NBP: Poland’s wage growth unlikely to slow down further in Q3

Poland’s wage growth has approached a long-term average and should not weaken further in Q3 after a deceleration in Q2, a quarterly labor market report by the National Bank of Poland showed. 

“Data from the enterprise sector for Q3 indicate, however, that the rate of wage growth grew to a level closer to the long-term average, one can hence expect that also in the entire economy a further weakening of the wage growth rate is hardly likely,” the report reads.

Wage growth in the economy fell to 3.1% y/y in Q2 and a similar deceleration was observed in the enterprise sector, the report showed.

In terms of the number of job vacancies, Poland enjoyed continuation of growth in the first two months of Q3, a trend that started in Q2, but the pace has slowed down, the report also showed.

“The available data on the total number of job vacancies in the first two months of Q3 indicate continuation of a growth trend, although at a slightly lower pace,” the report states.

July has saw a marginal, 0.7% m/m decline, but August brought a 3% monthly increase, in part thanks to a greater number of subsidized jobs that month, the report indicates.

For the first time in two years Poland has seen employment growth predominantly in contracts for an indefinite period of time, NBP analysts also noted.

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