This chapter examines the capacity of the Polish Public Employment Services (PES) to engage economically inactive individuals. It begins by exploring the financial and operational constraints facing the PES, particularly the challenges encountered by Powiat Labour Offices. The chapter then assesses the services currently provided by PES, their main beneficiaries, and their potential to support the integration of economically inactive individuals. Finally, it explores the role of other institutions and organisations and how they collaborate with the PES.
Developing Public Employment Services for Economically Inactive People in Poland
Abstract
Although the 2025 legislative reform has strengthened the Public Employment Services capacity to support the economically inactive, their ability to reach new client groups is limited due to shortages of specialised staff and growing administrative burdens.
The PES operates in a decentralised structure, with national, regional, and local offices functioning largely independently of one another. At the national level, the Ministry of Family, Labour and Social Policy (MRPiPS) sets priorities for Public Employment Services, provides guidelines on the implementation of ALMPs and directs funding to regional and local PES. Regional Labour Offices (wojewódzki urząd pracy – WUP) are tasked primarily with monitoring and analysis of labour markets. At the local level, Powiat Labour Offices (powiatowy urząd pracy – PUP) organise ALMPs for registered PES clients and coordinate the provision of unemployment benefits. The cooperation between the PUP and the WUP is limited, as local and regional offices set their own priorities.
The national Labour Fund managed by the Ministry of Family, Labour and Social Policy is the primary source of funding of the Polish PES. The Labour Fund, financed primarily through employer contributions (83%), covers the provision of unemployment benefits, active labour market policies and some administrative costs of PES such as employees’ salaries. In 2022, the spending from the Labour Fund amounted to PLN 8.6 billion (EUR 2 billion). On top of the Labour Fund, the national funding of PES is complemented with regional funding, provided by the local administration for the WUP and the PUP. However, local funding plays a limited role in PES operations. Due to competing budgetary priorities, especially in less affluent regions, local administrations rarely allocate funds to support PUP staffing or the implementation of innovative activities. European funds such as the European Social Fund Plus (ESF+) are also used to finance innovative projects in areas such as social integration, life-long learning, and gender-balanced labour market participation, although their project-based nature limits the sustainability of PES activation services.
The 2025 legislative reform in Poland expanded PES client groups to include economically inactive individuals, in addition to those registered as unemployed or jobseekers. Under the 2004 Act on Employment Promotion and Labour Market Institutions. PES clients must register as unemployed if they receive no income, granting them full access to PES services and – depending on prior employment – unemployment benefits, or as jobseekers. Registered jobseekers can receive income while still accessing support from PES. However, the services available to them are more limited and focus on job mediation and counselling, excluding options such as internships. Economically inactive individuals, not registered with PES, could not benefit from PES services. The 2025 Act on Labour Market and Employment Services introduced in March 2025, requires PES to actively engage with and support the economically inactive, granting them access to activation services and programmes organised by the labour offices.
Over the past 20 years, Poland has seen a sharp decline in unemployment levels, reducing caseloads for PES staff. In 2023, the registered unemployment rate for individuals aged 18 to 65 years dropped to a historic low of 5.1%. The decrease in the number of clients registered with Polish labour offices has had a positive impact on their relative capacity to provide services to other groups. In 2014, each career counsellor in a Polish labour office was responsible for 863 clients on average. By 2022, this number had fallen to 575. Similarly, the average number of clients per labour office employee dropped from 95 to just 48 over the same period.
In recent years, persistent shortages of frontline employees and growing administrative burdens have limited PES’ ability to engage new client groups. The overall number of specialised staff in the PES has declined, particularly among staff working directly with the clients, such as career counsellors and employment intermediaries. At the same time, the number of managerial staff has remained stable, reflecting increasing bureaucratic demands. Low salaries, limited career prospects, and low public trust in PES staff may be contributing to operational challenges within labour offices. Interviews with PUP staff further reveal that PES employees are increasingly asked to perform administrative tasks to address the demand for detailed reporting and new forms of clients’ assessments, including digital skills assessments.
Traditional employment services prioritise registered unemployed, while innovative programmes offer Polish labour offices greater flexibility in participant selection and implementation of activation strategies. Services traditionally offered by the PES include counselling, job mediation, short-term training or internships, supplementing labour market instruments such as unemployment benefits. Priority access to traditional employment services is granted to the registered unemployed under the 2004 Act on Employment Promotion and the 2025 Act on Labour Market and Employment Services, as opposed to those registered as jobseekers or those who are not registered with PES. However, legal provisions for the implementation of innovative policies exist. PES can organise pilot projects to test new outreach or activation programmes, either independently or in collaboration with other labour market institutions. Cooperation between regional and local PES is also possible through regional programmes aimed at specific groups at risk of economic inactivity.
PES decisions are often constrained by rigid formal targets and performance indicators. According to interviews with PUP staff, policy design decisions, including the number and characteristics of clients targeted, are often constrained by formal powiat-level targets and performance indicators set at the national level. Selection of activation tools is typically guided by quantitative goals such as the number of individuals to be supported from a specific group. The number of clients to be targeted is usually tied to official labour market statistics rather than estimated through the PUP professional experience. Projects, including innovative ones, are evaluated mainly by the number of job placements achieved, with little attention paid to the sustainability or quality of employment outcomes.
PES cooperate on specific projects with other labour stakeholders, including social economy organisations, to support the economic activation of PES clients. Multiple stakeholders in Poland support the PES in their provision of employment activation services as part of specific projects. Public sector institutions that cooperate with the PES include Social Assistance Offices (Ośrodki Pomocy Społecznej – OPS) and Voluntary Labour Corps that focus on youth unemployment (Ochotnicze Hufce Pracy – OHP). In addition, statutory provisions for outsourcing public tasks to third sector organisations exist. However, such collaborations are typically project-based, and the delegation of tasks to external entities, for example, through public procurement, must be initiated by the WUP or the PUP.
This chapter provides an overview of the labour market institutions in Poland, focusing on their capacity to engage and support the economically inactive. The chapter begins by introducing the main institutional actors and stakeholders involved in labour market policies and examines their roles and responsibilities. The capacity assessment draws on the 2004 Act on Employment Promotion and Labour Market Institutions to outline the functions and activities of labour market institutions. It then considers the updated Act on Labour Market and Employment Services, which came into force in June 2025, replacing the 2004 legislation, to describe the allocation of responsibilities among the Public Employment Services (PES). The Acts classify public sector labour market institutions into three categories, including PES, educational institutions, and social assistance bodies (Government of Poland, 2004[1]; Government of Poland, 2025[2]). Several public sector bodies are responsible for implementing labour market policies in Poland (Table 3.1). Among them, the PES are the central actor in delivering active labour market policies (ALMPs). Additionally, social economy organisations, and private employment agencies contribute to promoting economic activation.
Note: (1) also responsible for the provision of unemployment benefits (2) also responsible for labour market analysis and research
The legislative reform of the PES expanded the scope of its potential clients. Between 2004 and 2025, the roles of the PES and other labour market institutions in Poland were defined under the 2004 Act on Employment Promotion and Labour Market Institutions. This Act limited PES services to individuals formally registered with the labour offices. As a result, the economically inactive population, outside the labour market, remained out of reach of PES interventions. The PES reform, introduced in 2025, addresses this gap by assigning new responsibilities to the PES, including the identification, outreach and activation of the economically inactive. Box 3.1 outlines the provisions of the two Acts governing the PES in Poland.
The scope of Public Employment Services (PES) in Poland was initially defined by the 2004 Act on Employment Promotion and Labour Market Institutions. The 2004 Act limited PES support to individuals formally registered with the Powiat Labour Offices (PUP) as unemployed or as jobseekers. These two groups remained the primary recipients of PES services under the updated 2025 Act on Labour Market and Employment Services.
The unemployed, defined as those not working, not in formal education and not receiving any form of income – including pensions or disability benefits – remain the main recipients of PES services. This group has full access to PES services and, depending on their work history, can also receive unemployment benefits. Jobseekers, by contrast, are individuals willing to work but not eligible for the unemployed status due to receiving income from other sources. While their access to PES services is more limited, they are still eligible to take part in job placement services, career counselling, and basic upskilling opportunities. Under the 2004 Act on Employment Promotion, individuals who were economically inactive were not considered a target group of the PES and could only receive support if they registered as unemployed or jobseekers. The PES engagement with this group was limited to non-targeted public outreach through information campaigns and job fairs. As a result, a significant share of the inactive population remained out of reach of labour market interventions.
The 2025 Act on Labour Market and Employment Services addresses this gap by assigning new responsibilities to the PES, including the identification, outreach and activation of the economically inactive individuals. The PES are now required to engage the economically inactive systematically, in collaboration with social economy organisations, educational institutions, Social Assistance Offices and local private sector actors. The new client group can be specifically targeted with tailored outreach campaigns, expanding the PES outreach.
To receive activation support from the PES, however, the economically inactive must still be registered either as unemployed or as jobseekers. Activation support remains limited to registered PES clients. As many economically inactive individuals receive income from state benefits (see Chapter Identifying and characterising groups of economically inactive people in Poland), they are often ineligible to register as unemployed and can only register as jobseekers. While this category offers a narrower set of services than those available for the unemployed, essential support, such as counselling, training, and job mediation, remains available, allowing the PES to engage in guided activation of the registered jobseekers.
In addition to analysing the PES legal framework, this chapter draws on interviews with Powiat Labour Offices (PUP) staff to assess their capacity to implement new labour market policy instruments. Semi-structured interviews were conducted with PUP representatives (see Box 3.2), focusing on three dimensions of institutional capacity: i) organisational, staffing and financial resources; ii) inter-institutional cooperation; and iii) engagement with employers. Staff were asked to identify challenges and opportunities related to activating economically inactive individuals under the 2025 PES reform. The findings revealed persistent barriers, including staff shortages, rigid administrative procedures and insufficient funding, particularly for innovative projects. Cooperation with external actors often relies on informal channels rather than formalised frameworks with clear objectives, tools or data-sharing protocols. The PUP staff also identified some areas for development, including the need for more individualised services, specialised counselling and proactive outreach through information campaigns, community-based engagement and digital tools.
Semi-structured interviews were conducted with representatives of selected Powiat Labour Offices (PUP) to assess the institutional capacity of the Polish PES, required to support the activation of inactive individuals. This exercise aimed to gather additional information on the challenges experienced by the local offices to develop more targeted and actionable recommendations.
The participating offices were identified and invited through the Regional Labour Offices (WUP) in Gdańsk, Kraków, Opole and Olsztyn. In total, eight PUPs participated in the qualitative assessment, with participating offices including PUPs in Kraków, Działdowo, Giżycko, Limanowa, Malbork, Nysa, Prudnik and Starogard Gdański. Discussions focused on three areas of institutional capacity:
Organisational, staffing and financial capacity;
Capacity for inter-institutional cooperation and collaboration with other labour market actors;
Capacity to engage with employers.
The interview script covered issues such as staffing levels, past experience with engaging the inactive population, use of local and national budgetary resources, and existing cooperation mechanisms with external actors. Participants were also asked to reflect on the limitations of their current active labour market policies’ catalogue to provide tailored services to the economically inactive population.
This chapter is divided into five sections that examine the role and capacity of labour market institutions in Poland in light of the new Act on Labour Market and Employment Services of 2025. The first section examines the role of Regional and Powiat Labour Offices in the delivery of ALMPs. The second section discusses funding-related challenges that impact the institutional capacity of labour market institutions in Poland. Next, the chapter explores organisational issues specific to PES and provides an overview of the services currently offered under ALMPs. Finally, the chapter presents the profile of the current PES clients and outlines opportunities for collaborations between PES, other institutions and labour market actors.
The Polish PES are divided into national, regional and local levels, operating autonomously to deliver labour market services to individuals searching for employment and employers. PES in Poland operate across three levels – national, regional, and local, with each level playing a distinct role in labour market policy design and implementation. PES actors are responsible for developing ALMPs, administering income-replacement benefits, conducting labour market research and analysis, conducting job matching and providing employer-related services. Each level operates with a high degree of autonomy and limited hierarchical oversight. The Ministry of Family, Labour, and Social Policy (pol. Ministerstwo Rodziny, Pracy i Polityki Społecznej – MRPiPS) sets national labour market policy priorities and provides general coordination of the PES activities, but it does not exercise direct control over regional and local PES decisions. Regional Labour Offices (pol. Wojewódzkie Urzędy Pracy – WUP) are accountable to regional administrations and have no formal authority over the Powiat Labour Offices (pol. Powiatowe Urzędy Pracy - PUP), which are managed at the local level (see Table 3.2).
Note: Municipality, powiat and regional bodies are chosen in elections and serve as representatives of the local population. In big cities, the powiat level is omitted and the city mayor takes on the role of the head of powiat in terms of PUP and OPS supervision.
At the national level, the MRPiPS oversees the implementation of labour market policies. The Ministry sets annual priorities and allocates funding to regional administrations. The MRPiPS directs the country’s labour market strategy and manages international partnerships related to public employment services. Additionally, the MRPiPS initiates its own ALMPs through open tenders for pilot programmes. Day-to-day collaboration between labour offices and the Ministry is limited to the maintenance of central registries of the unemployed and jobseekers.
Poland’s public employment services are structured across two levels: the WUP and the PUP. The 16 WUP, one in each voivodeship, are primarily responsible for strategic and administrative functions at the regional level. Their core tasks include monitoring and analysis of labour market trends, developing regional labour market strategies, distributing national and EU funds, and coordinating participation in the European Employment Services (EURES) network for international job placement. At the local level, 340 PUP provide direct, client-facing services. These include registering unemployed persons and jobseekers, assessing eligibility for unemployment status and benefits, and implementing ALMPs such as job placement services, vocational training, internships or career counselling.
The WUP shape and coordinate labour market policy at the regional level. Supervised by the marshals of voivodeships – the regional administration – the WUP translate national policy objectives into regional services. They are responsible for defining regional labour market policies and producing labour market analyses and statistical reports which inform policy development. In establishing policy decisions, the WUP work in close cooperation with regional labour market councils, as established by Articles 7-14 of the 2025 Act on Labour Market and Employment Services. The councils are advisory bodies, composed of representatives from regional authorities, trade unions, and employer organisations. They serve as platforms for dialogue on the design and implementation of regional employment strategies, and as such, shape and oversee the activities of the WUP.
The regional PES are also responsible for international job mediation via the European Employment Services (EURES) network and can lead innovative activation programmes. The EURES network enables cross-border job matching across the EU (see Box 3.3). The WUP lead this task in Poland, and provide information to PES clients and employers on working conditions and opportunities in other European countries. Additionally, when commissioned by the regional administration, the WUP may develop regional programmes or pilot initiatives aimed at addressing specific labour market challenges (see Table 3.6).
EURES (EURopean Employment Services) is a European network established by the European Commission, the European Labour Authority, and national public and other approved employment services in EU states, Iceland, Liechtenstein, Norway, and Switzerland. Its purpose is to enhance cooperation and information exchange on job mediation and labour market conditions in Europe. In Poland, the main operators of the EURES network are the Regional Labour Offices (WUP).
EURES staff in the WUP provide a wide range of services to both unemployed individuals and employers. These services include matching job vacancies with CVs on the EURES portal, offering counselling to workers and employers about operating within EURES countries, and providing information about living and working conditions in these states. Additionally, cross-border regions offer support for frontier workers and employers.
Source: European Labour Authority (2024[4]), EURES Network.
On-the-ground employment services are delivered by the PUP, which operate under the supervision of the local powiat administration. The head of powiat (pol. starosta) plays a key role in labour market policy implementation. Before Labour Fund resources reach the PUP, they are transferred to the powiat administration, which is responsible for dividing the allocated funds across specific tasks and services. The head of the powiat determines which services the PUP would prioritise, allocates the powiat’s share of the Labour Fund accordingly, and can authorise the introduction of special activation programmes (see Table 3.2). The discretion of the powiat authorities over the PUP activities is shaped by the predefined categories of key ALMPs announced annually by the MRPiPS, as well as by funding decisions of the regional administration. The head of the powiat is also responsible for confirming the unemployment status of individuals registered with the PUP, which in turn determines their eligibility for employment services and income-replacement benefits.
The PUP administer income-replacement benefits and ALMPs. PUP activities include the provision of unemployment benefits, payment of retirement contributions and health insurance for eligible individuals. As part of activation services, the PUP offer job placement, career counselling, vocational training, internships, and financial support for business start-ups (see Table 3.5). They can also design and deliver innovative projects such as pilot programmes to increase the employability of their clients (Article 211 of the Act on Labour Market and Employment Services). Those can be developed in cooperation with other stakeholders, including local employers and the powiat administration. As with the WUP, decisions on the scale and focus of labour market interventions at the powiat level are made in consultation with the powiat labour market councils (Government of Poland, 2025[2]). The councils include representatives of public administration, employers, trade unions, and social economy organisations, acting as advisors to the PUP (Article 10 para. 3 of the Act on Labour Market and Employment Services).
There is limited cooperation between the PUP and the WUP, as each level of labour market policy sets its priorities. Article 32 of the 2025 Act on Labour Market and Employment Services specifies the necessary instances for collaboration between the PUP and the WUP (Government of Poland, 2025[2]). Joint activities include the organisation of internships and training for PES clients, PES staff training, or the implementation of joint information campaigns. The PUP can also draw on labour market analyses prepared by WUP to inform their own decisions and policies. Joint projects aimed at the activation of specific disadvantaged groups are also undertaken sometimes through the European Social Fund (ESF) or regional programmes. The PUP – WUP collaboration is thus primarily project-based, and there is no overarching framework for systematic coordination or information-sharing. Sporadic communication between the WUP and PUP leads to inefficiencies in labour market responses, as the institutions lack insight into each other’s planned activities and available resources (Grewiński et al., 2022[5]). Inefficiencies can arise during the planning of employer outreach initiatives or outreach to potential clients, where a lack of mutual consultation can result in duplicated efforts and missed opportunities to pool resources.
The activities of labour offices in Poland are primarily funded by the national administration but can also be subsidised by regional, local and EU funds. National funding includes specific funds such as the Labour Fund or PFRON. The main source of the EU budget for the Polish PES is the ESF, while regional and powiat administrations can also direct parts of their local budget towards PES’ labour market policies.
The Labour Fund, the main source of PES funding, supports activation measures for PES clients but rigid allocation rules limit flexibility for engaging the economically inactive
The Labour Fund is the main financing source of the PES, with allocations determined annually based primarily on the number of registered unemployed in each region and powiat. The allocation of Labour Fund resources between the WUP and the PUP is set annually by national, regional and local administrations. The funds are managed by the MRPiPS, with revenues primarily sourced from employer contributions (83% in 2022), supplemented by national subsidies (1.5%) and European Union (EU) funds (15.5%) (Ministry of Family, Labour and Social Policy, 2023[6]). The MRPiPS establishes regional spending limits which are distributed by the marshal and the voivodeship board (the regional executive) among the powiats, in line with criteria established by the voivodeship assembly (the regional legislature). Criteria for resource allocation often include the number of unemployed registered with the PUP and, in their current form, do not account for the number of individuals outside the labour market who could benefit from PES services (see Table 3.3). The head of each powiat subsequently determines which unemployment activation measures should be prioritised by the PUP (Government of Poland, 2025[2]).
While the Labour Fund has grown over time, its structure has not been adapted to shifts in client composition, including the need to reach inactive individuals. In the early 2000s, annual Labour Fund spending was approximately PLN 5 billion (Ministry of Family, Labour and Social Policy, 2023[6]). This amount doubled between 2008 and 2017, before declining slightly in 2018. A temporary peak occurred in 2020 due to special COVID-19 programmes. By 2022, Labour Fund expenditure reached PLN 8.6 billion (see Figure 3.1). According to interviews with the PUP staff, the size of the Labour Fund has not been adapted, however, to cover the new PES responsibilities of activating the economically inactive population. Limited spending flexibility can thus pose a challenge to engaging potential PES clients or testing new outreach and activation strategies for individuals outside the labour market.
Changes in total Labour Fund spending between 2006 and 2022
Note: Spending on ALMPs is presented as total PUP spending on ALMPs. The WUP also administer some ALMP spending but its level is negligible in comparison to the PUP spending on ALMPs.
Source: Ministry of Family, Labour and Social Policy (2023[6]), Informacja o przychodach i wydatkach Funduszu Pracy [Information on the income and expenditures of the Labour Fund].
The Labour Fund is allocated to ALMPs, benefits provision, and operational expenses, with the share dedicated to ALMPs fluctuating year to year, influencing PES’ long-term planning. In 2022, more than half of the Labour Fund (56%) was allocated to ALMPs implemented by the PES, while 34% of the Labour Fund was used to finance unemployment benefits and 2% was allocated to administrative costs of the PES, including staff salaries and operational expenses of running the WUP and the PUP (Ministry of Family, Labour and Social Policy, 2023[6]). The spending on ALMPs included funding for internships, training opportunities, pilot projects, reimbursements for starting a business, as well as reimbursements of salaries of the previously unemployed and the employees’ training, granted to employers. Other tasks, which amounted to the remaining 8% of the Labour Fund, included investment spending, COVID-19 protection schemes, and contributions to long-term retirement saving schemes under the Employee Capital Plans (pol. Pracowniczy Plan Kapitałowy – PPK). The PPK is a voluntary, defined-contribution savings system which supplements the public pension system. As part of the scheme, the Labour Fund is also used to co-finance the employees’ savings. The ALMP funding has ranged between 20% and 50% of total Labour Fund spending over the years 2006-2022 (Figure 3.2). As ALMP funding levels shift year to year, PES offices face challenges in planning sustainable activation programmes.
Labour Fund spending by category of spending, (%), 2006-2022
Note: Total allowances and benefits include income-replacement benefits paid out by the PUP. ALMPs include ALMPs run by the PUP and the WUP. Other tasks include administrative tasks of the labour offices and emergency responses of the PES.
Source: Ministry of Family, Labour and Social Policy (2023[6]), Informacja o przychodach i wydatkach Funduszu Pracy [Information on the income and expenditures of the Labour Fund].
The PUP spending prioritises internships and business start-up support for registered unemployed individuals. In 2022, 29% of the Labour Fund spending on ALMPs on the powiat level was directed to providing business start-up support to registered PES clients. The same share was dedicated to internship opportunities for registered unemployed and jobseekers. In addition, 15% of the spending on ALMPs was allocated to workplace re-equipment, including the provision of tools or equipment for newly hired workers and workplace adaptations for persons with disabilities (Ministry of Family, Labour and Social Policy, 2023[6]). Other spending categories included subsidised public employment (pol. roboty publiczne) and subsidised employment with private employers (pol. prace interwencyjne), accounting for 9% and 7% of the PUP spending, respectively (Figure 3.3). Subsidised employment services offer short-term employment contracts for registered unemployed to facilitate their full-time return to the labour market. Additional spending was directed towards training programmes such as vocational or upskilling courses, mobility grants to support geographic relocation for employment, pilot projects testing innovative ALMP approaches, as well as community-based employment (pol. prace społecznie użyteczne) providing part-time work opportunities for unemployed individuals receiving social assistance. A limited number of the PES activation services financed by the Labour Fund, including career guidance and job mediation are also available to economically inactive individuals prior to their registration with the PUP (see Figure 3.5).
Total spending by category, thousands of PLN, 2022
Note: Only the main categories of ALMP spending by the PUP are presented in the chart.
Source: Ministry of Family, Labour and Social Policy (2023[6]) Informacja o przychodach i wydatkach Funduszu Pracy [Information on the income and expenditures of the Labour Fund].
The distribution of the Labour Fund at the regional level is determined by an algorithm established by the MRPiPS and based on the incidence of unemployment and the labour office outcomes. The algorithm is specified in the Regulation on the Labour Fund Algorithm for Financing Tasks in Regions by the Polish Government (Government of Poland, 2014[7]). The funds each region receives depend on the following criteria:
The average monthly number of registered unemployed persons.
The unemployment rate compared to other regions.
The average difference between the inflow and outflow of labour office clients.
The average number of people who find employment after registering with a labour office across the region.
The economically inactive, who are not registered with the labour offices, are not captured in these calculations, making it unlikely that additional funds will be allocated for their activation.
Once funds are allocated to each region, the regional assembly (pol. sejmik województwa) establishes criteria for distributing these funds among its powiats and, consequently, among the PUP. The criteria are based on the Law on Employment Promotion, and include the number of the unemployed, the unemployment rate, the structure of unemployment, including the number of long-term unemployed and unemployed over the age of 50, and the amount of Labour Fund expenditure directed to powiats for ESF co-financed projects, (Article 267 para.7 of the Act on Labour Market and Employment Services). Once the sum allocated to each PUP has been decided, the head of the powiat then determines how to allocate the funds to specific types of economic activation carried out by the PUP. Table 3.3 shows examples of criteria set by the regional administration.
Note: Criteria are presented from the most to the least important. Two types of effectiveness of the funds are measured: employment effectiveness (pol. efektywność zawodowa) and cost effectiveness (pol. efektywność kosztowa). Employment effectiveness is the measure of the share of labour office’s clients who became employed through their participation in ALMPs. Cost effectiveness is the ratio of the Labour Fund expenditures incurred on financing of ALMPs to the number of labour office’s clients who became employed after completion of such programmes.
Source: Zarząd Województwa Warmińsko-Mazurskiego (2011[8]), Załącznik 1 do Uchwały nr 5/32/11/IV Zarządu Województwa Warmińsko-Mazurskiego z dnia 25 stycznia 2011 r. Podział środków Funduszu Pracy dla samorządów powiatowych województwa warmińsko-mazurskiego, według algorytmu, na finansowanie programów, Sejmik Województwa Mazowieckiego (2017[9]), Załącznik do uchwały nr 136/17 Sejmiku Województwa Mazowieckiego z dnia 29 sierpnia 2017 r. Kryteria podziału środków Funduszu Pracy, Sejmik Województwa Małopolskiego (2015[10]), Załącznik do uchwały nr XVII/238/15 Sejmiku Województwa Małopolskiego z dnia 30 grudnia 2015 r. Kryteria podziału środków Funduszu Pracy dla samorządów powiatowych.
The Labour Fund Reserve is the most flexible component of PES funding, promoting innovative activation programmes. Each year, 20% of the Labour Fund is set aside to create the Labour Fund Reserve. The Reserve is then allocated to programmes promoting employment, mitigating unemployment and increasing economic activation at the powiat level. Overseen by the MRPiPS, the Reserve can be used to finance pilot programmes that test new approaches to employment support (Article 211, para. 8 of the Act on Labour Market and Employment Services), as well as special programmes designed to address specific local labour market challenges. It can also be mobilised for emergency interventions such as group layoffs or local employment crises (see Table 3.6). Once registered as unemployed or as jobseekers, the economically inactive could benefit from initiatives funded by the Labour Fund Reserve, which can provide services more tailored to the needs of specific PES clients. In addition, a part of the Reserve can be directed by the MRPiPS to reinforce administrative capacity for the registration of new PES clients.
The National Training Fund supports upskilling of employees but offers limited direct tools to address economic inactivity
Between 4% and 6% of the Labour Fund is allocated to the National Training Fund (Krajowy Fundusz Szkoleniowy - KFS), which reimburses training costs incurred by employers through employee upskilling. Any employer with employees on a long-term employment contract (pol. umowa o pracę) can apply for KFS funds (Government of Poland, 2025[2]). Conversely, individuals on temporary or commission contracts (pol. umowa zlecenie) are not eligible to receive the KFS funds. The KFS thus targets individuals already in the labour market, limiting its applicability for economic activation. The funds are allocated to activities within priority spending areas, established annually by the MRPiPS. In 2024, priority areas included education on technologies and business management, training in professions that experience labour shortages, training for individuals returning to the workforce after a childcare break, and digital skills training (Ministry of Family, Labour and Social Policy, 2024[11]).
The allocation of KFS funding among regions follows the same principles as the distribution of the Labour Fund. Funds are first distributed at the regional level and then at the powiat level, in alignment with national priorities. The distribution among regions is proportional to employment levels, with regions with higher employment receiving a larger share of the funds. At the local level, the head of the powiat allocates KFS funds to support continuing education through the PUP. Employers can receive KFS funds to cover up to 70% of training or continuing education costs. Micro-enterprises (i.e., firms with fewer than 10 employees) can receive funding for 90% of these training costs (Article 126 of the Act on Labour Market and Employment Services).
Local and EU funding can be used by PES but are often limited to short-term, project-based initiatives
Local governments fund some of the PES’ administrative functions, creating disparities in service provision across powiats. Although the Labour Fund includes a budget for administrative tasks of the PUP, it rarely covers their full needs. Local funding is used to fill funding gaps, covering expenses such as staff salaries and office maintenance (Rollnik-Sadowska, 2019[12]). As a consequence, the funding provided by local administrations can partly influence the PUP’s capacity to introduce additional services for their clients (Kietlińska, 2016[13]). Differences across Poland in the funding provided by local governments to the PUP cause disparities in the PES capacity across Polish powiats (Grabowski et al., 2008[14]). Interviews with PUP staff also confirm that local governments are frequently unwilling or unable to co-finance PES services.
European funds are used for innovative projects in areas such as social integration, lifelong learning, and increasing labour participation of women. The European Social Fund Plus (ESF+) and its predecessor, the ESF, fund projects initiated by PUP and WUP (Rollnik-Sadowska, 2019[12]). The ESF funding provides flexibility in choosing support areas and enhances the sustainability of labour market programmes. Additionally, European funds are used to co-finance ALMPs funded by the Labour Fund allowing the PES to broaden the range of client groups involved in PES programmes (Government of Poland, 2025[2]). Areas eligible for the ESF and the ESF+ co-financing include active inclusion and socio-economic integration of marginalised communities, measures to combat social exclusion, upskilling and life-long learning, youth employment, and gender-balanced employment (Box 3.4). Interviews with PUP staff highlight that such projects are usually time-limited and their benefits vanish at the end of the funding period. Even though it is possible for the PES to reapply for the ESF+, co-financing for previously established initiatives is not guaranteed which limits their sustainability in the long term.
As part of the Regional Operational Programme (ROP) of West Pomerania for the 2014-2020 period, the Regional Labour Office (WUP) in Szczecin and the Powiat Labour Offices (PUP) in the region carried out projects funded by the ESF. This funding enabled West Pomeranian labour offices to implement programmes aimed at activating mothers, individuals with disabilities and youth not engaged in any form of employment, formal education or training (NEETs). Programme examples include:
From 2018 to 2023, WUP Szczecin used ESF resources to co-finance an activation programme designed for individuals returning to the labour market after a period of economic inactivity due to childcare responsibilities. Parents of children under the age of three could receive grants of up to PLN 1 140 per month to cover nursery or private childcare costs. The programme funded 1 500 participants.
The PUPs in West Pomerania and other labour market stakeholders used ESF funding to extend their services to broader client groups. In 2019, PUP Szczecinek used ESF funds to support the economic activation of NEETs in the powiat. The programme targeted long-term unemployed and inactive youth, offering internships and upskilling courses. Around 300 individuals participated. The programme was successful for both people with disabilities and the inactive among which 67% found employment. Among unemployed participants with no health limitations, 90% secured jobs.
WUP Szczecin coordinated the delivery of ESF funds to social economy organisations in the region. For instance, the Professional Activity Establishment in Goleniów (ZAZ Goleniów), a sheltered workshop organisation hiring individuals at risk of social exclusion, used ESF funding to increase its staff. ZAZ Goleniów, which employs over 160 individuals, including those with disabilities, low education levels, or prior inactivity, expanded its workforce in sectors such as catering, printing, and cleaning. By offering competitive services in the market, ZAZ Goleniów not only enhanced its economic activity but also created space for social integration, helping individuals at risk of social exclusion to reintegrate into their communities.
Source: WUP in Szczecin (2023[15]), Sukcesy EFS [Successes of the ESF].
The current PES funding structure prioritises services for the registered unemployed, offering limited support to the economically inactive. The Labour Fund’s rigid allocation criteria based on unemployment statistics restrict flexibility to engage the economically inactive population in ALMPs organised by the PES. Additionally, although EU funds and resources from the Labour Fund Reserve can support initiatives more tailored to the needs of the inactive population, such programmes receive project-based funding for a limited duration. Local government contributions, which could bridge such funding gaps, vary across regions and are often insufficient to sustain innovative programmes.
The number of PES clients has decreased steadily since 2002, while the staff numbers remained stable. By 2022, there were 20 585 employees working within the PES, up from approximately 17 000 in the early 2000s (Ministry of Family, Labour and Social Policy, 2022[16]). Of these, 83% were employed in the PUP, responsible for coordinating direct services to the unemployed and jobseekers. Notably, the ratio of PUP clients to PUP employees has decreased since 2002, reaching 48 unemployed individuals per PUP employee in 2022 (Figure 3.4).
Total number of employees (left) and number of clients per PUP employee (right), 2000-2022
Source: Ministry of Family, Labour and Social Policy (2022[16]), Zatrudnieni w urzędach pracy - raport za rok 2022 [Employees in labour offices - report for 2022].
The capacity of PES staff improved over the years but there is a need for more specialised, frontline employees to engage new client groups
The PES rely on specialised employees to deliver employment services and provide unemployment benefits. In 2022, the PES employed 20 575 staff members, of whom 8 084 held roles considered essential to service provision (Ministry of Family, Labour and Social Policy, 2022[16]). Under the structure in place prior to the 2025 PES reform, key specialised positions in the PES included employment intermediaries (pol. pośrednicy pracy), career counsellors (pol. doradcy zawodowi), professional development specialists (pol. specjaliści do spraw rozwoju zawodowego), and programme specialists (pol. specjaliści do spraw programów). Table 3.5 describes the responsibilities of PES employees under the 2004 Act on Employment Promotion. Under the Act on Employment Promotion, employment intermediaries, making up 18% of all staff in 2022, were responsible for collecting and advertising job offers, referring clients to employers and searching for suitable candidates. Programme specialists (10% of the staff) were tasked with planning and implementing labour market initiatives, while professional development specialists (4%) coordinated training and assessed labour market training needs. Career counsellors (8% of the staff) offer guidance on upskilling and job transitions to PES clients. Registration specialists and records and benefits specialists (each constituting 4% of the staff) managed client intake and handled unemployment benefit administration. These roles were primarily located at the powiat level, where direct client interaction takes place. Additionally, EURES staff operate at the regional level, supporting international mobility.
Note: At the powiat level, all professions are represented. At the regional level, there are no registration specialists or records and benefits specialists employed.
Source: Government of Poland (2004[1]), Act of 20 April 2004 on Employment Promotion and Labour Market Institutions.
The decrease in clients registered with labour offices improved the capacity of specialised staff within the Polish PES. All specialised professions, including career counsellors and employment intermediaries, saw a 50% reduction in the number of clients per employee between 2014 and 2022 (Ministry of Family, Labour and Social Policy, 2022[16]). In 2014, each PUP staff member served an average of 95 clients. By 2025, this figure had fallen to 48. Similar improvements are observed across specialised roles. The caseload of employment intermediaries fell from 430 to 225 clients while the average number of clients per career counsellor declined from 863 in 2014 to 575 in 2025 (Figure 3.5).
Ratio of unemployed to PUP employees, by type of profession, 2014 and 2022
Note: Key PUP employees include employment intermediaries, career counsellors, professional development specialists and programme specialists. At the regional level, key employees also include EURES staff.
Source: Ministry of Family, Labour and Social Policy (2014[17]), Stan i struktura zatrudnienia w PUP i WUP - rok 2014 [Status and structure of employment in PUP and WUP - 2014], Ministry of Family, Labour and Social Policy (2022[16]), Zatrudnieni w urzędach pracy - raport za rok 2022 [Employees in labour offices - report for 2022].
However, despite improvements in the PES capacity and seemingly stable employment levels, the number of frontline workers declined over the same period. In 2022, PES employed fewer employment intermediaries than in 2014 (Ministry of Family, Labour and Social Policy, 2014[17]). Meanwhile, the number of managerial staff has remained stable, and there has been an increase in the number of programme specialists (Figure 3.6). The rise reflects the increased administrative responsibilities of the offices, associated with planning, implementation, and evaluation of the PUP’s programmes. In interviews, PUP staff also highlighted that these growing obligations require employees to be assigned to administrative functions, further reducing the PES capacity for direct engagement with their clients.
Specialised PUP employees by type of profession, 2014 and 2022
Note: Employment intermediaries, career counsellors and professional development specialists directly engage with PES clients in the PUP
Source: Ministry of Family, Labour and Social Policy (2014[17]), Stan i struktura zatrudnienia w PUP i WUP - rok 2014 [Status and structure of employment in PUP and WUP - 2014], Ministry of Family, Labour and Social Policy (2022[16]) Zatrudnieni w urzędach pracy - raport za rok 2022 [Employees in labour offices - report for 2022].
The Act on Labour Market and Employment Services introduced a revised classification of PES staff, replacing and redefining several existing roles. It specifies the responsibilities of employment counsellors (pol. doradca do spraw zatrudnienia), who now provide job placement services and replace the former employment intermediaries. The role is structured into three grades: junior, standard and senior, based on work experience and qualifications. Career counsellors are classified in the same way. The role of EURES counsellor is retained at the WUP and the PUP level. The Act on Labour Market and Employment Services no longer defines previously common roles such as programme specialists or professional development specialists. Their functions, including programme planning, evaluation and training coordination, are expected to be absorbed by other staff categories.
Salaries in the PES are low compared to the private sector, despite high educational requirements. As of 2023, many PES employees earn salaries close to the minimum monthly wage of PLN 3 600, making employment in labour offices less attractive than private sector alternatives. Most PES employees hold higher education degrees, including 82% of the PUP employees and 93% of the WUP staff. In 2023, career counsellors and programme specialists in labour offices earned, on average, PLN 4 100 per month, while administrative clerks earned approximately PLN 3 700 (Government of Poland, 2023[18]). A summary of PES salaries in Poland can be found in Annex Table 3.A.1. Current wages may not reflect the workload required to support PES clients, particularly for frontline workers. This results in low interest from prospective recruits and reduced motivation among current employees (Grewiński et al., 2022[5]).
Labour offices in Poland face a high level of bureaucracy which reduces their capacity to directly engage with their clients. A 2022 study by the Polish Social Policy Association (pol. Polskie Towarzystwo Polityki Społecznej - PTPS) identified administrative overload as a major issue undermining the performance of PES, according to staff (Grewiński et al., 2022[5]). The majority of PES employees (77%) also cited high staff turnover and low remuneration as the most pressing challenges. Nearly half of employees identified low staff motivation as one of the main weaknesses of PES service delivery (Figure 3.7). In addition, 34% of respondents reported a shortage of career counsellors and employment intermediaries, underlining the need to expand the number of frontline workers. Another significant problem noted by the staff is the excessive focus on non-activation tasks. Labour offices tend to prioritise the administration of unemployment benefits, which diverts attention from efforts aimed at supporting economic activation.
Weaknesses identified by surveyed PES employees, (%), 2022
Note: The bars show the share of PES staff who identified a specific area as a weakness. 1 117 WUP and PUP respondents took part in the survey. The respondents could indicate more than one weakness of PES.
Source: Grewiński et al. (2022[5]) Skuteczność i wyzwania dla publicznych służb zatrudnienia w kontekście wypracowania zarządczych ram wykonania [Effectiveness and challenges for public employment services in the context of developing a Management Performance Framework].
Although PES employees report high levels of experience, they consider the tools available to them as insufficient and note a lack of long-term staff motivation measures. While 67% of respondents cited competent and experienced staff as the main strength of the Polish PES, only 35% identified activation instruments and just 14% mentioned high staff motivation (Figure 3.8). Additionally, despite long tenures, with 39% of PES employees having 10 to 20 years of service and 28% over two decades, 82% of staff emphasised the need to establish motivation schemes, to increase opportunities for long-term career progression (Grewiński et al., 2022[5]). Lack of confidence in available tools and the absence of incentives can undermine the capacity of PES staff to deliver effective employment support and fully engage with PES clients.
Strengths identified by surveyed PES employees, (%), 2022
Note: 1 117 WUP and PUP respondents took part in the quantitative study. The respondents could indicate more than one strength of PES.
Source: Grewiński et al. (2022[5]) Skuteczność i wyzwania dla publicznych służb zatrudnienia w kontekście wypracowania zarządczych ram wykonania [Effectiveness and challenges for public employment services in the context of developing a Management Performance Framework].
The capacity of the Polish PES to deliver services varies across regions, with lower caseloads in the western and central parts of the country. The ratio of registered unemployed per PUP staff can serve as a proxy for the capacity of the PUP. In 2022, there were, on average, 48 registered unemployed individuals per PUP employee nationwide. The figure was lower in Lubusz (31), Silesia and Greater Poland (36), compared to 59 in eastern regions such as Podkarpacia and Podlaskie (Ministry of Family, Labour and Social Policy, 2022[16]). The disparities reflect reduced service capacity in high unemployment areas. The differences are greater among specialised staff. In 2022, there were on average 366 registered unemployed individuals per career counsellor in Lubusz (Western Poland), compared to over 840 in Podkarpacia (Southern Poland) (see Figure 3.9). High workloads in some Polish regions can limit the PES’ ability to provide individualised support to their clients.
Ratio of unemployed persons to PUP staff, by region and type of profession, 2022
Note: Key PUP employees include employment intermediaries (pol. pośrednicy pracy), career counsellors (pol. doradcy zawodowi), professional development specialists (pol. specjaliści ds. rozwoju zawodowego) and programme specialists (pol. specjaliści ds. programów). At the regional level, key employees also include EURES staff.
Source: Ministry of Family, Labour and Social Policy (2022[16]) Zatrudnieni w urzędach pracy - raport za rok 2022 [Employees in labour offices - report for 2022].
The catalogue of services offered by the PES consists of traditional services and innovative programmes. Traditional services are defined in detail by the Act on Labour Market and Employment Services, targeting specific groups among the registered unemployed and jobseekers. These initiatives exclude economically inactive individuals who are not registered with the PUP. In contrast, innovative programmes as defined by the 2025 Act on Labour Market and Employment Services provide offices with greater flexibility in terms of implementation and delivery, allowing for more adaptive and tailored approaches to service provision, increasing the potential for engaging economically inactive individuals on their registration with the PUP (see Box 3.1).
Traditional PES services offer activation support but remain inaccessible to economically inactive individuals without PUP registration
The Polish PES deliver income-replacement benefits and ALMPs to registered unemployed and jobseekers, with priority access to their services for selected client groups. Income-replacement benefits are exclusively distributed by the PUP, while ALMPs are managed by both PES levels. However, the majority of traditional ALMPs are offered by the PUP. Available ALMPs include job mediation, career counselling and training, business start-up support and opportunities for sheltered employment (Government of Poland, 2025[2]). Additionally, PUP provide job vacancy services to employers, subsequently offering job postings to PES clients (Table 3.5).
Note: (1) Additional services are offered to employers, including financing of internships and training for PES clients, reimbursement of costs of hiring a worker with a disability, individual labour market counselling sessions, organisation of job fairs.
The primary service provided by the PES Poland is job mediation, predominantly managed by the PUP. The PUP collect job offers from local employers and publish them both physically, by posting them on notice boards at their offices, and digitally in the Central Job Offer Database (pol. Centralna Baza Ofert Pracy – CBOP). Domestic and international employers, including those from EU and EEA countries, can submit job offers to the PUP. Once a job offer is accepted, the PUP commits to finding a suitable candidate by presenting the opportunity to suitable clients registered with the office. The offers are also accessible to non-registered individuals who can view job offers in the CBOP or obtain them by contacting their local PUP.
Non-registered individuals also have limited access to career counselling services at labour offices. The career counselling service is provided at the powiat level by the PUP and by career counselling centres operating within the WUP, as per Article 33 of the Act on Labour Market and Employment Services. Specialised PUP employees deliver career guidance through individual in-person or online sessions as well as group workshops. Although career counselling is primarily reserved for individuals registered as unemployed or jobseekers, unregistered persons may also participate depending on the institution’s capacity.
Subsidised temporary work placements are limited to individuals registered with the PUP as unemployed. The PUP can offer sheltered employment to unemployed individuals. These include subsidised employment with private employers (pol. prace interwencyjne), subsidised public employment (pol. roboty publiczne) and community-based employment (pol. prace społecznie użyteczne). Subsidised employment with private employers involves temporary job placements co-funded by the PUP for a period ranging from 3 to 12 months. Subsidised public employment is organised in partnership with municipal or powiat-level authorities and provides temporary employment up to 6 months for unemployed individuals, often in public infrastructure or local service projects. Community-based employment is designed for unemployed individuals who do not qualify for unemployment benefits and receive social assistance from the OPS (Government of Poland, 2025[2])). These positions are coordinated by the PUP and the OPS and involve work benefiting the local community, such as maintenance of public spaces.
Financial assistance through non-wage employment support is reserved for those registered as unemployed. To increase labour market opportunities for the unemployed, additional support includes the reimbursement of childcare costs or settlement vouchers. Individuals who begin working or start an internship can receive reimbursement for childcare costs incurred for children under 7 years old, or under 18 years old in case of a child with a disability (Article 146 of the Act on Labour Market and Employment Services). This reimbursement can last up to six months for employment or the entire duration of training, allowing the PES clients to focus on gaining skills and work experience. Additionally, unemployed individuals who take up employment away from their place of residence can receive support to cover the costs of commuting or changing their residence (Article 208 of the Act on Labour Market and Employment Services).
Upskilling opportunities, including internships, training, and grants for further education, are available to registered unemployed and jobseekers under certain conditions. Internships are offered for three to six months and can be organised by companies, social economy entities and agricultural cooperatives (Government of Poland, 2025[2]). During an internship, participants are entitled to a stipend equal to 160% of their unemployment benefits, as well as support for childcare or commuting or residence change costs if needed. Furthermore, all individuals registered as unemployed or jobseekers can participate in training programmes to gain skills sought after on the labour market. Participants receive a stipend equal to 120% of their unemployment benefits. Additionally, PUP can subsidise the costs of further education or qualification examinations. Unemployed individuals and jobseekers can receive a stipend to finance continuing education or reimburse the costs of examinations or diplomas required to take up employment. Although jobseekers can benefit from upskilling initiatives, the registered unemployed are prioritised for these services.
Business start-up incentives are available to registered unemployed and some groups of people registered with the PES. Unemployed individuals and jobseekers who act as caregivers to a person with a disability can receive a grant to start their own business or a social cooperative, of up to six times the average monthly national salary (Government of Poland, 2025[2]). These funds can be used to cover legal aid or business counselling sessions and do not have to be repaid to the PUP. For those seeking greater financial support, PUP offer business start-up loans of up to twenty times the average monthly salary. These loans must be repaid within seven years.
Employers can also benefit from PES services through the reimbursement of costs of training or employment of PES clients. An employer can receive a payment of PLN 500 for each month an unemployed person who participates in an internship programme. A business hiring an unemployed person under the age of 30 can additionally receive reimbursement of social insurance costs incurred for up to 12 months of an individual’s employment. Employers can also receive financial assistance from PUP to equip or refit workplaces by purchasing additional equipment or adapting the workplace to the needs of people with disabilities (Government of Poland, 2025[2]). Funding received for workplace retrofitting must however support the hiring of a PES client, thereby creating employment opportunities of individuals registered with the PUP. New approaches to activate the economically inactive are currently underfunded, with limitations on their sustainability
In addition to their traditional services, PUP and WUP have the opportunity to organise innovative programmes designed to stimulate specific economic sectors or target groups of unemployed individuals. Innovative programmes aimed at specific groups of PES clients or designed to test new service models can be organised by the PES following the approval of the local or national administrations. Initiatives include regional, pilot and special programmes, as outlined by the Act on Labour Market and Employment Services. Unlike traditional ALMPs defined in the 2025 Act on Labour Market and Employment Services offered to clients specifically described in the legislation, these programmes allow for greater flexibility in the choice of target groups and content adaptability to local labour market needs. Regional programmes are financed from the Labour Fund, following the approval of the regional administration. Special programmes and pilot projects are financed from the Labour Fund Reserve, following the approval of MRPiPS. The implementation of these initiatives typically requires cooperation among multiple stakeholders, including the WUP, the PUP, local administration, employers, and social economy organisations (see Table 3.6).
Source: OECD summary based on Government of Poland (2025[2]), Act of 20 March 2025 on Labour Market and Employment Services.
At the regional level, the WUP can implement regional programmes to respond to labour market demands for specific qualifications or to address the economic inactivity of inhabitants in a region. Regional programmes are project-based initiatives undertaken by the WUP to address local labour market needs and labour and skills shortages. The programmes are initiated by the marshal of the voivodeship, at the request of the heads of powiat or the regional labour market council (Government of Poland, 2025[2]). Programme implementation is coordinated with the PUP in each region, with participants including registered PUP clients, employers or local entrepreneurs. Regional programmes vary across regions, as shown by comparing Lesser Poland and Pomerania in Box 3.5.
Regional programmes can be sector-specific or target specific types of employment-related challenges.
In Lesser Poland, the “Company +1” programme (pol. Małopolski Program Regionalny “Firma +1”), launched in 2025, involves the WUP in Kraków and 18 local PUP. The programme offers job mediation for registered unemployed and micro- and small companies in the region. Approximately 770 unemployed persons and 600 employers will participate in the programme. The cost of the project reached PLN 14 million over two years.
A second regional programme implemented by the WUP in Kraków addresses labour shortages in Lesser Poland’s tourism sector. In its 2023 - 2024 “Regeneration – support to Lesser Poland’s tourism and recreation sectors” programme (pol. Małopolski Program Regionalny “Regeneracja – wsparcie małopolskiej turystyki i przemysłów czasu wolnego”), the WUP supports registered unemployed of 11 PUP in the region in finding employment in the tourism sector, with more than 300 clients and 250 employers participating.
In the Pomerania region, the WUP in Gdańsk, in cooperation with 17 PUP, introduced in 2022 a regional upskilling programme “Work for the People of Pomerania” (pol. Praca dla Pomorzan). The programme provides approximately 850 registered unemployed persons with options to gain new qualifications and find employment within local Pomeranian companies.
Source: WUP in Gdańsk (2025[19]) Program regionalny Praca dla Pomorzan [Regional Program "Jobs for Pomeranians"], WUP in Kraków (2025[20]), Małopolski Program Regionalny "Regeneracja - wsparcie małopolskiej turystyki i przemysłów czasu wolnego (2023-2024)" [Malopolska Regional Program "Regeneration - support for Małopolska's tourism and leisure industries (2023-2024)].
Regional programmes are primarily funded through each region’s share of the Labour Fund, requiring the PES to make trade-offs between maintaining core services and funding new initiatives. In planning regional programmes, the PES must decide whether to use funds for specific projects or to maintain ongoing services. While additional support can come from the ESF+ or local budgets, the Labour Fund remains the primary funding source (Government of Poland, 2025[2]). Interviews with PUP staff highlighted that local governments, although legally allowed to co-finance PES activities, are often constrained by budgetary pressure, which tends to prioritise other spending areas (Box 3.2). Considering the limited capacity to support innovative measures in less affluent regions, despite higher needs, differences in service provision exist across Poland.
PES can introduce pilot programmes to test innovative strategies for the activation of inactive people at the powiat or regional level. To organise a pilot programme, the local administration must receive approval from the MRPiPS, which provides the WUP or the PUP with funding for a project from the Labour Fund Reserve (Government of Poland, 2025[2]). The PES have the option to implement pilot projects jointly with partners, including social economy organisations, the OHP, employment agencies, local administrations or other PES partners. Specific groups of registered unemployed or jobseekers can be chosen to take part in pilots. In the past, target groups included youth, people with disabilities or people living in rural areas.
The MRPiPS promotes PES innovation by funding pilot programmes through competitive public tenders. The MRPiPS provides PES with additional opportunities to organise pilot programmes, by inviting the PUP and the WUP to submit proposals for new service delivery models via public tenders. Selected initiatives receive time-limited funding from the MRPiPS to test their innovations. One such project was the “Time of the Youth” project (pol. Program Czas na Młodych), launched in 2023 to pilot a one-stop shop advisory services model for individuals under 30. One-stop-shops are integrated service points which allow clients to access multiple services, including career counselling or job matching in the same location. The PUP could apply for funding to established contact points offering integrated support to young adults. While the PUP could apply independently for the projects, preference was given to proposals involving partnerships with other institutions and labour market actors, to provide comprehensive assistance. A total of 77 projects were funded, each lasting between 12 and 18 months (Ministry of Family, Labour and Social Policy, 2023[21]).
Although pilot programmes offer a tool for testing innovative activation services, they are rarely used in Poland. Interviews with the PUP staff highlight a strong demand for greater flexibility in service delivery. Pilot programmes could allow the PUP to experiment with new activation tools and delivery models. Despite this potential, pilot initiatives currently play a small role in PES services. In 2022, just PLN 42 million, equivalent to 0.5% of total Labour Fund expenditure, was allocated to their implementation. While funding for pilot programmes is separate from regional or powiat Labour Fund allocations, the number of projects remains low.
Low financial sustainability and a lack of systematic evaluation pose challenges to the effective use of pilot programmes by the Polish PES. Interviews with the PUP staff revealed that while innovative projects such as pilot programmes often deliver promising results, they tend to cease at the end of the funding period. PUP rarely have sufficient resources to sustain such initiatives and, in less affluent regions, local funding is generally unavailable. EU-funded programmes are similarly limited to ad-hoc interventions, hindering their scalability. Pilot programmes also lack evaluation mechanisms, with success often measured solely by the number of PES clients placed in employment. A narrow focus on evaluation restricts the development of PES institutional knowledge. Finally, the absence of a centralised database on past pilot programmes impedes knowledge sharing between the WUP and the PUP, weakening the potential for replication and improvement of pilot interventions.
Service procurement could support the delivery of innovative service delivery models, according to PES staff. PUP staff does not consider the procurement of services as major barrier for the PES. These procedures do not substantially hinder their ability to outsource services or partner with external providers. This presents an opportunity to introduce new types of services, including for the economically inactive, in cooperation with other labour market actors. However, financial challenges may still limit the scale of such collaboration and its sustainability.
Special programmes (pol. programy specjalne) provide PUP with a tool to address specific needs of the local unemployed and jobseekers through powiat-level interventions, although limited funding often hinders their effectiveness. In contrast to traditional ALMPs, broadly accessible to all registered PES clients, special programmes are designed for selected target groups and implemented at the powiat level. The head of the powiat can initiate and carry out special programmes independently or in cooperation with other local institutions, social economy organisations or employers, to support the economic activation of selected client groups (Government of Poland, 2025[2]). Any interinstitutional cooperation within special programmes is based on partnership agreements. However, while special programmes allow for tailored services and greater responsiveness to local needs, the funds allocated to such initiatives are generally limited. Special programmes are financed through the regional allocation of the Labour Fund, and the PUP must therefore decide between allocating funds to special programmes or directing the budget towards traditional PES ALMPs. If needed, the MRPiPS can grant the PUP additional funds for the programme implementation, from the Labour Fund Reserve, although the total funding per one programme participant cannot exceed 150% of an average monthly salary in Poland. As such, the fund allocation for each participant at the beginning of 2025 could not exceed PLN 13 440 (EUR 3 160).
The 2025 Act on Labour Market and Employment Services introduces the ministerial activation programmes for people with disabilities and emergency situation programmes conducted by the PES. The two new approaches introduced by the Act on Labour Market and Employment Services are project-based and involve collaboration across institutions. The ministerial activation programme, outlined in Article 212 of the Act, is led by the MRPiPS. Its goal is to promote social and economic activation of people with disabilities and their caregivers. The MRPiPS can issue calls for tenders to implement specific activation measures under a programme. Eligible participants include the PES, social economy entities, the OHP, employment agencies, and institutions managed by local authorities (Government of Poland, 2025[2]). The programme is funded by the Labour Fund, in addition to the standard PES allocations, and can support targeted services such as counselling, tailored training or vocational rehabilitation to help people with disabilities return to the labour market (see Chapter: Policies to reach, engage and activate the economically inactive population in Poland). Additionally, emergency situation programmes can be launched by the MRPiPS in regions affected by sudden events leading to group layoffs (Article 216 of the Act on Labour Market and Employment Services). These programmes aim to reduce the negative impact of such emergencies by providing standard PES services along with additional support measures to the affected workers. Funding for the emergency programmes comes from the Labour Fund Reserve.
Access to PES support in Poland requires individuals to register either as unemployed or jobseekers. To access PES services, an individual must register with the PUP. Two registration schemes are available to the potential clients – the unemployed or the jobseeker status (Government of Poland, 2025[2]). Eligibility for each status depends on factors such as an individual’s income, employment history and other specific characteristics, including recent job loss or refugee status.
Registration as unemployed with the PUP provides a client with access to the full range of PES services but is restricted to individuals meeting strict income and legal requirements. To qualify for unemployed status, a person must meet strict criteria. They must be willing and able to work, not currently employed or in formal education and must not receive any income. Financial income includes social transfers such as disability or early retirement benefits. As a result, groups such as early retirees or people with disabilities are often unable to register as unemployed without risking the loss of existing entitlements. Their status, however, limits the scope of services available to them. Those registered as unemployed can benefit from all traditional and innovative services offered by the PES, are automatically covered by health insurance and, depending on their past work experience, may also obtain unemployment benefits. A person registered as unemployed can only receive support from the PUP in which they are registered.
Individuals who do not meet the criteria for unemployed status can register as jobseekers to benefit from selected PES services. The jobseeker status can be given to people who cannot be registered as unemployed but are willing to find employment through the PUP (Government of Poland, 2025[2]). Jobseekers have access to services such as job mediation or career counselling and can also join innovative programmes organised by the PES. However, they do not receive health insurance or unemployment benefits and their options to participate in upskilling programmes are limited. The group is estimated to have comprised approximately 21 000 individuals in May 2025, making them a small share of PES services recipients (Ministry of Family, Labour and Social Policy, 2025[22]). Although in theory anyone can register as a jobseeker with the PUP, this group tends to be heavily detached from the labour market and includes a high proportion of persons with disabilities (OECD, 2021[23]).
Under the 2025 Act on Labour Market and Employment Services, economically inactive individuals have become a target group for the Polish PES’ outreach and activation efforts. Those who are not registered at a labour office and do not perform any economic activity are economically inactive. Prior to 2025, PES’ support for this group was vaguely defined. The 2004 Act on Employment Promotion gave the PUP a general mandate to reach people outside of the labour market but lacked specific obligations (see Box 3.1). As a result, engagement with the economically inactive was limited to information campaigns. The new legislation addresses this gap by assigning the WUP and the PUP the responsibility to identify, reach, and professionally activate inactive individuals through dedicated outreach and activation activities (see Chapter: Policies to reach, engage and activate the economically inactive population in Poland).
Despite becoming a formal target group for PES’ outreach, economically inactive individuals must still register with the PES, either as unemployed or as jobseekers, to receive complete activation support. Under the 2025 Act on Labour Market and Employment Services, individuals must be classified either as unemployed or as jobseekers to access PES’ activation support. However, economically inactive individuals receive income from social transfers such as disability benefits, childcare-related benefits or early retirement pensions, disqualifying them from being registered as unemployed. As a result, they are more likely to register as jobseekers, a status that allows access to selected services such as job mediation, career counselling and participation in innovative PES programmes. The PES can only offer job placements or enrol individuals in ALMPs once this registration is completed, regardless of the client type.
The statuses of unemployed and jobseekers come with specific obligations that individuals must fulfil to maintain their rights. Unemployed individuals are required to attend scheduled appointments with a counsellor unless they have a valid reason for absence. They must also accept job offers proposed by the office and participate in any training or internships recommended by the PUP. Both groups must report to the office every 90 days to confirm their intention of finding a new job, and otherwise risk losing their registered status.
Although the unemployed form the largest group of PES clients, only a fraction receives unemployment benefits. In 2022, 812 031 people were registered as unemployed in Poland. and among them, 14% are eligible to receive unemployment benefits (Ministry of Family, Labour and Social Policy, 2022[24]). However, regional differences exist (see Figure 3.10). In Warmian-Masuria, 19% of the unemployed received benefits, compared to 10% in Lublin. In the same year, 419 700 individuals were classified as long-term unemployed, meaning that they had been registered with a PUP for at least 12 months within the previous two years (Government of Poland, 2004[1]).
Eligibility for unemployment benefits depends on the prior work experience of the clients. To qualify for the unemployed status, a person must have worked for at least 12 months within the 18 months before registering as unemployed (Government of Poland, 2025[2]). In June 2024, the basic unemployment benefit was equal to PLN 1 662 per month for the first three months, and PLN 1 305.20 per month thereafter (Ministry of Family, Labour and Social Policy, 2024[25]). The amount is adjusted based on work history. Those who worked less than five years receive 80% of the basic benefit, while those with at least 20 years of work experience are entitled to 120% of the basic amount.
Share of unemployed people receiving unemployment benefits, (%), 2022
Source: Ministry of Family, Labour and Social Policy (2022[24]) Bezrobocie rejestrowane w Polsce - raport za rok 2022 [Registered unemployment in Poland - report for 2022].
The 2025 Act on Labour Market and Employment Services defines priority groups for ALMPS, several of which share characteristics commonly found among the economically inactive. Under the Act on Labour Market and Employment Services, priority access to ALMPs is granted to registered individuals with specific backgrounds, including unemployed people over 50 or with disabilities, unemployed and jobseekers under the age of 30, unemployed single parents, unemployed with no professional qualifications, long-term unemployed and unemployed holders of the Large Family Card1 (pol. Karta Dużej Rodziny). These categories align with the profiles of many economically inactive individuals such as people with disabilities and older adults, understood as those over 55 or those lacking formal work experience. For examples, inactive women without childcare responsibilities often have limited employment histories and may fall under the category of PES clients without professional qualifications (see Chapter: Identifying and characterising groups of economically inactive people in Poland). However, to benefit from this prioritisation, individuals must typically be registered as unemployed with the PUP. Such a requirement may exclude the previously inactive individuals from priority access to ALMPs who, due to receiving other forms of income, are only able to register as jobseekers.
Spending on economic activation varies across priority groups, with younger individuals receiving on average more funding. In 2022, approximately PLN 10 500 (EUR 2 400) was allocated for each person under the age of 30 for economic activation (Ministry of Family, Labour and Social Policy, 2023[6]). In contrast, around PLN 8 600 (EUR 1 985) was allocated for each person over 50. Slightly more funds were directed towards the long-term unemployed, averaging PLN 8 950 (EUR 2 070) per person. Younger clients consistently receive greater investment, both in recent years and over the past decade. These patterns suggest that resources are not evenly distributed across priority groups of PES clients.
Labour Fund spending on ALMPs per person, in PLN, 2014-2022
Note: ALMP spending includes individual and group counselling, internships, and training provision.
Source: Ministry of Family, Labour and Social Policy (2023[6]) Informacja o przychodach i wydatkach Funduszu Pracy [Information on the income and expenditures of the Labour Fund].
Spending differences result in unequal access to activation services such as counselling, training or internships. The higher level of spending on younger clients translates into more intensive service provision. In 2022, 34% of unemployed under 30 received individual counselling, compared to only 14% of those over 50 years old and the long-term unemployed (Ministry of Family, Labour and Social Policy, 2023[6]). Similarly, 4% of those under 30 took part in group counselling, compared to just 2% of the older unemployed persons and those who have been looking for employment for more than a year. Internship participation followed the same trend, with 10% of those under 25 participating, compared to 4% of individuals over 45. While these differences may reflect varying approaches to the activation of PES clients, they highlight possible funding challenges for addressing barriers faced by older and long-term unemployed individuals, including those who have previously been economically inactive.
No formal mechanism of client profiling is currently in place in the PES
Client profiling can help PES assess the employability of PES clients and deliver employment services more efficiently. To provide more effective support to people looking for employment, a number of PES across Europe use profiling systems to assess individuals’ levels of employability and classify them into different groups (Desiere, Langenbucher and Struyven, 2019[26]). The type and intensity of support provided by the PES then vary by clients’ category, with those furthest from the labour market receiving the most assistance. In recent years, the use of AI has improved profiling tools capacity to estimate clients’ likelihood of finding employment, their risk of returning to unemployment as well as additional factors influencing their labour market prospects (Leinuste, 2021[27]). Nevertheless, while AI can support PES decision-making, given their potential for bias, AI profiling systems need to remain under human oversight to ensure fair and responsible use (Schnitzer and Betcherman, 2025[28]; OECD, 2025[29]; OECD, 2024[30]).
In Poland, a statistical profiling tool was introduced in 2014 but discontinued in 2019. The profiling tool aimed to improve the delivery of services through the appropriate targeting of assistance to the unemployed (OECD, 2021[23]). All unemployed individuals registered with the PUP were assigned to three groups based on their assessed employability:
Profile I – active individuals, well-prepared to enter the labour market.
Profile II – individuals who need support to enhance their employability.
Profile III – individuals far from the labour market.
The type of services provided was determined by the profile of the clients defined by the algorithm. Profile II clients were prioritised for most forms of support (Kuba and Staszewska, 2022[31]) and Profile I clients were offered job placement services, with limited access to other PES interventions. Conversely, Profile III clients, those in the most difficult situation on the labour market, did not receive support from the PES and were instead referred to the OPS and social economy organisations for social and economic activation support (Flaszyńska, 2020[32]).
Clients' classification was not always accurate because of limited staff capacity and inconsistent information collection. The profiling model combined administrative data from PUP registrations, such as age, education, work experience and disability status, with answers collected during a profiling interview conducted by a career counsellor (Sztandar-Sztanderska, Kotnarowski and Zieleńska, 2021[33]). The interview included pre-coded questions intended to capture the individual’s motivation to enter the labour market (Kuba and Staszewska, 2022[31]). The interview responses were then summed by the algorithm and combined with the registration data to obtain the final score, which determined the profile assignment. In practice, however, data on clients’ willingness to work was hard to gather, due to methodological shortcomings of the questionnaires. Questions asked by the counsellors were often ambiguous or too general (e.g., “Indicate the reasons that make it difficult for you to find employment”). This resulted in varying conduct of the interviews and interpretation of clients’ answers, leading to non-standardised and incomparable information (Sztandar-Sztanderska, Kotnarowski and Zieleńska, 2021[33]). In addition, due to high caseloads, the categorisation was accepted without further assessment, even though career counsellors in the PUP were expected to review the algorithm’s results before profiling clients (Sztandar-Sztanderska, Kotnarowski and Zieleńska, 2021[33]).
In addition to design flaws, the implementation of the profiling system raised concerns about its fairness and reliability. Participation in PES profiling was mandatory, with unemployed individuals risking the loss of their status if they refused to participate. No appeals process was in place, with re-profiling only permitted in the event of a significant change in an individual’s circumstances (Kuba and Staszewska, 2022[31]). Such procedures reduced trust in the system among PES clients and discouraged honest responses, further undermining data quality and the accuracy of individuals’ assignment to the three profiles (Sztandar-Sztanderska, Kotnarowski and Zieleńska, 2021[33]). Legal challenges also contributed to the system’s failure. In 2018, the Constitutional Tribunal ruled the profiling system unconstitutional due to legal ambiguities of rules governing data collection for algorithmic decision-making (Żebrowski, 2019[34]), leading to its discontinuation in 2019 (Flaszyńska, 2020[32]). Since then, no profiling tools have been implemented.
Advances in AI-based tools have enabled more flexible approaches to profiling across the OECD. AI-powered profiling systems can analyse a broader range of variables, combining individual characteristics with labour market dynamics. This allows for more nuanced approaches to determining clients' level of employability and tailored activation support. Importantly, rather than replacing human oversight, these tools are designed to enhance PES decision-making capacity, providing PES counsellors with detailed insights into clients’ circumstances without creating rigid profiles for service delivery (Box 3.6) (OECD, 2025[29]; OECD, 2024[30]; Brioscú et al., 2024[35]).
Recent years have been characterised by the improvement of profiling systems, thanks to the widespread adoption of AI. As of 2024, around seven PES in Europe use AI in profiling, and several others are in the process of integrating it into their systems.
The Estonian PES (EUIF) has adopted an AI-powered decision support tool “OTT” to assist counsellors in their decision making. Developed between 2018 and 2020, OTT uses machine learning, specifically gradient boosting, to estimate a PES client's likelihood of re-entering the labour market. The tool draws on approximately 60 variables, combining individual characteristics with broader labour market indicators, such as regional vacancy levels and the number of PES clients. For each individual, OTT calculates the probability of finding employment, the risk of returning to unemployment, and the key factors influencing their labour market prospects. This supports counsellors in determining the appropriate service channel (online, telephone or in-person), engagement frequency, and the most suitable activation measures. The tool plays a purely supporting role in decision-making; final decisions are not based solely on the model’s output.
OTT is updated with new training data every three months. One important input for system learning is feedback from employment counsellors on the relevance of the AI-generated profiling outcome. Counsellors are required to provide written feedback in the system, which is mandatory and can be submitted up to the 65th day of clients’ registration.
Lanbide, the Basque Country PES in Spain, has developed an AI tool to aid in their profiling process, which improves the management of active employment policies and supports Lanbide’s career advisors. A profiling process involves classifying or defining PES clients according to their employability, functioning as a diagnostic tool that identifies the risk levels of individuals regarding their chances of re-entering employment.
Lanbide developed a methodology that leverages big data and automates the analytical component of PES clients’ profiling. The main objective of this tool is to classify them to provide a (1) more personalised and (2) reactive service that helps PES professionals (3) better match job seekers to vacancies and (4) address chronic long-term unemployment.
Machine learning is used to profile people registered with the PES on the basis of their employability, with the resulting analysis presented to counsellors through a comprehensive dashboard. Counsellors can leverage this tool during interviews with clients to guide them towards the most suitable opportunities in the labour market. The tool is currently in an experimental phase, with plans to integrate additional variables, ESCO skills, and macroeconomic trends into the analysis to further enhance the profiling model.
The ability of AI-based profiling to support decision-making by PES has also faced criticism when these tools are relied on too heavily. For instance, the Austrian PES came under scrutiny when a chatbot was accused of gender bias in providing training and career guidance. In response, some OECD countries, such as France, have developed a robust legal and ethical framework, which includes clear guidelines, dedicated oversight bodies, and capacity-building efforts to ensure responsible use and internal expertise of AI use by the PES.
Source: Schnitzer, P. and G. Betcherman (2025[28]), AI in public employment services: Unlocking potential, avoiding pitfalls, Brioscú, A. et al. (Brioscú et al., 2024[35]), A new dawn for public employment services: Service delivery in the age of artificial intelligence, Korniltsev,. (2021[36]), OTT – An AI-powered success story in the public sector, Leinuste (2021[27]) Decision support tool „OTT“ for employment counsellors in the Estonian PES, Desiere, S., K. Langenbucher and L. Struyven (2019[26]),. Statistical profiling in public employment services: An international comparison, OECD (2024[37]), Job Creation and Local Economic Development 2024: The Geography of Generative AI.
The profiling system penalised individuals in Profile III who were systematically excluded from PES services despite having the greatest need for support. While Profile III clients faced the most significant barriers to (re-)enter the labour market, they were not directly served by the PES. They were instead referred to external actors such as social economy organisations or the OPS, on the assumption that PES resources should be focused on candidates with greater activation prospects (Kuba and Staszewska, 2022[31]; Supreme Audit Office, 2018[38]). As a result, individuals classified in Profile III were largely excluded from PES-led ALMPs. While 60% of Profile I clients received job placement services, only 44% of Profile II, and 30% of Profile III clients were provided with the same service (OECD, 2021[23]). At the same time, some PES clients sought to be placed in Profile III to avoid participation in job offers, further undermining their activation prospects (Flaszyńska, 2020[32]). The assumption that external partners could substitute for PES services proved, however, difficult, as many lacked the resources to deliver adequate support (Kuba and Staszewska, 2022[31]). The availability of such support also varied across regions, leading to uneven provision of activation services (Sztandar-Sztanderska, Kotnarowski and Zieleńska, 2021[33]). Thus, the profiling system created a service gap for the most disadvantaged clients, reinforcing their exclusion from the labour market.
In addition to the PES, a range of public, third sector, and private stakeholders contribute to the economic activation of groups at risk of long-term economic inactivity. Public actors supporting economic activation of vulnerable individuals include Social Assistance Offices (pol. Ośrodki Pomocy Społecznej – OPS) which support disadvantaged individuals with financial and material aid, and the Voluntary Labour Corps (pol. Ochotnicze Hufce Pracy – OHP) which provide vocational education and training to young people at risk of dropping out of education. The third sector is represented by a growing network of social economy organisations. These entities often serve as intermediaries between the PES and economically inactive individuals, helping bridge gaps in support. Finally, private employment agencies offer complementary services to those of PES, often collaborating with large domestic and international companies to address labour market needs.
The OPS can support the PES in identifying and reaching the economically inactive
The Social Assistance Offices (pol. Ośrodki Pomocy Społecznej - OPS) are local public institutions which support individuals at risk of social exclusion, including those who are economically inactive. Established and managed by local government authorities at the powiat or municipality (pol. gmina) level, the OPS support individuals at risk of social exclusion due to long-term economic inactivity, chronic illnesses, disabilities or risk of homelessness (Government of Poland, 2004[3]). The OPS provide a range of services funded through local government budgets and targeted transfers from the MRPiPS, including financial, legal and psychological aid, care services and material support to disadvantaged individuals. They can also arrange short-term work contracts through community-based employment (pol. praca społecznie użyteczna). In 2022, approximately 570 000 working-age individuals received social assistance from OPS, including 247 000 who were economically inactive. (Tarnów Statistical Office, 2022[39]). This represents 4% of the total economically inactive population aged 15 to 64. Social assistance beneficiaries are notably older, more often male, and generally in poorer health compared to the broader inactive population.2 Thanks to their direct contact with vulnerable individuals and long-standing experience in addressing social exclusion, the OPS can partner with the PES to reach out to and engage the economically inactive population (see Chapter: Policies to reach, engage and activate the economically inactive in Poland).
Past cooperation between the OPS and the PUP focused on supporting unemployed individuals receiving social assistance but remained limited in scope. Under the previous Act on Employment Promotion and Labour Market Institutions, the cooperation between the PUP and the OPS took the form of Activation and Integration Programmes (pol. Program Aktywacja i Integracja) which provided individual action plans combining social and economic activation services for those simultaneously registered as unemployed and receiving OPS support. This instrument, however, was rarely implemented due to insufficient human and financial resources at the OPS (OECD, 2021[23]). For other PES clients, the OPS could offer community-based employment opportunities, that is short-term work opportunities to re-integrate the unemployed into work environments. In many cases, according to the interviews with the PUP staff, collaboration on programmes or knowledge-sharing relied on informal relationships between staff members rather than institutional arrangements.
The new Act on Labour Market and Employment Services broadened and formalised the scope of cooperation between the OPS and the PUP, specifying the OPS’ role in activating the economically inactive population. The Act on Labour Market and Employment Services redefined the instances for cooperation between the PUP and the OPS. Under the new Act, three types of cooperation can be distinguished. Firstly, as outlined by Article 198 of the Act on Labour Market and Employment Services, the OPS and the PUP can jointly implement activation programmes for the long-term unemployed through local partnership agreements. The programmes, building on the discontinued Activation and Integration Programmes, provide the institutions’ clients with social and economic activation services. The OPS can also facilitate job placement for selected PUP clients by referring them to community-based employment (pol. prace społecznie użyteczne). Community-based employment is a form of part-time, publicly beneficial work designed for unemployed employees who do not qualify for unemployment benefits but receive social assistance from the OPS. These positions, coordinated by the PUP and the OPS, involve tasks such as maintenance of public spaces and are intended to support labour market reintegration. Lastly, the OPS have a statutory responsibility to support the identification, outreach and activation of the economically inactive population. The expanded mandate requires the OPS to cooperate with the PUP and the WUP on developing strategies to reach the new group of PES clients (Government of Poland, 2025[2]).
The Voluntary Labour Corps specialise in the economic activation of the youth, addressing the needs of the youngest clients of PES
The Voluntary Labour Corps (pol. Ochotnicze Hufce Pracy - OHP), public education institutions run by the MRPiPS, specialise in activating disadvantaged youth. The OHP accept young people who are at least 15 years old and face challenges such as being held back in their education, having difficulties completing primary education, experiencing psycho-physical conditions that hinder learning, or being in difficult life situations that prevent them from attending school. The OHP activities are funded by the national budget and EU funds. These tasks include providing vocational information, career counselling, training, and job placements (Article 342 of the Act on Labour Market and Employment Services).
By providing vocational education to youth at risk of social exclusion, the OHP support PUP in organising ALMPs. The OHP offer free primary and vocational education based on the student’s age and qualifications (Government of Poland, 2025[2]). Students aged 15 to 18 who have not completed primary education can do so at the OHP while also acquiring professional qualifications. The professional training for minors lasts no longer than 22 months and concludes with an exam organised by the employer, which validates the student’s qualifications. For individuals aged between 18 and 30, the OHP offer vocational education training, which involves a paid traineeship. The training can last up to 3 years. Applications to the OHP are accepted annually from April to September, and admitted students can also benefit from student accommodation.
Share of OHP students participating in vocational education and training, (%), 2017
Note: Data gathered in 6 regions of the country. 22 000 individuals surveyed.
Source: Supreme Audit Office (2018[38]), Aktywizacja zawodowa młodzieży przez Ochotnicze Hufce Pracy. Informacja o wynikach kontroli [Job activation of youth by Voluntary Labor Corps. Information on inspection results]
The OHP can support the PES in expanding outreach to potential clients and contribute to the implementation of ALMPs provided by the PES. The OHP can assist the PES in organising awareness-raising campaigns to promote PES services, especially those targeting young people. These tasks, together with the provision of job matching services and career counselling for young PES clients, were already included in the previous Act on Employment Promotion and Labour Market Institutions, and were kept in the new legislation. Under Article 203 of the Act on Labour Market and Employment Services, the OHP also gained a new opportunity to cooperate with the PES by establishing drop-in service points for individuals under 30 (pol. punkty obsługi osób do 30. roku życia), which provide guidance on employment opportunities, education and training available. The points can also offer career and psychological counselling to youth seeking employment. Beyond outreach, the OHP can now also participate in the design and delivery of activation programmes dedicated to people with disabilities or emergency situation programmes. The OHP can support the PES in the implementation of training schemes, internships and pilot projects, allowing for better coordination of support services and leveraging the OHP’s experience in working with younger client groups. Furthermore, the OHP can collaborate with the WUP and the PUP in delivering EURES-related services for individuals under the age of 30, supporting international job placement (Government of Poland, 2025[2]).
The OHP can collaborate with employers in providing job placement opportunities for young PES clients. The OHP provide job mediation services to young prospective workers, matching them with interested employers. In this way, the OHP can take over some of the PUP tasks, focusing on the activation of the youngest group of the unemployed and the economically inactive. In addition, the OHP can provide salary and insurance reimbursement for employers who hire OHP clients (Article 348 of the Act on Labour Market and Employment Services). This service reduces the overall employment costs for employers, incentivising them to take on the young workers.
The PES can partner with social economy organisations to deliver economic activation services
Social economy organisations across the OECD support PES in reaching new client groups and facilitating the labour market integration of vulnerable individuals. Social economy organisations, which include associations, co-operatives, mutual societies, foundations and social enterprises, are embedded in local communities across the OECD. These organisations operate according to societal and environmental objectives rather than profit considerations (OECD, 2023[40]; OECD, 2023[41]; OECD, 2022[42]). Their strong local presence and established trust among disadvantaged groups position such organisations as effective partners in engaging potential PES clients, including economically inactive individuals (OECD, 2022[43]; OECD, 2023[44]; OECD, 2021[45]). In addition to identifying and reaching vulnerable groups, they also create employment opportunities and deliver services that enhance employability, thereby complementing PES initiatives (see Chapter: Policies to reach, engage and activate the economically inactive population in Poland).
In Poland, a wide range of social economy entities contribute to the social and economic integration of more disadvantaged people. Social economy entities in Poland include NGOs, social and workers’ cooperatives, and reintegration institutions (Ministry of Family, Labour and Social Policy, 2024[46]). In 2020, there were over 95 000 social economy organisations in Poland (Statistics Poland, 2020[47]). Among these, 25.6% focused on sport, recreation, and hobbies, while only 1.2%, corresponding to 1 200 organisations, identified employment assistance as their primary area of work. While Polish social economy organisations may not prioritise direct employment support, their involvement in education, social services and local development could complement PES efforts to identify and activate those outside the labour market. Many provide services relevant to the activation of the economically inactive, including training, socio-psychological counselling or physical rehabilitation.
Number of organisations, in thousands
Note: The organisations were categorised by main sector of activity. The types of social economy organisations include social enterprises, PBOs, associations, social organisations and business organisations, foundations, faith-based charities, and rural housewives’ clubs.
Source: Statistics Poland (2020[47]), Sektor non-profit w 2020 r. Stowarzyszenia, fundacje, społeczne podmioty wyznaniowe, samorząd gospodarczy i zawodowy [The non-profit sector in 2020. Associations, foundations, social religious entities, and economic and professional self-government].
Under the previous Act on Employment Promotion and Labour Market Institutions, cooperation between PES and social economy organisations focused on advisory roles for entities with a statutory focus on labour market issues. Social economy organisations with a statutory labour market focus could participate in regional and powiat labour market councils, advising the WUP and the PUP on local labour market policies. Beyond consultation, the PES could procure services such as career counselling, job matching services and training to these social economy organisations. Additionally, third sector entities could also co-organise special programmes (pol. programy specjalne) – innovative programmes provided by PES to specific client groups – but only in sectors such as education, culture, tourism, social services or the environment. The scope of collaboration between the PES and social economy organisations was, however, restricted by narrow eligibility criteria applied to choosing potential partners. With only social economy organisations with a statutory labour market mission able to participate in service procurement, many third-sector entities were excluded from deeper engagement with the PES.
The 2025 Act on Labour Market and Employment Services maintains the advisory forms of cooperation with social economy organisations but expands the scope and flexibility of joint activation programmes. As outlined by Article 10 of the Act on Labour Market and Employment Services, participation in regional and powiat labour market councils remains limited to social economy organisations whose statutory focus is labour market issues. However, the new legislation creates opportunities for all organisations to engage with PES in the design and implementation of outreach and activation strategies. Under the 2025 Act on Labour Market and Employment Services, social economy organisations which provide educational services and are registered as training institutions can take part in the provision of project-based PES initiatives. When registered as training institutions, organisations can participate in pilot and emergency programmes, as well as activation programmes for people with disabilities. As such, social economy organisations can support the PES in the organisation and implementation of targeted training for specific unemployed sub-groups. In addition, other social economy entities, even those without a direct labour market focus, can partner in the implementation of pilot, special, and emergency situation programmes, as well as activation programmes for the long-term unemployed (Government of Poland, 2025[2]). They may also organise internships for PES clients or provide short-term employment in the form of community-based employment. The PUP and the WUP are furthermore legally required to cooperate with social economy organisations in the outreach and activation of the economically inactive population.
Social enterprises support the PES in activating the economically inactive population
Within the broader group of social economy entities, social enterprises support the PES in the economic activation of vulnerable PES clients. Social enterprises hold a specific legal status introduced by the Act on the Social Economy of 5 August 2022. They focus on the social and economic activation of people at risk of exclusion, subject to clear operational requirements (Box 3.7). Social enterprises are required to employ individuals at risk of exclusion and maintain a democratic governance structure, thereby functioning as sheltered employment spaces in which individuals returning to the labour market can easily adapt to new working conditions.
The social enterprise status in Poland (pol. status przedsiębiorstwa społecznego) was introduced in 2022 by the Act on the Social Economy. Three types of organisations can be classified as social enterprises, including:
Social cooperatives, which are for-profit organisations with an inclusive mode of governance.
Entrepreneurial non-profit organisations (ENPOs), market-oriented foundations and associations which provide welfare and public services on a continuous basis, instead of focusing mainly on advocacy activities.
Vocational Development Centres (pol. Zakłady Aktywności Zawodowej – ZAZ), social enterprises employing individuals threatened by social and economic exclusion, usually with some level of disability.
To be eligible to obtain the status, an entity must satisfy the following requirements:
1. Provide social and economic activation services to groups threatened by social exclusion or local development tasks as its basic activity.
2. At least 30%t of its profits must be reinvested in social and economic activation of individuals or in other activities that benefit the wider public.
3. The entity must operate under a participatory and democratic governance structure, allowing employees and members of the social enterprise to take part in decision-making processes.
4. At least three employees must be employed on a work employment contract (umowa o pracę) and if operating in the field of social and economic activation, at least 30% of employees of the organisation must belong to groups threatened by social exclusion.
5. The process of social and economic activation of an individual working with the organisation must last from 12 to 36 months.
Source: Cieplewska-Kowalik (2020[48]), Social Enterprises and their Ecosystems in Europe. Country Report: Poland, Government of Poland. (2022[49]), Act of 5 August 2022 on the Social Economy.
Social enterprises’ registration remains limited compared to the broader landscape of social economy organisations. The social enterprise status may still be claimed by many eligible organisations engaged in social and economic activation. To such entities belong social cooperatives, which potentially qualify as social enterprises (Cieplewska-Kowalik, 2020[48]). Obtaining social enterprise status requires meeting additional conditions, including the establishment of an advisory body, which can be a barrier for organisations with limited human or financial resources (Stachowicz, Szewczyk and Wiśniewski, 2023[50]). As of July 2024, only 1 030 entities were officially registered as social enterprises in Poland, representing 1% of all social economy organisations (Ministry of Family, Labour and Social Policy, 2024[51]). These included 433 non-governmental organisations (NGOs), 413 social cooperatives, 179 ENPOs, three vocational development centres (ZAZ) and two faith-based charities. The organisations primarily operate in sectors such as healthcare, social assistance, accommodation, and catering services (see
Figure 3.14). In 2022, approximately 9 000 individuals were members of Polish social enterprises, while 7.2 million people were involved in social economy organisations (Statistics Poland, 2022[52]).
Social enterprises by sector of activity, (%), July 2024
Note: OECD calculations. Data gathered in July 2024 based on the Register of Social Enterprises administered by the MRPiPS. Of 1030, 953 organisations specified their main sector of activity. Other fields of activity include water supply and waste management, information and communication, real estate, transportation and warehouse management, public administration and national defence, finance and insurance, and agriculture.
Source: Ministry of Family, Labour and Social Policy (2024[51]), Rejestr Jednostek Pomocy Społecznej [Register of Social Assistance Units].
Social cooperatives are an important activation partner for the PES and play a role in social and economic activation. They can serve only marginalised individuals, similar to the criteria for social enterprises. Cooperatives engage in accommodation, catering, administrative support, healthcare, social assistance, and industrial processing activities (Cieplewska-Kowalik, 2020[48]). This diversity allows them to employ disadvantaged individuals across various sectors of the economy, making them versatile contributors to economic and social inclusion efforts.
The PUP can partner with social cooperatives to provide job opportunities for the unemployed and the jobseekers and offer incentives to their clients to start an entrepreneurial activity. In 2021, there were 868 social cooperatives in Poland employing 6 400 individuals (Statistics Poland, 2021[53]). Over three-quarters (78%) of these cooperatives reported collaborating with public institutions, including local administrations (75%). Cooperation between PES and social cooperatives can support PES clients’ activation through job placements or entrepreneurial activities. The PUP can organise internships or job placements for registered unemployed and jobseekers in local social cooperatives (Government of Poland, 2025[2]). Using informal contacts or online registers of social economy organisations (see Chapter: Policies to reach, engage and activate the economically inactive population in Poland), the PUP staff can identify potential partners to support the economic activation of hard-to-place clients. Social cooperatives can also benefit from PES job vacancy and job matching services by advertising vacancies through the PUP and applying for financial incentives such as wage reimbursement for hiring PES clients or funding for new job creation. PES clients may also receive support to establish social cooperatives themselves. The social cooperatives framework can be used to activate individuals outside of the labour market, giving them agency and opportunities to apply their skills (Box 3.8).
Labour Offices can incentivise the unemployed to return to the labour market by funding the start-up of social cooperatives for their clients. An example of such cooperation is the 2010 project of the Warsaw Labour Office “Partnership for the social economy: neighbourhood social cooperatives” (Partnerstwo na rzecz ekonomii społecznej: osiedlowe spółdzielnie socjalne).
As part of this project, organised in cooperation with housing cooperatives, social assistance offices and powiat labour offices in the city of Warsaw, the Warsaw Labour Office funded the launch of 5 social cooperatives by unemployed persons.
The total budget of the project amounted to PLN 200 000, and overall, more than 30 people became founders of social cooperatives and began to work. The scope of the cooperatives’ activities included accommodation, sale of ‘fair trade’ products, cleaning and maintenance services, and publishing activities. The following cooperatives and their sector of activity included:
KAMIONEK – building maintenance services.
PRAGA – construction work, maintenance services.
URSERWIS – cleaning and maintenance services.
MOKOTÓW – retail services.
WARSZAWA – accommodation services.
Source: Warsaw Labour Office (2011[54]) Spółdzielnia socjalna - szansa dla osób wykluczonych [Social cooperative - a chance for excluded individuals].
Private employment agencies offer an alternative to PES in Poland in terms of job mediation, counselling and short-term work placements
In addition to the PES, job mediation and personal career counselling are provided by private employment agencies (pol. agencje zatrudnienia). Private employment agencies operate under the 2025 Act on Labour Market and Employment Services and the Act of 6 March 2018 on Entrepreneurs’ Law (Ustawa z dnia 6 marca 2018 r. – Prawo przedsiębiorców). To operate, each agency must be registered in the employment agency registry managed by the marshal of the voivodeship (Article 308 of the Act on Labour Market and Employment Services). In 2022, there were 8 791 private employment agencies in Poland, primarily in the Mazowiecki region, Greater Poland, Silesia, and Lower Silesia (Ministry of Family, Labour and Social Policy, 2023[55]). The agencies provide job mediation, personal and career counselling, and temporary work placements both in Poland and abroad (Przeklasa, 2021[56]). In 2022, 212 713 people found employment in Poland through a private employment agency. Additionally, 164 764 individuals were directed to work abroad through private employment agencies, mainly in the Netherlands and Germany (Ministry of Family, Labour and Social Policy, 2023[55]).
Private employment agencies can play a complementary role in supporting the job search of registered unemployed individuals and delivering innovative activation programmes. According to annual reports from the MRPiPS, services offered by employment agencies, such as job placement or assistance with employment abroad, are meant to complement the work of both WUP and PUP (Ministry of Family, Labour and Social Policy, 2023[55]). The 2025 Act on Labour Market and Employment Services defines specific areas for cooperation between the PES and private employment agencies. Under Article 197 of the Act, private employment agencies can be contracted to provide activation services to the registered unemployed, including job placement and career counselling. This can allow PES offices to expand their internal capacity by sharing caseloads with external partners. Moreover, employment agencies can assist in implementing innovative labour market programmes, such as special programmes, pilots, activation programmes for people with disabilities or emergency response schemes (Government of Poland, 2025[2]). Information on the design and implementation of innovative ALMPs can be found in the Section: Services offered by the PES. Employment agencies’ involvement can strengthen service delivery and enhance the reach and effectiveness of PES-led interventions.
While promising, studies indicate that collaboration between PES and private employment agencies can be challenging, due to clashing interests and goals. Contracting out employment services to external providers can increase PES capacity and offers the possibility to tailor services better to specific groups of PES clients and employers (Langenbucher and Vodopivec, 2022[57]). In Poland, employment agencies typically focus on fulfilling employer-driven assignments to recruit potential employees and are incentivised to match candidates quickly (Fedorczuk and Lisicki, 2019[58]; Przeklasa, 2021[56]). In contrast, PES aim to balance the needs of employers and prospective employees, including those requiring longer-term support, and often emphasise pre-employment services such as training or career counselling. Private employment agencies are also more accustomed to working with motivated candidates (Przeklasa, 2021[56]). As such, they have limited experience and incentives to engage with harder-to-place individuals, such as the long-term unemployed or the economically inactive population, who require more intensive support. As a result, collaboration on activation services between the PES and private employment agencies remains limited (Przeklasa, 2021[56]).
Collaboration with local labour market actors will be central to PES efforts to activate the economically inactive
The new responsibilities of the PES for engaging the economically inactive are shared between the PUP, focusing on direct outreach and activation, and the WUP which support client identification and strategic planning. As frontline institutions, the PUP are responsible for establishing direct contact with clients, organising outreach activities and delivering activation services. This places them at the centre of efforts to engage new PES clients. The WUP, by contrast, play a strategic role focusing on labour market analysis and coordinating ALMPs at the regional level. By engaging in labour market analysis, the WUP are essential for identifying economically inactive individuals and informing the design of local services. Together, the PUP and the WUP can also develop and implement innovative programmes to support the economically inactive population, although these efforts may be limited by financial and staffing constraints. The Polish PES operate within a wider network of labour market actors, involving public, private and third-sector stakeholders. These include local authorities (the OPS, the OHP), social economy organisations and private employment agencies, all of which contribute to the development of local labour market policy and the delivery of activation services.
The PES could establish strategic partnerships with the OPS and social economy organisations to increase their capacity to identify and activate the economically inactive. The OPS and social economy organisations can support the identification, outreach and activation of economically inactive individuals, helping PES overcome institutional constraints. The OPS hold valuable knowledge about the economically inactive population, often being the first contact points for those furthest from the labour market. Their experience and legal provisions in the Act on Labour Market and Employment Services institutionalising cooperation with PES allow for joint outreach and coordinated activation efforts between the OPS and the PES. Furthermore, social economy organisations, particularly social cooperatives and social enterprises, are well-positioned to assist PES in reaching out to new client groups. In addition to outreach campaigns, they can contribute to activation strategies through contracted ALMPs, such as internships or training opportunities, or by creating job opportunities for individuals returning to the labour market.
References
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The government of Poland establishes minimal salary levels of public sector employees on the local level. This includes PES staff, employed in the WUP and the PUP. The Annex Table 3.A.1. presents the minimal salary levels of PES employees, in force since 1 July 2023.
The salary levels are adjusted on the national level by the national administration.
Note: The table presents the minimal level of salaries that an employee of a labour office can receive, based on their qualifications, skills, and the duration of previous employment. The salary levels can be increased by the local administration. For PUP, the powiat administration can increase the level of PES salaries. For WUP, the regional (voivodeship) administration can grant a raise for WUP employees.
Source: Government of Poland, 2023
← 1. The Large Family Card (Karta Dużej Rodziny) in Poland is a system of discounts and additional rights for families with three or more children. Cardholders can benefit from facilitated access to public services. The card is issued free of charge to each family member, with no expiration date for parents, while limited to the age of eighteen or, if enrolled in higher education, up to the age of 25 for their children.
← 2. OECD calculations based on data received from the Tarnów Statistical Office, for the year 2022. Tarnów Statistical Offices manages the Statistics Poland “1.25.11 Beneficiaries of Social Assistance” dataset. The dataset includes aggregated, anonymised data on the characteristics of social assistance beneficiaries, that is those who receive support from the Social Assistance Offices (OPS). The variables include the age, gender, level of education (ISCED), health status, employment status, and the type of assistance received. Information about the type of household was also gathered and includes characteristics such as the number of children in a household, age of children in a household, number of employed individuals constituting a household. The data is provided at the powiat level.