Expert: job market is entering cooling phase

Poland’s labor market is entering a cooling phase, according to Mariusz Zielonka, economist at Konfederacja Lewiatan. In July 2025, average enterprise employment fell 0.9% y/y to PLN 6.43 million jobs, while wages rose 7.6% y/y to PLN 8,905, both below market expectations. This marks the third time in 2025 wage growth dropped under 8%. Rising youth unemployment, fewer job offers, and shrinking employment show the post-pandemic resilience is fading.
The sharpest job cuts (-2.5% y/y) occurred in retail, a sector vulnerable to high costs and weak consumption. Employers, facing mounting labor expenses, are less inclined to grant raises, often avoiding contract renewals or new hires—signaling a “survival strategy” across businesses.