Situation 2021: Economy, jobs today and the future of Poland

Before we look at the current status of the economy and employment scenario in Poland, let’s see why working in Poland is a good idea.

If you are thinking of choosing to work overseas, and your choice of destination is Poland, you are not alone. Here are some common reasons people choose Poland for employment.

Poland has employers looking for skilled and specialized workers who can man jobs that need physical workers or product workers. With your age, education, and work experience in a particular profession or trade matching the labor market requirements of Poland, you are sure to get employed for at least double the pay that you are earning now.

For an international worker, the country’s economic stability is an important factor that guarantees that your job and earnings are going to be consistent and will only increase in time. Work well and impress your employer with your work and you won’t have to worry about risking a job in Poland. In fact, you can go on to legalize your stay in Poland. Be officially employed and you will get health insurance.

Besides the advantages on the work front, Poland also presents opportunities for personal development. You can travel around in Poland and even other countries in the EU. Working in Poland helps you learn the Polish language faster. This can enable you to earn more too in comparison with those who don’t know the language.

So, let’s now see how Poland fared so far in 2021 on the economic and employment front. This can help you make a wise decision about migrating to this country.

In the past 25 years, Poland has come up as a dynamic market; the tenth-largest economy in the EU. The country had an impressive run with GDP growth exceeding 3% between 2014 and 2019. This was driven by private consumption in the country.

However, the COVID-19 pandemic led to the GDP contracting to 8.9% in the second quarter of 2020. The tides turned again in Q3 of 2020 due to an increase in exports, industrial production, and household consumption.

The overall GDP loss in 2020 came to 3.6%. With an increase in foreign demand, the Polish economy is expected to grow +4.6% in 2022. Nevertheless, the global recovery from COVID-19 will have a determining effect on the forecasts.

Poland has introduced an expansionary fiscal policy. The policy featured decisions like lowering the age of retirement and increasing transfers to pensioners as well as households with children. In recent years this deepened the public deficit.

Owing to COVID-19, the budget deficit reached 3.7% of the country’s GDP. This estimation was made by the IMF. There was a decrease in tax revenues and a surge in expenses. This was due to the measures adopted to counterbalance the COVID-19 crisis.

In the days to come, the budget deficit is expected to gradually dip to -2.9% and in 2021 and –2.4% in 2022. The debt-to-GDP ratio increased in 2020. It reached 60%. In the best scenario, this level should be maintained in the period of 2021-2022.

Broadly, the Polish economy has numerous advantages.

• It uses the European structural resources efficiently
• It has a banking system that’s resilient
• It a strong domestic demand as well as a strategic position between eastern and western Europe

The systemic challenges Poland is facing include:

• Deficient road and rail infrastructure
• A rigid labor code
• A burdensome tax framework
• A weak commercial court system

Poland had an unemployment rate of a little over 3%. In Poland, 1 in 4 employees is a contract laborer working on a temporary basis. In 2020, with help from the Polish government’s support measures, the unemployment rate was held at 3.8%. In 2021, the rate is expected to increase to 5.1% as per IMF forecasts. In 2022, the rate is forecasted to be 4.9%.

In Poland, the agricultural sector employs 9% of the active population. This sector contributes 2.3% of GPD.

The industrial sector employs 32% of the country’s active workforce. It contributes 28.6% of the country’s GDP.

The tertiary sector employs 59% of the country’s workforce. It contributes 57.6% of the GDP.

If you found this blog engaging, you may also like…

Finland’s economy and jobs scene in 2021 as it is today