Unemployment amongst young Poles one of the lowest in Europe. The Institute of Finance looked at the situation of young people

The Institute of Finance has published a report entitled “Economic Prospects for the Young Generation”, which outlines the situation of young people in the labour market. Much of the data is optimistic, but there are also many challenges in this area.

At a meeting held at the headquarters of the Ministry of Finance in Warsaw, the Institute of Finance presented its latest study – ‘Economic Prospects for the Young Generation’. The report addresses issues related to the situation of young people aged 18-26 in the labour market, their unemployment and opinions regarding future career prospects. The report also analysed the instruments of professional activation of young people, which are used in European countries.

“Recent years have been a time of very difficult challenges for the economy, both in Poland and worldwide. COVID-19 pandemic and the associated lockdown hit the liquidity of macroeconomic processes. Russia’s aggression against Ukraine is affecting markets in many industries. Finally, inflation is progressing in virtually every country. This is all a reality in which also young people must settle. Therefore, as the Institute of Finance, we decided to analyse this area, looking at the key challenges and prospects”, said Łukasz Chrobak, Director of the Institute of Finance, explaining the reasons for the report.

Stability and good prospects

The issues analysed in the report by the Institute of Finance included, among other things, analyses related to the level of youth unemployment. According to the study, Poland maintains a record low level of unemployment, but the authors note that in view of current macroeconomic trends, measures to activate young people professionally may be required.

Furthermore, it is worth noting that, according to the survey, the young assess their career prospects rather positively. Respondents aged 18-26, when asked about how they perceive their prospects for the next 5 years, in nearly 48% of cases stated that they rated their prospects as either very good (13%) or good (35%). Approximately 43% of the respondents answered ‘difficult to say’, 7% viewed their prospects negatively, and only 2% very negatively.

In addition, experts from the Institute of Finance point out that the overall situation of young people on the labour market in Poland is stable and much better than in earlier decades – for example, in the 1990s or the first decade of the 20th century, when our country was facing system transformation, hyperinflation or high unemployment. Detailed analyses of the situation of young people thus point to opportunities for the younger generation.

“It is worth taking a close look at the results of the surveys that were carried out as part of our report. They showed that young people viewed their mismatched education, too high expectations of the employer, insufficient skills, geographical constraints or just a simple lack of motivation to search for a job as the biggest barriers to finding employment. Today, the issue is not a lack of jobs for young people, but the method of shaping the labour market in such a way that it activates the youth and offers professional opportunities corresponding to their ambitions, while making the most of their potential”, explains Elżbieta Buk, an expert from the Institute of Finance.

The Institute notes that in terms of unemployment in the 18-24 age group, Poland boasts one of the lowest rates in the European Union. The average unemployment rate for this group in the European Union was 6% at the end of 2021. In France and Italy, it fluctuated around 7%. In Poland, on the other hand, the unemployment rate was only 3%.

Talks about the future

Despite these optimistic figures, experts are aware of the need to activate young people and shape the labour market accordingly. Therefore, as part of the ‘Youth and the Future’ conference organised by the Institute of Finance, accompanying the release of the ‘Economic Prospects for the Young Generation’ report, a discussion on the challenges facing the Polish economy in the context of young individuals was held with the participation of invited guests.

The panel discussion held as part of the conference included representatives of Polish business and youth organisations, as well as economic experts. Elżbieta Buk took part in the discussion on behalf of the Institute of Finance. The panel also featured Elisa Marques, acting Deputy Director of the Capital Investment Office at the Industrial Development Agency, Yuliia Pysmenna, Chief Operating Officer from Tutlo.com, Filip Budny, CEO and one of the founders of the startup MAGLY, as well as Kewin Lewicki, President of the Polish Student Parliament.

“What is needed today is a lively discussion on the challenges of the labour market. The mission of the Institute of Finance is to create a space for such a dialogue. The debate we organised was unique in that it brought together people who were vividly affected by our report – energetic young experts, acting today and building for tomorrow”, said Łukasz Chrobak, Director of the Institute of Finance.

The debate addressed issues related to the functioning of Polish employers or the shaping of competences of young people in the modern economy. Methods of activating the younger generation implemented in Western European countries were also analysed.

The report can be found on the website of the Institute of Finance: link to the report. Publication in Polish