DETERMINATIVES OF EMPLOYMENT CHANGES IN THE POLISH SERVICE SECTOR BETWEEN 2005 AND 2017

Structural changes are one of the most important issues that market economy countries currently have to struggle with. Additionally, in the economies of many countries changes in their structure are caused by the ongoing third Industrial Revolution. Many of those countries have entered the next phase of structural transformation called economy servitization. A predominant role of services contributes not only to employment growth in that sector, having regard to both the number of employed people and the proportion of workforce, but also primarily to economic development. The importance of the service sector is consistently growing, which translates into a constant search for its complexity and multidimensionality, especially those concerning employment. The article is aimed at characterizing the determinatives of employment in the service sector, including a contemporary concept of the distinction between market and non-market services. The methods used include an analysis of statistical data and econometric modeling. The results show that in the post-accession period employment in the service sector was growing faster than in the economy in general and that a faster pace of employment changes is observed in market services and employment in non-market services is stabilized. The main determinatives of employment changes in the service sector are global demand, level of production and real wages. Additionally, employment in both the market and the non-market service sector is marked by a high dependence on the level of employment in the previous periods, which indicates a delay of labor market adjustments. However, labor market adjustments in the non-market service sector are slower than in the market service sector. Further studies should be aimed at the analysis of the influence of workforce mobility and migration's influence on structural changes in employment. The in-depth analysis of changes in respective sections of the service sector, with specific reference to highly innovative services, is also a promising avenue for further research.