Nearly 47% of employers say that high labor costs are their biggest challenge in today’s job market, according to a Trenkwalder Polska survey conducted among 500 companies. Smaller businesses feel this most acutely: 57.5% of them view labor costs as a barrier to company growth. Their situation is further complicated by staff shortages, high employee turnover, and skills gaps.
“Looking at the market and trends in 2025, you can see three main reasons behind employers’ rather pessimistic sentiment,” Ewelina Glińska-Kołodziej, CEO of Trenkwalder Polska and a board member of the Polish HR Forum, told Newseria. “The first is clearly the low level of investment in Poland. There is significant demand uncertainty, which translates into weak sales forecasts and instability. The second element is labor costs. Over the past five years, the minimum wage has increased by 78%. That is a huge rise, while work efficiency and productivity are not growing nearly as fast—only 22% over the last decade. The third element is legislative changes.”
Data from the Central Statistical Office (GUS) study “Labor Costs” show that the average monthly labor cost per employee in 2024 was just under PLN 11,000. This represents an increase of more than 52% compared with 2020.
“The biggest jumps were recorded in 2023 and 2024, when minimum wage increases were also the largest,” Glińska-Kołodziej explains. “It’s worth remembering that a minimum wage increase—or a rise in base salary—triggers additional employee-related costs, because it raises the base used to calculate other costs and benefits.”
On 1 January 2023, the monthly minimum wage stood at PLN 3,490 gross. As of 1 January 2026, it is PLN 4,806 gross.
According to the expert, further legislative developments will continue to push labor costs upward. “Already today, the National Bank of Poland (NBP) notes in its reports that employee-related costs account for 14.4% of total operating costs in companies. For comparison, in 2021 it was about 12.5%. The legislative changes expected in 2026, which employers are already preparing for, will lead to additional increases,” she says.
Trenkwalder Polska’s report “Employers’ Challenges: Strategies for Building Employee Loyalty” indicates that nearly half of surveyed companies point to rising labor costs as a barrier to further growth. 76.4% consider it a large or very large challenge, while only 4.3% downplay its importance compared with other difficulties.
“In 2026, labor costs will still be the biggest challenge under current market conditions,” says Glińska-Kołodziej. “They won’t be driven solely by the minimum wage increase, which is relatively low—about 3%—but by the many legal changes employers will need to address. Another factor that will affect labor costs is the pay equality and pay transparency directive. We are on the eve of implementing its obligations, which will require employers to review pay structures and benefits.”
Combined with the broader market environment and moderate economic growth forecasts, rising costs are making employers cautious about pay rises in 2026. More than 50% of respondents plan salary increases of 2–4%. Slightly over 20% mention increases of 4–7%, while 5% declare pay growth of 10%.
“Employers will be looking very closely at the total cost per employee,” the Trenkwalder Polska CEO adds. “They will certainly consider investments in technology and potentially outsourcing.”
As labor costs rise, demand for more flexible forms of employment is also increasing.
“For employers, flexibility primarily means operational, strategic, and cost management,” says Glińska-Kołodziej. “It’s the ability to use employment models and shape the company in ways that allow quick responses to changing economic or legal conditions. Within the Polish HR Forum—which brings together the largest staffing agencies in Poland—we can see that the need for flexibility has been growing since 2024, and we are observing a rising number of temporary workers.”
She estimates that this trend could strengthen further due to planned legislative changes. As a result, the Polish HR Forum expects a steady increase in the number of temporary workers used by companies in Poland.
The Trenkwalder report also shows that staff shortages remain a major challenge for businesses. 31% of surveyed companies pointed to workforce gaps. 38.8% believe these shortages stem from a lack of qualified candidates. Employees, however, see the main reason differently: too low pay offered by companies. This view is shared by 48.7% of the 500 surveyed employees. Their financial expectations remain higher than employer offers, which in turn increases turnover. In 2025, turnover was a challenge for 30.4% of companies.
“There are several reasons behind staffing shortages,” says the expert. “The first is demographics and the shrinking pool of candidates. By 2035, more than 2 million workers will disappear from our labor market. On top of that, Poland lacks a smart, balanced migration policy that could help secure these gaps. Another reason is the need to educate young people in line with technological changes and market trends. Today, when employers talk about skills and staffing shortages, they mainly refer to gaps in engineering, technology, operational roles, and positions connected with new technologies.”
Technological change and related skills gaps are already influencing job offers and hiring plans.
“In reports for 2026, we see forecasts of employment growth between 22% and 36%,” Glińska-Kołodziej notes. “But in my view, this says more about employers focusing on competency shifts—aligning skills within organizations with strategy and the technological changes ahead. At the same time, the number of more repetitive roles that are easy to digitize will certainly decline.”
Data from Grant Thornton’s report “Job Offers in Poland” show that in November 2025 the market recorded 208,948 new job postings. That was 9% fewer than a year earlier and 17% fewer than in October 2025. The largest year-on-year declines concerned manual workers (-29%), marketers (-17%), and HR roles (-14%). The strongest increases were recorded in medical professions (+46%) and legal professions (+28%).
