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Youth unemployment in Poland

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Marcin Borys

on 23 January 2014

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Transcript of Youth unemployment in Poland

Youth unemployment in Poland
Youth (un)employment situation in Poland
The main barriers for youth employment
Examples of good practices implemented in Poland
General information
Unemployment is one of the most serious economic and social problems in Poland.
The unemployment rate has grown rapidly the transformation period (after the fall of the communism) - in 2002 it reached 20%
It ceased and even today, during the crisis it is estimated to be about 13%
After joining the EU in 2004, about 2 million Poles emigrated in search for the job or better earnings to EU countries (mostly UK, Ireland and UK)
Youth unemployment rate in Poland is about 28%. It is decreasing slowly, in 2003 it was tremendous 43%.
Four out of ten unemployed in Poland is younger than 30.
Education versus the labour market
More than 20% of Poles have University degrees, 78% have high school diplomas.
There are nearly 500 universities and colleges in Poland, of which 140 are state owned. They are attended by more than 1,8 million of students, which is 10% of all European students.
53% of young Poles (aged 19-24) study at the universities right now. (with only 12% in 1989)
In the same time, the number of unemployed with university degree has doubled.
Every university student is obliged to make practice in a workplace during his education.
No support from the firms
Due to polish educational system young people after they have finished their studies have hardly any practice and it’s insufficient for the companies to employ people without any job experience.
The inflexibility of polish labour code
and high labour cost
In Poland there is a big problem when it comes to contract of employment. For the companies those kinds of contracts doesn’t pay off because they have to pay health insurance and social insurance contribution.
The education with no cooperation
The structure of the unemployment of people <30, according to the level of education, shows that only 17,4% of the unemployed youth has higher education and more than 19,4% has the middle school and even lower than middle school level of education.
The companies are rather looking for people with practice than with amazing college degree.
They give young people so called “garbage contracts” where they don’t have to pay those contributions and all the contributions are all on the employee.
Most of the uneducated people live outside the cities, they are unwilling to take some training courses and they are choosing to have no job.
In the cities, it's people who graduated from humanistic faculties who struggle to find the job. They usually forced to work under their quallifications.
The education is unrelated with the market.
Only 15% of schools cooperate with local enterprises.
Young people are paid badly, they don't have chances to develop and if they strike they are being fired - "because there is always someone willing to work"
What is caused by...
Human Capital Program
The program runs since 2007 and is financed by the EU in 85%
The main objectives of the Programe include:
Improving the level of professional activity and ability of finding employment by persons who are unemployed and professionally passive
Reducing areas of social exclusion
It contains free courses, workshops and subventions
Subventions
The most popular is subvention for running private buisness.
To get it, You have to be registered as unemployed, and do not attend to any school.
You have to present your idea for business, to committee and if they accept it, You will get
5.000 Euro
. When You have plans for a really big project, You can take even four times more. It is easier to get it, if your idea is connected with culture or any art.
Special Self-Employment Regime (RETA)
Young self-employed people will be able to pay a minimal contribution for common contingencies during the first few months.
During the six months a young person will be given an 80% reduction in their normal payments. For the following six months, a further reduction of 50% will be applied to the minimum base rate.
One year after registration with the RETA regime, men under 30 years of age and women under 35 will benefit from reduced rates and a 30% discount on their contributions over the following 18 months.
The Strategy also aims to help the self-employed by allowing them to claim unemployment benefits while they are starting up their business. Benefits will be paid for nine months to those under 30 who have registered with RETA.
Supporting employers taking on part-time workers when they include a training component for someone under 30 who has never been in employment and has work experience of less than three months.
The employer will receive a 75% reduction of employer’s Social Security contributions for 12 months. Companies with fewer than 250 employees will get a 100% reduction.
Part-time jobs
The Youth Guarantee
Seeks to ensure that all young people up to age 25 receive a quality offer of a job, continued education, an apprenticeship or a traineeship within four months of leaving formal education or becoming unemployed.
A Youth Guarantee has a fiscal cost for Member States, but this cost is much lower than the cost of inaction.
It is estimated that the total cost for establishing Youth Guarantee schemes in the Eurozone would stand at 0.45% of the Eurozone's GDP, or €21 billion. However, these costs should be compared with the costs of unemployment, inactivity and lost productivity. The costs of benefits paid out to unemployed young people, foregone earnings and taxes are estimated by the European Foundation for the Improvement of Living and Working Conditions (Eurofound) to be the equivalent of 1.21 % of GDP, i.e. an annual loss of €153 billion for the EU.
Thank you for your attention :)
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