What is the Unemployment Rate?

The unemployment rate is a statistical quantity that describes the level of unemployment in a given society, most often a country, but in Poland it is also calculated for provinces and districts. The calculation of the unemployment rate is handled by the Central Statistical Office and is the ratio of unemployed people to the number of economically active people, i.e. those who have or are looking for work and are registered with the District Labor Office.

Does the unemployment rate reflect real unemployment?

Unfortunately not, because not every job seeker registers at the office as unemployed and on his own looks for a job, and there are also cases when a person is registered and collects benefits from this title, but works in the black, that is, without a contract.

What kind of unemployment are we facing?

Unemployment is divided in our country by the reason for its occurrence, as well as by the time at which it occurs. So there will be unemployment conjunctural, which depends on the cycle of development of the economy, structural, which is caused by a mismatch between the demand for labor and its supply, frictional, associated with the natural movement of employed people, and seasonal, which occurs only during a specific season. As for the duration of unemployment, we have short-term unemployment – up to 3 months, medium-term unemployment – from 3 months to a year, and long-term unemployment, which is already over a year.

Can unemployment be alleviated?

Unemployment can be controlled to a certain extent, and above all it is the government that has an influence on it, among other things by providing non-refundable subsidies to companies, introducing early retirement, organizing training, public works, or supporting entrepreneurship. In District and Provincial Labor Offices, you can learn about projects that are aimed at combating unemployment, and among them you can find the organization of courses, or non-refundable subsidies for starting a business.