In October 2024, Poland’s average gross wage in large non-financial enterprises reached 8,316.57 PLN, a 10.3% increase compared to the same period last year. However, real wage growth slowed significantly, registering only a 4.95% rise due to inflation. This marks the lowest real growth rate since September 2023, highlighting the growing impact of economic headwinds.
Inflation and Economic Slowdown Bite
Despite nominal gains, inflation at 5% eroded real earnings. Earlier in the year, real wages grew by over 9%, but since summer, growth has weakened steadily. By July 2024, the real wage increase dropped to 8.2%, and by September, it had slipped further to 5.15%. This trend reflects the interplay of inflationary pressures and slower economic activity.
The October wage increase was partially driven by bonuses, motivational rewards, and overtime payments. While these components temporarily bolstered nominal wages, their effect on long-term wage dynamics remains uncertain, as they fail to counterbalance inflation’s steady erosion of purchasing power.
Employment Trends Show Continued Decline
Despite rising wages, employment in enterprise sectors fell by 4,000 jobs in October 2024. This continues a downward trend in employment levels observed since late 2022, signaling ongoing challenges in the labor market despite wage growth.