Companies in Poland Experience Staff Shortages

Central Statistical Office published unemployment data or staff shortage for July. The official unemployment rate in Poland in the seventh month of the year stood at 7.1 percent. This means the number of unemployed in the country remained at the same level for two months. Unemployment in June 2017 was also 7.1 percent. This may be found a little bit surprising, as most experts predicted the unemployment rate will continue its downward trend which lasted for a whole five months. Eurostat data shows that staff shortage in Poland is much below the EU average.

In total, in July there were 1,140 thousand people registered as unemployed in Employment Offices in Poland. The statistical data vary depending on the region of the country. The lowest unemployment was reported in the Greater Poland voivodship (regional capital: Poznań) where it stood at merely 4.2 percent. In terms of cities, the lowest rate of unemployment was, as one may expect, in the capital city of Warsaw (2.5 percent).

The statistics are in line with government predictions. The budget states that for the entire 2017, the unemployment rate should stand at 8 percent. Officials claim that next year the situation on the job market should be even better and the official staff shortage is to drop even further, to 6.4 percent. A sharp decrease in the number of registered unemployed is expected for October, due to the introduction of lower retirement age.

The situation is good for those looking for a job, but more and more businesses experience staff shortages and have trouble successfully recruiting employees. This is due to the low number of people out of work but also negative demographic trends. Today, many fewer graduates leave school than a few years ago. A recent survey conducted by Millward Brown shows that 25 percent of small companies have to curb investment due to difficulties in finding personnel and half of survey participants had problems finding good candidates for employees.

Investment Outlook and Business Perspective

Poland remains one of the most attractive investment destinations in the European Union. With GDP exceeding EUR 650 billion, Poland is the sixth largest economy in the EU and the largest in Central and Eastern Europe. The country has maintained positive economic growth for over three decades, including through multiple global crises.

Foreign direct investment in Poland continues to grow, driven by the country’s strategic location, skilled workforce, EU membership, competitive costs, and improving infrastructure. Key sectors attracting investment include manufacturing, technology, business services, logistics, and financial services.

For investors considering entry into the Polish market, proper structuring of the investment vehicle is crucial. The choice between a sp. z o.o. (LLC), S.A. (joint-stock company), branch office, or joint venture depends on the investment size, sector, tax considerations, and long-term strategic objectives. Professional advisory can help optimize the structure from both operational and tax perspectives.

If you are doing business in Poland or considering entering the Polish market, Zalewski Consulting can help. Learn more about our corporate tax advisory, or contact us for a free consultation.