June Labour Market News Summary

Poland with the second lowest unemployment rate in the EU

Data published by Eurostat at the beginning of June show that Poland has the second lowest unemployment rate in the European Union. According to this European institution's methodology, unemployment in Poland stands at just 3% — which differs slightly from statistics gathered by Polish government institutions, where the figure is around 5%. The only EU country with a lower unemployment rate is the Czech Republic, which has, however, a significantly smaller population and economy.

More information on the Eurostat website.

A severe shortage of seasonal workers

The persistently record-low unemployment rate means that the labour market is beginning to experience a shortage of workers. In the case of seasonal workers, the shortage is particularly acute. There are several reasons — the ongoing Russian war in Ukraine, the lack of a specific and coherent migration strategy, and the still-prevailing association of seasonal work with the grey economy. Foreign seasonal workers may offer a solution.

Full information in the article by Gremi Personal Analytical Centre.

A wave of mass layoffs in Poland

Mass layoffs and even the complete closure of entire workplaces are becoming increasingly visible across Poland. As of the end of March 2024, 159 companies declared mass redundancies, which were set to affect around 17,000 employees. Given the low unemployment rate, it is too early to speak of a crisis situation, but the frequency of such drastic steps in Poland has clearly increased. Both Polish and foreign companies are cutting jobs, including MAN, PepsiCo, Levi's, Nokia, E.Leclerc, PKP Cargo, Poczta Polska, and others.

Additional information in the Business Insider article.

New regulations on paid passenger transport

On 17 June 2024, an amendment to the Road Traffic Act came into force. The changes mean that foreign nationals of all nationalities engaged in paid passenger transport (e.g., as taxi drivers or drivers on popular ride-hailing apps) must hold a driving licence issued in Poland. This means that many foreign nationals had to go through the procedure of exchanging their driving licence for a Polish one in order to continue working in their profession.

More in our article.

Rising number of workplace accidents

According to a GUS report, the number of people injured in workplace accidents in the first quarter of 2024 increased by 7.9% compared to the same period the previous year. The accident rate has now reached 1.12. The most common cause of accidents is improper behaviour by employees, and the industries with the highest risk are mining and quarrying, as well as water and waste management.

More in the GUS report.

In summary, June was quite eventful. From positive news about the low unemployment rate, through the challenges related to the shortage of seasonal workers, to worrying signals about the rise in workplace accidents and the wave of mass layoffs.

Taken together, all these events illustrate how dynamic and changeable the employment landscape in Poland currently is, and how many challenges and opportunities lie ahead for employees and employers in the coming months.