Poland's Increased Social Benefits Increase Polish Unemployment
Warsaw, Poland 7 February, 2010 - A new year’s increase in unemployment benefits caused unemployment to grow 0.9 per cent in January compared to December, the Ministry of Labor and Social Policy said.
“Last year, from January to Decemer,” it was 1 percentage point,” Minister for Labor and Social Policy Ms Fedak said.
According to the ministry, unemployment went from 11.9 to 12.8 per cent.
“The increase is seasonal in nature, it’s difficult to predict anything, we have to wait until spring,” Ms Fedak said.
She said there are more than 2 million unemployed, which is “concerning”.
The ministry’s report also showed that employers declared more vacancies, 60 thousand in total, 18 thousand more than last month.
But it is certain the new, improved benefits encouraged people who lost their jobs to wait until 2010 to register at the unemployment office.
Since January 1 the benefit is 717PLN gross monthly, 142PLN more than last year.
The Ministry announced last year that anyone who registered in 2009 would remain with the old benefit.
The benefit varies from person to person, more for people who have longer work experience -120 per cent for those who worked 20 years – and less for those who have been on the benefit for an extended period of time – 563PLN after three months out of work.
To be eligible for the benefit one must have worked 365 days in the past 18 months, received at least the minimum wage and paid their social insurance premium.
About 80 per cent of the unemployed aren’t eligible.
By Victoria Ziarkowski
Freelance Writer
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