With the adoption of the 2025 Act on Labour Market and Employment Services, Poland’s Regional and Powiat Labour Offices have been tasked with identifying, contacting, and activating economically inactive individuals, defined as those neither employed nor registered with the Public Employment Services (PES). This OECD review provides recommendations to help the PES deliver on these new responsibilities, taking into account its multi-level governance structure and the central role of its 340 Powiat Labour Offices, which lead local efforts to engage Poland’s diverse inactive population. The first chapter sets out strategies to strengthen partnerships with community-based actors and foster institutional collaboration to reach and register the economically inactive. It then presents tailored activation strategies to address both common and group-specific employment barriers, followed by guidance on improving employer engagement to support the labour market integration of those facing significant challenges in finding work.
Developing Public Employment Services for Economically Inactive People in Poland
Abstract
Increasing labour force participation has become a priority across OECD countries for social, demographic, economic, and fiscal reasons. Historically low unemployment rates in many OECD countries have reduced the pool of available workers, while ageing populations are shrinking the working-age population, leading to growing labour shortages that risk constraining long-term growth. Reducing economic inactivity, defined as the share of the working-age population who are neither working nor actively seeking employment, can help counter this development, as inactive individuals represent untapped labour market potential. Integrating the economically inactive into the labour market not only helps mitigate labour shortages but also alleviates fiscal pressures, as low labour force participation increases reliance on public benefits. Many economically inactive individuals further belong to disadvantaged groups, such as people with disabilities or those with care responsibilities at home and face systemic barriers to employment. Engaging these groups can therefore reduce inequalities and support broader social objectives.
In Poland, a low unemployment rate and a declining working-age population have shifted the focus towards activating economically inactive individuals to help mitigate labour shortages. In 2024, Poland’s unemployment rate for 15–64-year-old individuals stood at just 3%, well below the OECD average of 5%. The low unemployment rate is gradually contributing to labour demand pressures, as employers face increasing difficulty in filling vacancies. Between 2014 and 2024, the average quarterly number of job vacancies almost doubled from 56 000 to 107 000. In addition, Poland’s rapidly ageing population is likely to exacerbate labour shortages in the coming years. The number of 15-64 year olds is projected to drop from 24.8 million in 2024 to 19.8 million in 2050.
Poland’s economic inactivity rate is slightly below the OECD average, but the headline figure masks substantial geographic disparities in both the level and underlying reasons for inactivity. In 2024, Poland’s economic inactivity rate stood at 25%, similar to the EU-27 average and slightly below the OECD average of 26%. Among men aged 15 to 64 and women aged 15 to 59, where the upper bound reflects Poland’s statutory retirement age, 4.9 million individuals were economically inactive. Large geographic disparities in economic inactivity rates persist. The gap between the regions with the highest (Podkarpacia; 31%) and lowest (Warsaw; 18%) inactivity rates reached 14 percentage points in the working-age population, well above the OECD average of 10 percentage points. Large disparities also exist at the powiat (local) level, even when students are excluded (Figure 1.1). The highest inactivity rates are found in former coal-mining regions in the south, such as Wodzislawski (Silesia) and Rybnicki (Silesia), where early retirement is common, and in rural powiats in the north and south-east, where discouragement from seeking work is widespread. The lowest rates occur in urban areas with stronger employment opportunities and greater access to childcare. Differences in the relative level of economic inactivity are thus closely linked to variations in industrial structure, GDP per capita, and income levels across local labour markets.
Economic inactivity rate (excluding students) across Polish powiats among 18-59/64-year-olds, 2021, in percent
Note: The upper bounds of the working-age population correspond to the statutory retirement age in Poland, which is 60 for women and 65 for men.
Source: OECD calculations based on Population Census Data, 2021.
Previous OECD work has highlighted accessible childcare, improved digital infrastructure, and place-based skills policies as levers to reduce economic inactivity in regions with the highest inactivity rates. Expanding childcare infrastructure, in particular for very young children in rural areas, would enable mothers to return to work and would be especially beneficial in voivodeships in Eastern Poland, where inactivity is relatively high and childcare provision for the youngest children remains underdeveloped. Improving digital infrastructure can also facilitate teleworking and enable mobility-impaired individuals to participate more fully in the labour market. Finally, place-based policies can support workers in regions most affected by labour market transformations. For instance, in areas experiencing job losses linked to the net-zero transition, such as Silesia, a region in southern Poland with a long-standing coal-mining and industrial tradition, local reskilling and upskilling policies can help smooth the transition and prevent economic inactivity.
Poland’s 2025 legislative reform broadened the mandate of the Public Employment Services (PES) to include support for economically inactive individuals, extending active labour market policies beyond registered unemployed and jobseekers. Under the previous 2004 Act on Employment Promotion and Labour Market Institutions, individuals without income had to register as unemployed to access the full range of PES services and, depending on their employment history, qualify for unemployment benefits. Those who registered as jobseekers could receive income while still accessing selected PES support, primarily job mediation, counselling and training, but were excluded from measures such as internships or short-term job placements. Economically inactive individuals who were not registered with the PES were not eligible for any services, aside from limited participation in awareness-raising campaigns. The new 2025 Act on Labour Market and Employment Services, which came into effect in June 2025, requires the PES to actively reach out to and support economically inactive individuals, granting them access to activation services and programmes delivered by labour offices.
Even registering only those economically inactive who are willing to work could almost double the number of PES clients. Survey-based estimates, typically representing a lower bound of people’s willingness to work, suggest that, excluding students, approximately 460 000 economically inactive individuals of working age would like to work. This number compares to 510 000 unemployed (ILO definition) in 2024. Focus group interviews conducted with economically inactive people across Poland suggest that this figure likely underestimates the true potential, as many participants reported structural barriers, including health issues, household and caregiving responsibilities, and discrimination that currently prevent them from seeking a job.
In Poland’s multi-level PES system, the success of the 2025 reform will require adaptation across all levels, with the 340 Powiat Labour Offices most directly affected as the frontline institutions for client engagement and programme delivery. Poland’s PES operates across three levels, national, regional, and local, with each functioning independently. At the national level, the Ministry of Family, Labour and Social Policy (Ministerstwo Rodziny, Pracy i Polityki Społecznej – MRPiPS) sets strategic priorities, issues guidelines for the implementation of active labour market policies (ALMPs) and allocates funding to regional and local offices. Regional Labour Offices (Wojewódzkie Urzędy Pracy – WUP) are responsible for labour market monitoring and analysis. Local Powiat Labour Offices (Powiatowe Urzędy Pracy – PUP) manage client registration, deliver ALMPs, and coordinate unemployment benefits (Table 1.1). While all levels will need to adapt their functions to include economically inactive individuals, the greatest operational burden will fall on the PUP, which are on the frontline of client engagement and programme delivery.
Overview of employment policy functions at the national, regional (WUP) and local (PUP) levels
Source: OECD summary of the 2025 Act on Labour Market and Employment Services.
Differences in economic inactivity across Polish regions mean that the 2025 reform will disproportionately increase the workload of some Powiat Labour Offices, often those with the most limited capacity for client engagement and programme delivery. While the sharp drop in the unemployment rate for the 15-64 age group by 8 percentage points between 2014 and 2024 has freed up some resources, PUP capacity still varies greatly between regions.1 In 2022, for example, there were on average 71 registered unemployed individuals per client-facing PUP employee in Lubusz, compared with 144 in Podlaskie and 178 in Podkarpacia. A similar pattern emerges when counting only PUP employees in positions defined by the MRPiPS as key, including employment intermediaries (pośrednicy pracy), career counsellors (doradcy zawodowi), professional development specialists (specjaliści ds. rozwoju zawodowego), and programme specialists, with ratios of 66 in Lubusz, 131 in Podlaskie, and 148 in Podkarpacia. These capacity differences reflect regional variations in unemployment rates but also disparities in PES funding, as the financial resources of the PUP depend not only on national allocations but also on the capacity of local governments to provide additional support. However, because regions with higher unemployment also tend to have higher levels of economic inactivity, the PUP with the lowest capacity are often those facing the highest potential number of additional clients.
Powiat Labour Offices currently lack the policy tools to identify, reach, register, and activate economically inactive individuals. At present, the PUP primarily engage with those who voluntarily register with them as unemployed or as jobseekers. As a result, large segments of the economically inactive population remain beyond their reach. Other public bodies involved in administering social welfare payments and services are often in contact with economically inactive individuals or hold relevant personal data on their circumstances, but the PUP do not have formalised access to this information. Moreover, once individuals are registered, the current catalogue of activation programmes is largely tailored to the needs of the short-term unemployed. It does not adequately address the more complex and multiple barriers typically faced by people after extended periods of economic inactivity that must be addressed before effective job matching can take place.
Given current capacity constraints, the PUP will require flexibility in service provision to engage economically inactive individuals while maintaining high-quality support for the short-term unemployed. Short-term unemployment typically fluctuates with the business cycle. For example, during the COVID-19 pandemic, the number of registered unemployed in Poland rose by 180 000 between 2019 and 2020, a 21% increase. In addition, persistent shortages of frontline staff and growing administrative burdens limit the PES’ ability to provide services to new client groups. The number of specialised staff, such as career counsellors and employment intermediaries, has declined in recent years, while the number of managerial roles has remained stable, reflecting rising administrative and reporting requirements. Low salaries, limited career advancement opportunities, and low public trust in the PES further contribute to recruitment and retention challenges. To respond effectively to these pressures, the PES must remain agile. While some new services will need to be established as permanent and delivered in-house, others will need to be outsourced to ensure they can be scaled up or down in response to shifting priorities and resource availability. The introduction of new services will require MRPiPS to lead the institutionalisation of new tools for engaging the economically inactive population.
Reaching and engaging economically inactive people requires interinstitutional cooperation and partnerships with organisations grounded in local communities
The primary aim of outreach strategies and inter-institutional cooperation is to register economically inactive individuals with the PES, enabling them to access support and activation services. In the Polish system, support and activation measures can only begin once an individual is registered with the PES. As most economically inactive people are not eligible to register as unemployed, the appropriate registration status will typically be that of a jobseeker, a PES client category used for individuals who cannot be classified as unemployed under Polish legislation. Once registered as jobseekers, individuals can access a range of PES services, including job placement, counselling or training.
The PES currently do not have systematic tools and partnerships to identify and reach economically inactive individuals. Currently, the PES primarily engage with those who actively register with Powiat Labour Offices (PUP) as unemployed or jobseekers, leaving large segments of the inactive population beyond their reach. Other public institutions, such as the Social Insurance Institution (Zakład Ubezpieczeń Społecznych – ZUS) and Social Assistance Offices (Ośrodki Pomocy Społecznej – OPS), either interact with or hold personal data on economically inactive individuals, but the PES lacks formal access to these resources. Likewise, social economy organisations, despite their experience working with economically inactive groups, are not formally integrated into PES outreach efforts.
OPS collect and manage information on segments of the economically inactive population, particularly older individuals and those with health limitations. OPS register and provide support to individuals and families facing difficult life circumstances. They deliver a range of means-tested cash and in-kind benefits, including support for social and physical rehabilitation, housing and childcare, as well as individual counselling. These services are offered to individuals or households whose income falls below locally defined thresholds and who apply for welfare support in their municipality of residence. Among Poland’s working-age economically inactive population, around 4% were registered with OPS in 2023. While this group is not representative of the economically inactive population as a whole, OPS do hold relevant data on certain subgroups. For instance, 59% of economically inactive OPS beneficiaries were aged 45–64, compared to 44% in the broader economically inactive population. Likewise, 76% of economically inactive OPS beneficiaries reported being in poor health, compared to just 17% among the economically inactive population overall.
Cooperation between the PES and the OPS is generally supported by Poland’s administrative and legal framework, but the inclusion of the economically inactive in formal cooperation agreements is not currently covered by the Act on Labour Market and Employment Services. The PES and the OPS report to local governments, the powiat and the municipality (pol. gmina) level, respectively, rather than to the national government. This can facilitate coordination of joint initiatives between the institutions at the local level and has done so to a limited extent in the past within local pilot projects. The Act on Labour Market and Employment Services further establishes a legal basis for cooperation between the two institutions that allows local PES and OPS offices to sign formal cooperation agreements. Currently, however, cooperation agreements are limited to supporting the long-term unemployed, defined as individuals registered with the PES for more than 12 months within a two-year period (Art. 198 of the Act on Labour Market and Employment Services).
Poland has a dynamic landscape of social economy organisations that can serve as partners in engaging economically inactive individuals. In Poland, MRPiPS oversees the social economy ecosystem. The country has a clear legal framework regulating the activities of social economy organisations, with the Act on Social Economy adopted in 2022 supporting the further development of this sector. In 2022, more than 102 000 social economy organisations operated across the country, many of which were active in areas such as education (10%), social services (9%), local social and economic development (8%) and healthcare (4%). While only a small share of these organisations identifies the labour market integration of their beneficiaries as their primary mission, many provide services to economically inactive individuals.
The Social Insurance Institution holds personal data of the main groups among Poland’s economically inactive population, but current legal barriers prevent the PES from accessing it. Notably, ZUS holds personal data of individuals receiving disability-related benefits, early retirement benefits as well as of women on childcare-related leaves, the three largest groups of Poland’s economically inactive population. The new Act on Labour Market and Employment Services outlines the instances where PES can receive data gathered by ZUS, while regulations outlining when ZUS can share data with the PES can be found in the Act on the Social Insurance System (pol. Ustawa z dnia 13 października 1998 r. o systemie ubezpieczeń społecznych). Importantly, the Act on the Social Insurance System states that data on ZUS clients can be shared only if it is deemed indispensable for the fulfilment of tasks of the PES (pol. w zakresie niezbędnym do realizacji zadań określonych w przepisach o promocji zatrudnienia). In practice, this qualification clause limits the ability of the PES to use ZUS data, as the ZUS holds discretion over what it considers to be indispensable. In addition, while the Act on the Social Insurance System specifies the types of data that the PES can request, relevant data that can identify economically inactive people, such as records on disability benefits, early retirement, or childcare-related leave granted by ZUS, are not covered. As a result, past data requests from the PES have been denied due to these limitations.
Women who exit the labour market following child-rearing breaks are a large group of Poland’s economically inactive population but are difficult to identify in administrative registers. Among the main economically inactive groups in Poland, individuals with disabilities and early retirees can be identified via data from the ZUS, which holds records on disability and early retirement benefit recipients. Women with young children are initially visible in ZUS registers through maternity allowance claims, but many remain inactive for a longer period without appearing in benefit registers. OECD analysis shows that economic inactivity remains persistently higher among mothers, particularly those without tertiary education. For example, among women without a university degree, inactivity rates remain around 15 percentage points higher than those of childless women under the age of 30, even when their oldest child is 12 years or older; while the gap is around 5 percentage points among women with tertiary education. In 2022, approximately one million economically inactive women aged 16–59 years old in Poland had no caregiving responsibilities for children under six and were not receiving disability or old-age benefits.
The PES have limited experience in cooperating with local schools or community-based organisations, such as Rural Housewives’ Associations, to reach economically inactive women. Existing cooperation with educational institutions focuses primarily on secondary schools and targets young people at risk of unemployment. Similarly, the PES do not systematically engage with community-based organisations, despite their broad presence across Poland. Among these, Rural Housewives’ Associations (pol. koła gospodyń wiejskich), which operate in rural and small-town areas and engage in educational and cultural activities aimed at improving women's living and working conditions, are particularly well positioned to support outreach to economically inactive women. As of 2024, 16 320 associations were formally registered in the National Register of Rural Housewives’ Associations. A barrier to greater cooperation with schools and community-based organisations is the limited capacity of PES staff to carry out outreach in community settings. In 2022, only 1% of labour offices reported using such methods to engage vulnerable groups.
In the short-term, leverage local partnerships to reach and engage the economically inactive
Amend the scope of local partnership agreements with Social Assistance Offices (Ośrodki Pomocy Społecznej - OPS) to include economically inactive individuals and sign such partnerships at the local level. Poland could consider extending the scope of local partnership agreements that currently form the basis of PES-OPS cooperation to include economically inactive individuals. These agreements could initially be trialled in a pilot project. Following the completion of the pilot and its evaluation, Article 198 of the Act on Labour Market and Employment Services could be amended to formally include economically inactive persons in local partnership agreements that define the scope and objectives of joint PES–OPS programmes.
Following the establishment of a framework for PES-OPS cooperation, define target groups and operational procedures for identifying potential beneficiaries of PES services. Drawing inspiration from France’s Comprehensive Support programme (Accompagnement Global) where cooperation between employment and social services has been gradually introduced, the OPS could use their database of beneficiaries and identify individuals who could benefit from activation services. Identification could be based on data held by the OPS on the economic activity status of its beneficiaries. Once a potential PES client is identified, OPS staff could initiate contact on behalf of the PES to explain available services and invite the individual to an initial meeting with the PES. The local cooperation agreement could also address data governance issues, specifying which institution serves as the data controller of the client’s data, and outlining the responsibilities of data processes involved to safeguard data minimisation and purpose limitation.
Cooperate with social economy organisations to reach economically inactive people so that they can be registered with the PES. Social economy organisations often work closely with local communities and have the trust of vulnerable populations. They are therefore well-positioned to act as credible messengers of the PES offer and can motivate their beneficiaries to register with the PES. Potential partners include organisations providing services in the area of education, social care, local social and economic development, and healthcare. The PES could prepare communication materials for dissemination by these organisations or participate in joint outreach events with third-sector actors, thereby strengthening connections with economically inactive individuals and encouraging them to register with the PES.
Organise awareness-raising and information sessions in schools and with community-based organisations to reach economically inactive mothers. Existing cooperation with schools targeting youth at risk of unemployment could be expanded to include mothers who left the labour market for caregiving. In partnership with kindergartens, primary schools and Rural Housewives’ Associations, the PES could offer regular information sessions, drop-in counselling points, or career workshops aimed at this group. Digital school registers (pol. dziennik elektroniczny) could be used to disseminate PES-prepared materials, with sessions scheduled alongside existing school events such as parent–teacher meetings (pol. zebrania rodziców). To lower the barriers for engagement, on-the-ground sessions could focus on upskilling and reskilling opportunities, rather than direct job placement. Mothers expressing interest could further be invited to follow-up appointments at the labour office for individual assessment and support.
To support the introduction of new outreach methods, provide training on working with economically inactive people in community settings to career counsellors. Such training could be organised regionally by the WUP, in line with their statutory tasks under Article 32(1)(22) of the Act on Labour Market and Employment Services. Modular workshops could be developed in collaboration with local universities offering degrees in social work (praca socjalna), and cover topics such as understanding economic inactivity and social exclusion among women; community-level engagement strategies; motivation and empowerment techniques; and ethics, dignity, and boundaries in outreach activities, including the collection and processing of personal data with informed consent.
In the long-term, develop the legal and technical infrastructure that allows an automated data exchange with Poland’s Social Insurance Institution
Establish the legal basis for systematic data exchange between the PES and the Social Insurance Institution (Zakład Ubezpieczeń Społecznych – ZUS). This would require amending current regulations that restrict PES access to ZUS data. In particular, revising the ‘indispensability’ clause in the Act on the Social Insurance System to allow data sharing when needed to fulfil PES tasks, rather than only when deemed indispensable, would create the legal foundation for closer institutional cooperation. The Act would also need to specify the types of data that PES have access to, including information on recipients of disability, early retirement, and childcare benefits. Such changes, led by the Ministry of Family, Labour and Social Policy (MRPiPS) in its capacity as the authority responsible for both the PES and ZUS, would strengthen the PES mandate to access relevant personal data on key groups among the economically inactive.
Develop the digital infrastructure for systematic and secure data transfers from ZUS to PES. A secure data pipeline could be modelled on Estonia’s X-Road system, a platform that enables the interlinking of data from registries managed by various government agencies and ministries. Establishing such an automated data exchange mechanism in Poland will require coordinated action by multiple institutional stakeholders to facilitate database interoperability. Relevant stakeholders include ZUS, the MRPiPS, which oversees the PES, the Ministry of Digital Affairs, the Chancellery of the Prime Minister (Kancelaria Prezesa Rady Ministrów), and the State Centre for Information Technology (Centralny Ośrodek Informatyki), which implements IT projects for public administration. An interministerial working group could lead the development of interoperable data infrastructure, define the roles of data controllers and processors, and establish role-based access protocols. The group would also oversee the integration of new data into existing PES case management systems, ensuring compatibility with the PES digital infrastructure, including the Labour Market and Social Services IT System (System Informatyczny Rynku Pracy i Usług Społecznych – SYRIUSZ).
Once the PES gain systematic access to relevant data from ZUS, local labour offices could proactively reach out to individuals who may benefit from PES support. Access to information on ZUS-registered individuals would enable the PES to invite selected persons to informational meetings at the local PUP. These sessions could provide information on available services and offer the possibility to register as jobseekers.
Activation strategies targeting economically inactive individuals will need to address their distinct employment barriers
Under the current registration system, economically inactive individuals will likely register as jobseekers, a legal status that grants limited access to PES services. Although the 2025 Act on Labour Market and Employment Services expands the PES mandate to include outreach to the economically inactive, services remain available only to those who formally register as PES clients. To access active labour market policies (ALMPs) provided by the PES, inactive individuals must first register under one of two existing categories: unemployed or jobseeker. The unemployed, defined as individuals not working and not receiving any form of income, including pensions or disability benefits, have been the primary recipients of PES support under both the 2004 and 2025 Acts. Those registered under the legal status of unemployed have full access to PES services and, depending on their work history, may also be eligible for unemployment benefits. Jobseekers, by contrast, may register while receiving income, including welfare benefits such as disability or early retirement payments. While they are entitled to only limited PES support, they can access services such as job placement, career counselling, and basic upskilling. Economically inactive individuals, most of whom receive welfare benefits and lack recent work experience, therefore fall into the jobseeker category.
Profiling tools can help PES assess client employability and deliver support more effectively, but they are not used by the Polish PES. In many European countries, PES use profiling systems to evaluate individuals’ distance from the labour market and classify their clients into groups, with the type and intensity of support adjusted accordingly, offering more intensive services to those furthest from employment. In recent years, the use of artificial intelligence (AI) has enhanced the capacity of profiling tools to estimate a client’s likelihood of finding a job, risk of returning to unemployment, and other factors affecting employment outcomes. Poland introduced a profiling tool in 2014, but it was discontinued in 2019 due to concerns over its fairness, lack of transparency, and potential violations of data protection rights.
The current catalogue of activation services offered by the Polish PES does not sufficiently address the needs of economically inactive individuals. The existing PES service catalogue consists of job mediation, career counselling, short-term trainings or internships, and was originally designed to support individuals experiencing short-term unemployment by matching them with available job opportunities. Economically inactive individuals often differ substantially from the traditional PES client base in terms of their socio-economic characteristics and labour market attachment. For instance, around 37% of the economically inactive population aged between 15 and 64 had completed only lower secondary or primary education in 2024, compared to 26% among the registered unemployed. Many economically inactive individuals have been out of the labour force for extended periods or have no prior work experience. They are also more likely to report poor physical or mental health, live with disabilities, have care responsibilities, or reside in rural areas with limited access to economic hubs. For a large share of Poland’s economically inactive population, these barriers are interrelated and mutually reinforcing.
Socio-psychological barriers to employment are common to all groups of economically inactive individuals. OECD-led focus group interviews conducted in Poland show that a lack of recent, or any, work experience often leads to discouragement, low self-confidence, and a sense of being mentally unprepared to (re-)enter employment. Extended periods outside the labour market can undermine confidence in job interview settings and lead to a deterioration of workplace-specific soft skills, reducing the effectiveness of activation strategies. The interviews also point to experiences of social isolation and diminished agency among individuals who have been inactive for long periods. As a result, many participants expressed a general willingness to work but emphasised the need for support beyond standard job matching to address these socio-psychological challenges.
The Polish PES currently offer group and individual counselling services, and the existing legal framework allows these to be expanded either through in-house provision or by outsourcing. Currently, the PUP only provide basic group and individual counselling services to their clients, including advice on identifying competencies and areas of interest, choosing a profession, reskilling and long-term career planning. According to Article 87 of the Act on Labour Market and Employment Services, career counselling may include support in developing competences, strengths, and skills, using diagnostic methods and standardised tools. While most PUP currently do not employ staff trained in providing psychological counselling, Paragraph 5 of the same article permits the PUP to outsource these services to external specialists when in-house capacity is insufficient. The 2025 Act further allows career counselling to be delivered through training sessions that help clients develop effective job-seeking skills. Additionally, Article 99 authorises the financing of training programmes for unemployed persons and jobseekers to support the acquisition of knowledge, skills, or qualifications that enhance employability.
Structured cooperation between PES and social economy organisations can help PES support the labour market integration of hard-to-place clients. Social economy organisations, comprising associations, co-operatives, mutual societies, foundations, and social enterprises, pursue societal objectives rather than profit and often operate in close proximity to local communities. Their local presence and focus on inclusion make them valuable partners for the public sector, especially given their close contact with those furthest from the labour market. Some of these organisations actively create employment opportunities for vulnerable or marginalised groups who face significant barriers to work, while others provide labour market and social integration services. Employment in the social economy tends to be resilient across business cycles, offering a stable entry point for individuals without recent work experience who may struggle to find similar stability in the mainstream private sector.
In Poland, social enterprises, and social cooperatives in particular, offer placement opportunities for economically inactive individuals. While operating through different models, social enterprises share the objective of reintegrating disadvantaged groups into the labour market. Categories of social enterprises in Poland include social cooperatives, entrepreneurial non-profit organisations, Vocational Development Centres (Zakłady Aktywności Zawodowej – ZAZ), non-profit companies, as well as limited liability companies and social religious entities. These entities often support individuals with disabilities or those at risk of social exclusion, and some act as job placement partners for the PES. In addition, many provide vocational rehabilitation and social reintegration services that can help prepare economically inactive individuals for labour market entry. Since 2022, social economy organisations in Poland have been able to apply for formal social enterprise status, and by 2025, over 1 000 entities had obtained it. Among them, social cooperatives (pol. spółdzielnie socjalne), defined under the 2006 Act on Social Enterprises, demonstrate the strongest capacity to support and collaborate with local labour offices. At least 50% of a cooperative’s employees must come from disadvantaged groups. In 2025, 78% of social cooperatives reported having collaborated with public institutions in the past, including 75% with local administrations.
Provide the right support to everyone registered with the PES
Ensure that all economically inactive individuals who register as jobseekers have access to relevant services. The vast majority of economically inactive individuals who register with the PES will fall under the legal category of jobseeker. New activation services designed to address the distinct, and often complex and compounded, employment barriers faced by newly-registered economically inactive individuals should be made available to all registered jobseekers.
Introduce a fair and transparent profiling tool that supports personalised service delivery. The Polish PES should consider introducing a profiling tool to help assess their clients’ employability and guide personalised service delivery. The tool could be designed as a decision-support system rather than an automated decision-maker and could assist counsellors in determining the appropriate service channel, intensity of support, and activation measures. Drawing on international practices, such as Estonia’s and the Basque Country’s profiling tool, the system could use artificial intelligence or machine learning to estimate employment probabilities and risk of long-term unemployment, combining individual characteristics with labour market data. The tool could be regularly updated with new training data and include feedback from employment counsellors to improve accuracy and relevance. Before its introduction, a legal and ethical framework could be designed to ensure transparency, non-discrimination, and responsible use.
Introduce new activation measures that address socio-psychological barriers to employment
Introduce targeted socio-psychological counselling for individuals transitioning out of economic inactivity, in cooperation with external partners. Given the limited in-house capacity, the Polish PES could adopt Estonia’s model of outsourcing socio-psychological services to certified providers selected through public procurement procedures. In each region, the WUP, in cooperation with the PUP, could maintain a list of qualified providers based on professional qualifications and relevant experience. Clients identified as needing psychological support could be referred to external partners by career counsellors following an initial assessment of employment barriers. Counselling could then focus on employability-related goals, including strengthening resilience, coping strategies, and job-search readiness. To support effective referrals, PES counsellors could receive additional training in assessing socio-psychological barriers, coordinated by the WUP.
Implement short, group-based soft skills training for clients with a history of long-term unemployment or economic inactivity. Training could be offered to newly registered PES clients to help them develop essential workplace behaviours such as communication, teamwork, and self-organisation. Modular courses could be delivered in small groups by career counsellors, following the model successfully piloted in France. Where needed, delivery could be supported by external providers, as explicitly permitted under Article 87, paragraph 5 of the Act on Labour Market and Employment Services. The content and scope of training could be coordinated nationally through the Forum of WUP Directors, with the Ministry of Family, Labour and Social Policy acting as the coordinating authority and issuing national guidelines in collaboration with the WUP.
Leverage local social economy organisations to prepare the economically inactive for the labour market
Cooperate with and outsource services to social economy organisations for the activation and job placement of economically inactive individuals. The PES could systematically outsource services that support labour market entry for the inactive population, drawing on international good practice. The Act on Labour Market and Employment Services allows the PES to delegate tasks to social economy organisations, including activities related to social reintegration (Art. 200), special programmes (Art. 209), pilot projects, and activation measures for people with disabilities. These services can be commissioned under the Public Procurement Law (pol. Prawo zamówień publicznych) and may include both economic and social activation components. Structured cooperation could follow the example of the Brussels-Capital Region of Belgium, where the regional PES contracts out activation services on a needs-basis, providing flexibility.
Additional PES initiatives could address group-specific employment barriers
Effective outreach and activation by Poland’s Public Employment Services (PES) require a clear understanding of the employment barriers faced by different groups within the economically inactive population. As a new target group for the PES, the economically inactive have not yet been systematically analysed to inform policy interventions. Economic inactivity may be voluntary, as in the case of students or early retirees, or involuntary, due to individual or structural constraints such as disability or caregiving responsibilities. These barriers are often linked to socio-economic characteristics and place of residence and vary considerably across sub-groups.
A novel machine learning algorithm segments the economically inactive population in Poland into distinct, policy-relevant groups, helping to design more targeted labour market measures. The segmentation is based on socio-economic characteristics and employment barriers, identifying three primary target groups: individuals receiving disability benefits (Group I), those near the statutory retirement age who receive old-age benefits (Group II), and women without caregiving responsibilities for young children (Group III). Using a decision tree model, the economically inactive population can be divided into distinct, policy-relevant subgroups categorised by their main common feature. The three resulting main groups were then further examined through focus group interviews.
Target group I: People receiving disability benefits. In 2022, approximately 770 000 individuals of working age in Poland received disability benefits. The labour force participation rate of 15–64-year-old people with a disability stands at just 34% in Poland, significantly below the EU-27 average of 55%. Around 29% of disability benefits recipients had no work experience at all. More than 94% of disability benefits recipients have a chronic illness or condition. Focus group interviews highlighted a lack of understanding among employers regarding the types of tasks people with disabilities can perform, which contributes to reluctance to hire even those with mild or moderate disabilities.
Target group II: Economically inactive who receive old-age benefits. In 2022, there were over 310 000 inactive old-age benefit recipients of working age who do not receive disability benefits. Economic inactivity is also high among those aged above the statutory retirement age. In 2024, the labour force participation rate for men up to five years above the statutory retirement age (65-69 years old) was just 17%, well below the OECD average of 37%. For women (60-64 years old) the rate was 26%, compared to the OECD average of 50%. In Lesser Poland and Silesia, where early retirement is common among those employed in the mining industry, the share of inactive individuals in the total working-age population receiving old-age benefits was the highest at 4% in 2021, compared to just 1% in other regions. The main employment barriers identified during focus group interviews include employer discrimination and a lack of flexible work options.
Target group III: Women without caregiving responsibilities for children below the age of six. In 2022, there were around 1 000 000 economically inactive 16–59-year-old women without caregiving responsibilities for children under the age of six who were neither disability nor old-age benefits recipients. In 2023, around 69% of women aged 15-64 in Poland participated in the labour market, a rate lower than in 28 OECD countries and below the EU-27 average of 70%. During focus group interviews, women reported a lack of confidence in their employability after long care-related breaks. Many further cited persistent social expectations that reinforce their role as primary caregivers and a lack of partner support as a reason for abandoning job searches, particularly when their partners earned higher wages.
Under current Polish law, work ability assessments and vocational rehabilitation services for people with health-related limitations are not provided by the PES. In Poland, work ability assessments (pol. ocena niezdolności do pracy) are conducted by ZUS and are primarily used to determine eligibility for disability-related benefits and non-employment-related rehabilitation services. These assessments focus on confirming a person’s inability to work, making them incompatible with the PES mandate to support labour market integration. Employment activation services for people with disabilities are primarily funded and organised by the State Fund for the Rehabilitation of People with Disabilities (PFRON). PFRON provides wage subsidies to employers and commissions rehabilitation programmes. While the PES cooperates with PFRON on job placements and facilitating subsidised employment for people with a disability, most PFRON-funded rehabilitation programmes are delivered through local social economy organisations. Moreover, the vast majority of PFRON resources are allocated to social rather than vocational rehabilitation, with only 4% supporting labour market entry or skills development for working-age adults. Individuals with reduced work capacity who do not meet the formal criteria for disability status are often excluded from rehabilitation services, despite facing health-related employment barriers. Other PES-led services supported by PFRON include workplace adaptations and limited upskilling opportunities for people with a disability.
The PES offers a range of financial incentives, wage subsidies, and training programmes to support the employment of older unemployed workers, though these measures have often been limited in scope or duration and have not yet addressed group-specific barriers. Employers hiring individuals over 50 can receive wage subsidies, up to 12 months for those aged under 60 and up to 24 months for those aged 60 and above, and are exempt from Labour Fund contributions for 12 months. The PES has also implemented sheltered employment (pol. prace interwencyjne) for older unemployed and jobseekers in the past, but these have typically been short-term, temporary interventions. Training courses and internships were historically more accessible to younger clients, with older individuals eligible for only six months of participation compared to up to 12 months for those under 30. Although formally open to all, upskilling programmes prioritised individuals without prior qualifications, effectively excluding many older workers with partial or outdated credentials. The new Act on Labour Market and Employment Services now extends training access to all unemployed individuals for up to 12 months, offering new potential for engagement with older jobseekers. Local pilots, such as the 2022 initiative by the PUP in Warsaw, which successfully placed over half of its participants into employment or internships, have been promising but remain fragmented and have not been continued or scaled up beyond the initial pilot stage.
ALMPs in Poland generally do not target individuals above the statutory retirement age, even though the legal framework allows it. Men aged 65 and over and women aged 60 and over can register with the PES as jobseekers and, unlike early retirees, are permitted to combine paid employment with their pension without any reduction in benefits. In 2024, the employment rate of older workers in Poland remained well below the OECD average. Among men aged 65–69, 17% were employed, compared to 36% across the OECD. For women aged 60–64, the corresponding figures were 26% in Poland and 48% in the OECD, partly driven by the relatively low statutory retirement age in Poland. While employment rates remain low, the total population among this age group in Poland has increased substantially over the past two decades. In 2024, there were 1 175 000 women aged 60–64, up from 827 000 in 2004. Among men aged 65–69, the number rose from 663 000 in 2004 to 1 058 000 in 2024. Despite Poland's low employment rate among older people compared to other OECD countries and the country’s rapidly ageing population, the PES have not yet introduced targeted measures to support the activation of those above statutory retirement age who are willing to continue working.
The PES currently do not offer services specifically targeted at women returning to work after an extended period of economic inactivity. Childcare reimbursement programmes are available and more frequently accessed by women who register with the PUP and subsequently enter employment or internships, reflecting the continued disproportionate burden of childcare responsibilities on women in Polish households. However, these subsidies are limited to children under the age of seven, which corresponds to the start of compulsory schooling, excluding women with older children. Local activation programmes targeting women primarily focus on those who have recently left the labour market due to childcare responsibilities. Women with young children have been the focus of small-scale pilot initiatives, regional programmes, and special programmes across Poland. While these initiatives can support women whose main employment barrier is current caregiving responsibilities, they do not address the needs of women who are no longer full-time caregivers but face other obstacles linked to prolonged economic inactivity, such as skills deterioration, pressure to continue managing the household, or lack of confidence in re-entering the labour market.
Spatial differences in the main reason for economic inactivity also show that PUP will need to prioritise activation strategies that account for their local population make-up. For instance, the share of early retirees in the total working-age population (excluding students) differs between 1% in the City of Wroclaw and 8% in Rybnicki, Silesia. Similarly, the share of individuals who state to be economically inactive due to being in poor health, which includes people with disabilities, varies between 2% in the City of Wroclaw and 6% in Chelmski, Lublin. The share of discouraged workers ranges from close to 0% in Bierunsko-Ledzinski, Silesia to 5% in Przysuski, Mazowiecki region, and is relatively more common in rural powiats. The 20 powiats with the highest share of discouraged workers have an average population of 49 800. Conversely, the 20 powiats with the lowest share of discouraged individuals had an average population of 263 800. Finally, those citing childcare responsibilities as their main reason for inactivity represent 1% (City of Opole) to 4% (Rybnicki, Silesia) of the working-age population (excluding students).
Shift the focus from disabilities to abilities in new PES activation measures that target people with health-related employment barriers
Introduce work ability assessments for PES clients with health-related limitations. Work ability assessments could include both physical and mental health self-evaluations to identify capacities in individuals with health-related limitations and guide the provision of active labour market policies (ALMPs), including vocational rehabilitation, by the PES. Following Estonia’s example, such assessments could be offered to all clients facing health-related barriers, regardless of their formal disability status. The Powiat Labour Offices (PUP) could take responsibility for conducting the assessments, as part of their statutory mandate to provide medical and psychological examinations for evaluating clients’ ability to work. The process could consist of a voluntary self-assessment by clients, including the submission of relevant medical documentation to the PUP. On-site psychologists or contracted medical professionals could then evaluate the submitted materials and assess the client’s work ability using the International Classification of Functioning, Disability and Health framework. The outcomes of PES work ability assessment could then be reviewed with a client during a session with a career counsellor in PUP. Finalised work ability assessments could serve as a basis for tailoring ALMP provision to PES clients, enabling career counsellors to adopt more individualised approaches to economic activation.
On the basis of work ability assessments, provide vocational rehabilitation to PES clients through contracting of relevant services. The PES could support clients in rebuilding the physical, psychological, and social capacities needed for labour market participation by outsourcing vocational rehabilitation services to external providers. These services could initially be delivered through ministerial activation programmes for persons with disabilities, which are managed by the Ministry of Family, Labour and Social Policy to finance targeted labour market interventions. To increase access and effectiveness, eligibility could gradually be expanded to include all individuals with reduced work ability, as determined through PES-led assessments. In parallel, the list of eligible implementing institutions, which currently covers social economy organisations, the PES, Voluntary Labour Corps, private employment agencies, training providers and local administrations, could be extended to include medical entities. This would allow for more comprehensive provision of services such as counselling, physiotherapy, and occupational therapy.
Establish flexible employment arrangements to enable older workers to stay active or return to work
Mobilise local employer networks and introduce dedicated career guidance and employer-led mentoring programmes for older individuals. Following Germany’s Perspektive 50+ initiative, the WUP and PUP could strengthen cooperation with employers, employer associations (pol. organizacje pracodawców), and chambers of commerce (pol. izby rzemieślnicze i handlowe). This cooperation could be structured around regular stakeholder meetings, where labour offices and local labour market actors exchange on skills needs, identify activation opportunities for older jobseekers, and design targeted initiatives. Over time, joint activities could include sector-specific retraining offers and employer-led mentoring programmes. Mentors from participating companies could provide personalised guidance to older PES clients as part of the PES internship service. Formal cooperation agreements between labour offices and private-sector partners could define mentoring roles and standards. Mentors could support job applications and navigating the labour market.
Implement awareness-raising activities to tackle age-related discrimination. Inspired by Switzerland’s Viamia initiative, Poland could introduce targeted communication campaigns to promote the value of older workers. Informational materials, such as brochures or handbooks highlighting good practices in hiring and retaining older employees, could be shared during meetings between PES offices and employers, employer associations (pol. organizacje pracodawców), and chambers of commerce (pol. izby rzemieślnicze i handlowe). These resources could also be made available online through PES websites, offering practical guidance to a broader audience.
Introduce community-based initiatives targeting individuals who have reached the statutory retirement age. Drawing inspiration from Japan’s Silver Human Resource Centres, Poland could pilot local schemes that match older individuals above the statutory retirement age with short-term or part-time work. Run in partnership with PUP offices, municipalities, employers, and social economy organisations, these initiatives could focus on low-intensity, flexible jobs in sectors such as community services, retail, gardening, or clerical support, with a focus on occupations facing labour shortages. PUP could collect job requests from households, SMEs and local authorities, assign tasks to registered older workers on a rotating basis, and manage payment through service delegation or temporary dispatch arrangements. To support participation, the programmes could offer light training and operate on a voluntary membership basis, enabling retirees in good health to remain active, supplement their income, and stay socially connected while contributing to local needs.
Provide women returning to work after extended care-related breaks with access to tailored support that meets their specific needs
Support the labour market re-integration of women who have been economically inactive for extended periods through dedicated returner programmes. These programmes could be modelled on the UK’s Returners Programme, offering short-term training and group-based support to help women navigate their return to work. Activities could include structured group counselling sessions focused on career planning, confidence-building, and re-entering the labour market. Group formats would provide opportunities for peer support, allowing women to share experiences, exchange advice, and build mutual support networks. Sessions could be delivered by the PUP within the existing framework of career counselling services defined in the Act on Labour Market and Employment Services, with the option to engage external coaches or trainers for specialised modules. Some training sessions could be co-organised with local employers and PES clients who have recently returned to work, helping participants understand employer expectations and adapt to new workplace environments.
Deepening employer engagement could support the PES in matching economically inactive clients with jobs
Partnerships between PES and employers can expand employment opportunities and improve job matching outcomes. Regular collaboration with local employers helps reflect their needs in both the matching of jobseekers with vacancies and the design of ALMPs, increasing the likelihood of successful and lasting hires. Effective employer engagement can also facilitate placements by helping create job offers that meet the needs of previously economically inactive individuals, for instance, in terms of flexibility or workplace equipment. As trust in the PES grows, more employers are likely to share job vacancies with them, broadening the range of available opportunities. Employers also serve as both sources and users of local labour market information, supporting informed workforce planning.
In Poland, responsibilities for employer engagement are shared between local (PUP) and regional (WUP) labour offices. The PUP serve as the main contact point for employers, offering advisory services, recruitment assistance, and support for posting job vacancies. They also gather employer feedback to inform training design, manage funding for employee upskilling in local firms, and administer incentives such as wage subsidies and workplace adjustment support. The WUP focus primarily on collecting and analysing labour market data at local and regional levels and sharing insights with stakeholders, including employers. They also manage EURES services, helping employers publish vacancies and match with candidates across the EU. Table 1.2 provides a more detailed overview of their respective activities.
Survey and interview evidence point to both strengths and limitations in the current engagement between the PES and employers. A survey of 14 local and regional PES offices (PUP and WUP), along with 16 semi-structured interviews with public and private employers, highlight effective cooperation in the delivery of financial incentives, such as wage subsidies, internships, National Training Fund support, and PFRON-funded wage subsidies for individuals with disabilities. Local job fairs, especially when incorporating workshops specifically aimed at employers as in Warsaw, Krakow, Opole and Gdansk, have successfully managed to attract employers. However, both PES staff and employers identified several areas for improvement. These include expanding tailored advisory services, providing relevant labour market information to support workforce planning, and simplifying administrative procedures, particularly for SMEs with limited HR capacity. While some employers value the current advisory services, they often lack concrete guidance on recruitment strategies and are constrained by limited PES staffing for employer engagement, which affects continuity. Labour market information, although a statutory responsibility of the WUP, is perceived by employers as insufficient or inaccessible, with many unaware of its availability or how to make use of it.
The limited scope of employer-facing services constrains the PES’s ability to build stronger partnerships with local employers. Many employers prefer to post vacancies on private recruitment platforms rather than the PES-managed Central Job Offer Database (Centralna Baza Ofert Pracy – CBOP). The low share of job vacancies transmitted to the PES reduces the visibility of job opportunities for PES clients and limits effective job matching, particularly as both PES offices and employers cite a shortage of suitable, motivated candidates as a barrier to deeper cooperation. Employer participation in developing training curricula remains limited, and awareness of advisory and support services offered by the PES is often low. Additionally, the PES face difficulties in placing candidates who require flexible working arrangements, which restricts employment opportunities for individuals with physical needs or care responsibilities.
The low availability of flexible work options in Poland compared to other OECD countries further restricts opportunities for individuals who depend on such arrangements. Opportunities such as part-time employment, remote work, and flexible hours can enable individuals to enter or remain in the labour market when full-time employment is not feasible. For example, flexibility in working hours and location can help women balance employment with childcare responsibilities. Similarly, research shows that offering older workers the option to reduce working hours or take on part-time roles can encourage them to delay full retirement. However, compared to other OECD countries, significantly fewer employers in Poland offer flexible working arrangements that could support the labour market integration of economically inactive groups. In 2023, only 4% of employed individuals in Poland aged 15–64 worked part-time, defined as working fewer than 30 hours per week in the main job, compared to the OECD average of 15%. Remote work also remains relatively uncommon, with just 5% of Polish workers regularly working from home, well below the EU-27 average of 9%.
Build internal capacity to engage employers more efficiently
Introduce job advocacy training to equip PES staff with the skills to effectively engage employers. Drawing on Slovenia’s experience, the programme could cover dedicated modules to upskill employer counsellors in Powiat Labour Offices (PUP). The training curriculum could include the principles of advocacy and relationship-building with employers, with a strong focus on negotiation skills to boost counsellors’ confidence in mediating between jobseekers and employers. Separate sessions could address procedural challenges identified by employers, emphasising how to adapt communication styles to better explain PES procedures and forms, candidate preparation and presentation and helping counsellors support jobseekers in effectively showcasing their potential. The programme could rely on practical exercises such as role plays with external HR specialists and individual feedback sessions to identify areas for development. Regional Labour Offices (WUP) could coordinate the delivery of the training, with a standardised format developed at the national level by the Forum of WUP Directors.
Strengthen PES capacity to provide regional and local labour market intelligence and support employer workforce planning. To move the provision of labour market information closer to leading practices in the OECD, the PES could consider improving across five areas. First, the PES could introduce new data sources, notably online job vacancy data, to complement vacancies submitted directly to the PES and build a complete and geographically granular view of labour demand. Second, efforts could move beyond broad labour demand measures and instead focus on analysing the demand for specific skills, in particular related to the green transition. Third, existing initiatives to analyse changes in labour and skills demand could be integrated with supply side information to identify mismatches between labour supply and demand across sectors and regions. Fourth, complement long-term quantitative regional labour demand forecasts from the Polish Labour Market Forecasting System and the one-year-ahead expert-based Occupational Barometer with medium-term regional forecasts that incorporate interregional migration and commuting flows. Finally, presenting local labour market information in ways that are easily accessible and actionable for a broad range of labour market stakeholders could help increase its use in employer workforce planning.
Identify employers with corporate social responsibility strategies and family-friendly policies to expand job opportunities for previously inactive individuals. Mapping employers engaged in inclusive hiring practices could serve as a starting point to build a pool of suitable job opportunities for clients with a large distance to the labour market. Employment counsellors in the regional and local labour offices could lead this process by leveraging their knowledge of local labour markets and collaborating with social partners, social economy organisations, sectoral associations, and local chambers (pol. izby rzemieślnicze). Drawing on practices from Germany, the PES could also encourage employer participation by formally recognising family-friendly companies that offer flexible working arrangements through certification schemes or annual awards. Over time, the Ministry of Family, Labour and Social Policy (MRPiPS) could consolidate regional and local information into a national database to facilitate information exchange across powiats and voivodeships.
Offer additional employer services that respond to the reality of small and medium-sized enterprises (SMEs) without the capacity to deal with complex bureaucracy
Scale up successful models of local job fairs and introduce innovative workshops and job dating events to encourage employer participation. In Poland, several Regional and Powiat Labour Offices have already expanded the traditional job fair format to include activities specifically aimed at employers, such as workshops on age management, company growth strategies, the employment of migrants, funding options for workplace adaptations, and non-discrimination policies. Building on these examples, the PES could adopt a more systematic approach to expanding job fairs by integrating labour market information sessions, HR-related workshops, and guidance on digital accessibility. Drawing on practices from the French PES, community-based formats such as “job dating” events in informal settings, where PES clients and employers participate in team-based activities, could further strengthen employer engagement and improve job matching outcomes.
Provide HR counselling to SMEs to strengthen their engagement with the PES and support inclusive hiring. A hybrid HR counselling model could be developed in Poland to assist SMEs in building internal capacity for recruitment and retention, particularly of individuals with specific workplace needs. Initial support could be delivered by trained PES employment counsellors, offering practical guidance on recruitment, onboarding, work organisation, and employee retention. These sessions could take place online, at PES offices, or on company premises. To deliver this support effectively, PES staff could receive targeted training in basic HR practices, with a focus on inclusive hiring strategies. For more complex or long-term support needs, such as companies undergoing restructuring, SMEs could be referred to external providers. Drawing on practices from Austria, outsourced support could help address structural workforce challenges, such as tackling skill shortages, introducing health and age management practices, or embedding fair recruitment systems.
← 1. The statistics quoted correspond to the ILO definition of unemployment: persons of working age not in employment, actively seeking work in a recent period, and available to start if offered; distinct from registered unemployed.