Parent," will be launched. The program includes three types of benefits to support parents in balancing work and child-rearing:
- "Active Parents at Work" benefit – funding for private childcare (often referred to as "grandparent care").
- "Active in Nursery" benefit – funding for childcare in institutional settings.
- "Active at Home" benefit – funding for parental childcare at home (replacing the family caregiving capital benefit).
The implementation of the so-called Parental Directive and Work-Life Balance Directive took effect on April 26, 2023, with the adoption of the amendment to the Polish Labor Code and other related laws (Act of March 9, 2023, Dz. U. 2023, item 641). The aim of this legislation is to implement two EU directives:
- Directive (EU) 2019/1152 of the European Parliament and Council of June 20, 2019, on transparent and predictable working conditions in the European Union.
- Directive (EU) 2019/1158 of the European Parliament and Council of June 20, 2019, on work-life balance for parents and carers, which repeals Council Directive 2010/18/EU.
The Parental Directive introduces individual rights related to paternity, parental, and caregiver leave, as well as flexible working arrangements for employees who are parents or caregivers. The goal of this directive is to encourage a more equal sharing of caregiving responsibilities between women and men.
The second directive aims to improve working conditions by ensuring more transparent and predictable employment practices.
These changes are expected to improve the quality of work and life for employees by ensuring a balance between professional and private life, as well as reducing disparities between parents and childless workers, and between women and men.
Funding of existing schemes/initiatives
The youth employment promotion policy implemented by Public employment services is financed, among other sources, from the Labour Fund (a state-owned special purpose fund created from employer contributions) and from European funds, and in the case of people with disabilities, also from PFRON funds.
Public employment services may outsource some of their services to private and non-governmental organisations.
Implementation of the Youth Guarantee Initiative is financed from public funds and European funds., e.g. in the years 2017-2018 the effect on the public finance sector will total approximately PLN 2.7 billion annually (including about PLN 1.1 billion of European funds; estimated data). The new edition of the Youth Guarantee Program will be implemented both with national funds together with the funds from the EU budget under the ESF and ESF+.
Projects related to the reconciliation of working and private life carried out through competitions are financed from the state budget and European funds.
Additional support for people with disabilities (in addition to funds collected by PFRON) is provided by the Solidarity Fund. There is a state special purpose fund established by the Law on the Solidarity Fund of October 23, 2018. (Journal of Laws of 2020, item 1787, as amended). The purpose of the Fund is, among other things, to provide social, vocational, health and financial support to persons with disabilities, social and vocational reintegration initiatives undertaken by social economy entities, activities to ensure accessibility for people with special needs.
Quality assurance
Statistics on youth participation in active labour market policies (ALMP), including the cost-effectiveness and employment effectiveness of the different forms of activation, are collected by the Ministry of Family, Labour and Social Policy and are publicly available.
The results of empirical research indicate, however, that young people are dissatisfied with the quality of services offered; especially young people who have difficulty entering and remaining in the labour market, such as the disabled. NEET group is another group where activation programmes are not effective enough.
Employment support projects funded by European funds in previous financial perspectives often did not have long-term goals, and those funds were not used effectively.
The diagnosed barriers in the use of EU funds in Poland include (Strategy for Responsible Development until 2020 (with a forecast up to 2030)):
- Insufficient developmental effect of the projects selected for co-financing
- Low effectiveness of the applied forms of support
- Poor effects of support in the area of innovation
- Insufficient potential of the implementing institutions and the beneficiaries to plan and implement strategic development projects affecting socio-economic growth and employment
- Ineffective mechanisms for co-ordination of the various European funding measures
The main task in the current financial perspective for 2021-2027 is to use EU funds to achieve permanent developmental effects in the country. It is worth emphasizing that the observed improvement in the working conditions and employment of young people is also a result of legislative changes, as well as employers' personnel policies. Employers, who are increasingly feeling the shortage of workers, must implement solutions that encourage young people to take up employment and remain in the workforce.