The average gross wage in Poland’s corporate sector increased by 10.6 percent in July 2024 compared to the previous year, according to Statistics Poland (GUS), while employment in the sector fell by 0.4 percent year-on-year.
The average gross monthly wage in the corporate sector was 8,278.63 PLN (€1,925.26), driven by factors including bonuses, incentives, and salary rises. GUS noted that the statutory minimum wage also increased to 4,300 PLN (€1,000) in July, a 1.4 percent rise from January’s 4,242 PLN (€987.21).
Economist Piotr Popławski from ING Bank Śląski explained that while wage growth is slowing, this is primarily due to reduced bonuses in sectors like mining and energy, which saw a boost in 2023 due to election-year spending. Despite the moderation, strong wage dynamics in July were supported by a favorable workday schedule and the recent minimum wage hike, especially in manufacturing and construction.
Employment data for July 2024 reveals a 0.4 percent drop compared to the same month last year, reflecting what Popławski describes as a “worsening labor market.” He pointed out that manufacturing industries are particularly struggling due to weak demand in the eurozone, especially in Germany, and rising competition from Asia.
Despite these challenges, Popławski emphasized that the overall decline remains limited, with Poland still holding the second-lowest unemployment rate in the EU, after the Czech Republic. He attributed this resilience to demographic trends and the ongoing outflow of Ukrainian migrants.
Companies remain reluctant to lay off workers, fearing difficulties in rehiring when the economy rebounds. Looking ahead, Popławski expects that steady economic recovery, demographic factors, and another significant minimum wage increase in 2025 will sustain strong wage growth, though not at double-digit levels.
He estimated that consumer spending is likely to remain a key driver of economic growth, but rising labor costs pose a risk of further margin compression, especially in industry and construction.
