The measures of the active forms of unemployment counteraction effectiveness

Baej Balewski, PhD HR Department WSzK dUniversity

THE MEASURES OF THE ACTIVE FORMS OF UNEMPLOYMENT COUNTERACTION EFFECTIVENESS

Abstract It is widely accepted and acknowledged fact that economic policy, including labour market policy, is used to obtain social goals on the basis of the accurate handling of economic rules. Therefore, one of the tasks of the mentioned policy is to create the optimal use of work resources, and consequently, to increase the level of the life standards. These actions, especially the ones taken within the confines of the employment policy, should be characterized by economic effectiveness i.e. making the actions more economical or more efficient. Economic efficiency has a great significance in running active employment policy, as it is not a formal social aid, but it is a form of an activity established as registered unemployment resource. This resource is determined by the unemployment whose category is both economical and social. Considering the economical dimension of unemployment phenomenon, the active counteraction should be dependent on the estimation of factors determining the value of the presumed indicators. The analysis of costs and results of the active labour market policy implies that valid ratios are not fully adaptive to measure the effectiveness of the policy mentioned above. Therefore, there is a need to create a new formula of a labour market policy effectiveness that will allow us to make the unemployment counteraction more efficient or economical. The formula in question should be the basis to further research to determine the active labour market policy Key words: unemployment, government policy, unemployment counteraction, effectiveness,market policy The reasons of government intervention in the labour market The analysis of basic macroeconomical ratios, illustrating the phenomena and economic processes, portrays Polish labour market with consideration to time of constitutional transformation. It is affirmed that economical processes mentioned above proceed incompatibly to the ones characterized by the market economy, despite of the adequate law regulations. The phenomena in question are present constantly or in systematically appearing periods. The research dilemma is the attempt to indicate the alternate areas, to find the reasons of differences and to define regularities. The classical, widely used standard is inversely proportional dependency of the change of the level of GDP per capita and the change of the unemployment ratio. The GDP per capita measures the level of wellness and economical activity. The GDP growth determines the limiting of the market pathology and causes downgrade of unemployment ratio. Graph 1. Relations between the weighted average Graph 2. Relations between the

The measures of the active formsof unemployment counteraction effectiveness

GDP per capita and the weighted average of total number of the unemployed in 1999-2000
19 18 17 16 15 14 13
Lata

weighted average GDP per capita and weighted average of the longterm unemployed in 1999-2000
19 18 17 16 15 14 13
Lata

420000 400000 380000 360000 340000 320000 300000 1999 2000 2001
Weighted average PKB per capita Weighted average the unemployed total

250000 200000 150000 100000 50000 0

1999 2000 2001 Weighted average PKB per capita Weighted average longterm un.

Ref.: Own study on the basis of GUS Poland The fall of unemployment should be determined by the absorption of unemployment resource through the development of market and by the exchange processes appearing on the market1. Table 1. The coefficient of the absorption of employment in Poland in the transformation period. Year 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 The coefficient of the absorption 0,59 0,55 -1,67 -0,6 0,25 0,19 0,32 0,37 0,00 -0,46 -0,63 -1,3 of employment Ref: Jarmoowicz W. (eds.) Rynek pracy w warunkach zmian ustrojowych, Akademia Ekonomiczna w Poznaniu, Pozna 2003, p.96 The coefficient of absorption indicates positive values only when the growth of the economy is above 5%. It is possible only while focusing on the constant demand strategy i.e. by using fiscal and monetary instruments of internal consumptive demand. Graph 3. Relations between the share of current turnover deficit in GDP and the level of inflation (in %) an Wb value
The inflation level in % The value of the current turnover deficit in %

Graph 4. Relations between domestic demand an the unemployment coefficient

Domestic demand

170 160 150 140 130

20 15 10 5 0

20 15 10 5 0

12 10 8 6 4 2 0

1996 1997 1998 1999 2000 2001

______ Domestic demand _______ Wb

______Turnover deficit

1997 1998 1999 2000 2001 _____ Inflation _______ Wb unemployment coefficient

Ref.: Own study on the basis of GUS and NBP The impediments to lead such kind of politics, in conditions of Polish transformational economy, are both the low level of both domestic savings and capital. These reasons lead to the
1

Glikman P., Kabaj M.,Muszkiet T., (1997) p.166

Unemployment coefficient

The measures of the active forms of unemployment counteraction effectiveness

appearance of so called supply barrier that causes the growth of the level of inflation and a significant deficit in current turns2, and, in consequence, the further growth of the coefficient of unemployment. In the approach underlined by the neoclassical school of macroeconomics the level of supply of unemployment is related to the changes in efficiency of work as well as to the changes in technical armament of work. As if the efficiency of work grows as the reason of the reduction of employment, or this growth is caused by the increase of sale in a given branch also; then the fall of efficiency of work, with simultaneous occurrence in the size of sale positive tendencies, determines the growth of demand and, at the same time, influences a decrease in the supply of unemployment. The down-grade of the value of technical armament of work illustrates the creation cost of one position of work in a given branch, it causes also a decrease in the resource of unemployment if, similarly to the changes in the pace of the efficiency of work, the positive tendencies appear in the size of sale. In the transformed Polish economy there is a different situation. It does not meet the rule mentioned above. In years 1996-1997 there was the fall of the value of employment ratio as well as simultaneous growth of work efficiency. In years 2000-2001 r. similar reports of export and the national demand met the fall of efficiency and, parallel to that, the growth of unemployment. Tab.2. Basic macroeconomic data referring to unemployment rate, work efficiency, the value of technical armament of work and domestic demand and export shares in GDP. 1996 1997 1998 1999 2000 2001 % Wb 13,2 10,3 10,4 13,1 15,1 17,5 % change Wp 3,4 3,6 2,9 6,7 5,8 4 % p.k. in GDP 101,6 104,3 105,2 106,4 106,9 103,5 % e.n. w GDP 1,6 4,3 5,2 6,4 6,9 3,5 Value TUP 1,6 1,4 1,9 6,9 6,1 5,3 Ref.: Own study on the basis of NPB data There is a similar growth of the unemployment resource despite of the observed decreasing value of the property per one employee. Referring to Philips curve, it is generally accepted that there is a short term inversely proportional tendency between the change of inflations rate and the unemployment coefficient. Graph 5. Relation of inflations rate and the unemployment coefficient.
12 10 8 6 4 2 0 1998
Inflation aver.

Average inflation year to year in %

20 15 10 5 0 1999 2000 2001

The unemployment coefficient value

The unemployment coefficient value

Ref.: Own study on the basis of GUS The neoclassical approach underlines that the level of unemployment refers to the value of real salary. It is said that there is an equilibrium point between the work demand and the supply. That point is the rate of the real salary. The bigger the real salary is, the more people are
2

Jarmoowicz W. (2003),p.96

The measures of the active formsof unemployment counteraction effectiveness

willing to work, although it causes the fall of the real salary anyway. Graph 6. The dependence between rate of real payment and unemployment ratio
140 120 100 80 60 40 20 0 1993 1994 1995 1996 1997 1998 1999 2000 2001 Average monthly real incomes ( 1992 = 100)

Real income indicator 1992=100

20 15 10 5 0

Unemployment coefficient

Ref.: Own study on the basis of GUS According to the analysis mentioned above, it is justified to state that there are not classical relations during the process of economical transformation. It does not comply with the assumptions of neoclassical approach (about dependence of changes of the real payment ratio and unemployment rate). It is impossible to notice the inverse proportional relation between the change of GDP per capita, the change of work efficiency and the change of unemployment rate. Yet, the constant or periodically presented classical form of directly proportional equation (y = ax) can be observed. The phenomenon described by the Philips formula cannot be also observed. The conclusion is that there exists a negative shock of the general work activity and unemployment domination, which is related to global surplus of work supply. Graph 7. Relation of the unemployment ratio in Wielkopolska and the value of rate of vacancy (The Beveridge curve).
Average inflation year to year %

15 10 5 0 1999 2000 2001

The rate of jobs

0,8 0,6 0,4 0,2 0

Unemployment ratio in Wielkopolska

Ref.: Own study on the basis of GUS That surplus mentioned above is particularly observed in the number of the long-time unemployed and in the relation of change between general number of the unemployed and the longtime ones.

Graph 8. The unemployed referring to time of unemployment time in months, June 2000

The value of rate of free positions of jobs in %

20

The value of unemployment coefficient

The measures of the active forms of unemployment counteraction effectiveness

7% 33% 8% 13%

20%
<1 month 6-12 months 1-3 months 12-24 months

19%

3-6 months >24 months

Ref.: Own study on the basis of GUS data Over 50% of the unemployment resource there consists of the long-time unemployed people. Referring to the 15% of short-term unemployment confirms the thesis of the chronic surplus of supply. The long-time unemployment3 characterises the special pace of quantitative changes. The rate and range of the unemployed number over one year and over two years with reference to the general number of unemployment are not homogeneous. During the initial phase of transformation the change of general unemployed resource was similar to the increase in the number of the short term unemployed (from one to two years) and inversely proportional to the increase of the long-term unemployed. The positive change of general resource was determined by the down-grade of the number of over two-year unemployed. The inverse relation is also present. Systematic, constant growth of unemployed resources has been noticed in 1997-2001. The growth of general unemployed resource tendency is projected on the tendency of the long-term unemployed resource. The only exception is the group of the unemployed from one to two years. In this group the growths are not correlated. It is specially observed in the changes in 1997-1999. In the beginnings the pace of general unemployment growth is much slower from the pace of people who are unemployed from one to two years. Yet later, the pace of general unemployment growth is significantly faster than the latter one. The analysis implicates the conclusion, that the down-grade of the number of the chronically unemployed is much slower than the general one. The unemployment type that existed in Poland in the transformation time is mainly structural4 or transformational5. Referring to the results of scientific research of role and function of work in social life6 it is possible to claim that the work is one of the production factors, which is widely used in the production process, and subordinated to the economic rules, and also, that work is one of the relationships between individuals and the form of social relations. On the contrary, in the
3

The longtime unemployment /chronic unemployment/ means to be unemployed over 12 months. As a consequence, it involves being isolated from the rest of community, and also many social detriments for the unemployed. Jarmoowicz W., Knapiska (2005),p.66 4 The structural unemployment stricte it is the unemployment caused by the sructural changes in the economy, incuding aging and unnecessary qualifications (in Poland for example the metallurgy, mining), largo, the difference between the level of unemployment rates in individual labour force groups or on the labour micromarkets, even if the labour market is sedate. Kwiatkowski E, (2003), p. 539 and Socha M., Sztanderska U., (2000),p.27 5 The transformational structural unemployment is the economy phenomena determined directly by the transformational processes. It is impossible to liquidate them by the short-term ecopolitical activities. This kind of unemployment depends, among others, on rationalization of the economy, the level of budget in GDP and the negative trade balance. Balicki W., Ptaszyska B. Strukturalne bezrobocie transformacyjne (In: ) Jarmoowicz W., (2003),p.40 and 46-49 6 Among others: Strzeszewski Cz (1978), Katechizm Jan Pawe II, (1983), Engels F., (in: ) Marks K.,Engels F., Dziea wybrane, Warszawa , 1949, vol.2, Marks K., Kapita, vol.1, Warszawa,1951, Begg D., Fischer S., Dornbusch R. (1993)_. and others.

The measures of the active formsof unemployment counteraction effectiveness

phenomenon of unemployment, it is justified to adapt K. Mloneks approach, who understands the unemployment as an analytical category of the labour market, mentioned as the not realized supply of work that is the effect of the unbalance between human resource supply and the power of employment economy absorption. That is as well the subjective category the state of forcible occupational inaction of people who are able and ready to work. The work income is the basis of their existence7. This category indicates the social consequences of unemployment and, at a time, the infirmity invisible market hand and determines the attempts to find instruments for improvement. These attempts, according to the K.Mloneks context, should have been proceed focusing on economical rules. However, since there was no 100% realization of any economical concepts8, it is allowed to affirm that triple-element model of economical life: household9 + enterprise10 + government is the construct, that is useful for invisible hand of labour market support. Particularly government, because of its solid connection with society and also the fact of its national power protection, creates conditions to use these power and possibilities of enrichment11 and builds the platform of help for market forces. In the context of impact on unemployment, the government power is realized by two variants of labour politics: the passive and active one. The signification of the active labour market policy In the constitutional transformation time, the particularly significant element of economy politics12 is the impact on the labour market throughout the employment politics, and more precisely labour market politics. The labour politics, understood as the active influence of the government on the labour market according to the economy needs and the benefits of both employers and employees13 was established in the beginnings of the twentieth century. Contemporarily, the notion mentioned above has been repeatedly redefined. M. Sp thinks that labour politics is to determine and to explain conjugation power process of the economy growth, referring to demographic-social processes in the dynamic configuration. The author underlines the specific employment effects and shows the methods leading to achieving the goals, influencing the labour market14. In K. Markowskis opinion, on the contrary, labour politics includes the elements of economical and social politics. Its principle is to prepare and realise the employment programs, according to the primary assumptions of national economy regulations15. Z. Winiewski underlines that kind of politics as a symptom of activity of human resources rational allocation16. There are problems during the unambiguous defining the scope and notion of labour politics as well as defining the principles. M. Kabaj says that the most important functions of counteraction unemployment politics are: protection functions, the appeasement of financial results of unemployment, the temporary activation of unemployed force as an active form of employment promotion (as an integral element of social-economical politics), and the analysis and elimination of the generating unemployment factors17. In the context of the impact on
7 8

Mlonek K., Bezrobocie pojcia podstawowe, SGH, Warszawa, p. 6-7. There is no example of the perfect liberal system or permament vacancy nation in the history. 9 The set of persons who live and earn together (common income) 10 Profit oriented organizations on the perfect competition market 11 Zwoliski A.,(1992), p.23 12 Winiarski B. (2001),p.17 13 Ibidem,p.466 14 Sp M., (1996),p.23 15 Markowski K , (1992), p. 154 16 Dolny E., Meller J., Winiewski Z., (1998),p.15 17 Kabaj M., (1996),p.310

The measures of the active forms of unemployment counteraction effectiveness

unemployment, Z. Winiewski adds, that the principle of labour politics is to maintain the acceptable level of unemployment18. J. Gogolewska systematises functions of employment politics by separating them into social and economical ones19. W. Jarmoowicz additionally underlines the necessity of focusing on the regional character of employment politics20. There is not equal meaning of employment and labour market politics. The differences are the methods of principle realization. The employment politics area of interest is to maintain existing and create the new possibilities for people to work on the primary market. On the contrary, the labour market politics is concentrating as the element of employment politics on solving structural and social problems of active labour market21. According to the economical dimension, labour market politics can be divided into an active and passive one22. The first type can be characterised by legislation operations for the benefit of coherent labour law creation so called autonomic regulators. These are the mechanisms that determine situation on the labour market and, without the need to undertake decisions, influence labour market by, for instance, modifying overtime limits23. These regulators are also: unemployment and retirement benefits as well as periodical and purposeful ones, etc.24. These mentioned above mechanisms are to fulfil the protectional and social functions25. The second type of politics (passive labour market politics) consists of direct operations of government on the labour market, throughout creation and implementation of non autonomic regulations (every time there is a necessity to undertake decisions of government representatives26 as well as legislation. These regulations are the collection of instruments disposed toward joining the unemployed in the labour market27. The active labour market politics is often focused on the highest risk groups28. According to the act of 20th April 2004, About the employment promotion and labour market instruments, the instruments of active labour market politics are: interventionists and public works, trainings, etc, (work training, refunding the costs of travel to work, financing up the assets, legal consultations and social security) All the instruments listed above do five functions: to activate the unemployed, to decrease the level of structural adaptations on the labour market, to increase the productivity of the labour force, to verify the level of activity for work and to influence the unemployment level 29. Additionally, the pro-active policy, should support cooperation30 or the period of time between part-time work to full-time one and flows of information from the educational system to the labour system31, and also to propagate the equal chances on the labour market32.
18 19

Winiewski Z., (1994)p,.31 Gogolewska J.(2001),p.467 20 Jarmoowicz W., Knapiska M., (2005),p.91 21 ibidem 22 Kwiatkowski E. The instruments of active government policy in the labour market are: public employment programs the creation of job vacancies in the not very popular sectors and employment subsidizing the entrepreneurs who give up the reduction of employment or create the new positions of job, work mediation, and occupational adviory service. In K. Winiewskas opinion, the active government policy on the labour market is to lead the unemployed for training, intervention works, public works, and graduates employment initiation. Jarmuowicz W., Knapiska M., (2005),p.160-161 23 Kryska E., Kwiatkowski E., Zarychta H., (1998),p.125 24 ibidem,p.125,p.126 25 Jarmoowicz W., Knapiska M., (2005),p.163 26 Krajewska A., (2003), p. 388 27 Golinowska S.,(2001),p.16 28 Winiewski Z. ( 2005),p.25 29 Calmfors L., Skedinger P., (1995) and Kwiatkowski E., (1998) 30 Meager N., (1998) 31 Maksim M., (2005),p.163 31 Zieleniewski J.,(1981),p.167

The measures of the active formsof unemployment counteraction effectiveness

According to the rules of economical activity, to fulfil assumptions of these functions must have taken into the consideration the proper using of the economic rules (including effectiveness). The effectiveness of active forms of the unemployment counteraction Analysing the effects of labour service activities and its use of effectiveness coefficients, it is justified to claim that these services identify the notions of efficiency and effectiveness as identical, whereas the notion of effectiveness and efficiency represent two different meanings. On the basis of the praxeology definition, the efficiency takes place if there is no exclusion of resources and goals33. On the labour market active policy area, the efficiency activity34 means using factors of growth forward on the optimal forming of the level of registered unemployment35. On the contrary, the term effectiveness defines achieving the goals, minimising the necessary costs36. The instrument supporting the counteractive unemployment active forms activities differentiation is, among others, the coefficients of labour market active policy. Tab. 3. The statement of effectiveness ratios of intervention work programmes. Lp. Ratios name RATIO CHARACTERISTICS Formula G.1. The rate of renewed em- The number of participants, who get the fullG.1.1. ployment of the interven- time job after intervention work period/the G.1.=-------tion work programme total number of all participants37 G.1.2. participants G.2. The cost of renewed em- The total subvention cost of the programme G.2.1. ployment of the interven- / the TTL number of participants, who have G.2.=-------tion work programme got the full-time job after finishing the proG.1.1. participants gram38 G.3 The average subvention The total subvention cost of the program / G.2.1. cost on one participant of the number of the employed people in the G.3.=-------the program program39 G.3.1.
32 33

Maksim M., (2005),p.163 Zieleniewski J., (1981),p.194 34 The tradiional approach of politics efficiency is ilustrated as the activity based on the conomic rulet to reach the goals (Winiarski B., 2001,p.21) or as the effecive budget realization. R. Putnam taking efficiency as the depended variable assumed its relation to citizens community. Additionaly, considering the three basic criteria of social phenomenon theory (importance, simplification and precision of prediction [Shively W., Pozna,2001,p.33-42]) and proceedenig the assumptions of logic middle-isolated rule, it is justified to assume, that the efficient active labour market politics is the activity, that realizes defined aim-optimizaion the value of unemployment coefficient,using the economy growth factor. 35 The conceptions of labour market policy aims are revolutionary. It it partiularly seen in active labour market policy aims changes. Its primary aim was decreasing of the unemploment (specially frictional). Later, the mentioned policy became the instrument supporting the structural changes in the economy. That was the result of conviction about its diminishing influence on macro-economical policy in the scope of unemployment limitation. The last decade of the twentieth century was characterized by the growth of poverty, marginalization, and even the social isolation of the long-time unemployed. This is why the active labour market policy became the instrument of mentioned state counteraction. Maksim M., 2005,p.163 36 Kotarbiski T., 1972.,p.39 37 Where: G.1.1.- the number of persons who got the fulltime employment after finishing all programs G.1.2.-the numer of program participants. 38 Where: G.2.1. the intervention works cost the sum of all the refunded quotas for all the intervention works organizators, to whom the contract were settled in the mentioned period of time.G.1.1. as above 39 Where: G.2.1. - as above .G.3.1. it is the total number of hired participants of the program understood as the sum of number of the unemployed hired in particular months, expired in investigation period.

The measures of the active forms of unemployment counteraction effectiveness

G.4. The refusal intervention The number of the unemployed, who reG.4.1. program ratio fused taking part in the program / the total G.4.=-------number of participants in the program40 G.4.2.. G.5. He maximal using of the The average subvention cost per one particiG.3. subvention ratio pant of the program / the highest average G.5.=-------quota per one participant during the proG.5.1. 41 gram Ref.: Own study on the basis: Koodziejczyk P. (1995 r.)s.145-148 The present coefficients of active forms of unemployment counteraction in Poland show the quantitative scope of this phenomenon or the estimated cost of fulltime employment of the program participants. Graph 9. Relations of the average rate of renewed employment ratio in Kpiski district
90 80 70 60 50 40 30 20 10 0 1998 1999 2000 2001 14 12 10 8 6 4 2 0

The average value of the rate

of renewed employment in %

The value of unemployment coefficient in %

4,5 4 3,5 3 2,5 2 1,5 1 0,5 0 1998 1999 2000 2001

14 12 10 8 6 4 2 0

Average value of renewed employment cost

Unemployment coefficient value

Average value of rate of renewed employment

lata

Value of unemployment coefficient in %

Ref.: Own study on the basis of GUS Preferring the separate measurement of: the general number of program participants, the percentage of the unemployed involved in the program and the renewal employment costs, do not enable us to indicate the influence of the level of the impact function on quantity of unemployment resource and the cost of realization of the function mentioned above. The coefficients used in Poland also differ from the ones in Great Britain, where the effectiveness of unemployment counteraction of active labour market policy took into consideration the relations between savings42 and income taxes taken from the participants of the program and the costs of the program (Temporary Employment Subsidy Great Britain - 197579; and the relation between the subsidy payment cost for similar group of beneficients of the program and the cost of the program (Small Firms Employment Subsidy Great Britain)43 Taking into considerations the implications mentioned above it is justified to create a new conception of the unemployment counteraction effectiveness, the one that enables the clear differentiation of efficiency and effectiveness of active form of unemployment counteraction policy and also determines the growth of effectiveness of unemployment counteraction. The new concept of active labour market effectiveness policy should illustrate the relations of
40

Where: G.4.1. - the number of the unemployed who refused to work in the intervention work program in investigation period. G.4.2. indicates the number of the taken vacancies of part-time jobs. 41 Where: G.3. the average cost o subvention perone employee of the program.G.5.1. maximal quota of subvention for one participant of the program. 42 not paying unemploymens subsidy 43 Markowski K , (1992)

The unemployment coefficient value in %

Graph 10. Relations of the average cost of renewed employment and the unemployment ratio in Kpiski district
The average value of the renewed employment cost in th.zl.

10

The measures of the active formsof unemployment counteraction effectiveness

the connection of the renewed employment cost of program participants, in the period n (Gn) to discounted cost in the period 0, in the relation to changes of unemployment ratio in period n and 0 Gn ______________ G0 dt ( 0...n ) Ef = 1 -[ ] 1- Wb n ____________________________ 1- Wb 0 The connection, in the proposed formula, of the active form counteraction unemployment, between the cost changes of the renewed employment cost and the changes of unemployment ratio, manifests the direction of active labour market policy toward creation costs in connection with the main strategy of employment services the creation of unemployment level, it means to make it more thrifty or more productive. Analysing the creation of the formula value, it is justified to claim, that proposed effectiveness coefficient value is optimal (Ef>0), when there is decreasing pace of the growth of unemployment coefficient and the decreasing the cost of renewed unemployment at a time. The practical use of mentioned coefficient shows that the optimal value is reached very rarely44. It can also be noticed that the training programmes are more effective than the subsidy ones45. Graph 11. Relations between the average cost of subsidy employment and training programs effectiveness.
0 -0,2 -0,4 -0,6 -0,8 -1 -1,2 -1,4 -1,6 -1,8 -2 -2,2 1999 2000 2001
Avg.= -0,31977

Avg= - 0,67095

Average value of the training program effectiveness Average value of the subsidy employment programs effectiveness

Ref.: Own study The aim of the creation of effectiveness formula, combining the expenses on temporary activity of the unemployed and the level of government policy on the labour market, is to find the optimal tool of measuring of the active form of unemployment counteraction. Furthermore, there is a necessity to identify the factors determining the differentiation and changes of level of active forms of unemployment counteraction. Bearing in mind that the unemployment phenomenon, limited by the labour market active policy, is both the economic and social phenomenon it is justified to underline that the determinants of unemployment counteraction activity are the same kind. This thesis is positive verified by empirical research46. The economic factors as the determinant of active forms of unemployment counteraction effectiveness
44 45

Balewski B.,( 2006). Bartkowiak G, Balewski B., (2006) 46 Balewski B. (2006)

The measures of the active forms of unemployment counteraction effectiveness

11

The results of accomplished research indicate that the active forms of unemployment counteraction effectiveness are determined by whole set of elements the economy potentially consists of. These elements constitute the economic part. They can be divided by: infrastructure factors, demographic and financial ones and factors determining the level of enterprise and program management ones. The particular analysis of relations between the value of effectiveness coefficient and the economic factors and done on the basis of the research sample, indicate that the relations between the result of the effectiveness formula and active labour market policy and individual economic factors are rather complex and heterogeneous. The reasons of differentiation of impact of economic factors should be tracked both in one of the elements of the set the productivity of employment services, throughout the skill of using financial resources (other economic factors) on Wb0 ...n Bn as well as on the impact scale, so called the rest the set of psychosocial factors. The significant research conclusion is the negative verification of hypothesis underlying the impact of the active labour market policy and financial resources on effectiveness.

Graph 12. Creation of the coefficient value of active forms of unemployment counteraction effectiveness referring to the growth of the financial expenses for the subsidiary employment programmes
20%

Graph 13. Creation of the coefficient value of active forms of unemployment counteraction effectiveness referring to the training programmes
20% 80%

80%

^ financial expenses - effectiveness

^ financial expenses - effectiveness ^ financial expenses - ^ effectiveness

^ financialexpenses - ^ effectiveness

Ref.: Own study This result is particularly important in the fact of general opinion that the limited quota of financial resources is the determinant of the employment services efficiency on the area of active labour market policy realization. Permanency of the opinion mentioned above is probably the reason of lack of the aims coherency between the authors and beneficients of the active forms of unemployment counteraction program.

Tab. 4. Composition of organizational aims and practical application of promotion programs of employment and enterprise. Government aims Company aims

12

The measures of the active formsof unemployment counteraction effectiveness

1) Professional skills assurance for unquali- 1) Maintenance of the current level of emfied personnel. ployment within company. 2) The adaptation of the labour force occupa- 2) Increasing of products supply the offer tional structure according to the economy of the company. needs in the long run. 3) Decreasing the employment costs. 3) Searching for the employment possibilities 4) Generating of the companys value. for program participants. 5) Developing of the companys technical 4) Promotion of small companies develop- infrastructure. ment. 6) Decreasing the investment level in the 5) Create the possibilities of self- company. employment. 7) Increasing ROE/ROA. 6) Creation of new job opportunities. 8) Creating the possibilities of finding jobs 7) Decreasing expenses of Employment Fund through the relatives and friends of entreprethrough not paying unemployment subsidi- neur (public sector manager) ary. 8) Promotion of the renewed employment through the creation of new job opportunities and assuring resources to work. 9) Supporting of the local firms development. 10) Promotion of the preferential sectors of economy. 11) Decrease of long-term unemployment. 12) Development of the local infrastructure in the aim of creation of new job opportunities. 13) Supporting the new qualifications for employees. 15) Creation of the possibilities of full-time employment 16) Encouraging to the graduate employment. 17 )Supporting in gaining the practical skills. Ref.: Own study on the basis: Koodziejczyk P. (red.), Analiza efektywnoci programw rynku pracy , MPiPS /KUP, Warszawa 1995, p.135-137 and own research The expectations of active forms of unemployment counteraction received by the employment services particularly focus on the area of unemployment resource management, and the aims of employers-participants are focused on the organizational needs. The psychosocial factors as the determinants of the active forms of unemployment counteraction effectiveness Considering the results of authors research there is the positive verification of the thesis underlying the connection of psychosocial factors and the active forms of unemployment counteraction. The conducted research on the basis of indirect proving multiaxiomatic method47, enabled to
47

The idea of the creation of this method was to acquaintance and illustrating of differentiation of evaluating past and present values realization. Identified in earlier part of the research, consequent attitudes, in the aim of finding the relationship with other category, for example: effectiveness; was joint in quality coherent groups. On this level of research it was proved, that the psychohistorical analysis of the society, who lived on the Polish territory area, enables to differ other sets of consequent attitudes. Indicated, the consequent reactions on the environment stimuli, was shared to coherent groups: honesty/dishonesty, loyalty/disloyalty, innovation/innovation reluctance, law and order/outlaw and disorder, dutifulness/negligence. Grouping made enables to

The measures of the active forms of unemployment counteraction effectiveness

13

make consideration into the values, including intergeneration transmition. The values mentioned above are the basis of the individual system creation attitude its significance is fundamental. Fig.1. Relation between the values and psychosocial factors

Ref: Balewski B (2006,p.264) As well as they impact on social capital and organizational culture. The conducted research indicated the territorial differentiation of attitudes. It is also proven that during organizational process, there is a possibility to use the attitudes mentioned above to increase productivity or modification of behaviours of the labour market participants. The utility of economical research on the area of active forms of unemployment counteraction. In the situation, where the relation analysis between the basic coefficients illustrating the phenomena and economic processes and the unemployment level, enables to affirm that there are not the classical relationships which can decrease the value of unemployment resource48. That is the reason of the government activity to unemployment counteraction activities. But these activities should be effective. Up to now, the used effectiveness coefficients do not make practically possible to differ the notions of efficiency and effectiveness of active labour market policy. The creation of the new effectiveness formula, based on the great experiences of the others, is the good beginning to bring in the active forms of unemployment counteraction as the more effective or thrifty instrument. The result of the inquiring of effectiveness determinants are the basis to construct the new model of the active unemployment counteraction.
construct own questionnaires, using the elements of scientific achievements. The multitaxiomatic questionnaires of indirect proving, based on logical rule of indirect proving, are used to estimate the attitudes. There is the difference in evaluating attitudes. The difference is in the area of self and environment estimate. The logic of indirect proving minimalizes or enables to avoid the false data. The acceptation of indirect proving standard enabled particularly to avoid the hallo and Horns effect. As the result of conducted research with the own created questionnaire, it is authorized to underline that the knowledge of the consequent attitudes is reached. The results were ranked. Using the convergence and multiple-correlation coefficients, indicates the relationship between individual elements and the set of the other category.
48

The neoclassical principles do not comply on the area of impact the real payment on the level of unemployment. There is not indicated the inverse relationship between the GDP, work productivity change, and the value of TUP and the level of unemployment rate and also the Philips Curve relation is not present. There is negative shock of the general activity and the domination of the unemployment determined by supply surplus. There is particularly seen in the number of long-time unemployed people and creation of the relations of total number unemployment change and the long-time unemployed one.

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The measures of the active formsof unemployment counteraction effectiveness

Fig. 2. The active forms of unemployment counteraction planning process.

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