Good news from the Polish job market

Labour Market Index (WRP) – which allows to get early information on the upcoming changes to the unemployment figures – in September 2016 decreased by 0.8 point month on month.

The factors which positively affect Polish labour market and cause the unemployment rate to fall, certainly still dominate. The results of periodic research on the labour market for 2016 prove that the influx of people without work is steadily decreasing, with continually growing number of available job offers.

The completed analyses undeniably prove that much fewer people – in comparison with the previous years – lose their jobs. Also, finding work is nowadays much easier, and a considerable part of people are able to find employment without the involvement of Labour Offices.

In comparison with the previous year – in Polish labour offices each month there are around 20 percent more job vacancies being registered. From the beginning of 2016 there was a significant decline in the influx to unemployment recorded in Poland– approximately 65 thousand people.

There is no shortage of specialists saying that the present situation on the Polish job market is the best in 25 years. The analyses of Central Statistical Office indicate that the biggest increase in employment has been reported in administration and support services (by 10.5 percent) and information and communication (by 10.2 percent).

An increase in employment has been also reported in services regarding supply of water, managing waste, remediation, trade, repair of motor vehicles, housing and food, industry processing, professional, academic, and technical activity, as well as transport and warehouse management.

Due to numerous positive changes on the Polish labour market that can be currently observed, there is however an alarming falling trend with regard to the number of the unemployed who succeed in finding work after registering with Labour Office.

Today, there are approximately 20 thousand fewer people who decide to deregister from Labour Office, comparing with the previous year. Specialists stress that this is connected with the structure of the unemployment, as at least 30 percent of the unemployed have no job qualifications. As a consequence, out of the people already registered as unemployed, around 40 percent remains without job definitely longer than 1 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 company formation services, or contact us for a free consultation.