The key focus of the World Bank's Just Transition methodology is on people and communities. Coal-related jobs are at the forefront of the disruption brought about by the transition towards a low-carbon economy. Some displaced workers may be able to transition easily to new job opportunities, whereas many others may not. The resulting disruption to jobs and livelihoods may exacerbate the already challenging labor market environment in remote regions and traditional sectors that have not kept pace with broader economic modernization trends.
A series of recent World Bank studies explored the skills and labor challenges brought about by the transition out of coal in three Polish regions: Wielkopolska, Silesia, and Lower Silesia.
The impact at the national level may be limited, as less than 2 percent of total employment is in the coal value chain. At the end of 2020, around 88 thousand people are estimated to work directly in the mining conglomerates. Lignite conglomerates are vertically integrated and less than 250 additional jobs are indirectly linked to the mining sector in Wielkopolska or Lower Silesia. On the other hand, 17 thousand workers are providing goods and services to mining conglomerates in Silesia.
Yet, coal-related jobs are characterized by both spatial and market concentration, often in otherwise sluggish labor markets. Employment is concentrated geographically around the mines, in a few municipalities where coal-related employment represents over 20 percent of total employment and sometimes as much as 50 percent. Spatial and market concentration is particularly high in Silesia.
All World Bank engagements within the World Bank's technical assistance project "Support for Polish Coal Regions in Transition" were financed by the Directorate-General for Energy of the European Commission (DG ENER).
