Reducing the negative impact of demography on the Polish labor market requires actions aimed at better use of potential labor resources, especially among the youngest and oldest people and women of reproductive age, as well as extending the economic activity of people already working – according to the latest report of the Government Population Council “Poland's demographic situation”. The development and popularization of flexible forms of work may be of key importance.
“Demographic changes in the labor market in Poland consist in the simultaneous aging of the Polish population and a decline in the number of people of working age, as well as the inflow of immigrants, which partially compensates for the negative effects of changes in age structures. However, in the long term, the migration inflow will not be enough to eliminate the growing gaps in labor resources. Reducing these effects requires actions aimed at better use of potential labor resources, especially among the youngest and oldest people and women of reproductive age, as well as extending the economic activity of people already working” – the report said.
“The development and popularization of flexible forms of work, better access to care and health services and investing in lifelong learning and new competences, as well as the creation of working conditions that will enable increasing and extending the professional activity of people with health limitations – including disabilities – or those remaining outside the labor market due to the need to care for their loved ones” – added.
Necessary professional activation of women of reproductive age
The authors of the report emphasize that for many years the greatest challenge on the labor market has been the fuller use of potential labor resources, i.e. people of working age.
“This requires taking actions to increase professional activity among groups that are currently characterized by a low level of participation in the labor market. The largest reserves are found among women of reproductive age, people aged 50–59/64 and the youngest adults (18–24),” the report wrote.
As the authors of the report point out, the low professional activity of women, especially those of reproductive age, is often due to the need to combine work or further education with caring for children and dependents.
“In order to enable women to participate more in the labor market, it is necessary not only to provide financially accessible, high-quality care and educational services, such as nurseries and kindergartens, but also to develop logistically and financially accessible services supporting the care of the elderly or dependent adults. Care and educational services in the early school period should also be available during holidays, because the total number of days off from school significantly exceeds the vacation potential of parents or legal guardians,” it was written.
Internal migrations a challenge for social policy
“Internal migrations related to the spatial mobility of employees, at the same time, hinder the participation of the immediate family (grandparents) in child care and constitute an additional challenge for social policy. It is also important to introduce more flexible forms of employment, such as part-time work, flexible working hours or the possibility of remote work (at least partially), which will make it easier to combine professional duties with caregiving and family life,” it added.
At the same time, experts point out that greater involvement of men in care should be supported, e.g. by encouraging the use of non-transferable parental leave for fathers, which is lost if not used.
“Such activities may contribute to a more even division of household duties and increase women's professional activity,” it was noted.
Get retirees to work?
The report shows that despite the increase in professional activity of people near retirement age in recent years, their participation in the labor market still remains relatively low compared to other EU countries.
“The acquisition of pension rights should therefore not result in the automatic termination of professional activity by most people, but it requires the creation of conditions tailored to the needs and health capabilities of this group. Opportunities for further education, striving to improve the health of this group and better access to medical services, including the development of preventive measures and mental health support, are of key importance,” it was written.
“These actions may require greater investments in lifelong learning and the development of concepts promoting the employment of older people over 50 years of age: popularizing flexible working hours, adapting workplaces to their needs and the needs of employees with disabilities, as well as enabling them to work shorter hours. A significant increase in health care spending may be necessary,” it added.
According to experts, it is important to provide appropriate information about the benefits of extending professional activity in the form of a higher pension, as well as the possibility of using tax breaks, the so-called PIT-0 for seniors.
Younger age groups constitute an important reserve
Younger age groups, in particular people under 25, also constitute an important reserve of labor resources, and the introduction of more flexible forms of employment, such as casual or part-time work, may make it easier for young people to gain professional experience without having to give up formal education.
“It is also crucial to reduce the percentage of young people who do not work, study or participate in training (so-called NEET). Better career counseling for young people at an earlier stage (before they take a break or finish their education without entering the labor market) and the development of programs combining education with work may be helpful. In this age group, mental health support may also be an important element of effective entry into the labor market” – it was written.
“It is also important to support the combination of work and childcare in the case of young mothers, as well as greater involvement of labor offices in reaching out to people who are not registered as unemployed and therefore outside the support system. Greater emphasis on the activation of economically inactive people should make it easier to tap into this reserve of labor resources,” it added.
Experts point out that at the same time, the potential of immigration should be better used.
“Although migration is not a long-term solution to the problem of population aging and reduction, in the short and medium term it can significantly alleviate labor supply shortages. Effective management of migration processes is of key importance, including, on the one hand, identifying the needs – the size and structure of labor demand, and, on the other hand, developing solutions enabling the correct inclusion of this additional labor force in labor market statistics,” it was written.
“Better use of the migration potential may be facilitated by simplifying the procedures for legalizing the stay and employment of immigrants and supporting their integration through language, vocational and adaptation training,” it added.
Automation, robotization and AI may significantly change the structure of labor demand
The authors of the report emphasize that it is also worth bearing in mind that the currently observed labor supply shortages may be partially alleviated in the medium and long term by rapidly occurring technological changes.
“Automation, robotization and the development of artificial intelligence may significantly change both the volume and structure of labor demand. In the future, more than the shortage of workers itself, the main challenge may be to adapt the structure of labor supply to newly created jobs, which often require modern qualifications and competences,” it was written.
“Therefore, it is necessary now, in addition to measures aimed at making the best use of the existing demographic potential, to invest in acquiring new competences (including promoting a culture of lifelong learning), retraining employees and developing digital skills that may become necessary in the economy of the future,” it added.
Experts indicate that it is important to monitor changes in the labor market so that public policy can quickly respond to new challenges resulting from technological transformation. (PAP Business)
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