better work, better life: polish formula for flexicurity brussels, 27.11.2007r. michał boni ph. d

BETTER WORK, BETTER LIFE:POLISH FORMULA FOR FLEXICURITY

Brussels, 27.11.2007r.

Michał Boni Ph. d.

GROWTH AND JOBS STRATEGY KEY CHALLENGES FOR POLISH LABOUR MARKET - BUSINESS PERSPECTIVE

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WHAT WE UNDERSTAND „FLEXICURITY”?

Shift from „job security” to „employment security The new world of work in modern economy:

Adaptability of companies because of competitiveness Adaptability of workers because of labour market

dynamics Flexibility/employability on the workers’ side Flexibility/security on the companies’ side

Flexicurity – much more efficient labour market


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KEY COMPONENTS OF „FLEXICURITY” Flexible and reliable contractual

arrangements Comprehensive lifelong learning strategies Effective Active Labour Market Policies

(ALMP) Modern social security systems oriented

not at passivity, but enhanced activity of beneficiaries (from WELFARE STATE MODEL into WORKFARE STATE)


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FLEXIBILITY IN POLAND(characteristic features)

High level at fixed of using term contracts (dilemmas – what is the better solution: have job or not have)

Part time job (malfunctioning phenomenon)

Time arrangements – who decide (work life balance)

Examples of precariousness (Youth?)


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FIXED-TERM EMPLOYMENT IN THE EU


PART TIME JOB

Źródło: Working time and work-life balance: policy dilemma? European Foundation for the Improvement of Living and Working Conditions


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EMPLOYMENT CREATION IN THE EU


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PART TIME JOB (Poland) 1992 – 2006 – slow decreasing tendency by 300

000 (20%) Working at the country side: 52,5% Working at the country side, in small homestead

of south-east Poland – 50% Working population – up to 55% low qualifications,

32% related to agriculture Sectors of economy: agriculture, construction

(approx. 60%) over 50 - 40%, below 30 – 28%


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FLEXIBLE WORKING TIME ARRANGEMENTS


WORKING TIME ARRANGEMENTS BY COUNTRY


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In a group of 3.2 mln people working in Poland of fixed terms – 65% of people up to 30 years old Which means possibility of speed changes of job and promotion position and payment – especially at the time of economic growthAdvantages of young generation – compared to older persons in terms of qualificationsResult in the net growth of 1 mln of workplaces in 2004-2006 – 40% for people with higher education level

Working Youth – 1 mln study and work:• 180 thousand – part time job,• 140 thousand - Temporary Agencies Work • About 5% young people work in the grey zone of the economy (ca 300 thousand people between 20 – 29 years old)

EMPLOYED YOUNG PEOPLE IN POLAND


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ADULT EDUCATION


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DEMAND FOR SUPPLEMENTING PROFESSIONAL QUALIFICATIONS (groups)

Young migration with higher education (35% in the structure of migrants to GB), but of low quality – capital depreciation

Young at professional start-up (up to 30) (need for supplementing qualifications and competencies)

Middle age (30 – 40) professional reorientation – after 7/11 years of experience change of profession – II educational boom

Older (over 45/50) – III educational boom (70% basic education) remaining employed market competencies usage of experience


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ACTIVE LABOUR MARKET POLICY(Polish challenges)

Low capacity of PES (low level of job brokering) Low level of participation in activation programs

(from 16% – 2004 to 25,5% - 2006) Low expenditure (0,25% - 0,3% GDP) Only employers’ sources and EU create ALMP Focus on Youth (40% of expenditures) Crucial groups out of interest (elderly – 50+;

disabled; low qualified, long term unemployed) Lack of possibilities to outsource employment

services Effectiveness/efficiency


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What the ALMP efficiency is?Real efficiency of support?

What effectiveness of impact? Who was activated? What cost?

%

Net efficiency (2)Net efficiency (2) ??????

90

Result indicators

Completed training...

52

Impact’s gross efficiency indicators

... found employment...

30Net efficiency (1)

... thanks to the program

Do we help those, who could not manage on their own?


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EFFECTIVE LABOUR MARKET Matching: demand – supply Well addressed interventions (on groups, on

situations…) PES and contractors – complementary model of

employment services LLL infrastructure (access) development Inclusive Labour market (no segmentation) Trade Unions understanding of changes of the

modern economy and labour market (flexibility development with links to security)


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FLEXICURITY and CHALLENGES AHEAD What does it mean „flexibility”?

We know (es employers) We should change the utilization of part time job We should trade off: using of fixed term contracts/change and

shorten the termination period What does it mean „security”?

Better employability by better education Better and effective ALMP by much more effective PES and

complement, outsourced employment services Better solutions for „work – family reconciliation”

„Flexicurity” as a vehicle towards much more effective, adaptable, competitive labour market Sharing responsibilities (the state, the trade unions, employers,

workers): ne forms of partnerships New legislation framework PROMOTION

better work, better life: polish formula for flexicurity brussels, 27.11.2007r. michał boni ph. d

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