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Poland’s Transformation: From Emigration Country to Immigration Hub

ECONOMYPoland’s Transformation: From Emigration Country to Immigration Hub

The last 10 years have marked a transformation of Poland from a country of emigration, which for centuries had a negative migration balance, into a country that attracts immigrants at a rapid pace. This is a huge socio-economic challenge, further intensified by migration flows related to the refugee crisis in 2022 caused by the war in Ukraine. This topic stirs many emotions and controversies, so it is worth examining the balance of benefits and costs resulting from the presence of migrants in the Polish labor market.

According to data from the Social Insurance Institution (ZUS), about 1.2 million foreigners work in Poland, accounting for nearly 7% of the labor market. Foreigners contribute approximately 5% of ZUS revenues from contributions and taxes. Their presence in Poland operates on three levels: filling labor market gaps amid depopulation and an aging society; bringing new consumers, which drives retail sales; and contributing to increased entrepreneurship, said Andrzej Kubisiak, Deputy Director of the Polish Economic Institute, in an interview with eNewsroom.

“Between 2022 and 2024, around 90,000 Ukrainian companies were established in Poland, with one in every ten sole proprietorships founded by a Ukrainian. This indicates a growing share of foreigners in Polish business,” he added.

Analyses by the “Demagog” service, based on public institution data, estimate that annual revenues to the state budget from contributions and taxes paid by foreigners amount to approximately 17.5 billion PLN. Social expenditures, such as spending on the National Health Fund (NFZ) and payments of the 800+ child benefit, are estimated at around 3.5 billion PLN, which shows a significant surplus in revenues. The BGK report also confirms these data, pointing to a positive economic balance linked to the presence of migrants in Poland.

From a social perspective, however, challenges arise related to integrating foreigners into Polish reality. After 2022, many decided to settle in Poland long-term, starting families, purchasing real estate, and engaging in social life. This means that Polish society must learn to function in a new context, especially considering the enormous demographic challenges ahead.

“Without migration, activation of Polish citizens, and automation, our economy will not cope with upcoming difficulties. By 2035, over 2.1 million Poles will leave the labor market, creating a huge gap to fill,” Kubisiak explains.

 

Source:
https://ceo.com.pl/polska-zmienia-sie-z-kraju-emigracyjnego-w-migracyjny-hub-97441

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