Macroeconomics of Polish labour market

Abstract

The paper describes demography and macroeconomic mechanisms of Polish labor market. The causes of economic slowdown of 1999 and boom of 2002 as well as the directions of that―time economic policy are presented in the background of the situation on the Polish labor market. It is stressed that particularly strong relation is observed between the level of employment or unemployment, economic growth and investment. The author highlights the inevitability of the reorientation of the economic policy directions set up at the beginning of an economic transformation. The policy toward macroeconomic equilibrium and low inflation is considered to be too long and too strictly led by monetary authorities. Therefore, the policy of structural adjustment and long-term development has been too much neglected. The point is that although the macroeconomic equilibrium is as much necessary as long-run development policy, the appropriate hierarchy of priorities fitted into the stage and conditions of economic advancement is of key importance for good economic performance.