**MEASUREMENT OF RURAL LABOUR FORCE IN POLAND**

by

**Janusz Witkowski**

**Central Statistical Office of Poland**

# Abstract

Measuring of the size and structure of the labour force in rural areas
in Poland causes many difficulties. In particular, it refers to the
population working in agriculture. It results from different data
obtained from different statistical sources, from high dynamics of
changes taking place in the Polish agriculture as regards the labour
force, a high rate of older people working in agriculture, and also,
from a different situation in the rural labour market of the population
connected with agriculture, as well as, population outside agriculture.
Solving the problems constitutes an important task for the Polish labour
statistics. In the paper there are presented basic tendencies in the
rural labour market, as well as, the methodological and conceptual
improvement of measuring the rural labour force in Poland.

**1. The importance and scope of analysis of the rural labour market**

The Polish labour market has been experiencing quite serious problems in
recent years. The number of workplaces has been falling for a few last
years, which in view of the demographic growth of labour forces has
intensified growth of unemployment. Despite the fact that currently the
number of the unemployed is slowly falling, the level and intensity of
unemployment in Poland are very high. Actually, all most important
characteristics of labour market negatively distinguish Poland among
other EU countries with: low level of economic activity of the
population, alarmingly low employment rate, very high unemployment
level, relatively low occupational and spatial mobility of the
population, narrow range of non-standard and flexible forms of
employment (one of indicators of low flexibility of the labour market),
low fluctuation of unemployment. However, we stand out particularly
negatively due to a very low level of engagement of human resources in
the work process and a very high unemployment level. \[Witkowski, 2003\]

The rural labour market has an important place among difficult problems
that must be solved in the Polish labour market. No wonder, since 14.6
million persons live in the rural areas, which constitutes 38.2% of
total population of Poland. As opposed to the number of persons living
in urban areas, which has been systematically growing (however at a
falling rate), the number of rural population, for a dozen years or so,
has remained relatively stable. From the labour market point of view
this is a population with its own specific problems and needs.

Therefore, a proper diagnosis of the situation in rural labour market is
extremely important for a general evaluation of the Polish labour
market. One of the elements of this diagnosis should be the measurement
of labour resources: their size, demographic and professional structure
and trends. For supply of labour force -- besides the demand for
labour - constitutes the second component of the labour market.
Therefore, accurate information on supply of labour force is necessary
for many users of statistical data, decision-makers and analysts of the
labour market problems. It is therefore significant to distinguish
potential and active labour force resources. The first category includes
population in working age (in Poland these are persons aged 18-59 years
for women and 18-64 years for men), and the second (also referred to as
the economically active population) includes all employed and unemployed
persons. However, both categories of labour resources are not homogenous
and therefore the scope of analysis and information should include those
of their features that determine the situation of certain population
groups in the labour market. We shall focus our considerations on the
active resources of the Polish labour force.

Fundamental information on labour force resources obviously refers to
their size. There are a number of factors influencing the size of supply
of labour resources that are subject to rather dynamic changes within a
relatively short period of time. Poland has been a good example, since
in the last decade we have noted quite significant increments of working
age population, which have also had an impact on size of active
resources of the labour force. Demographic situation was the most
important factor determining these changes, although other factors
influencing the size of labour resources (earlier retirements, gaining
of pre-retirement benefits, passing on to pensions, continuation of
education etc.) were also of significant value. Full evaluation of the
labour force supply requires therefore measurement of changes in its
volume and factors that determine these changes.

However, from the point of view of the needs of labour market analysis,
information on the size of labour force resources is insufficient. Since
it is the structural characteristic of economically active population
which is important. It often decides on professional opportunities and
perspectives of a certain population. From this point of view the most
important is demographic and professional features.

The category of potential resources of labour force alone considers age
as a distinguishing criterion for this population, but age is also a
significant attribute with regard to economically active population.
Therefore, knowledge of the labour force structure by age is crucial
information. Particularly, it is important for rural population in
Poland because for many years the main characteristic of Polish private
farms has been a large share of farmers in advanced working age and
post-working age. Knowledge of this structure is therefore important
decision factor for search of certain social solutions or solutions
connected with improvement of economic efficiency in agriculture. Also
the information on gender structure of labour force resources is of
importance for the analysis.

Expectations of employers and the labour market towards new employees
have been changing quite rapidly in the contemporary world. Also
requirements towards already employed persons have been changing.
Following these requirements is possible only through systematic
professional training, and actually self-education throughout the entire
life. Labour market requirements constitute also an important challenge
for school education system, since qualifications of graduates often
decide on possibilities of finding a workplace and professional
opportunities. For that reason professional and qualification structure
of the labour force are an important element of labour market analysis
and a premise for decision making on improvement of the educational
system.

It is worth drawing attention to one more aspect of labour force
resources' analysis, namely its spatial cross-section. Territorial
differentiation of situation in the labour market has been an attribute
characteristic for every country. In Poland, it has been exceptionally
strong, particularly at the level of local labour markets. Of course
there are a lot of factors that cause such differences and generally
they are both on the demand and supply sides of the labour force.
Analysis of these differences can facilitate undertaking of appropriate
actions that enable better balancing of the labour market, also within
the scope of labour force supply. In Poland, small spatial mobility of
rural population has been well known for many years, which, combined
with strong spatial differentiation of demographic increase of labour
force has had a substantial influence on unemployment formation.
Educational gap of population living in rural areas, particularly
agricultural population limiting possibilities of finding appropriate
workplaces by this population, has also been known. This reduces also
the scale of occupational mobility that is so needed, particularly in
terms of transformation of the economy.

The result of the above considerations is that demand for information on
rural labour force is very wide and includes, in conjunction with its
spatial distribution, many demographic and professional characteristics
of economically active population. Such information is necessary with
high frequency and for a long term, so that evaluation of fundamental
trends in the labour market is possible. Construction of information
system on the labour market in Poland, including the rural labour
market, is heading precisely in this direction.

2.  **Population censuses as the fundamental source of information**

Such complex range of information on rural labour force is provided only
by population censuses. There are a number of qualities of such survey,
which decide on its importance for analysis of the rural labour force.
First of all, it is a significant fact that on the grounds of this
survey, according to homogeneous methodology, we can distinguish all
most important population categories: economically active, the employed,
the unemployed and also economically inactive persons. The latest
results of the 2002 census in Poland (Population and Housing Census
2002) will allow distinguishing a methodologically homogeneous category
of economically active population and characterizing it in detail. This
analysis may include both elements of the structure of economically
active population (in terms of its demographic, social and professional
features), as well as evaluation of the intensity of economic activity
of the population (applying economic activity factors).

The results of the population census allow also for a detailed
description of both sub-populations of economically active population:
the employed and the unemployed. From the point of view of the economy,
employed population is the leading category, as it reflects capability
of jobs creation by the economy, defines qualification and professional
requirements towards the employed population. The employed population,
therefore, pictures quantitative and qualitative demand of the economy
for labour resources. Therefore, analysis of the actual condition and
structure of the employed population, and also evaluation of changes of
this population in time, are the necessary components of analysis of the
situation in the rural labour market. It should also include many
features, of which the most important are: qualifications and
demographic properties of the employed, type of activities of entities
where they are employed, and broadly understood work conditions.

However, in current circumstances, the evaluation of professional
structure of the population working in rural areas has gained special
importance. During the transformation period, economic demand for
certain qualifications of employees changed considerably, what was not
always reflected in the professional structure of the supply of labour
force. This mismatching of supply and demand structure according to
qualifications (particularly according to professions) obviously had an
impact on high unemployment. Nevertheless**,** larger dynamics of
changes, including adjustment of labour force qualifications, has
occurred in urban labour market. In rural areas these processes occurred
with delay and in a smaller scale. Results of the 2002 population census
allow for a quite in-depth analysis of population's professional
structure and evaluation of its changes during the transformation. This
has been a considerable enrichment of our knowledge on occupational
mobility of our country's population, including the rural population.
Awareness of the educational and qualification gap between populations
living in rural and urban areas should constitute an important premise
for educational policy in our country. Therefore, if acceleration of
development in rural areas is the important objective of macroeconomic
policy, then elimination of this educational gap, as obstacle of
economic development, is the crucial task.

For labour statistics, a particularly important task is to gather
detailed information on population employed on private farms. In case of
the Polish agriculture, which employs a relatively high number of
persons, constitute a relatively large percent of the total number of
the employed persons, demand for such data is very urgent. During the
transformation, the Agricultural Census in 1996 was the first survey
with so broad character that provided detailed information on population
employed in agriculture. Results of this census, however, disclosed a
different number of persons employed in agriculture as compared to other
sources of data, in particular with data from the Labour Force Survey.
Due to these discrepancies, for some years the number of persons
employed on private farms was considered unchanged and determined on the
basis of the agricultural census. However, this was not a correct
solution since, as a matter of fact; it overlooked changes that occurred
in the Polish agriculture within the last few years. This was disclosed
by latest data from the Population and Housing Census, which with
reference to the number of the employed on private farms differs
considerably from the previous estimates.

A large number of these persons could give up working on a farm without
any consequences for its output. Actually we observe here the phenomenon
of hidden unemployment. Results of the census allow for estimation of
the size of hidden unemployment on private farms as well as many of most
important demographic, social and professional features of the
population redundant in agriculture. This is a very important value of
the census for analysis of rural and agricultural labour market.
Simultaneously, by comparing data from the Population and Housing Census
2002 with Agricultural Census 1996, one can illustrate the main trends
of changes in the employed population, including population redundant in
agriculture.

One of the problems of rural labour market is the unemployment. To a
large extent it is peculiar, because it partially results from
liquidation of the previous state owned farms, from a lower -- than some
years ago - number of commuters living in rural areas and working in
towns and limited development possibilities for the majority of rural
areas. Therefore, a survey on rural unemployment is an important element
for diagnosis of the rural labour market. Because of the methodology,
applied in the population census to analyze population's economic
activity, this source of data provides the best information on rural
unemployment. Of importance, for this evaluation, is also the full
international comparability of the population census data on
unemployment in general, including also rural areas and the possibility
to present the scale of unemployment risk with regard to different
groups of rural population.

Hidden unemployment, in the first place on private farms, has been a
distinct problem in rural areas. This happens because the Polish
agriculture has still been characterized by a large agrarian dispersion,
large proportion of small farms and agricultural plots, relatively small
yield of marketable agricultural products and a large proportion of
farms producing for their own needs. These features of the Polish
agriculture cause that we observe employment that is redundant from the
economic point of view. Difficult situation in the rural labour market,
relatively large families and households of population connected with
private farms, favor employment in the farm of all members of the
household, who are capable of working. According to international
recommendations, all persons who during the week assist in farm work for
at least one hour, are classified as the employed. These criteria cause
that most of persons connected with a farm are accounted for as the
employed. Meanwhile, this rule of solidarism of household members has
frequently had no economic justification. This is how the hidden
unemployment on private farms has occurred. Results of the census allow
describing the hidden unemployment not only according to its size but
also according to characteristic of persons considered redundant at work
on a farm.

Following advantage of the census is the possibility to analyze the
situation in rural labour market from any spatial profile. In terms of a
strong spatial differentiation of rural labour market, there is a large
demand for information that will allow for a detailed evaluation of
situation at the level of local labour markets. Data of this type,
meeting standards of international statistics and enabling survey of
rural labour market at the lowest level of spatial division
(administrative), have been available for the first time in the whole
transformation period. Full integration of the results of the Population
and Housing Census with the results of Agricultural Census (both were
completed simultaneously in 2002) provides previously unavailable
information (in such scope and with such accuracy) on the rural labour
market, and on the labour resources in rural areas. Therefore, there is
no question that the census is by far the most useful source of
information on the rural labour market, on labour resources and their
demographic, social and professional qualities, and also their
application in work process.

3.  **The employed and the unemployed population in rural areas**

Using the results of the Population and Housing Census we can ascertain
that in the year 2002 over 11.512 thous. persons aged 15 years and more
lived in the rural areas. Most of them were economically active -- over
6,329 thous. persons, i.e. 56.3% of total rural population of this age.
The employed population, however accounted for only almost 5.1 million,
i.e. 45.2% of rural population. The census disclosed also that most of
rural population works outside of their farms. This is a population of
approximately 3.2 million persons, i.e. 63% of the total employed rural
inhabitants. Persons employed exclusively or mainly on their own farms
are thus in minority, for their number equals 1,868 thous. persons.
These are not all employed in agriculture, since a part of them lives in
towns. The total number of the employed in agriculture equals 1.967
thous. persons, therefore those rural inhabitants employed on their own
farms constitute 95% of the total number of the agricultural employment.

However, it should be noted that by means of the number of employed on
private farms the current situation has been substantially different
than a few years ago. Still, in 1996 the Agricultural Census disclosed
that 4,659 thous. persons worked exclusively or primarily on private
farms, i.e. 28.7% of the total number of the employed in Poland. Because
for the first time, in a general survey such as Agricultural Census, the
international definition of an employed person was applied (poorly
reflecting the Polish agricultural reality), this number had been
overestimated. In particular it referred to the number of persons
employed in agricultural plots (up to 1 hectare of agricultural land).
On private farms (over 1 hectare) the number of the employed was
smaller, but also high since it exceeded 3,836 thous. persons (24.2% of
all the employed). Meanwhile, the latest data from the Population and
Housing Census (2002) indicate that the number of the employed
exclusively or primarily on private farms has been substantially smaller
and it constitutes currently 14.9% of the total number of the employed
in Poland.

Few factors made impact on changes of the number of the employed on
private farms in Poland. One of them was the change of the definition of
a person employed on private farm in agriculture, applied in censuses of
2002, as compared to international definition applied in the
Agricultural Census of 1996. The new definition of persons employed in
agriculture did not include those employed exclusively or primarily on
farms with area over 1 hectare that produced exclusively for their own
needs. It did not include also persons employed in agricultural plots
producing exclusively or primarily for own needs and owners of
livestock, production of which was intended exclusively or primarily for
their own needs. The change of the definition did not have a decisive
meaning, since the number of the employed on private farms declined for
this reason by only 359 thous. persons.

Therefore, there is no question that significant transformations have
been taking place in the Polish agriculture, with regard to different
sides of its functioning, also including the employed population.
*\[Evolution, 2003; Regional differentiations, 2003\].* They are
reflected in the following changes:

-   in comparison to 1996, the number of population aged 15 years and
    more in households with a user of farm (rural population) has fallen
    by 418 thous. persons (by 4.8%),

-   in relation to 1996 the number of rural population employed
    exclusively outside a farm has increased (by about 989,000 persons),

-   after 1996, the attitude of rural population towards unemployment
    changed. Still in 1996, on the basis of the Agricultural Census,
    rural population had declared their unemployment very rarely (thus
    the number and unemployment rate in this population had been very
    low at that time), which resulted in hidden unemployment on a large
    scale -- about 900,000 persons. Much bigger part of rural population
    declared themselves as the unemployed during the census of 2002, as
    a result of which the number and rate of the open unemployment among
    the agricultural population increased considerably (the unemployment
    rate of 14.1%), and the scale of hidden unemployment considerably
    fell -- to over 300,000 persons.

Current data on the number of persons employed on private farms in
agriculture have been more reliable, since they are close to the LFS
results. These difficulties in establishment of the number of persons
employed in agriculture reflect a huge importance of a correct system of
information for rural labour market, and also the need for a good survey
on rural population that can provide good quality and reliable data as
well as guarantee international comparability of information.

Despite these changes, there have still been redundant persons from the
farm productivity's point of view among persons working exclusively or
primarily on their own farms. It has been assumed that this part of
population employed on farms is referred to as the hidden unemployment.
In view of results of the Agricultural Census of 1996 this population
accounted for, depending on qualification criteria, even about 900,000
persons. Since then, in following 6-7 years the situation changed,
because hidden unemployment decreased significantly in private farms. In
2002, the number of persons working on private farms and considered as
redundant (i.e. those who worked maximum three months in a given year or
persons who despite working longer than three months but on average less
than 4 hours a day) constituted 417,000 persons, out of which over
386,000 were rural population (about 93%). Hidden unemployment in
agriculture has been almost exclusively a problem of population living
in the rural areas. First of all these are persons working only on their
own farms (minimum number of persons working mainly on their own farms
and agricultural plots) and, in majority, women (53%). Despite a
decrease of the hidden unemployment rate, still these persons have a big
share in total number of rural population employed in agriculture
(20.7%). This proportion is larger for population of women (24.1%) than
for men (17.8%).

Table 1. Hidden unemployment on farms in Poland

  ----------------------------- ------------ ------------- ---------------
  Specification                 Total        Men           Women

  TOTAL                         417,0        197,7         219,3

  Inhabitants of rural areas    386,1        181,3         204,8

  in % of total population      92,6         91,7          93,4
  ----------------------------- ------------ ------------- ---------------

Source: own calculations based on Population and Housing Census 2002

Hidden unemployment primarily exists in small farms with smaller area
than 5 hectares (about 60%), and to the largest degree pertains to older
persons, since more than a half of this population are persons aged 45
or more. Within this number almost one fifth is aged 65 or more and
persons with primary or lower education (almost half) and with basic
vocational education (about 28%). Hidden unemployment is therefore a
phenomenon typical primarily to small farms and pertaining mainly to
those employed in their own farms, older persons, persons with low
qualifications and it includes women more frequently. \[*Labour*
r*esources*, 2003, p. 264-265\]

A smaller scale of the hidden unemployment has been partially connected
with the growth of open unemployment in rural areas. According to the
Population and Housing Census there were 1,251 thous. unemployed in
rural areas in 2002, which indicated a 19.8% unemployment rate.
Unemployment, therefore, has not only been a problem for inhabitants of
urban area but equally important problem for inhabitants of rural areas.

4.  **Dual character of rural labour market**

From the point of view of evaluating the situation in the rural labour
market in Poland, distinguishing the rural population connected with
agriculture (population actually living in households with a user of a
farm or agricultural plot) from population that is not connected with
agriculture has a fundamental significance. Conventionally, we shall
call the first group as agricultural population, whereas the second as
non-agrarian population. According to the data from the Population and
Housing Census (Census) of 2002 over 11.5 million persons aged 15 years
or more lived in the rural areas (almost 79% of the total rural
population). Out of this over 6.7 million (i.e. 58.5% of total
population in this age) -- are connected with households of private
farmers (over 80% of total rural population in the country). Population
that is not connected with farms is thus less numerous but it counts
almost 4.8 million persons.

Each of the groups however is strongly differentiated in respect of many
features and their positioning in the labour market. As shown in earlier
surveys and analyses, actually the main line dividing the population
living in rural areas lies between these two groups. This line
determines two segments of the rural labour market. \[Rosner, 2003, p.
219\] That is why it is sometimes stressed that the Polish rural labour
market is of a dual nature.

Distinction of these two rural labour markets (agricultural,
non-agrarian) has also significant value for reflection upon the future
of the rural labour market. It should be assumed that the trends in both
labour markets would take completely different courses in the future. It
is hard to expect a development of the agricultural labour market,
creating new jobs and employing a larger number of persons. It should be
rather expected that, according to trends observed earlier in many
countries, this market would significantly shrink. Opposite expectations
refer to the non-agrarian rural labour market in the rural areas, which
should systematically develop, offering more jobs for population
inhabiting rural areas, including that moving out from agriculture.
Solution of problems in rural labour market is therefore connected with
the development of the non-agrarian sector of economy in the rural
areas.

All basic indicators indicate fundamental differences in the labour
market status of agricultural and non-agrarian population. Traditionally
agricultural population distinguishes itself with a relatively high rate
of economic activity. This feature was also confirmed in 2002 (the rate
of economic activity was 60.9%), though the level of economic activity
of agricultural population is not as high at present as it used to be a
dozen or so years ago. Nevertheless the level of economic activity of
the agricultural population is considerably higher than that for
non-agrarian population (49.6%). These differences in the level of
economic activity of above mentioned groups refer both to men and women
(in both sub-populations the economic activity is higher among men).
Higher economic activity of agricultural population is also typical for
all population age groups but biggest differences can be observed in
pre-working age and post-working age and non-mobile working age
(45-59/64 years). High economic activity in post-working age is the
feature distinguishing the agricultural population. In 2002, every fifth
person in post-working age was economically active, whereas in the
non-agrarian group it was a marginal phenomenon (the rate of economic
activity was 1.6%). On the other hand the non-agrarian population is
characterized, as opposed to agricultural population, with a relatively
small economic activity in non-mobile age (49.3%), which has influence
on lower level of economic activity of total population in the working
age. Higher level of economic activity of agricultural population than
that of non-agrarian is typical for each educational level. These
differences, however, are not large within the group of persons with
highest educational level (tertiary, post-secondary and vocational
secondary) but are significant for population with primary education at
the most.

The higher level of economic activity of agricultural population than
that of the non-agrarian population results from differences in
employment intensity. The rate of employment for the agricultural
population (52.8%) is considerably higher than that for the non-agrarian
population (34.3%) and to a larger extent this refers to women than men.
So that a considerably larger part of the agricultural than non-agrarian
population is employed and this refers both to men and women. A higher
rate of employment is typical for agricultural population in all age
groups but largest differences refer to population in post-working,
pre-working (but this is a relatively small population) and non-mobile
age.

There is also a clear regularity: the lower level of education of the
population the larger difference in employment intensity in favour of
the agricultural population. The rate of employment for the agricultural
population with primary education exceeds 36%, whereas for non-agrarian
population it is only 12%. Therefore, persons with higher qualifications
(educational level) find employment easier no matter if it is the
agricultural or non-agrarian population but higher chances for
employment of the non-agrarian population are primarily connected with a
higher level of its education. The lower it is, the lower is the rate of
employment. It is an important indicator for the strategy of increasing
employment of rural population, particularly of that not connected with
agriculture.

Table 2. Population living in rural areas aged 15 and more according to
economic activity and selected features in 2002

+---------------+-------+--------+--------+---------+-------+-------+
| Specification | Ag    |        |        | Non-a   |       |       |
|               | ricul |        |        | grarian |       |       |
|               | tural |        |        | pop     |       |       |
|               | popul |        |        | ulation |       |       |
|               | ation |        |        |         |       |       |
+---------------+-------+--------+--------+---------+-------+-------+
|               | Eco   | Empl   | Unempl | E       | Emplo | Unem  |
|               | nomic | oyment | oyment | conomic | yment | ploy- |
|               |       |        |        |         |       |       |
|               | act   | rate   | rate   | a       | rate  | ment  |
|               | ivity |        |        | ctivity |       | rate  |
|               | rate  |        |        | rate    |       |       |
+---------------+-------+--------+--------+---------+-------+-------+
| # TOTAL       | **6   | **     | **     | *       | **3   | **3   |
|               | 0,9** | 52,8** | 13,4** | *49,6** | 4,3** | 1,0** |
+---------------+-------+--------+--------+---------+-------+-------+
| Men           | 67,8  | 58,9   | 13,1   | 57,9    | 41,5  | 28,3  |
+---------------+-------+--------+--------+---------+-------+-------+
| Women         | 53,9  | 46,5   | 13,7   | 42,1    | 27,6  | 34,4  |
+---------------+-------+--------+--------+---------+-------+-------+
| # Age         |       |        |        |         |       |       |
+---------------+-------+--------+--------+---------+-------+-------+
| Pre-working   | 10,3  | 9,7    | 6,4    | 2,8     | 1,9   | 33,9  |
+---------------+-------+--------+--------+---------+-------+-------+
| Working       | 76,0  | 65,1   | 14,4   | 68,7    | 47,3  | 31,1  |
+---------------+-------+--------+--------+---------+-------+-------+
| Mobile        | 80,7  | 66,1   | 18,1   | 77,3    | 52,2  | 32,5  |
+---------------+-------+--------+--------+---------+-------+-------+
| Non-mobile    | 67,1  | 63,1   | 5,9    | 49,3    | 36,3  | 26,4  |
+---------------+-------+--------+--------+---------+-------+-------+
| Post-working  | 20,3  | 20,2   | 0,3    | 1,6     | 1,5   | 7,3   |
+---------------+-------+--------+--------+---------+-------+-------+
| # Education   |       |        |        |         |       |       |
+---------------+-------+--------+--------+---------+-------+-------+
| Tertiary      | 87,3  | 80,4   | 7,8    | 84,7    | 79,4  | 6,2   |
+---------------+-------+--------+--------+---------+-------+-------+
| P             | 81,7  | 71,3   | 12,7   | 75,6    | 62,6  | 17,2  |
| ost-secondary |       |        |        |         |       |       |
+---------------+-------+--------+--------+---------+-------+-------+
| Secondary     | 79,9  | 68,5   | 14,2   | 73,7    | 56,6  | 23,2  |
| vocational    |       |        |        |         |       |       |
+---------------+-------+--------+--------+---------+-------+-------+
| Secondary     | 62,6  | 50,6   | 19,1   | 56,5    | 40,5  | 28,2  |
| general       |       |        |        |         |       |       |
+---------------+-------+--------+--------+---------+-------+-------+
| Basic         | 79,1  | 66,9   | 15,4   | 71,9    | 47,4  | 34,1  |
| vocational    |       |        |        |         |       |       |
+---------------+-------+--------+--------+---------+-------+-------+
| Complete      | 40,7  | 36,4   | 10,4   | 23,5    | 11,8  | 49,7  |
| primary       |       |        |        |         |       |       |
+---------------+-------+--------+--------+---------+-------+-------+
| Incomplete    | 18,2  | 17,5   | 3,7    | 2,6     | 1,1   | 58,0  |
| primary       |       |        |        |         |       |       |
|               |       |        |        |         |       |       |
| and without   |       |        |        |         |       |       |
| school        |       |        |        |         |       |       |
|               |       |        |        |         |       |       |
| education     |       |        |        |         |       |       |
+---------------+-------+--------+--------+---------+-------+-------+

Source: Economic activity of population, Population and Housing Census,
Agricultural Census, CSO, Warsaw

2003

Another feature that is distinguishing agricultural and non-agrarian
population in the labour market is the risk of unemployment. As it
appears, it is much bigger among the non-agrarian population. The rate
of unemployment for the non-agrarian population was 31% that is 2.3
times higher than the rate for the agricultural population (the
unemployment rate of 13.4%). This difference is even bigger in case of
women (34.4% for non-agrarian and 13.7% for agricultural population).

Larger risk of unemployment for non-agrarian population as compared to
agricultural population exists practically in all age groups. It has
been most clearly visible among the population at pre-working age (but
this is a relatively small group of the unemployed). Also it is observed
in the post-working age group (in agricultural population there is
virtually no unemployment and in non-agrarian group it exceeds the level
of 7%, so it is also not high) and in non-mobile age group. In this last
group the unemployment in agricultural group is relatively small
(unemployment rate of about 6%) but in the non-agrarian group this rate
exceeds 26% (i.e. more than four times higher). The largest unemployment
rate, however, exists among non-agrarian population in pre-working age
(34%) and in working-mobile age (32.5%). Definitely in the worst
situation in the rural labour market are young persons (up to 24 years
of age), among which the unemployment rate for the non-agrarian group
was 48.8% and for the agricultural population 33.4%. The situation in
the labour market for young non-agrarian population is therefore even
more difficult than the situation of young persons in urban areas and
decisively more difficult than that of agricultural youth. However, a
high risk of unemployment across all age categories and relatively large
proportion of the unemployed population in older age groups is a
characteristic feature of the non-agrarian rural population.

The non-agrarian group is an example that confirms the broadly
recognized feature of unemployment, namely a high unemployment risk for
population with low qualifications. In the light of the results of 2002
censuses (Population and Agricultural) the low educational level of
non-agrarian population is fostering a high rate of unemployment. Among
the non-agrarian population with primary education, at the most, the
unemployment rate has exceeded 50%. A high intensity of unemployment can
also be observed among population with basic vocational education
(unemployment rate of over 34%). None of the qualification groups
(according to education) among the agricultural population has had so
high unemployment rate. The highest unemployment rate refers to the
population with general secondary education (19.1%), whereas
unemployment rate for other groups is considerably lower. It is worth
noting that the agricultural population with primary education, at the
most, features relatively low unemployment (unemployment rate of about
10%) and this is the most typical difference between the unemployment of
agricultural and non-agrarian population.

Summarizing, we can therefore state that in rural areas we observe
considerable separate features in the situation of agricultural and
non-agrarian population in the labour market. This first group is
characterized by a higher level of economic activity, mainly because of
a higher involvement of post-working age and working-mobile age
population in work process and population with at least primary
education (higher employment levels). On the other hand non-agrarian
population is characterized by a high unemployment level, considerably
higher than that of the agricultural population, but also considerably
higher than that of the urban population. Situation of the non-agrarian
population in the labour market is therefore particularly difficult but
the youth and population with low education levels are in the most
difficult situation.

Discussed differences between agricultural and non-agrarian population
are not the one and only because each of these populations is also
differentiated internally by a number of features. However, from the
point of view of measurement methods for rural labour force these
differences are particularly important.

**5. Current survey of the rural labour force**

Analysis of the census data has confirmed that in the Polish reality we
have to deal with two segments of the rural labour market and with
fundamentally different situation of the two groups of rural population:
the agricultural and the non-agrarian population. This phenomenon of the
Polish rural area justifies monitoring of changes in the rural labour
market. Census surveys, despite huge cognitive merits, because of their
periodical character, do not satisfy these needs. For that purpose a
system of analysis of the labour market was established, which provides
the latest data on basic occurrences and processes.

The Labour Force Survey (LFS) is most useful for complex analysis of the
resource of the rural labour force. Primarily, because it includes
population actually living in rural areas and provides information about
its situation in the labour market. This is the only current survey, on
the basis of which we can analyze the rural labour force.

An important advantage of the LFS, from the point of view of the
characteristic of the Polish rural area, is a possibility to distinguish
on its basis between the agricultural and nonagrarian population, which
-- as we already know - differ in situation in the labour market.
Without a separate analysis of agricultural and non-agrarian populations
there is no chance to comprehend the fundamental division lines in rural
areas and present the most important problems of the rural labour
market.

A huge advantage of this survey is that we can isolate, on the basis of
it, all population categories important for the diagnosis of the rural
market, namely: the active, employed and unemployed and economically
inactive population. Apart from the census, no other survey provides so
conceptually coherent and essentially uniform data. This creates
exceptional interpretative possibilities, free from essential
incoherence of different information sources on labour market situation
and enables quite broad analysis of certain population categories. For
each one of the distinguished population groups (the active, employed,
unemployed, and inactive) we have a lot of information on their
demographic, social and professional properties. Therefore, based on the
LFS, we can conduct the most complex analysis of the rural labour
market.

In Poland, this survey has been conducted since 1992, with quarterly
frequency from the very beginning and thus, we have a relatively long
time series data. Thus, an additional merit of this survey is the
possibility of analyzing the quarterly changes in the rural labour
market, which is desirable with regard to the continuous reconstruction
of agriculture and rural areas.

On the basis of the LFS we have the possibility to distinguish
agricultural and non-agrarian populations in the rural area and describe
their up-to-date situation (in quarterly cycles). However, the
representative character of the survey does not allow for a more
in-depth analysis of certain population groups at the level of local and
above local labour markets. (NUTS 3,4,5). But apart from the LFS we have
at our disposal a number of other surveys that include certain groups of
labour force in the rural areas. Due to organization and accessibility
of data, these surveys differ in case of agricultural and non-agrarian
population. It should be stressed though that the current labour
statistics examines work places, also by their localization in urban or
rural areas, but does not examine the population by their place of
living. In case of population living in rural areas we can evaluate its
situation in the labour market only approximately, since inhabitants of
rural areas occupy the majority of rural work places. This does not
change the fact that possibilities of a rural population analysis on the
basis of current labour statistics are limited.

As far as survey on persons working in rural areas is concerned, it is
an integral part of the survey on labour market outside of private
farms. With regard to entities with more than 9 employees, these surveys
are conducted with monthly and quarterly frequency but using the method
of enterprises, without the possibility of isolating the number of work
places in rural areas. Only the annual survey is more detailed and
allows distinguishing persons employed in the rural areas. In addition,
once a year we also conduct a survey on units employing up to 10
persons, with the possibility to distinguish work places located in the
rural areas. Therefore, only annual surveys provide data on the number
of persons employed in the rural areas outside of private farms. They
carry, however, a limited range of information on the characteristic of
persons employed in the rural areas since they distinguish only their
gender.

However there have been no current surveys on persons employed on
private farms. To establish a general number of the population employed
in rural areas we utilize the data about persons employed on private
farms from the LFS or we prepare estimates based on data from the last
Population or the Agricultural Census. Nevertheless, lack of conformity
of results that originate from different sources has so far impeded
preparation of estimates, therefore so far a constant number of persons
employed on private farms, established during the Agricultural Census of
1996 had been assumed for official information on the number of persons
employed in 1996-2002. The results of the latest census have shown that
is had been a false assumption. For that reason, in the nearest future,
as an additional source of data on persons employed on private farms, a
survey on the structure of agriculture (Farm Structure Survey) shall
also be applied. This survey shall be conducted every 2 years.

Next, when it comes to the unemployed as the second category of
population constituting the labour force, we have two sources of
information in Poland: the register of unemployment and the LFS. I have
mentioned above the advantages and limitations of the LFS. There is no
question that it has been the best source of data on unemployment in the
rural areas, providing complex and internationally fully comparable
data. Its disadvantage has been the quarterly frequency of data
dissemination (monthly data are needed) and limited possibilities of
spatial presentation (data are accessible for voivodships only while
data are necessary also for local labour markets). From this point of
view the registers of unemployment are a good supplement for the LFS. On
their basis, data on the registered unemployment have been accessible on
a monthly basis and with high accuracy in spatial approach (on the
poviat level). Unfortunately, the registers encompass only a part of the
actually unemployed in the rural areas. According to the definition,
binding upon legal regulation \[The Law, 2004\], agricultural population
from farms having more than 2 hectares of agricultural land is not
accounted for as the unemployed. From the point of view of the survey on
rural labour market this has been a big constraint.

There is also hidden unemployment in the rural areas and this does not
only refer to economically inactive population because of their
discouragement in searching for a workplace, but also to the employed in
agriculture. As it was shown earlier there are persons who help but
economically redundant from the productivity of a farm point of view
among persons working on private farms. The current statistics of the
labour market does not offer the possibility to estimate the number of
this population, not to mention its demographic and professional
characteristics. In the nearest future such estimates will be possible
on the basis of the results of the Farm Structure Survey.

What results from the above review is that possibilities for complex
analysis of the rural labour force based on current surveys of labour
market are limited. Actually only the LFS provides data that enable such
analysis but with a limited spatial scope. The remaining sources of data
on labour force provide fragmentary information and primarily on work
places located in the rural areas. Creation of an integrated system of
surveys and accounts for labour market that allows a quite detailed
analysis of the rural labour market has still been an important task for
labour market statistics.

**6. Directions for improvement of rural labour force measurement**

The best current source of data on the rural labour force has been the
LFS, as it has been discussed. However, a representative character of
this survey (at limited sample size due to financial constraints) limits
the analytical possibilities of the rural labour market in the spatial
approach (to voivodships). Meanwhile, the demand for data on local
labour market has been systematically growing and therefore one of the
directions for improvement of statistics has been broadening of the
scope of data estimation for small areas with the use of the LFS
results. The Central Statistical Office, within the framework of
improving the regional statistics, has already commenced works in this
regard. We have also enjoyed a greater support from academics**,**
because the statistical issues of small areas have considerably gained
importance in last years. \[Gołata, 2004\]

In case of the rural labour market, the data on employed persons in
private farms have been particularly sensitive. The experiences from the
transition period have shown that collection of reliable information on
population employed in agriculture has been very difficult. Only results
from the LFS have been accessible on up-to-date basis, however without a
possibility of comparison with any other source of information. For this
reason the LFS data have often been criticized by its users as being not
much reliable. The last census has proved that this criticism has not
been justified. Nevertheless, because of a small representation of rural
population and farmers in this survey, it has been recommended to use
also other sources on persons employed on private farms. Such
possibilities are offered by the Farm Structure Survey (FSS), the
framework of which provides for a relatively broad range of information
on the employed persons. This information has primarily been referring
to work time in certain seasons (spring, summer, autumn, winter) with
consideration of the number of working weeks in the season and the
average number of working hours in a week. Such approach to work-time
was comparable to other surveys on rural population, which were
conducted earlier using the opportunity of carrying out the LFS and
during the 2002 Agricultural Census. The FSS shall be conducted every
2-3 years but still the accessibility of necessary data shall be more
frequent than in case of the population censuses. Thank to this survey
the results from the LFS shall be confronted with the FSS data in the
part regarding persons employed on private farms. With such comparison
(verification) of the LFS data we will be able to use them for
estimation of persons employed on private farms. However, initial data
shall always be taken from censuses (or Agricultural Census) and then
updated with the use of trends, observed in the LFS, referring to the
change of the number of population employed on private farms. Starting
from the year 2002, data on persons employed on private farms in
agriculture shall be updated at least once a year.

Both sources of data (LFS and FSS) shall also be used for estimation of
work units on private farms. First such attempt has been made on the
basis of results of the Population and Housing Census and the
Agricultural Census of 2002 (Systematics, 2003) and these estimates
shall be prepared regularly. Since this is a very important economic
category, which decisively better than the number of persons
characterizes the actual work outlays taking place in agriculture. It
has a larger meaning because, in the Polish agriculture, work-time of
farmers is significantly different in certain seasons and, moreover, the
work input of different persons employed in agriculture is different.

Measurement of the rural unemployment requires further improvement also.
In case of the non-agrarian population, information from unemployment
registers has been very useful. This cannot be stated about the
agricultural population since the register omits a certain group of the
unemployed. Better information on the agricultural population has been
provided by the LFS but without the possibility of a detailed spatial
analysis. It seems that the most rational direction of actions is to
estimate the unemployment for small areas (also rural) on the basis of
the LFS results but with the use of data on the registered unemployment.
Works in this direction have been already been commenced within the
framework of improvement of the regional statistics.

In conclusion it can be commented that the search for better information
on rural labour market, on the rural labour force, should be aimed at a
broader use of the LFS results. It is necessary to develop estimates
using other sources of information, particularly the new FSS survey to
make this possible also for the spatial analysis. Therefore, we plan
further growth of the Polish labour market statistics in this direction.

**References:**

Development of rural areas (2000), Report on social development Poland
2000, UNDP, Warsaw,

Economic Activity of Population in Poland (2003), Population and Housing
Census, Agricultural Census, CSO, Warsaw,

Economic activity of agricultural population (2004), Population and
Housing Census, Agricultural Census, CSO, Warsaw,

Evolution of farms in years 1996-2002 (2003), study under supervision of
W.Józwiak, CSO, Warsaw

Gołata E.(2004), Indirect unemployment estimate in local labour market,
Economic Academy in Poznań, postdoctoral theses 11, Poznań,

Labour resources in private farms (2003), study under supervision of U.
Sztanderska, CSO, Warsaw

Regional differentiation of agriculture (2003), study under supervision
of J.Zegar, CSO, Warsaw.

Rosner A., (2003), Problems of the rural labour market, In: Demographic
processes at the verge of the XXI century, Poland versus Europe,
collective work edited by Z.Strzelecki, Governmental Population Council,
Governmental Centre for Strategies Studies, Warsaw

Systematics and characteristics of farms (2003), Population and Housing,
Agricultural Census, CSO, Warsaw.

The Law of April 20^th^, 2004 on employment promotion and labour market
institutions, the Journal of Laws No 99 item 1001.

Witkowski J., (2003), Population development and the labour market --
Poland and Europe, In: Demographic problems of Poland before accession
to the European Union, collective work edited by Z.Strzelecki, PWE,
Warsaw.