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Labor market. PIE: the record low unemployment rate in Poland is still accompanied by the need for employees

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The record-low unemployment rate in Poland is still accompanied by the demand for employees, the Polish Economic Institute pointed out on Friday. According to analysts, rising labor costs are becoming an increasingly serious problem.

PIE analysts referred to the recently published data from the Central Statistical Office regarding the unemployment rate calculated according to the Labor Force Survey (LFS). They pointed out that in April 2023 it amounted to 2.7 percent in Poland, similarly to the Czech Republic. Index value below 3%. also noted on Malta and in Germany, with the EU average of 6.0%.

“A record low unemployment rate in Poland, there is still a demand for employees, experts said in the latest issue of “Tygodnik Gospodarczy PIE”. “But rising labor costs are becoming an increasingly serious problem” – they noted.

A barrier to running a business

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They pointed out that so far among the barriers hindering running a business, the leaders were the uncertainty of the economic situation and high barriers energy prices. In May, the uncertainty of the economic situation ranked first among barriers, followed by rising labor costs (71% of responses, an increase of 8 pp m/m). The question is how long will such a low unemployment rate last, they added.

As they pointed out, most employers do not plan to make redundancies in the near future. According to MIK data from May this year, almost 80 percent companies do not intend to introduce changes in the number of employees in the near future. “In May, there was also a slight advantage of entrepreneurs planning to hire new employees (12 percent) over those who anticipate layoffs (9 percent)” – PIE analysts noted.

Which industries want to hire?

The willingness to hire new employees was declared primarily by representatives of the construction industry (21%). Employers from the trade sector were the least willing to hire new employees (8%). Representatives of large companies also had plans to increase employment much more often (23%).

The unemployment rate, similarly to the level of inflation, is an important indicator of the socio-economic condition of the country, stressed PIE experts. They added that during the pandemic, the protection of jobs was one of the priority tasks of the anti-crisis shield. “Such low unemployment as recorded in Poland in April this year, despite relatively high inflation, brings a slight breath of optimism” – they concluded.

Main photo source: Shutterstock

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