Labor Market Flexibility as an Adjustment Mechanism in Economy of Poland

Abstract

High unemployment rate is a problem observed not only in Poland but
also in most European Union countries. Because of that, the issue of adjusting
mechanisms of the labor market and methods of decreasing the unemployment
rate seem to be very important, especially when the mechanisms
fail. The article discusses the functioning of adjusting mechanisms in conditions
of flexible and inflexible remuneration. It also analyses, on the basis
of the theory and examples of contemporary economies, why the adjusting
mechanisms fail on the labor market. Next, with the use of Eurostat data and
simple analysis of the regression, the article presents an assessment of the
labor market in Poland. Finally, the article includes conclusions on directions
of addressing the unemployment problem in Poland, focusing on structural
factors.