Unemployment rate at 32-year low

28 Jul 2022

Poland’s unemployment rate has fallen under 5% for the first time since 1990, according to data from the country’s statistics agency, GUS.

Unemployment declined to 4.9% in June following a 5.1% reading in May, with the number of unemployed people amounting to 818,000 in June, compared to 850,200 the month before.

In addition, Poland’s unemployment rate is among the lowest in the European Union. According to the latest Eurostat data for May, just the Czech Republic and Malta have lower levels.

Although there are indications of a demand slowdown for labour, there are still shortages remaining in the country that has experienced a rally from a Covid-fuelled recession.

Following the data released by the statistics agency, the Polish Chamber of Commerce (KIG) announced it forecasts unemployment to bottom out at 4.8% between August and October. The level is typically lower over summer due to high demand for seasonal staff.

Nevertheless, negative growth in the number of job openings was recorded in June for the third consecutive month, according to a report compiled by analysts at PKO BP bank.

In addition, there was an increase in newly registered job seekers, 11.3% year-on-year, and annual growth was positive for the fourth straight month. This was partly due to the registration of Ukrainian refugees who made up 7.5% of the newly unemployed in the first half of the year, GUS stated.

“However, even so, the number of unemployed per job offer, at 8.5, is close to historical lows. In our opinion, the demographic situation and the shrinking labour force will ensure that even the economic slowdown and falling demand for labour will not cause a noticeable increase in unemployment in Poland,” said the PKO analysts.