Labour Market Employees needed urgently

Author / Editor: Barbara Blaczkowska / Franziska Breunig

Poland - In June 2017, Poland recorded the lowest unemployment rate in 26 years. According to the government’s data, it was only 7.1%, which is about 0.3 percentage points lower than the previous month and 1.6 percentage points lower than a year ago.

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The falling unemployment rate in Poland is good for employees, but for employers it means real trouble.
The falling unemployment rate in Poland is good for employees, but for employers it means real trouble.
(Source: Pixabay)

According to the data on registered unemployment in Poland, the number of the unemployed in the country, end of June 2017, compared to May 2017, fell by 49,300 (a decrease of 4.1%) and amounted to 1.15 million. Compared to the same period last year, the number of the unemployed fell by 239,700, i.e., by as much as 17.2%. This trend is also noticeable where traditionally the highest unemployment rates were recorded.

Also, employers submit huge numbers of job offers and report multiple employment development locations to employment offices (in June, there were 146,100 submissions/reports). Experts claim that the so-called “employee's market” in Poland is now a fact.

The industry hires employees and pays them (more and more)

The authors of the report of the National Bank of Poland (NBP) on the labour market published, in July 2017, the figures of the first quarter of 2017 and they link the noticeable growth of labour demand to, among other things, faster economic growth in Poland at the beginning of this year as well as to a much slower decline in employment in individual farming. However, as the report claims, the rate of the decline in unemployment in the coming months should be slower than so far.

At the same time, one can expect further, albeit slow, wages and salaries growth in Poland, as indicated by the data from the private sector for the first two months of the second quarter. Experts claim that the growth rate of wages and salaries in the economy in the first quarter of 2017 increased to 4.1% y:y (against 3.7% y:y in the fourth quarter of the previous year). The wages and salaries growth in Poland is still linked to an increase in productivity, which is evidenced by the stabilisation of the growth rate of unit labour costs.

As indicated by the Polish Central Statistical Office (GUS) in its communication on the socio-economic situation in Poland, in the first half of 2017, the average employment in the private sector increased by 4.3% p.a. and the increase was higher than the year before. A substantial increase in the share of contract workers is an essential and very important structural change resulting from the current growth rate of the labour market. In an attempt to prevent employees from leaving companies, more and more often employers offer them contracts for an indefinite period.