Labor Market and Economic Activity

Between 2000 and 2005, the working-age population (15 64) decreased by 263,200. This negative trend is mainly due to the low birth rate, aging population and migration processes.

During the same period, a decrease in the number of the current eco-chemically active population (15 64 years) was observed by 52 900 people. The observed decrease is due to the lower growth of employed persons – 178 500 people compared to the decrease in the number of unemployed persons 231 500 people.

The activity rate for the population aged 15-64 increased from 60.7% in 2000 to 62.1% in 2005.

Despite the observed increase in the level of activity, still, 37.9% (200 2100 people) of the population are out of the workforce. About 25% of these persons want to work, but do not seek work for various reasons, incl. personal and family commitments; illness or injury; inadequate profession or specialty; lack of necessary education, qualifications, skills or work experience, etc.

The activity rate of young people (15 24 years) is 27.9% and of adults (55 64 years) 38% is low compared to the EU level. Concerning the labor market in Europe is the tendency of decreasing the share of active young people. Obviously, measures to assist them in finding the first job have a high purpose for increasing the number of European workforces. Since 2001, middle-aged and middle-aged people (aged 35-54) have been identified as the main group of economically active people. The tendency of the aging workforce requires lifelong learning as a major measure for developing the intellectual potential and professional competence of the workforce.

In 2005, the share of the well-educated persons in the workforce by degrees is relatively high (55.9% with secondary education and 24.1% with higher education or masters in business administration (MBA) education).

Vulnerable groups in the labor market

In 2005, according to data from the Employment Agency, the downward trend in the registered unemployed of all disadvantaged groups in the labor market, with the exception of the unemployed with disabilities, continued. Among the most vulnerable groups in the labor market are: long-term unemployed; young people under 29 with no work experience or no education and profession; unemployed with low education and no qualifications; disabled people and adults unemployed for over 50 years.
Long-term unemployed (persons with regularly maintained registration for more than 1 year in the Labor Office Directorate). Despite the decrease in the absolute number of long-term unemployed, they are still more than half of all unemployed (55%). The sustainability of unemployment is particularly pronounced among the low-educated and the low-skilled. This is evidenced by the fact that 70.8% of the long-term unemployed have basic and lower education and 72.7% without professional qualifications.

Unemployed youth. The downward trend in unemployment of young people up to 29 years continues, with their share in the total number of unemployed being 25.2%. The unfavorable educational and qualification structure of the unemployed up to the age of 29 has an extremely negative long-term effect on their employment. Of the unemployed youths up to 29 years of age with primary and lower education are 65.6% and without professional qualification 73.6%.

Unemployed persons over 50 years of age. The number of unemployed persons over 50 also continues to decline and their share in the total number of unemployed is 28.3%. Unemployment in people over 50 has a long-term nature, about 60% of them are long-term unemployed.

Unemployed people with disabilities. In 2005, the trend of increasing the number of registered unemployed with disabilities continued. In 2005, out of 100 unemployed, nearly 5 were disabled. A prerequisite for this trend is the limited ability of persons with reduced working capacity to start working in non-subsidized and inappropriate jobs according to their needs, which is why they actively use the services provided by the Employment Agency.

Unemployed persons with a low level of vocational education and without specialty and profession. More than half of them are registered with basic and lower education 59.9% and without profession and specialty 63.8%. Despite the observed decrease in the number of unemployed persons with primary and lower education, their share in the total number of unemployed persons remains relatively high.

Regional aspects of the development of the labor market

One of the characteristic features of the labor market in recent years is the presence of significant and sustainable regional disparities. A pronounced territorial differentiation is observed both in terms of volume and composition of the labor supply, and in terms of demand. Regional differences are reflected in the values ​​of indicators from all aspects of the functioning and development of the labor market, employment, unemployment, pay, labor productivity, educational qualification and demographic structure of the labor force.
According to NSI data for 2005, the activity level is lowest in the Northwest Planning Region, 40.7%, 1-5 percentage points lower than in 2003 and 9 percentage points lower than the national average. The highest economic activity was registered in the South-Western Planning Region (54.1%), which is 0.8 percentage points higher than the total for the country. It is disturbing that, despite the general increase in economic activity in the country, there is a downward trend in some planning regions, such as in the northwest and southeast.

Regarding convergence in the labor market indicators for the planning regions, the following trend is observed. In terms of economic activity and employment, 2003-2005 there is an increase in the degree of dispersion of the indicators. For economic activity, the indicator rose from 3.2 in 2003 to 3.9 in 2005, respectively, from 3.9 to 4.8 in employment. It can be seen that the dispersion in the employment rate is higher. The unemployment trend is positive.

The future development of the workforce is in the direction of its aging and reducing its absolute number. The number of pensioners will exceed the number of young people entering the labor market. The burden of support for the population at retirement age will increase. The hired workforce will need to have high productivity and professional and geographical mobility. The reduction in the working-age population and its aging, as well as the requirements for maintaining the competitiveness of the economy after accession to the EU, leave without alternative the need to maximize the utilization of available labor resources and improve their qualitative and structural characteristics in accordance with the needs of employers.

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