The labor market in Poland is under pressure. PZU economists warn against increased competition
The Central Statistical Office reported on Tuesday that in March this year the average gross salary in the enterprise sector was PLN 9,652.19, which means an increase of 6.6%. on an annual basis and 5.7 percent month to month. Employment in this sector decreased by 0.9%. y/y and by 0.1 percent mdm.
According to PZU economists, labor demand remains weakened, wage pressure is gradually decreasing, and “the prospects are uncertain“. Increasing costs associated with the escalation of the conflict in the Middle East. “can increase tensions, especially in low-margin industries“They added that nominally the wage dynamics remains below the average of the last five years.
“The employment path continues to follow the flat trajectory of the previous three years and there is still no visible improvement. With weakened recruitment activity, this will mean increasing competition for positions and longer job search times,” PZU economists said.
In their opinion, the popularity of work performed under civil law contracts or business activity will increase.
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They added that the recent increase in commodity prices and disruptions in supply chains following the outbreak of the war in Iran – especially if it continues for a longer period – will increase cost pressure in companies. In sectors where margins are already low, this may pose a challenge to maintaining competitiveness, which could additionally impact their activity on the labor market.
