Foreigners on the Polish labour market

The Polish labour market is changing dynamically under the influence of the increased number of employees from abroad, in particular from Ukraine and Belarus. Although foreigners play a key role in many industries, their presence raises both hopes and fears among Polish society.

In recent years, the number of foreigners on the Polish labour market has increased significantly. According to data from the Social Security Institution (ZUS), at the end of March 2024, as many as 1,138,000 foreigners were registered with ZUS, of which 762,000 were citizens of Ukraine. Labour migration is a response to staff shortages in some sectors of the economy, but its impact causes mixed feelings among Poles.

Statistics to do with foreigners on the Polish labour market

Data from the Polish Economic Institutes report entitled “Poles opinion on foreigners on the labour market – facts, myths, opinions” indicate a dynamic increase in the number of foreigners on the Polish labour market. Since 2012, their number has increased twelve fold. In 2023, foreigners accounted for 7 percent of all working people in Poland. The greatest number of foreigners come from Ukraine (67 percent), Belarus (12 percent), Georgia (2 percent) and India (2 percent). Interestingly, Ukrainians also dominate among foreigners running their own business – in 2023, they established 41,200  companies, which accounted for 72 percent of all newly established companies established by foreigners

Poles’ opinions on foreigners

Research shows that Poles have a diverse approach to foreigners on the labour market. On the one hand, almost half the respondents (48 percent) see the employment of foreigners as a benefit for the development of the Polish economy, especially in the context of the negative demographic trends. On the other hand, more than half the respondents (55 percent) fear that their presence increases public spending, and the same number of respondents point to the risk of social unrest.

An interesting phenomenon is that people who have had direct contact with foreigners, both professionally and as neighbours, are more likely to have a positive opinion about their presence on the labour market. Among such respondents, 60 percent indicated that the employee’s origin does not matter to them, as long as they have the appropriate qualifications. At the same time, 70 per cent of companies that employ foreigners do so due to the lack of suitable employees on the local market.

Benefits and challenges associated with employing foreigners

The benefits of employing foreigners are primarily to supplement staff shortages in sectors that suffer from labour shortages, such as construction, transport and industrial processing. The presence of foreigners also has a positive impact on the increase in tax revenues and consumption. Among entrepreneurs, as many as 74 percent agree that the employment of foreigners is one of the key conditions for the development of the Polish economy in the face of an aging society and a declining population.

On the other hand, Poles also see the threats associated with the influx of workers from abroad. 55 percent are concerned about access to healthcare, and 49 percent point to a negative impact on the housing market. In addition, for many companies – especially those that do not employ foreigners – legal and procedural barriers pose a serious challenge. Entrepreneurs point out that in the long run, the complicated regulations on the employment of foreigners and time-consuming legalization procedures discourage them from employing foreigners.

What sort of companies most often employ foreigners?

In Poland, foreigners are most often employed by large companies that are struggling with a shortage of Polish workers. Foreign workers fill gaps in the labour market, especially in  the low-skilled sectors. Foreigners are seen as a temporary solution to the problem, which is confirmed by the fact that most companies do not treat them as long-term employees. The presence of foreigners on the Polish labour market is an inevitable phenomenon in the face of demographic changes and the growing demand for employees in key sectors of the economy. Although the social perception of foreigners is diverse, there is no doubt that they play an important role in the development of the Polish economy. The key challenges for the future are the effective integration of foreigners into the Polish labour market and the simplification of procedures related to their employment.

Sources:

• The Polish Economic Institute, Poles opinion on foreigners on the labour market – facts, myths, opinions;
• The Social Security Institution (ZUS), Foreigners in the Polish social security system 2023