Poland's Labour Market Index (WRP) shows signs of stabilization despite challenges - BIEC researcher
Poland's Labour Market Index (WRP) index in Poland returned to April’s level in May, suggesting no major changes in registered unemployment, which remains at a record low 5.2 percent, the economic researcher BIEC reported.
"In May, the Labour Market Index (WRP), which provides advance information on future changes in the volume of unemployment, decreased by 0.4 points from the previous month's value. It thus returned to its April value," BIEC reported.
BIEC noted that "monthly changes in the indicator recently have been small and the effects of its components nearly balance out," while the registered unemployment rate remains "at a record low level."
Currently, registered unemployment stands at 5.2 percent, while the BAEL-measured unemployment rate was 3.4 percent in the first quarter.
The data imply that "the labour market is almost in equilibrium, where labour demand is met by the available workforce."
However, BIEC cautioned that labour demand has been weaker recently due to slower economic growth, investment stagnation, and rapidly rising employment costs.
On the supply side, demographic and systemic constraints such as low retirement age, long maternity leaves, and low birth rates are causing a rapid shrinkage of the labour pool.
BIEC warned that when an economic recovery occurs, mismatches between labour demand and supply will become more noticeable for both employers and workers.
In May, a significant factor pushing toward higher unemployment was a drop of over 10,000 job offers reported to regional employment offices compared to April. This decline was partly explained by the extended holiday period around early May, which typically reduces recruitment activity.
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