Lower Silesia in Poland- best chance for employment?

Lower Silesia in Poland- best chance for employment among other regions?

 

Lower Silesia, next to Mazowsze and Greater Poland, atrract the majority of foreign investments.The number of newly established enterprises with foreign capital is growing faster here than in other parts of the country. This facilitates the transfer of the latest technologies, create new jobs, increase exports and competition. Since 2005 Wrocław Agglomeration Development Agency has been working effectively. Its main purpose is to help foreign investors to develop interest in Lower Silesia.

ARAW the main advantages of the region considered:

  • good location – not far from us is to Warsaw, Prague and Berlin;

  • strong staff educated at prestigious universities in Wroclaw;
  • quality of life;
  • support provided to investors by the local government.

    Quite innovative and interesting idea is the programme called Populus. This programme was created by young mathematicians under the guidance of prof. Alexander Verona from the center Stochastic Methods. H. Steinhaus, Wroclaw University of Technology. The main purpose of it is to predict, how polish future Lower Silesia labour market will look like. It’s a kind of “crib” not only for investors but also universities that can adapt their educational programme to meet the future demand for certain professions.

    The structure of unemployment

    In Lower Silesia, most retailers are unemployed. At the same time it is addressed to them, most job offers. Characteristic of this professional group is the frequent change of employment. The impetus for this may be any potential increase. In addition, most of the registered unemployed is:
    *masons,
    *locksmiths,
    *tailors,
    *cooks,
    *housekeeping.

    The percentage of unemployment among people with higher education is 6.2 percent. The hardest to find a job political scientists – one offer falls 128 registered unemployed. At the opposite extreme are the IT programmers – although one in ten computer systems engineer has trouble finding a job.

    The professions of the future

    We can specify certain tendencies, which will govern the labor market during next three years. According to the “Forecasting the labor market and skills needs” edited by Teresa Kupczyk most jobs will be for:
    traders,
    physicists,
    chemists,
    team building,
    painters of buildings,
    construction workers finishing works
    production line operators,
    computer,
    secretaries,
    bodyguards
    sellers
    architects,
    engineers,
    caregivers for children and the elderly,

    This trend is a result of the announced development of the IT industry and research laboratories. New companies investing in Lower Silesia will need office personnel, thanks to construction boom occuring ahead of Euro 2012 employment will find architects and builders. Demand for bodyguards will increse because of growing insecurity. An aging population will increase the number of vacancies for carers of older people.

    What is important for recruitment

    As people involved in selection of employers admit, the importance attached to formal education of candidates for specific positions is decreasing. More important is the experience, personal features and so called soft skills. The most desirable features are, therefore, good communication skilld, openness to change, ease of finding themselves in different situations, independence, creativity and willingness to learn. Employers also value the knowledge of foreign languages​​, especially English, German and French, but more often the Dutch, Japanese, Italian, Korean and Swedish. A valuable skill is knowledge how to apply effictively for EU funds . A popular way to recruit, especially in managerial positions, is so called the assessment center,which checks abilities to manage a team.

    As for us- young people who are getting closer to career related choices,there is great importance in observing the economic situation of our area of living.As we will be up to date with all predicted investments, new companies creation and expanding we will be more successful in concluding the skills we should improve or gain in order to be more likely employed in years to come.

 

Sources:

http://p4g-project.eu/artykuly/280/Information-and-statistics/

http://gazetapraca.pl/gazetapraca/2029020,90443,4477964.html

http://pl.wikipedia.org/wiki/Wojew%C3%B3dztwo_dolno%C5%9Bl%C4%85skie#Gospodarka

/By Alicja Łoś, Emilia Janaszkiwicz/

Latvia – eurozone

Small Baltic state –  Latvia decided to apply to join euro zone in 2014Latvia pegged its currency to the euro after joining the European Union in 2004. Small and limber economy – Latvia should slide more easily into the currency bloc than larger states like Poland and the Czech Republic and have remained keener on joining throughout the banking and debt crises.

Many Latvians’ mortgage loans are in euros  – meaning a switch would decrease currency risk and most see the currency as a lesser long-term risk than the lat. They are also keen to entrench their links with western Europe to keep former imperial master Russia at arms length.

But while the country’s leadership is keen on the project, polls show much of the population are worried that a currency switch will drive prices higher and take control of the economy out of Latvian hands.

To join the euro zone, Latvia needed to ask for an assessment by the European Commission and European Central Bank of its readiness to switch currency. At the moment of writing Latvia fulfills all five Maastricht criteria and should thus be set for adopting the euro on 1 January 2014. True, besides the five quantitative criteria (on inflation, exchange rate, long-term interest rates, budget deficit and government debt) a country is also supposed to be evaluated on the basis of ‘sustainability’ of e.g. low inflation but that never seems to have played a major role. (Estonia was invited to join at a time of negative inflation, which is hardly sustainable). For all the recent newcomers, Slovenia, Malta, Cyprus, Slovakia and Estonia, it seems to have been the case that fulfilling the five means you’re in and I do not envisage this to be different in the case of Latvia.

“This is a day that will enter Latvia’s history,” Finance Minister Andris Vilks told reporters when he, Prime Minister Valdis Dombrovskis and central bank chief Ilmars Rimsevics signed the application.

eurozone

The application will be handed over in Brussels. A report on Latvia’s euro hopes will be prepared by the European Commission and the European Central Bank. Finance ministers are expected to take a final decision in July.

Latvia says it meets all the economic criteria needed to be accepted into the euro zone. The criteria relate to levels of debt, deficit, inflation, long-term interest rates and having a stable peg to the euro.

Dombrovskis said after the signing that the euro would benefit Latvia in terms of increased investment, lower currency.

The Eurozone may bring many benefits to the Latvian economy but economic development still rests with the Latvians and economic convergence is not automatically guaranteed by the euro. Thus the hard work does not end on 31 December 2013 – it begins on 1 January 2014.

Enthusiasm for the euro waned across much of eastern Europe after Greece’s problems emerged in 2009 and drove the currency bloc into a series of sovereign bailouts which has split its members economically and raised questions of its broader viability.

Much of those nerves have eased for now on the back of strong action by the European Central Bank last summer and membership has inched back onto the agenda in the region’s biggest economy, Poland.

The Czechs and Hungary remain far more skeptical while Romania and Bulgaria are still far from fulfilling the Maastricht criteria for joining. Latvia kept its peg to the euro even when some economists said a devaluation would have helped ease its downturn in 2009 and the government had to slash public sector wages and hike taxes instead.

Despite its current relatively high growth rates, at 5.1 percent year-on-year and 1.3 percent quarter-on-quarter in the last three months of 2012, the country remains one of the poorest countries in the EU along with Bulgaria and Romania. Latvia will become the 18th country to join the euro area, and the second Baltic state to do so.

But the main question is – how the currency change will affect employment  and population number in general and is it really the best way to defeat economic crisis ?

images

/By Andrea Blažević, Antea Božić, Kristina Piene and Agita Sarkane/

Sources:

http://www.ir.lv/2013/4/29/latvia-in-the-eurozone-lots-of-work-ahead accessed on 28.04.2013

http://www.euronews.com/2013/03/05/latvia-applies-to-join-the-eurozone/ accessed on 28.04.2013

http://www.reuters.com/article/2013/03/04/us-latvia-euro-idUSBRE9230EK20130304 accessed on 28.04.2013

The interpenetration of the labor markets in the German-Polish border.

Western Pomerania is a region of Europe located on small area on the coast of the Baltic Sea and its range includes Polish and German border regions.

The specific nature of the labor market and demographic situation in the German part of the region have created specific conditions for the formation of the Polish-German relations in the area. Although the reunification of Germany took more than 20 years the differences in the level of living of the inhabitants of western and eastern provinces are still very visible. This state of affairs was the cause of the migration of a significant part of the population of Eastern Germany, still poorer, to western part of the country to give people better prospects of finding a job and achieving a better quality of life. These movements resulted in the depopulation of the eastern part of the country. The problem is so serious that the shrinking cities governments have decided to take action aimed at population vacancy.

Depending on what opportunities various regions give, the authorities have created packages to encourage Polish citizens to move into Germany. An example of such incentives may offer exemption from the payment of rent for the first three months, free public transport in the first months after residing in a new place, and a promise of reimbursement of expenses incurred for electricity after a year and all this only if you sign a lease for 18 months.

What such actions may have an impact on labor markets both in Germany and Polish?

Although the eastern areas of Germany is still struggling with unemployment higher than in the western part of the country, there is still not enough specialists in many industries. Skilled workers, for which preferential renting an apartment can be a great encouragement in the face of prohibitively high housing prices on the Polish side of the border. Another argument in favor of moving to Germany is fact that their homeland is situated really close. This type of migration is significantly different from that, when people move to areas thousands kilometers away from their hometown. If the migration involves the transfer of a few kilometers from the previous place of residence, it eliminates many of the problems and dilemmas which people planning to emigrate usually have.
Of course we need to consider that this offer is designed more for people in employment in Poland, or people with high qualifications that they can count on finding a job on the west side of the border. And this all not without affecting the rest of the labor market.
The next stage of the action taken by the East German Länder governments, was to encourage companies to move their business to the German side. Reduced comparing to the Polish bureaucracy, and lower taxes would encourage enterprising Poles to build their businesses in Germany. It was not only about the creation of new jobs for the residents of the eastern states.  It was about to stimulate native citizens to change the attitude towards life to a more creative and entrepreneurial.

What was the Polish reaction for this kind of offers?
Contrary to appearances, and despite the attractiveness of the offer, German towns did not became populated in Polish citizens. Clearly there is a large group of people who decided to the move, but they are not the values that can be expected. There are several reasons why the authorities of towns on the Polish side did not have to worry about a sudden exodus. The first is the fact that, despite favorable conditions, as experts estimate, the person who decides to move to the German side would have to reach around € 1,000, which is not common in Poland. For the professionals who can find employment in Germany, conditions what authorities offer them may not be attractive enough. Although wages of skilled people in Germany are high, however, in Poland there is no specialist in similar industries so that they can expect to earn a lot also in Poland.

In the face of that facts, the German authorities came up with another idea to try to cope with the demographic challenges faced by today Germany. They came to the conclusion that if they need employees skilled in the art that they have to train them. Because the young immigrants are more likely  to permanently settle in the country, the Germans decided to encourage young Poles to learn in their own country, in occupations where there is a shortage of labor. As the population of people who are studying is very high in Poland, and young people with a desire decide to take science which gives them to specialize in a particular area, the idea of German rulers seem to hit. Young people are encouraged by the prospect of scholarships and easily find a job after graduation. That makes they rather, than older generations who do not speak foreign languages, decide to accept the proposal of the German states.

You can talk about the positive and negative sides of a situation that takes place on the Polish-German border, its impact on the German labor market  Polish demographic situations, in a society which, like German is getting old. However, we should monitor the situation that is taking place in Pomerania and wait few years for the implications of this actions.

 

                                                                                                                               Alicja Falińska, Blaž Kralj

The Ruhrarea is threatened by extinction

A lot of residents have migrated as a result of several decades of industry fitting. The situation of the cities in the Ruhrarea and ambiance is going to be more and more dramatic. Recently, reports about the dramatic financial situation of the communes provoke panic, now the statistic prediction about the demographic development till 2020 indicates that there will be a considerable decline of human population.

The cities that had evolved around the Ruhrarea are worst concerned: Hagen are going to have 16.3% less population, Wuppertal 14.3%, Gelsenkirchen 13.2%, Krefeld 11.4%, Essen 10.8% and Duisburg 10.2%. In the whole area it will be 6% and countrywide 0.6% less population.

What is the reaction from policy? They discuss about immigration law, conversion of social system and a flexible working time politic. Always wander from the subject. The contemporary condition of the city in the Ruhrarea shows that a past industrial community is not viable and is in a die-back process. First the productive industry will be destroyed and then the infrastructure will be disappearing. The condition of the streets declined, because no money is provided, the local passenger traffic is going to reduce more and more and the German train company (Deutsche Bahn) ties routes down. The social infrastructure get more less- libraries, swimming halls, sport halls, youth centers and other important social facilities are closed. Many companies begin to retire. One demonstrative attribute is the closing of the post office, then the big banks began to cancel their agencies and finally the bus has no stop station there. It is a progressing process and can be observed since several years. In summary in the politician’s opinion why this happens, this is due to less reduction in the social area, too short working time, too high working wages and too long study period and bad image of the city. Everything is a mistake, but not the failed economic policy.

Image

The first big wave of destruction productive workplaces and infrastructure with ensuing emigration took place during the mining and steel crisis in the 1960s and 1970s. A lot of young people were leaving the area that time to get a job somewhere else. Thereof the Ruhrarea never get recovered.

One look at the facts of employees in the district efficiency shows the coverage of deindustrialization and the real reason for the slowly city dying in 1980 till 2001. In 1980 3.05 million people are employed, in 1992 2.85 million and nine years later 2.18 million. The dying of the industry is getting faster dramatically. A lot of profitable companies drifted away in the east, because of lower working wages, which is one of the reasons why the Ruhrarea is dying.

There is a big need of politics to think about solutions. Maybe it can be a renaissance of the Ruhrarea and new technologies, but first the politicians must have to face the truth. You can hear a lot of highbrow speeches, but all of them avoid the extinction of the Ruhrarea. The sufferers are the domestic people, who can´t do anything to stop the process.

Written by Deirdre Schmidt, Kristin Reinhard, Florian Rützel, Marius Zentgraf

Sources:

http://www.bueso.de/artikel/nachindustrielle-ruhrgebiet-stirbt-aus

http://de.wikipedia.org/wiki/Ruhrgebiet

Bratislava – capital city of Slovakia versus other regions of Slovak Republic

West versus East, East versus West, Bratislava versus Slovakia, Slovakia versus Bratislava. I am not talking about sports rivalry, but unfortunately about the whole society rivalry. Rivalry between the capital city – Bratislava lying in the most western part of Slovakia and the rest of the country. We hear this question from everywhere in Slovakia – argues about who lives from whom money.

Bratislava is capital city of Slovak republic and there are some huge differences between it and other regions of country, differences regarding quality of life, GDP, unemployment rates, wages and many more.

For administrative division, Slovakia is subdivided into 8 regions (kraje) since 1996:

sr-kraje-590

5 obyvatelia

Despite the efforts of governments, Slovakia is still unable to remove the significant regional differences. Development is concentrated mainly in and around its capital Bratislava, respectively around major cities and their hinterlands. More about economic and labour indicators after jump. Continue reading

Bochum’s declining economy

The observed disparities in regional labour markets are pronounced and permanent. There is a large disparity in the level of unemployment and wages between regions in Germany. Over a period of time there are regional differences.

The independent city Bochum in the administrative district Arnsberg is one of five regional centre of the Ruhr area and has got about 380,000 inhabitants. It is the second largest city in Westphalia and among the 20 largest cities in Germany. But this region is in a declining situation.

For years, factories in the city of Bochum closed, including alleged future industries such as the manufacturing and development of mobile phones from Nokia or the corporation Benq. Steel and coal were already on the decline longer before. And now after 50 years, Bochum will lose Opel and so one of the remaining large industrial employers next year, and that is a radical step.

Since 1962, Opel has produced in Bochum and Bochum-Laer-Langendreer. After almost 50 years, the Opel plant in Bochum will completely close its doors at the end of next year. More than 3.700 people will lose their jobs. But the question is: Why Bochum? The workers in Bochum are not less industrious than their Opel counterparts in Poland, Spain, England, Rüsselsheim and Eisenach. Since 1929, the Opel Adam AG belongs to GM, an U.S. automotive group. The business in Europe is declining for them, so GM closes some production sites. The main problem is, that Opel belongs to GM. Bochum needs some own sectors, which belong to the city.

The switch to new, highly productive sectors of the economy is in crises: Only a quarter of employees work in knowledge-intensive industries, only 11 percent have university degrees, half as many as in Munich or Stuttgart. The result is, that Bochum and it`s economy are shrinking. Between 2005 and 2011, the population fell by about 3 percent. By 2025 a forecast says, that Bochum will have the fifth highest population loss among 30 cities with a declining population, and it is expected to be about 6 percent. The people have to search new work in other regions. The best chances are if they are willing to move: In Baden-Württemberg and Bavaria in the south of Germany there are car supplier, which pay cash for these workers like in Bochum – so big is their lack of skilled workers.

Enterprises and workers are not spread evenly across the region, but they are concentrating in certain regions. There are important questions concerning the regional disparities of certain target variables such as employment, participation and unemployment. There are some factors that influence the spatial distribution of economic activity, such transport costs, market potential or spill over effects. With a view to sharing the infrastructure and suppliers and service structures, the transfer of knowledge and innovation and the regional matching of labour supply and demand are very important today. It must also be considered, that the importance of different factors over time changes, which in turn has consequences for workers, enterprises, regions and Institutions. Certain regions, like Bochum now, need to recognize these developments early enough, to be able to fight against them.

 

Sources:

http://www.spiegel.de/wirtschaft/unternehmen/opel-gibt-auch-das-zentrallager-in-bochum-auf-a-896829.html

http://www.manager-magazin.de/politik/deutschland/0,2828,894913-6,00.html

 

written by Timo Bug, Nicolas Lauer, Matthias Lerch

Frankfurt Rhine-Main

Frankfurt is in the heart of Europe and one of the most important European metropolitan areas in Germany. Thru the location of the region in Europe it has a very good infrastructure like the international airport, which is good for companies and population. As well the attractive of this area is the high economic potential. The economy in this metropolitan area is focused internationally. It has high industry diversity with a lot of high technology companies, Universities and research institutes.

The region Rhine-Main includes Aschaffenburg, Darmstadt, Frankfurt on the Main, Fulda, Gießen-Friedberg, Hanau-Gelnhausen-Schlüchtern, Limburg, Rheinhessen, Offenbach on the Main and Wiesbaden. By an area of 14.755 square kilometers are over 5.5 million people located. This gives a density of 375 inhabitants per square kilometers. In the metropolitan area with the seven main cities live 1.537 inhabitants per square kilometers.

The region has with 179 million gross values added 8.4 percent of the German economy. In the sector service it is 9.1 percent. And this gets generate in an area of 4.1 percent of Germany and 6.8 percent of the population.

In the Rhine-main region are two million persons with work. In the tertiary sector (trade, hotels and restaurants, transport, storage and communication andother services) works in the area 1.5 million persons. This corresponds toa share of over75 percentof allemployees.

Sozialversicherungspflichtig Beschäftigte

 

Wirtschaftsbereich                         30.06.2007     30.06.2008     30.06.2009* 30.06.2010

Verarbeitendes Gewerbe                             385.954     387.57     3 356.006 346.747

Dienstleistungen für Unternehmen               350.498     371.291     314.598    331.004

Handel                                                     295.346     298.474    301.961    297.671

Verkehr und Telekom                                 160.560     164.973     233.591     231.631

Kredit + Versicherungen                              135.475     134.075    138.823    137.223

Baugewerbe                                              91.256      91.189     95.782     96.671

Gastgewerbe                                            58.116      59.036     62.234      62.747

Bergbau, Energie- und Wasserwirtschaft       18.038      20.971     29.633     30.260

Land- und Forstwirtschaft, Fischerei            13.890     14.129      7.387       7.771

Öffentl. Verwaltung, sonst.                         461.152     463.504     465.719    479.404

öffentl. u. persönl. Dienstleistungen

Sonstige                                                   –               –              2.767       2.100

Beschäftigte insgesamt                            1.970.285  2.005.215                 2.008.501  2.023.229

 

2011 wasa good yearfor companiesin the MetropolitanRegionFrankfurtRhineMain.Sales haverisen thisyear,the order booksare full,and employmentis rising. But the crisis in Europe and the uncertain outlook for the global economy dim the prospects for growth in 2012. Nevertheless it is still expected, that there are additional jobs emerge in the region. It is currentlyexpectinganeconomygrowthof 3percentin2011 andaround 1.1percentin 2012. According to the calculations therewill be in 2011about 2.5percent orabout 50,000new jobscreated. In the coming year the expectations are not as good as before, but still around 1 percent or 20.000 new jobs created. So in the End of 2012 will be more than2.1 million people employed in this region. This is the highest employment level in 20 years.

The forecast is under subject.

http://www.frankfurt-main.ihk.de/imperia/md/content/pdf/standortpolitik/konjunkturundstatistik/FRMinZahlen2011_Deutsch.pdf

http://www.frankfurt-main.ihk.de/standortpolitik/fachkraefte_demografie_arbeitsmarkt/studien_analysen/prognose/index.html

http://www.frankfurt.de/sixcms/detail.php?id=4615