Workers in lower-skill occupations, such as elementary, service and sales positions, experienced faster wage growth than those in high-skill ones, narrowing occupational wage gaps in Poland.
Wage growth in lower-skill industries, notably some manufacturing sectors, continued to outpace that in high-skill ones, contributing to Poland’s lower score.
A notable rise in real wage growth across the board is forecast for this year, putting upwards pressure on Poland’s score.
Managing Director, Hays Poland
New investments, expansion of existing production plants and the development of the business services sector are increasing recruitment activity in the Polish labour market. Poland is also at the forefront of European countries with the forecast of the highest employment growth – regardless of the size of company, region or industry. At the same time, increasingly more companies struggle with the lack of suitable candidates. This deficit has already negatively impacted the economy. There are many indications that this is a long-term trend that will shape the business environment in the coming years. Fortunately, there are still groups characterised by low labour market participation – activation of women, mature and young people may positively influence the implementation of companies’ business strategies.
Charles Carnall, Managing Director, Hays Poland
The Polish labour market is complex. There is considerable evidence of increasing demand for labour. GDP rose by 4.7% in 2017 and employment rose by 1.4%.
This caused the unemployment rate to fall to a 26-year low. In the European Commission’s Business Survey on factors limiting production, a net balance of +37% of firms cited labour as a constraint. This is well above the average for all 28 Member States of +15%.
Yet the wage dynamics are complicated. Across the entire enterprise sector earnings rose by almost 6% in 2017. Some of the main beneficiaries have been those in low-skilled jobs and industries which pay low average wages.