As the nation battles to deal with severe workforce shortages, a diverse array of Polish employer associations are pleading with the government to review its corporate immigration laws.
In an appeal to the Polish government, 11 of Poland’s leading business organizations on 27th August 2024 signed an open letter highlighting the critical need for an “open and welcoming approach”. Although Poland enjoys one of the best labor markets in the EU and a very low unemployment rate, significant labor shortages persist in a number of fields.
As of May this year, Poland’s registered unemployment rate stood at 5%, the lowest since November 2023. The labor force participation rate, while fluctuating, remains historically high, but this favorable economic environment is tempered by the country’s profound demographic challenges, which have contributed to current problems in the labor market.
Shortfall Affects A Lot Of Sectors
The collapse of several unions and Poland’s entry into the EU have all contributed to the country’s economy growing significantly. However, fundamental problems with the country’s aging population and dropping birth rate remain and will take time to fix given the demand for workers across a variety of sectors, including IT, which is currently experiencing a labor shortage of about 150,000 workers, and the transport industry, which needs a similar number of professional drivers.
These demographic trends suggest that current or future labor shortages cannot be filled solely by the domestic workforce. Workers are also lacking in other industries, such as manufacturing, construction, hospitality, and the judiciary. Polish social security, health care, and other public services will face increasing pressure as the country’s population ages and shrinks if it does not continue to rely on legal corporate immigration to maintain its economic momentum.
The Impact Of The Fight
As they integrate into society and support the public coffers, immigrants already contribute significantly to Poland’s economy. It is estimated that two million of these migrant laborers are from Ukraine; many of them entered Poland after Russia invaded that country in 2022. However, this invaluable resource is rapidly running out since some Ukrainian laborers are looking for employment in the UK and the EU. Though most of these laborers may return to Ukraine after the war to help with what will probably be extremely labor-intensive reconstruction activities, this is not a given.
Additional Read: Poland: A Rising Star for Foreign Workers
Poland’s current population of 40,221,726 has decreased by 1.96% from 2023 despite the abrupt and unanticipated Ukrainian inflow. It has been suggested that the nation takes into consideration providing job possibilities to individuals from outside the European Union due to the confluence of an aging and shrinking population, as well as the loss of up to two million Ukrainian workers. Aware of these factors, the 11 organizations have publicly called on the government to take an “open and welcoming stance” towards legal and sustainable workforce immigration.
Collective Expertise
Poland shares a 210-kilometer border with Russia, one of the geopolitical tensions and problems confronting the EU that the signatories have acknowledged in their open letter to the government. Of particular importance is Russia’s aggressive posturing. Furthermore, they stress the significance of lawful migration in preserving Poland’s economic prosperity, even as they wholeheartedly support concrete steps to stop illegal immigration. Although they admit that security is a top concern that cannot be compromised, they contend that security is necessary, and controlled entry of foreign laborers who enhance the profitability of the country may coexist.
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