Polish employers cautious about hiring and salary increases amid economic concerns

Polish companies are increasingly worried about their financial outlook, with 33% of employers expecting their business situation to deteriorate in 2025. This marks a ten-percentage-point increase compared to last year, according to the latest Polish Labour Market Barometer by Personnel Service. Only 14% of employers anticipate an improvement, while the majority expect conditions to remain stable.

The growing uncertainty is affecting hiring plans, with only 16% of companies planning to recruit new employees this year, down from 28% in 2024. At the same time, 17% of businesses are considering workforce reductions, a figure that has remained relatively unchanged. Mid-sized companies are the most likely to downsize, with 25% planning job cuts, compared to 21% of large companies and only 6% of small businesses. More than half of companies, however, intend to maintain current employment levels, a slight increase from last year.

Salary policies are also becoming more cautious. While retaining employees remains a priority, only 24% of employers plan to increase wages, a sharp decline from the 43% reported in the previous year. Nearly half (47%) of companies plan to keep wages at current levels, while 14% expect to reduce salaries, up from 7% last year. Despite these trends, economists estimate that wages will grow at a rate of 7-8% in 2025, though year-on-year growth reached 9.2% in January. Labour market expert Krzysztof Inglot notes that while wage increases of 6-10% remain common, many companies are choosing to moderate or freeze salaries to balance competitiveness and cost control.

Employee sentiment remains largely positive, with 43% of workers rating the labour market as good, although this figure has declined slightly from the previous year. Only 15% view the situation as poor, while 37% remain neutral. Expectations for the future are cautious, with just 11% of employees anticipating an improvement in their personal work situation, while 55% expect no change and 15% foresee a decline.

The demand for higher wages remains strong, as 58% of employees plan to request a salary increase in the next 12 months. Of these, 30% intend to negotiate a raise with their current employer, with men more likely to make such a request than women (34% vs. 27%). Additionally, 17% of workers are considering changing jobs for better pay, and 11% are looking for supplemental income through casual work. Meanwhile, 19% of employees do not plan to seek higher earnings, and 23% are undecided.

The findings are based on a survey conducted by Personnel Service using the CAWI method on the Ariadna research panel. The employee sample consisted of 1,100 individuals working under various employment contracts or running businesses, while the employer survey included 329 companies of different sizes. Data collection took place between January 20 and 28, 2025.