Employee Shortages Hit Polish Businesses

In the last few years, Polish businesses and the economy have been going strong and the situation in the job market has been better than good. The official unemployment rate recorded by the Central Statistical Office has been staying below 6%.

Surveys demonstrate that Polish businesses feel they do not need to worry about losing their jobs. However, happy times for the working population do not necessarily mean the same for businesses. In fact, numerous companies in Poland have been experiencing employee shortages and find it difficult to fill job vacancies.

The Importance of Polish Businesses in the Economy:

The supply of skilled workers and professionals looking for jobs is too low compared with the demand. After Poland’s accession to the EU in 2004 and entry into the common labor market, the country saw and outflux of a great number of people, especially young adults.

Emigration completely changed the job market. Average remuneration is rising as the absence of good candidates means higher salary offerings. Additionally, the government keeps pushing the minimum salary up. From the point of view of businesses, this is not great as the labor costs are going up.

The most recent reports indicate that almost 50 percent of the surveyed businesses have trouble finding new staff members. This problem affects all kinds of enterprises, located all across the country. Over 16 percent of companies were forced to hold back investment due to employee shortages. What is more, prolonged recruitment processes are costly.

In this situation, more and more Polish businesses or entrepreneurs are interested in hiring people from other countries, especially from Eastern Europe. Today, as much as 20% of companies have employees from Ukraine. The problem is, that a citizen of Ukraine can only work in Poland for consecutive 6 months. A majority of employees think this period is too short. Ukrainian workers are of the same opinion. A recent poll shows 73% of them want to work legally longer than half a year.

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.