Presentation by Lukasz Arendt (University of Lodz, Poland) on the occasion of the 20th LMO meeting on 6 June 2011 in Madrid, Spain

1. Youth unemployment in Poland – recent improvements and future challenges Lukasz Arendt, Department of Economic Policy University of Lodz Poland

2. Two stories of youth unemployment Youth unemployment rate (people under 25) Source: Eurostat

3. Two stories of youth unemployment Youth unemployment rate as % of unemployment rate 15+ Source: Eurostat

4. Institutional arrangements in Poland The role of Public employment services PES provide the following services for all unemployed and job seekers : Work exchange Vocational counselling and information Assistance in active search for a job Organization of training courses

5. Institutional arrangements in Poland The role of PES as for youth unemployment The Act on employment promotion and labour market institutions defines a category of „persons in special situation on the labour market” to whom specific ALMPs are available: Intervention works Public works Apprenticeship (till 2009 available only to youth unemployed) Adult vocational education This category includes the unemployed under 25 years of age.

6. Additional measures provided by PES for youth unemployed Within 6 months since the registration, the district job centre should present to the youth unemployed a proposal of employment, training course, apprenticeship, adult vocational education, intervention works or public works Apprenticeship lasts up to 12 months (for other types of unemployed up to 6 months)

7. ALMPs focus on the youth unemployed In 2008 260.6 ths youth unemployed (87.2% of registered unemployed) were involved in ALMPprogrammes In 2009 the number rose to 268 ths Youth unemployed share in total unemployment in 2009 was 22.5%, while in the group of people involved in active programmes - 38.4%

8. ALMPs focus on the youth unemployed % of eligible youth unemployed who used selected ALMPs Source: Ministry of Labour and Social Policy

9. Voluntary Labour Corps –labour market institution focused on the youth Actions addressed only to people aged 15-25 Focus on the youth exposed to marginalization and social exclusion Some statistics for the Youth Job Offices in 2010: registered over 175 ths young job seekers 166 ths workplaces acquired 172 ths young people sent to employers almost 111 ths employed

10. Conclusions - challenges There is a strong correlation between unemployment rate 15+ and youth unemployment rate During the crisis (economic slowdown in Poland) resources allocated to ALMPs (especially for apprenticeships) were of high importance as for combating youth unemployment. If there had beenno state intervention, the youth unemployment rate surely would be higher

11. Conclusions - challenges Still, efficiency and effectiveness of ALMPs is the problem. Many people under 25 become unemployed again after completing the apprenticeship. Significant cut in the Labour Fund resources allocated to ALMPs in 2011 (about 70% less than in 2010) may result in higher youth unemployment in Poland this year.

12. Thank you for your attention Lukasz Arendt Department of Economic Policy University of Lodz P.O.W. 3/5 90-255 Lodz Poland e-mail: larendt@uni.lodz.pl