Tuesday, February 17, 2026

Warning Signs on the Polish Labor Market Despite Low Unemployment

ECONOMYWarning Signs on the Polish Labor Market Despite Low Unemployment

For several years, Poland has maintained an unemployment rate below 6%, and according to the EU methodology, it’s even lower—about half that—making it one of the lowest in the European Union. Workers have grown accustomed to a favorable job market, but early warning signs are emerging, indicating a possible shift in this trend. Some industries have suffered due to the economic slowdown in Germany, while others are considering relocating operations due to high labor and energy costs in Poland. At the same time, the activation of economically inactive individuals remains a major challenge.

“We’re now seeing longer job search times, even for experienced professionals who should have no trouble finding work. The balance is shifting from an employee’s to an employer’s market, despite the low unemployment rate,” said Tomasz Szklarski, Vice President of Zmotywowani.pl and co-founder of Enpulse, an employee engagement platform, in an interview with Newseria.

“The number of job postings has dropped, and employer expectations have increased. Companies are realizing they can focus on selecting top talent, as there’s been a noticeable cooling in many sectors,” he added.

According to data from Poland’s Central Statistical Office (GUS), 254,800 job vacancies were reported to labor offices in Q1 2025—10.2% less than the same period in 2024. The private sector saw a 10.5% drop, and the public sector an 8.8% drop. Additionally, 23.1% of vacancies remained unfilled for more than a month, compared to 29% a year earlier. Experts attribute this partly to strong employment rates and partly to shifts in recruitment strategies, as employers rely less on public labor offices to find skilled candidates.

Job Portals Tell a Slightly More Optimistic Story

Data from recruitment platform Element, analyzed for Grant Thornton, shows that in March 2025, employers posted 291,000 new job ads on Poland’s 50 largest job portals—an increase of 29,000 (11%) compared to March 2024. March marked the fourth consecutive month of ~10% year-on-year growth in online job postings. In contrast, 2024 rarely saw such figures, and many were artificially inflated by statistical anomalies like differences in the number of business days.

Low Unemployment, But Fewer People Employed

Despite the low unemployment rate, the number of people employed continues to decline. Enterprise sector employment last saw year-on-year growth in July 2023. The registered unemployment rate has hovered around 5% for years, last exceeding 6% in fall 2021. In March 2025, it stood at 5.3%.

“The **automotive industry is not hiring—it’s laying off. There are no new investments. Poland’s investment-to-GDP ratio is low—just over 17%,” said Szklarski.

“Companies considering investing in the region are taking note of these factors and starting to see Poland as less attractive. Despite low unemployment, fears about talent shortages, long recruitment processes, and high costs are acting as red flags. Some may consider moving production elsewhere,” he warned.

“And the number of economically inactive people remains high, placing additional strain on the labor market. Getting them back to work is a critical challenge.”

Labor Force Participation in Decline

Preliminary results from GUS’s Labor Force Survey (Q4 2024) revealed a decline in labor market activity. Both the number of employed people and the employment rate were lower than in Q3 2024. The number of unemployed and the unemployment rate also fell, but the number of economically inactive people increased.

In Q4 2024, 58.5% of people aged 15–89 were active in the labor force—65.5% of men and 51.9% of women. This translates to 17.74 million economically active individuals, including 17.25 million employed and nearly 0.5 million unemployed. The inactive population in this age group stood at 12.61 million. Compared to Q3 2024, the number of active individuals fell by 56,000 (0.3%), and by 128,000 (0.7%) compared to Q4 2023.

“If industrial sectors remain in recession, unemployment will rise,” warned Szklarski. “The construction industry, which previously had high employment and investment levels, is now cooling. This impacts the broader economy, as many sectors are interconnected. Rising energy costs are also forcing some businesses to shut down because operations are no longer profitable—and there are no signs these costs will decrease soon.”

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