Poland's labor market shows signs of progress with increased employment rates and real wage growth, but challenges such as low labor force participation among older workers and persistent gender pay gaps pose hurdles to sustained development.
Pros:
1. From 2000 to 2021, there was a significant increase in the employment rate among individuals aged 15–64, accompanied by a noticeable decline in the unemployment rate. Moreover, long-term unemployment decreased substantially from 10% in 2003 to 0.6% in 2021.
2. In 2021, the labor force participation of older workers reached its highest level since the 1990s.
3. Real wages experienced a remarkable 87% increase between 2000 and 2021.
4. Notably, real wage growth was most pronounced among lower-income earners, leading to a decrease in earnings inequality over the past two decades.
5. Poland's share of temporary employment in the EU, which peaked between 2012 and 2016, has since seen a decline.
Cons:
1. Despite progress, the labor force participation of older workers remains comparatively low, exacerbated by the reduction of the retirement age in 2017, which further strains labor supply amidst population aging.
2. The adjusted gender pay gap persists at a high level.
3. Poland's total compensation of employees as a proportion of GDP ranks among the lowest in the EU.
4. The proportion of agricultural employment remains disproportionately high.
5. The absence of a coherent migration strategy limits the effectiveness of immigration in addressing labor shortages.