Polish Labor Market Barometer 2023. Employee comfort and entrepreneurs' fears

Employees are aware that their position in the labor market is unshaken - almost every second person rates their current situation well. However, the mood among entrepreneurs is much worse, according to the latest "Polish Labor Market Barometer" by Personnel Service.

Polish Labor Market Barometer 2023. Employee comfort and entrepreneurs' fears
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Summary

  • The latest "Polish Labor Market Barometer" by Personnel Service reveals that 46% of employees rate their market situation as good or very good, with 33% describing it as neutral and 16% as bad or very bad.
  • 45% of respondents expect their position to remain unchanged in the coming year, 13% anticipate improvement, and 16% foresee a deterioration. Younger employees are more optimistic about their professional future.
  • Despite the current economic situation, most employees (58%) plan to stay in their current job over the next six months, while 17% plan to leave. 61% of respondents plan to try to earn more income due to fears of a shrinking household budget.
  • 19% of employees are considering looking for a better paying job, with younger workers more likely to choose this strategy.
  • Entrepreneurs, however, are less optimistic, with 35% fearing a deterioration of their company's situation in 2024. Companies from the trade sector, public administration, and HoReCa are the most concerned, while those from the construction, production, and modern technology sectors feel safer.
  • The biggest concerns for entrepreneurs are the rising cost of doing business (45%), inflation (42%), and wage pressure (28%).

Polish Labor Market Barometer - employee situation

According to the latest "Polish Labor Market Barometer" by Personnel Service, 46% of employees rate their situation in the market as good or very good. One in three employees describes it as neutral, and only 16% of respondents describe it as bad or very bad. Therefore, there is a high level of optimism among employees, which is also visible in the forecasts for the next year.

45% of people expect their position to remain unchanged, 13% are counting on improvement, and only 16% expect a deterioration. There is a clear correlation between the age of employees and their attitude towards 2024. The youngest see their professional future the best - every fourth person expects an improvement in their situation, compared to only 8% of 45-54 year olds and 6% of people over 55 years old. The mood is currently also better than in the previous edition of the study (March 2023). Then, only 10% of people expected an improvement, and 19% expected a deterioration.

– The demographic situation we are currently dealing with in Poland, but also around the world, gives employees a great comfort of employment – argues Krzysztof Inglot, founder of Personnel Service and labor market expert.

– If we perform our duties well, we do not have to worry about being dismissed. And this is clearly visible in the responses of employees who rate their situation well. If employees are cautious, it is rather expressed in the fact that they do not want to change jobs and are rather reserved about asking for a raise. Such a plan is held by 3 out of 10 employees, the rest will fight for a higher salary in a different way, including looking for a better paying job – adds Inglot.

The current economic situation, although it does not worsen the mood of employees, makes them approach plans to change jobs with caution. Over the next six months, the majority of employees will stick to their current position (58% indications), and almost one in five plans to leave their job (17%). At the same time, fearing a shrinking household budget, as many as 61% of Polish women and men plan to try to earn more income.

19% of employees are considering looking for a better paying job. The younger the worker, the more likely they are to choose this strategy. One in three 18-24 year olds, one in four 25-34 year olds, but only 17% of 45-54 year olds and 9% of people over 55 are planning to change jobs.

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Polish Labor Market Barometer - situation of entrepreneurs

However, the mood among entrepreneurs is not so good. 35% of them fear a deterioration of their company's situation in 2024. This is 13 percentage points less than in the previous edition of the study, but it is still hard to talk about optimism.

The most concerned about their situation next year are companies from the trade sector (52%), representatives of public administration (45%) and HoReCa (43%). The safest are entrepreneurs from the construction (23% are worried about their future), production (26%) and modern technology sectors (30%).

- Fear of recession is staring entrepreneurs in the face. The biggest concern among almost every second entrepreneur (45%) is the rising cost of doing business - comments Krzysztof Inglot, founder of Personnel Service and labor market expert.

– Inflation is in second place (42 percent), and the podium is closed by wage pressure (28 percent), which, however, has significantly fewer indications than the first two factors. Next in line are: falling number of orders, legal and tax changes, deficit and employee turnover. The list of concerns is therefore very long. There is a great caution of companies in declaring whether the coming year will be favorable for them. However, this does not mean stagnation. Business owners are constantly pushing forward, hence the recruitment plans and those related to raises – Inglot summarizes.