Before 1990 a labor market, in the common sense of the term, did not exist in Poland. However with the fall of communism in Eastern Europe, Poland underwent a period of great transition characterized by drastic changes in the nation's economic sphere. There are various aspects to the labor market that can help one understand the nature of these changes which have shaped Poland over the last decade. The paper examines the most notable, employment and unemployment, and their common relationship effects on job vacancies and inflation.
"Over the last decade Poland experienced a great transformation in the size of its labor force. This transformation brought a large decline in numbers of the working population (employed) and employees (working for a wage or salary) within the civilian economy. This was attributed to the great change and re-allocation of the labor force. Levels of employment have been declining quite systematically since 1990. Many workers lost their jobs, either for a limited time or permanently. Another substantial number of workers changed employment quite rapidly, barely without a small period of unemployment between their old and new jobs. The transition also has brought a larger number of pensioners as a result of the introduction of early retirement schemes, as well as an increase in the number of disability claims. People who were afraid that they might lose their jobs had they exposed their health problems were now able to get disability status. In Poland the number of old age pensioners and disabled people increased by 1 438 000 in the period from 1990 to 1996."
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