Poland’s unemployment rate rose 0.7pp year on year (y/y) to 5.8% in June, the country’s statistical office GUS said on July 23.

The joblessness rate fell 0.1pp in month-on-month terms, extending its seasonal decline from a February peak of 6.1%. The indicator has nevertheless been trending upwards since summer 2025, when it stood at 5.1%.

The labour market remains tight by historical standards as Poland faces a persistent workforce shortage driven by worsening demographics. However, signs of cooling have strengthened, with average company-sector employment falling 0.9% y/y in June.

Companies are also using automation and AI to address the shrinking pool of workers, limiting labour demand in some sectors.

As the population is forecast to contract in the coming decades, there are calls on policymakers to ease curbs on foreign workers to protect the economy’s long-term growth prospects. Immigration remains politically sensitive in Poland’s largely ethnically homogeneous society.

There were 1.14mn foreign workers in Poland at the end of last year, GUS said in June.

Low unemployment continues to support real wage growth. Company wages increased 5.9% y/y in nominal terms in June, while their purchasing power rose 3.3%, accelerating from 2.5% in May, GUS data showed.

Household consumption and investment are expected to remain the main drivers of Poland’s GDP growth in 2026. Despite headwinds from the conflict in the Middle East, the economy is still forecast to expand by around 3.5% this year.

There were 901,500 unemployed people registered in Poland at the end of June, 1.6% fewer than in May but 13.1% more than a year earlier.

The lowest unemployment rate, 3.7%, was recorded in the western Poznań region, where the indicator rose 0.6pp y/y. The highest rate was in the northern Olsztyn region, where it reached 9.3%, up 1.2pp y/y.

All 16 Polish regions recorded annual increases in unemployment, ranging from 0.4pp in the Warsaw region to 1.2pp in the Zielona Góra and Olsztyn regions.