Bogdan Wankiewicz
The Poviat Programme for Counteracting Unemployment
People in Poland set high hopes on the local government reform, expecting first
of all that it would strengthen social bonds which offered a sense of having
real share in exercising authority and, consequently, led to job creation. It
has been several years now since the time that the first local government
elections were held that gave rise to communes, a local government level, but
also offered an opportunity for development to men of initiative.
Local government reform provided a basis for all other reforms, i.e. educational
reform, health system reform, and pension reform. Considerable delay in
implementing these reforms lead to many distortions that significantly affected
the situation in the labour market, as well. The unemployment curve in Poland
has been constantly rising in the recent years. 18%, i.e. over 3 million
unemployed is something that can already stir the social imagination.
Wałcz Poviat, just like the majority of Polish poviats, finds it difficult to
secure jobs for its inhabitants. At the end of 2001 the number of people
residing within the territory of the Poviat amounted to 57,715, which accounted
for 3.3% of the total number of Zachodniopomorskie Voivodeship inhabitants. From
the population structure analysis it follows that women’s share in total
population amounts to 50.6%, and this rate has remained constant for the second
year in a row. An analysis of Wałcz Poviat inhabitants’ age structure indicates
that the share of population in the productive (101.2%) and post-productive
(101%) age is systematically rising at the cost of pre-production age population
(96.9%). Potential labour force, i.e. the number of people in the productive age
(women aged 18 – 59 / men aged 16 – 64) increased by 403 people, i.e. 1.2%. The
number of people having jobs decreased by 704 individuals, of which 235 people
lost their jobs in industry and construction, 5 people in market services, and
71 people in agriculture, whereas the number of individuals employed in the
non-market services sector increased by 273.
At the end of 2001 there were 4,959 business entities registered within the
Poviat territory. The prevailing activity in the structure of entrepreneurs is
that related to trade: 38.7%, then there are non-material services: 10.70%,
industry: 9.9%, and building industry: 8.7%. In the aforementioned number of
entities 95.7% are private sector enterprises, of which 83.8% are those run by
natural persons. The majority of registered entities conduct their activities
within the city of Wałcz: 66%, and their increase in number when compared with
2000 amounted to 107.8%. In other Poviat communes the dynamics of registered
entrepreneurs number increase was as follows: Człopa: 101.5%; Tuczno: 111.9%,
Wałcz: 105.1%, whereas in Mirosławiec it remained unchanged.
When assessing the situation in the Poviat market in 2001 one has to state that
it was yet another very hard year. Despite an increased number of business
entities the number of registered unemployed, and consequently the unemployment
rate, has been rising systematically to reach about 29% at the end of the year.
Year 2001 was the worst of the last ten years as regards the amount of funds
allocated for effective forms of counteracting unemployment, as well as in terms
of their availability for the purpose of labour market programmes’
implementation: settlement of mandatory liabilities specified in the Act on
Employment and Counteracting Unemployment. The labour market is characterised by
high unemployment of women, exceeding 55%, high rural unemployment: 45.6%, high
unemployment among people with low professional skills (39.8% are job-seekers
having primary or incomplete primary education), and a high level of long-term
unemployment: 44.3%. As regards age, the largest group was that of the
unemployed aged 18 - 34: 52% of total registered job-seekers.
The increase in unemployment is affected by a radical deterioration in the
labour market situation resulting from the slowing down economic growth; high
employment costs; frequently changing legal regulations making it difficult to
run business; expensive credits, which resulted in the limitation of development
incentives in small and medium-sized enterprises, both in terms of cheaper
credits and larger flexibility in the labour market.
Deterioration in the Poviat labour market situation was also considerably
affected by massive lay-offs covering 560 people as reported by 20 employers due
to economic reasons. Such a high increase in lay-offs due to economic reasons,
as well as other conditions made the Poviat and Communes launch numerous actions
aimed at reducing unemployment.
An important step taken by the Poviat Council was the Poviat Programme for
Counteracting Unemployment and Stimulating Local Labour Market. The
aforementioned programme was developed in accordance with the assumptions of the
Social and Economic Development Strategy of Wałcz Poviat until 2010. This
document takes account of priorities and aims arising from such documents as:
- European Special Fund programme
- National Strategy of Employment Increase and Human Resources Development in
the years 2000 – 2006
- Programme for Entrepreneurship Support, Increase in Economy Innovation, and
Guidelines for Counteracting Unemployment in Zachodniopomorskie Voivodeship.
The need for developing the programme arises from the necessity of taking
actions aimed at creating more new jobs and, as a result, reducing unemployment
in the Poviat. The programme provides for activities pertaining to the
mitigation of unemployment consequences; improvement of the quality of human
resources present in the labour market; and adaptation of training to the labour
market needs. Activities to be carried out have been divided into three groups:
- tasks arising from the Poviat Strategy,
- Poviat’s own tasks arising from the applicable legal regulations,
- a system of local activities for the benefit of entrepreneurship and
employment growth.
The Poviat Programme for Counteracting Unemployment and Stimulating Local Labour
Market provides for the accomplishment of a mission whose aim is to increase the
population’s involvement in the labour process. This should be attained through
such indirect goals, as:
I. Undertaking actions aimed at stimulating the economic growth.
II. Stimulating the labour market through, among other things, a system of
activities whose aim is to increase employment and improve the employment
mobility and employability of the unemployed, as well as to develop human
resources quality.
III. Implementing the system of local activities for the benefit of
entrepreneurship and employment growth.
The Programme, depending on financial and organisational capabilities of the
Poviat and units being its partners in the performance of tasks, can be modified
and enhanced with new instruments, especially in the face of new financial
prospects arising from participation in financial programmes funded from
external sources.
What is particularly worth mentioning in the Programme is the System of Local
Activities for the Benefit of Entrepreneurship and Employment Growth, because
opportunities for the improvement of situation should be sought in the growth of
entrepreneurship, especially in the development of small and medium-sized, as
well as family enterprises, and in the promotion of investments since they may
become sources of regular jobs. Consistent implementation of labour market
programmes that mitigate unemployment consequences will also contribute to the
gradual improvement of situation regarding unemployment.
Local actions taken with respect to the entrepreneurship and employment growth
are aimed at the following:
- establishing a Poviat Centre for Entrepreneurship Support, and Communal
Centres for Entrepreneurship Support,
- establishing a Poviat Fund of Credit Guarantees,
- preparing a study of the local economic potential, as well as updating and
promoting it on an ongoing basis,
- supporting the development of interests and knowledge in the scope of
entrepreneurship and innovation,
- introducing allowances and preferences for entities that create jobs for the
unemployed.
These activities are meant to provide services in order to help individuals
interested in initiating business activities, and contribute to the development
of the small and medium-sized enterprises sector.
As part of the Programme one will form the Poviat Fund of Credit Guarantees
whose activities will cover the Poviat of Wałcz, and whose task will be to
provide credit guarantees intended for:
- business activity taken up by the unemployed,
- creation of jobs for the unemployed, taking account of preferences for
entities from areas that require support, and in particular for the development
of entrepreneurship in rural areas and small towns.
No inventory of economic potential has been taken in the Poviat. Thus, it is
necessary to prepare the study of local economic potential, and to formulate
principles of its ongoing updating and promotion through:
- preparation of the economic potential study,
- creation of a repository of economic information, and ongoing data updating,
- promotion of the local economic potential.
Actions that are undertaken are aimed at integrating numerous partners around
the problem, including in particular local governments from the territory of
Wałcz Poviat.