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Average salary was 9,530.45 PLN. We have more increases!

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In April, the average monthly wage in the enterprise sector excluding profit bonuses was 9,530.45 PLN. This represents a nominal year‑over‑year increase of 5.4%. After accounting for inflation, the real wage growth was only 2.1% year‑over‑year. This is a clear signal that wage growth is losing momentum.

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Good condition of the Polish labour market

Good condition of the Polish labour market

The Polish labour market remains relatively healthy, but it is increasingly less like a classic employee market. It has not yet become a full employer market, but the balance of power is clearly shifting. Companies recruit more cautiously, often seek specific competencies, and are less inclined to raise wages. This is evident both in slower wage growth and weaker demand for workers.

The trend of declining real wage growth will likely continue in the coming months. High oil and fuel prices will spread more widely across the economy, meaning that higher inflation will absorb a significant portion of nominal wage increases. At the same time, companies, feeling higher costs and weaker demand, will become increasingly cautious about raises and will look for savings. As a result, wages may still rise faster than prices, but their real growth will become progressively weaker.

Weaker real wage dynamics also pose a risk to consumption, which remains the main engine of Poland’s economic growth. If wages grow more slowly and prices continue to burden household budgets, households may become more cautious about spending. For this reason, the risk of downward revisions to GDP growth forecasts will increase in the coming months. – commented data analyst Andrzej Gwiżdż of the investment platform Port.

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FXMAG Team

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