Mechanism of Employment Adjustment to Short-term Changes in Production. Examples of Polish Enterprises
Mechanism of Employment Adjustment to Short-term Changes in Production. Examples of Polish Enterprises

Summary/Abstract: Current mechanisms of employment adjustment to changes in production volu-me in Polish enterprises result from transformations of the Polish economy. The first years of market economy were characterised with the excess of employment and significant rigi-dity of the labour market. Employment adjustment to changes in production volume was hampered, however, regulations gradually provided enterprises with the possibility of real influence on the strength of those adjustments. This paper aims at the determination of the mechanism of employment adjustments to changes in production volume in Polish enter-prises. The principal question was whether enterprises in Poland adjust employment in periods of short-term production changes and, if yes, what is the mechanism of these adjustments. Two hypotheses were proposed. The first hypothesis assumed that Polish enterprises immediately adjust employment to periodic changes in production volume. The second hypothesis was formed as an assumption that employment adjustment to changes in pro-duction volume occurs through a change in a number of employed persons and through a change in a number of hours worked. The study’s spatial scope covered the Polish economy. The mechanism of employment adjustments to changes in production volume was analysed by testing pro-cyclicality of labour productivity. Eurostat constituted the source of data concerning the Gross Domestic Product and labour productivity. The study’s time horizon was the period from the first quarter of 2002 to the third quarter of 2017. The obtained results indicate that in Poland enterprises immediately adjust employment to changes in production volume. These adjustments concern equally the number of employed persons and the number of hours worked. It means that enterprises reduce employment and the number of working hours on the conditions of decreasing production. Assessment of the course of correlation of production dynamics and labour productivity dynamics allowed for the formulation of a conclusion that in enterprises in Poland occurred periods of larger employment adjustments to changes in production volume. The first one occurred in 2004-2006 and was connected with the Poland’s accession to the European Union, when enterprises reorganised and significantly adjusted the number of working hours. The second and third period was related to the 2008 financial crisis, while in that period enterprises limited equally the number of employed persons and the number of working hours.

• Details
• Contents