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EFFECTIVE REGIONAL UNEMPLOYMENT SOLUTIONS

Polish perspective and practices from the Lodzkie region

Joanna BednarkiewiczVoivodeship Labour Office in Lodz

24 -25 March 2014

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Brief information about the situation on the labour market in Poland

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Situation on the labour market in Poland

At the end of January 2014, the number of unemployed persons registered at labour offices was 2,260.6 thousand.

The rate of unemployment was 14.0% but in February it did not increase for the first time since 2008 (when the unemployment rate was at the level of 9,5%).

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Main characteristics of Polish unemployment:

1. Seasonality, which means increases in the numbers of registrations during some and decreases during other periods. Traditionally, increased registrations occur in the months at the year’s beginning and end. That was due inter alia to the start of seasonal work in the construction and agricultural sectors, and the beginning of the tourist season.

2. Differentiation between the regions of the country which results from both uneven socio-economic development of the regions and their geographical locations. This is illustrated inter alia by the rate of unemployment. As at the end of September 2013, the difference in unemployment rates, i.e. difference between the lowest and highest figures in particular voivodships, was 11 percentage points (wielkopolskie voivodship – 9.4%, lodzkie voivodship - 14,1% and warmińsko – mazurskie voivodship – 20.4%).

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Main characteristics of Polish unemployment:

3. The economic transformations noted over the recent years concern mainly residents of towns and cities where enterprises are predominantly located. The number of registered unemployed residing in towns and cities was 1,180.3 thousand people (56.7% of the total number). Compared with the end of September 2012, the urban unemployment figure increased by 4.9% while rural unemployment increased by 5.7%.

4. Registered unemployment is dominated by women who constitute 52.1% of the total unemployment figure. At the end of September 2013 under consideration, there were 109 women per 100 unemployed men.

5. 398.3 thousand registered unemployed (19.1%) are people aged 18-24.

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Main characteristics of Polish unemployment:

6. The labour office statistics at the end of September 2013 included 290 thousand unemployed with the right to the benefit who constituted 13.9% of the total unemployment figure.

7. People with the highest qualifications are in the most favourable situation on the labour market. The number of unemployed with higher education was 254.2 thousand persons (12.2%) at the end of September 2013, with registered women being much better educated than men.

8. Unemployment people remaining out of work for more than 12 months – of 791 thousand people – constituted 38% of the total registered figure at the end of September 2013. A younger age and better education reduce the risk of remaining unemployed for more than 12 months. Also, the average duration of registered unemployment among men is shorter than the figure for women.

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Information about the labour market in the Lodzkie region in 2013

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The registered unemployed in Poland

VOIVEDESHIP January'13 July'13Difference between period:

July'13 January'13

ŚLĄSKIE 208,7 206,2 -2,5

DOLNOŚLĄSKIE 153,4 151,1 -2,3

KUJAWSKO - POMORSKIE 145,8 143,8 -2

POMORSKIE 112,9 110,9 -2

ZACHODNIOPOMORSKIE 105,1 103,1 -2

WIELKOPOLSKIE 145,4 143,5 -1,9

ŁÓDZKIE 152,4 150,7 -1,7

MAŁOPOLSKIE 160,9 159,6 -1,3

OPOLSKIE 50,4 49,6 -0,8

LUBUSKIE 58,5 57,9 -0,6

LUBELSKIE 128,6 128,4 -0,2

WARMIŃSKO - MAZURSKIE 107,4 107,3 -0,1

MAZOWIECKIE 281,8 281,8 0

PODLASKIE 68 68,1 0,1

PODKARPACKIE 145,8 146,2 0,4

ŚWIĘTOKRZYSKIE 84,2 85 0,8

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The unemployment rate in Poland (July/August 2013)

July 2013August 2013

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The unemployed – categories (August 2013)

In 2013 among 148 764 of the unemployed in Lodzkie region the largest groups were: THE LONGTERM UNEMPLOYED 53,4 % (79 402 persons) and WOMEN – 49,6 % (73 782 persons).

WO

ME

N

32,8%

49,6%

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Labour market services and tools offered by Polish Public Employment Services

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Labour market services offered by Polish PES

Labour market services offered by PES: - employment agency

- job counselling and vocational information

- assisstance in active job searching

- training courses

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Employment agency

Specific activities• gathering and disseminating job offers from employers • offering information about job candidates (registered unemployed)• organizing contacts between employers and the unemployed / job

seekers• organizing job fairs• offering information about actual and future situation on local labour

market

Target groupemployers and all types of registered unemployed and people registered as

job seekers

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Job counselling

Specific activities• assistance in selection of candidates (registered unemployed) in

relation to submitted job offers• assistance in career development of an employer and its employees

(analyzing career potential, planning of career development including professional training)

Target group employers and their employees

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Vocational information

Specific activities• vocational information about vocational schools and possibilities in

vocational training• career information about tasks, assignments, psychophysical

conditions etc. for specific occupation• information about possibilities in working in individual occupations and

working conditions

Target group all people (registered and not registered) including employers and

employees

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Assisstance in active job searching

Specific activitiespreparing job seekers and the unemployed to a better and effective job

searching through:

• job searching trainings• counselling and trainings in job clubs • providing an access to datebase about job opportunities

Target group all types of registered unemployed and people registered as job seekers

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Training courses Specific activities• co-financing training courses of employees• sending unemployed as a replacement for employee on a longer

trainingforemployers that established in their companies a Training Fund

• trainings for employees at age 45+ (also financing costs of licence, examinations or postgraduates studies)

foremployees at age 45+ (also owners of one-man companies) registered in

jobcenter

• training courses to gain new skills, occupation or qualifications that employers need including also financing of examinations and training loans

for the unemployed

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Labour market tools offered by Polish PES

PES in Poland may also offer labour market tools such as:

- apprenticeship for adults- internships- subsidized jobs - public work- reimbursement of social contributions related to the wage- reimbursement of costs of workplace’s equipment- financial resources for setting up one’s own business

The unemployed participating in a certain programme may also receive:- reimbursement of a child care- reimbursement of travel and accomodation costs

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Apprenticeship for adults

Specific activities• in-plant education for adults: lasts 12-18 months; its programme is based on vocational school requirements or craft learning standards; exams are organized by bodies appointed by governmental authorities (the Ministry of Education) or by chambers of commerce;• in-plant training for adults: lasts 3-6 months; its programme is based on national competences standards required by employers (set up by the Ministry of Labour and Social Policy) or other requirements agreed by contractors; exams are organized by training institutions, chosen by the Local Labour Offices

Target group all types of the registered unemployedand employers who offer a special programme and appoint a mentor for an unemployed

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InternshipsSpecific activitiesfinancing trainee’s monthly wage up to limited and agreed extent together with compulsory contributions (netto wage is financed directly to the trainee)

Target group the unemployed in a specific situation, especially:• the youngsters up to 25 or up to 27 if there is less than 12 months after graduating,• above 50,• long-term unemployed,• with no professional qualifications or secondary education• with no professional experience,• women without occupation after childbirth,• lonely parents raising a child up to 18,• the disabled,• former prisonersand employers who offer a special programme

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InternshipsSpecific activitiesfinancing trainee’s monthly wage up to limited and agreed extent together with compulsory contributions (netto wage is financed directly to the trainee)

Target group the unemployed in a specific situation, especially:• the youngsters up to 25 or up to 27 if there is less than 12 months after graduating,• above 50,• long-term unemployed,• with no professional qualifications or secondary education• with no professional experience,• women without occupation after childbirth,• lonely parents raising a child up to 18,• the disabled,• former prisonersand employers who offer a special programme

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Subsidized jobs Specific activitieshiring and refunding trainee’s monthly wage up to limited and agreed extent together with compulsory contributions (reimbursement of incurred costs is paid to the employer) up to 6 months

Target group the unemployed in a specific situation especially:• the youngsters up to 25,• above 50,• long-term unemployed,• women without occupation after childbirth,• the disabled,• former prisoners,• less qualified or with no professional experienceand employers who submit a special application.

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Public workSpecific activitieshiring and refunding trainee’s monthly wage up to limited and agreed extent together with compulsory contributions (reimbursement of incurred costs is paid to the employer) up to 12 months

Target group the unemployed in a specific situation especially:• the youngsters up to 25,• above 50,• long-term unemployed,• women without occupation after childbirth,• the disabled,• former prisoners,• less qualified or with no professional experience • awarded alimonyand employers from local government (municipalities) and NGO’s.

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Reimbursement of social contributions related to the wage

Specific activitieshiring unemployed (on a full time basis) and refunding his social contributions up to 12 months

Target group the unemployed in a specific situation especially:• above 50,• long-term unemployed,• less qualified or with no professional experience,• living alone and having at least one person on supportand employers who submit a special application.

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Reimbursement of costs of workplace’s equipment

Specific activitieshiring unemployed (on a full time basis) and refunding his workplace’s equipment (eg. computer, machine, clothes)The unemployed must be hired within at least 24 months period of time on a full time basis.

Target group only unemployed having professional qualifications and experience relating to the job offerand employers running a company more than 6 months, who submit a special application.

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Financial resources for setting up one’s own business

Specific activitiesgranting financial resources for setting up one’s own business combined with trainings facilitating obtaining knowledge and skills necessary to set up and run businesses as well as legal and economical counselling.

Target group the unemployed wanting to set up their own business

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Effectiveness of PES measures

Job effectiveness – calculated as a result of relation between people who start a job 3 months after their participation in the chosen measures and total number of people participating in the chosen measures.

Cost of participation – calculated as a result of relation between a total amount of resources given to the chosen measures and a total number of people who start the chosen measures

Cost effectiveness – a cost of an renewed employment, calculated as aresult of relation of the two above measures.

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Effectiveness of PES measures

In 2012 a number of people who participate in basic PES tools was 428.298 persons.The most popular forms were: intenrnships (42% people) and training courses (19 % people).

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Effectiveness of PES measures

The best effectiveness was achieved by granting financial resources for setting up one’s own business and reimbursement of costs of workplace’s equipment (100%).The poorest effectiveness was the result of training courses (42,5%).

The highest/lowest job effectiveness in the Polish regions:

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Effectiveness of PES tools: Lodzkie region in comparison to Poland

CHOSEN PES TOOLS

2010 2011 2012

JOB EFFECTIVENESS JOB EFFECTIVENESS JOB EFFECTIVENESS JOB EFFECTIVENESS JOB EFFECTIVENESS JOB EFFECTIVENESS

IN LODZKIE REGION AT NATIONAL LEVEL IN LODZKIE REGION AT NATIONAL LEVEL IN LODZKIE REGION AT NATIONAL

LEVEL

TRAINING COURSES 32,40% 36,70% 46,40% 43,10% 36,80% 42,50%

INTERNSHIPS 51,30% 48,40% 54,90% 52,60% 61,50% 60,90%

SUBSIDIZED 79,20% 70,80% 77,90% 71,40% 78,90% 74,40%JOBS

PUBLIC WORK 60,20% 46,00% 71,20% 53,20% 74,60% 57,30%FINANCIAL RESOURCES 100% 100% 100% 100% 100% 100%

REIMBURSEMENT

100% 100% 100% 100% 100% 100%OF COSTS

OF WORKPLACE ‘S

EQUIPMENT

TOTAL 55,9 54,2 60,3 55,7 62,8 60,9

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Information about the scope of European Social Fund - Human Capital Operational Programme

(HC OP) 2007-2013

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HC OP 2007-2013: the main objectives

The main objective of the Human Capital Operational Programme is increase in the employment level and social cohesion. The objective is implemented by professional activation, development of adaptation potential of enterprises and its employees, increasing the education level of society, limiting the social exclusion areas and support to mechanisms of efficient management in state administration.

Priorities implemented at the regional level, by Voivodeship Labour Office in Lodz cover:- Priority VI The labour market open for all;- Priority VII Promotion of social integration.

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The Priorities VI and VII of the HC OP - the target groups

People without employment or threatened by social exclusion, aged 15

– 64 or older, ready and capable to take on employment.

In particular:

- Young people- Women - People aged over 45 years - The longterm unemployed- Residents of the rural areas- The disabled

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We have supportedUp to 80 thousands people who finished their participation in the HC OP projects

14,5 thousands people who received the financial resources for enterprise development

16 institutions working for the development of social economy

63% of participants of HC’s projects found a job

Lodzkie region has a third position, after Mazovia and Silesia, among the regions which supported entrepreneurship and self-employment

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The diversity of the projects

Systemic projects of poviat labour offices – thanks to the HC OP local job centres were able to support the larger group of the unemployed

Systemic projects of social assistance centres and poviat centres for family support – thanks to the HC OP the clients of these institutions received the complex support (vocational, educational, health and social assistance)

Systemic project of Regional social policy centre in Lodz – thanks to the HC OP the personnel of social assistance institutions received trainings and specialist counselling

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The diversity of the projects

Projects for development of professional and social activity run by NGO’s, private companies, self-governamental institutions – thanks to the HC OP a large number of people without employment or threatened by social exclusion received a complex support on the labour market

Innovative projects – thanks to the HC OP it was possible to search for and test the new, better and more effective measures of solving the labour market problems

Transnational projects – thanks to the HC OP it was possible to make use of the experience of the transnational partners and to transform and adopt their solutions in Poland

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Information about the projects run by the Public Employment Services

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Projects of the Voivodeship Labour Office in Lodz

„Regional Observatory of the Labour Market in Lodz”

The aim of the project is to gather, analyse and disseminate information about the labour market in Lodzkie regionas well as to create an exchange of data among the labour market entities.Period: 1 January 2011 – 30 June 2015 Value: 4,3 million PLN

„Flexible solutions on the labour market”(the transnational project with the Danish partner - Jobcenter Aarhus)

The aim of the project was to disseminate the flexicurity idea among the labour market entities of the Lodzkie region through the adoption of the Danish solutions for support of the unemployed and promotion of the flexible forms of employment. Period: 1 January 2011 – 31 December 2012 Value: 3,8 million PLN

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Projects of the Voivodeship Labour Office in Lodz

„ FLEXI MUM – the strategy of communication with the employers as a chance for a job career for women”

The aim of the project is to enhance the cooperation with the employers through the the adaptation and dissemination of Danish strategy of communication and creation of job practices among the 52 companies In Lodzkie region.In the period VII-XI 2013 both parties created a startegy of communication with the employers. The startegy’s goal is enhancing the communication between the labour market entities and the employers in Lodzkie region. The strategy was used in the recruitment procedure within the framework of the project, we will also disseminate it through the workshops for the PES employees. So far we’ve managed to establish 26 internships. The characteristics of these job practices is the form of their organisation (telework). We provide the computers, computer training courses, drafting an Individual Action Plan, social skills trainings and a 6 months long telework internship). Period: 1 July 2013 – 31 May 2015 Value: 1,5 million PLN

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Projects of the Poviat Labour Offices from Lodzkie region„Young Business”

Poviat Labour Office (PLO) East Lodz has launched a project „Young Business” addressed to 36 unemployed people aged less than 25 years.The main objective of the project is an active support of the entrepreneurship and self-employement of the young people from the region.The main actions cover: ABC of the enterpreneurship training, individual job counselling with an Individual Action Plan, analysis of the strenghts and weeknesses of the potential bussiness. After this phase the participant receive financial resources for enterprise development.

Period: 1 October 2012 – 31 October 2014Value: 703,6 thousands PLN

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Projects of the Lodzkie’s PLO

„The disabaled- able in action”

Poviat Labour Office in Rawa Mazowiecka will launch this project next month. The project is addressed to 20 unemployed people aged 18 - 64 years, at least 30% of them will constitute the disbaled with strong or considerable level of disabilities.The main objective of the project is reducing a vocational and social marginalization of the disabled in the region.The main actions cover: individual psychological and vocational counselling as well as internships or job practices .

Period: 1 April 2014 – 31 March 2015Value: 325 thousands PLN

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„A road to career”

Poviat Labour Office in Skierniewice will launch a new project next month. The project is addressed to 40 long-term unemployed people under 25 years.The main objective of the project is enhancing a level of employement of the target group.The main actions cover: individual psychological counselling, workshops of the social skills (such as assertiveness, stress management, job interview techniques), independent job seraching as well as internships and the services of job agency .

Period: 1 May 2014 – 30 June 2015Value: 700 thousands PLN

Projects of the Lodzkie’s PLO

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„Your career- your choice”

PLO in Sieradz is one of the 23 local job centres in Poland and the only one from the Lodzkie region which are running a pilot project „Your career – your choice” in the framework of the „Young people on the labour market” initiative organized by the Polish Ministry of Labour and Social Policy.The project is addressed to unemployed people aged under 30, registered in the local job centre for the first time 6 months before the start of the pilot programme. The main objective of the project is testing the new, innovative technique of enhancing activity, mobility and independence of the young people through the personalized and intensive assistance. The participants are receiving: an individual mentor assistance, a voucher system based on the educational and job practice vouchers as well as vouchers for the potential employer, displacement subsidy (to cover the cost of living in the new place of residence).

Projects of the Lodzkie’s PLO

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Projects of the other Polish PES

PLO in Gdansk is cooperating with the detension centre in Gdansk to help the inmates in their return to the society and labour market. The prisoners are receiving a vocational and pyschological counselling before they end their stay in the detension centre.

„Activity as your chance”

„ Building a house through a system of training courses for the unemployed”

PLO in Nysa used the apprenticeships for adults in a practical way: they cooperated with local authorities and created social houses. 150 longterm unemployed were trained in occupations such as electricians, carpeneters, painters, fitters and bricklayers and then – through subsidized jobs - used their new skills in constructing 12 social apartments.

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Projects of the other Polish PES

PLO in Nysa in order to establish good and permenent relationships with the local employers created a Club of 100 – the best 82 employers selected by the criteria such as economic growth, profile or stability were invited to join the club of friends of local PLO. During individual meetings with the PLO’s employees they were asked to specify their needs, goals and chances of future employment - this information was used in the further PLO’s cooperation with the entrepreneurs.

„Club of 100”

„ 3 musketeers”

PLO in Nysa established six professional teams consisting of 3 PLO’s employees (vocational adviser, job counsellor and a person responsible for contacts with the employers). Those teams worked on enhancing the effectiveness of PLO’s actions on the field of employement.

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Projects of the other Polish PES

VLO in Cracow is running a project aimed at helping the unskilled unemployed. Through an individual counselling, training courses and the subsidized jobs in the local cultural institutions around 500 people may get the chance of returning to the labour market. They are employed in cultural institutions, NGO’s, local authorities in jobs concerning the monument’s restoration and a protection of the cultural landscape.

„Conservationist”

„50+- mature, needed and competent”

The other project of VLO in Cracow is aimed at helping the unemployed aged 50+. Among well-known tools such as individual psychological counselling and internships the project use innovative forms: work of volunteers aged 45+ from the cooperating NGO and tutoring.

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Thank you for your attention

Voivedeship Labour Office in Lodz90-608 Łódź, Wólczańska street 49www.wup.lodz.pl