Poland wraps up 2024 with solid economic performance, driven by rising consumption fueled by improved real incomes. GDP has grown, and unemployment has fallen to record lows. However, behind these promising statistics lies a significant challenge: businesses are increasingly struggling to find workers. If left unresolved, this issue could slow down the country’s economic momentum, warns Wojciech Ratajczyk, Vice President of the Polish HR Forum and CEO of the employment agency Trenkwalder.
Workforce Shortages Persist as 2024 Ends
Despite low unemployment, labor shortages remain a pressing issue. In November alone, employers reported over 60,000 job vacancies to labor offices. The demand spans multiple sectors, from production workers, sales staff, warehouse operators, and construction laborers to white-collar professionals. According to Poland’s National Bank (NBP), 66.8% of large companies, 46.8% of medium-sized enterprises, and 26.7% of small and micro businesses are grappling with unfilled positions.
“In 2024, workforce challenges intensified further. Key issues include regional mismatches between labor supply and demand, skill gaps, and a lack of a long-term strategy for employing foreign workers. These challenges are expected to grow even more acute in 2025,” notes Ratajczyk.
Layoffs in One Region, Worker Shortages in Another
The labor market in 2024 was marked by group layoffs, influenced in part by an economic downturn in Germany, one of Poland’s key trade partners. Group layoffs affected global corporations, domestic businesses, and state-owned companies. By August 2024, 161 enterprises had announced plans to terminate nearly 20,000 employees, according to Poland’s Central Statistical Office (GUS). However, these layoffs had little impact on the national unemployment rate.
“Over the past year, we’ve seen the highest level of group layoffs since 2022, with more expected. Yet, this hasn’t reduced the demand for workers on a national scale,” explains Ratajczyk. “When a large company shuts down, it’s a local tragedy. However, many of these laid-off workers could easily find jobs elsewhere in the country. The problem lies in their reluctance to relocate for work, particularly among physical laborers. Poland lags behind many EU countries in workforce mobility, and this is unlikely to change in the coming years.”
Ratajczyk points out that high housing costs in new locations discourage workers from moving. “In one region, employers are laying off hundreds of workers, while in another, they’re struggling to fill hundreds of vacancies. This imbalance forces many businesses to focus on filling workforce gaps instead of expanding their operations,” he adds.
Skill Gaps: A Growing Concern
Another pressing issue is the mismatch between the skills employers seek and those available in the labor market. Poles are increasingly reluctant to take on simple or physically demanding jobs, prolonging recruitment processes and creating additional challenges for both employers and job seekers.
While foreign workers and automation may provide solutions for simple tasks in the long run, addressing skill gaps in Poland’s labor market is far more complex. “There’s a growing disconnect between candidates’ expectations and the realities of the job market. Workers expect higher salaries and development opportunities, while employers are looking for candidates who are nearly perfect fits for their needs. Unfortunately, the skills of many job seekers—whether entering the market or changing careers—often fall short of today’s requirements,” Ratajczyk explains.
In 2024, the most prominent skill gaps were in advanced IT fields like data analysis, AI systems management, and cybersecurity. Additionally, there’s a growing need for soft skills such as communication, teamwork, and creativity, as well as better alignment between educational curricula and the rapidly changing demands of the labor market.
“A solution lies in closer collaboration between businesses and the education system. Poland’s vocational education law creates conditions for this, but we could also follow the example of other EU countries by allocating part of social funds for reskilling and upskilling workers,” Ratajczyk suggests.
Demographic Decline Looms
According to Poland’s Social Insurance Institution (ZUS), over 16 million people were covered by pension and disability insurance as of September 2024. Of these, 71% were employees, 11.1% were self-employed or collaborators, and 8.5% worked under civil law contracts. However, demographic trends paint a grim picture: by 2035, Poland’s labor force is expected to shrink by 2.1 million workers. The largest declines are projected in the industrial (400,000), education (361,000), agriculture (327,000), and healthcare (256,000) sectors.
To address these challenges, Poland is increasingly relying on foreign workers, a trend that will likely intensify in the coming years.
Source: Manager Plus
