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Poland’s Labour Market Tightens as Wages Rise and Unemployment Falls

Poland’s labour market continues to show signs of robust growth, with average gross wages in the enterprise sector rising by 8.4 per cent year-on-year in May, according to new figures released by Statistics Poland.

The average salary now stands at 7,793.18 zlotys (approximately €1,785), underscoring resilient consumer demand amid mounting inflationary pressures.

Meanwhile, the unemployment rate dropped to 2.8 per cent—the lowest level in the region—highlighting acute labour shortages across multiple industries, including construction, logistics, and services. Employers have increasingly turned to foreign workers, with a record 63,000 work permits issued to foreigners in the first quarter alone.

The tight labour conditions have prompted the government to pursue wage and policy reforms. The minimum wage is set to rise for a second time this year, reaching 4,300 zlotys per month from July, up from 3,600 at the start of the year. This 19 per cent annual increase is one of the most aggressive in the EU, aimed at boosting household incomes and sustaining domestic consumption.

However, business groups have raised concerns about the long-term impact of rising labour costs on competitiveness, particularly as Poland seeks to maintain its appeal as a manufacturing and outsourcing hub within the European single market.

Labour economists warn that structural challenges remain. While the inflow of migrant labour—primarily from Ukraine and Asia—has eased some pressure, the working-age population continues to decline, and productivity gains have yet to offset wage-driven inflationary risks.

As Poland navigates the post-pandemic recovery, balancing wage growth with economic competitiveness will remain a key policy dilemma for Warsaw.