2024 brings many challenges and changes to the Polish labor market. Both employers and employees will need to adapt flexibly to the forthcoming changes. Although overall forecasts are optimistic, indicating further economic growth, the situation in individual regions may vary significantly. In this article, we examine the trends that will shape the Polish labor market in 2024. We also explore the opportunities and challenges that candidates and employers will face.
Demographics and the Polish labor market
In the coming years, employers will grapple with demographic challenges, primarily the rapidly aging population. According to Eurostat calculations, the shift in the social structure between 2020 and 2029 alone will lead to a contraction of the labor market by one million workers! A decade later, it will shrink by almost 700,000 workers, and between 2040-2049, by nearly 2.2 million people!
Demographic factors will determine and shape the labor market throughout Poland. However, their impact will vary depending on the region, industry, and professional specialization. As a result, companies will compete even more for talent. Employees, in turn, can benefit from this situation. Organizations that make an effort to create a transparent and attractive work environment will outpace others in the talent race and gain a competitive advantage.
Improving skills and qualifications
According to research from the World Economic Forum, in the coming years, continuous improvement of skills and upgrading qualifications will be key to ensuring stable employment and satisfactory earnings. The dynamically changing labor market, driven by automation, digitization, and globalization, will require employees to be more flexible, ready to learn, and adaptable to new realities.
The growing role of artificial intelligence
According to the International Monetary Fund, artificial intelligence has the potential to completely transform the global labor market. Individuals with higher education are more vulnerable but also better prepared to reap the benefits of AI.
Developing economies should prioritize the development of digital infrastructure and digital skills. It is predicted that by 2030, the number of global digital jobs will increase to around 92 million. These professions can expand opportunities for younger workers who may lack significant professional experience. The willingness to acquire new skills, openness to new technologies, and the ability to learn quickly can become key to their success.
Let's examine the impact of these challenges on the labor market in specific regions in Poland:
Labor market in Gdansk and northern Poland
Despite challenges in the previous year, the situation in the labor market in northern Poland looks promising. In 2023, around 38,000 employees were engaged in the business services sector in the Tricity area. Forecasts indicate that this number will increase to approximately 42,300 in the first quarter of 2024, reflecting the strong position of this region and providing promising prospects for the future.
The northern region of Poland has been undergoing economic transformation for years, diversifying its business portfolio. Investments in renewable energy and port infrastructure are crucial elements of this strategy. The development of these two sectors can significantly contribute to economic growth and create many new jobs.
Strategic investments, such as the construction of the Baltic Operator wind towers and the expansion of the Baltic Hub port terminal, are evidence of the evolving business landscape in northern Poland. The Baltic Operator project is a crucial step towards Poland’s energy transformation and increasing the share of renewable energy in the country’s energy mix. Baltic Hub, on the other hand, has the potential to strengthen the position of northern Poland as a key logistics hub in Europe.
In the coming years, Gdansk and northern Poland will witness high demand for qualified engineers and mid-level leaders in areas such as network infrastructure, cybersecurity, data engineering, financial controlling, and accounting.
There are many opportunities for workers in the region who are not afraid of challenges and are ready for change. The local labor market is no longer limited to traditional sectors. The future of employment now depends largely on the use of new technologies and green energy, as well as engagement in the digital transformation process.
Are you looking for trusted recruitment company in Gdansk? Look no further, we’re here.
Labor market in Cracow and Lesser Poland Voivodeship
The strength of the labor market in Cracow and Lesser Poland Voivodeship lies in the perseverance and adaptability of many local businesses. These skills will be crucial in 2024. The direction of changes in the Lesser Poland Voivodeship labor market will continue to be shaped by the same trends observed in 2023. Ongoing modernizations and automations in the manufacturing and warehouse industry will also play a key role.
Planned investments in Lesser Poland Voivodeship offer significant opportunities for the economic development of the region and the creation of new jobs. Key projects include the nearly billion złoty investment by Philip Morris in new production lines and the expansion of the production line by Valeo. Additionally, British company Imperial Brands is currently developing a global services center in Cracow, employing 100 people already, with plans to hire up to 500 employees.
While some shared service center processes are redirected to countries with lower costs, the IT sector in Cracow and Lesser Poland Voivodeship continues to thrive. There is also a growing demand for specialists in engineering, technical support, payments and receivables, corporate accounting, and experienced salespeople.
Based on our data and extensive experience at Devire, we predict that 2024 will bring stabilization or slight growth in employment in Cracow and Lesser Poland Voivodeship. Employees in these regions can expect moderate salary increases or stabilization, continuing the trend from the previous year.
However, for individuals with little professional experience, finding work in this region may pose a significant challenge. Companies are becoming increasingly selective in their recruitment processes. Nevertheless, these individuals have ample opportunities for development, especially in IT, technical support engineering, and corporate accounting.
Are you looking for a recruitment company in Cracow? Don’t hesitate to get in touch with us!
Labor Market in Poznan and Greater Poland
According to Devire specialists’ observations, the conditions in the labor market in Greater Poland in 2024 favor stability and provide opportunities for moderate employment growth. The region also experiences a progressing modernization and automation process in the manufacturing sector, contributing significantly to its competitiveness.
This year will bring new strategic projects to the region, including Aju Polska’s investment in a factory for coated steel products and the expansion of a clothing giant utilizing warehouse space in Panattoni Park Poznań A2, creating over 4500 new jobs. These impressive investments showcase the immense development potential of both Poznan and Greater Poland, making the region capable of attracting significant investments and thereby creating an even better job market.
It is anticipated that salaries in Greater Poland will remain at a stable level in the coming year. Some industries may see only modest wage increases. However, average salary hikes in local companies are not expected to be in the double digits.
This is not only due to rising operational costs and a lower number of planned recruitments but also reflects the overall condition of the national job market. This will result in a different balance of power in salary negotiations with employees compared to previous years.
If you are looking for a trusted recruitment company in Poznan, please contact the experts at Devire.
Labor Market in Upper and Lower Silesia
Despite some uncertainty, forecasts for the labor market in Upper and Lower Silesia in 2024 remain promising. Many companies plan to gradually increase employment and implement flexible and efficient recruitment solutions.
Investments in 2024 will bring significant benefits to the economy of Upper Silesia. This includes the Electromobility factory in Jaworzno, set to produce the first Polish electric car, and Molex’s $110 million investment in a new facility in Katowice, creating 350 new jobs. The expansion of Brembo in Dabrowa Gornicza will also contribute to the region’s economic growth and create new job opportunities.
The reputation of Lower Silesia as a modern investment center continues to attract foreign companies and talented candidates. Noteworthy investments include Bosch’s heat pump factory in Dobromierz worth 1.2 billion PLN, expected to employ up to 500 people by 2027, and the announcement by the Swedish company Aira to build a heat pump factory in Wroclaw. Additionally, Intel plans to build a semiconductor integration and testing facility in Miekinia near Wroclaw.
In 2024, the job market in Upper Silesia will undergo changes and adaptation, focusing on specialization, retaining employees, and utilizing new investment opportunities. It will be characterized by sustained low unemployment rates and ongoing uncertainty, influenced largely by geopolitical factors, including the ongoing conflict in Ukraine.
Despite cautious hiring decisions last year, forecasts for 2024 are generally optimistic. Many employers, especially in the IT, consumer goods and services, and industry and raw materials sectors, intend to hire new talents. However, the situation is different in the transportation, logistics, and automotive industries, where companies may have to suspend recruitment activities.
Devire predicts that specialists in automation, purchasing, new technologies, and SAP will remain highly sought after in Upper and Lower Silesia in 2024. Additionally, there is a growing demand for controllers, accountants, tax experts, salespeople, and business development managers, especially in the IT industry.
In 2024, significant wage growth in the region is not expected. Any potential salary increases are likely to be modest. A more competitive job market may allow employers to negotiate more favorable employment conditions and new return-to-office policies.
Looking for a recruitment company in Katowice or Silesia? Get in touch with experts at Devire.
Labor Market in Warsaw and Central Poland
An extremely significant event for the regional job market is the opening of a new Global Business Services Center in Warsaw by the American company Equinox Inc., with the support of the Polish Investment and Trade Agency (PAIH). This investment will provide support for the company’s global clients, including financial, HR, legal, and software engineering assistance. The center is expected to create hundreds of new jobs for highly qualified specialists in the coming years.
Interestingly, the wage gap between Warsaw and other major cities decreased in 2023 and is expected to continue in 2024. For companies in the BPO, SSC, IT, and R&D sectors, Devire predicts an average wage increase of around 8%.
In 2024, many employers in Warsaw and central Poland plan to hire new employees, with a focus on attracting talents through career development programs and training.
Companies in this region will increasingly rely on experienced, qualified employees, automating basic, repetitive tasks through AI solutions. This shift will stimulate demand for roles that incorporate artificial intelligence into their operational activities, such as an AI Content Manager.
With the growing awareness of mental health, companies will seek managers who excel in creating an inclusive, supportive work environment. Employees increasingly expect their employers to care not only about fair working conditions and compensation but also about their mental well-being.
It is worth noting that in 2023, the correlation between costs and quality of life in Warsaw placed the capital among the best cities to live — not only in Poland but also globally. This high position may make the Warsaw metropolitan area and the entire region even more attractive in 2024, both for domestic and international talents. This could also translate into increased interest from employers and investors.
Looking for a trusted recruitment company in Warsaw? Do not hesitate to contact Devire.
Polish Labor Market in 2024 – Key Challenges
The year 2023 in the Polish job market resembled a rollercoaster ride, full of surprising twists and turns. Initially, there was a gradual decrease in the number of job offers, raising concerns about an upcoming economic slowdown. However, soon after, signs of recovery emerged, bringing hope for a gradual growth.
In this year, we will experience stabilization and the emergence of new business opportunities. However, the development will be diverse – its pace and scale will depend on the specific industry and location of each company.
There continues to be a shortage of mid and high-level technical staff, specialists in automation, and digitization of production processes. There is also a demand for new specializations related to green transformation – renewable and atomic energy, as well as electromobility.
The Health & Beauty industry is also thriving, encompassing both healthcare and a healthy lifestyle. Occupations related to the medical, caregiving, and therapeutic sectors are gaining increasing interest. Trainers, dietitians, cosmetologists, and personal advisors will easily find employment.
Are you looking for a reliable recruitment company? Do you need support in expanding your current team or creating new structures? Whether you have a long-term recruitment plan or a short-term project, you can rely on our support at every stage. Check out the recruitment and outsourcing solutions offered by Devire.
Sources used in this article: ¹International Monetary Fund, Gen-AI: Artificial Intelligence and the Future of Work, accessed: 7.02.2024, Source; ²World Economic Forum, 6 work and workplace trends to watch in 2024, accessed: 7.02.2024, Source; ³World Economic Forum, Growth and Jobs at Davos 2024: What to know, accessed: 7.02.2024, Source; ⁴World Economic Forum, Capgemini, The Rise of Global Digital Jobs, accessed: 7.02.2024, Source; ⁵World Economic Forum, The Race to Reskill, accessed: 7.02.2024, Source.
Source used in infographics: LinkedIn Talent Insights, accessed: 7.02.2024.
