Poland’s labor market is increasingly viewed negatively by citizens, despite a low rate of job layoffs, according to Mariusz Zielonka, chief economist of the Lewiatan Confederation. In a commentary on the latest data from the Central Statistical Office (GUS), Zielonka highlighted that news of workforce reductions is dampening public perception. He also noted that inflation and budgetary challenges are further eroding consumer confidence.
Data released by GUS on Thursday revealed a decline in consumer sentiment in November compared to October. The Current Consumer Confidence Index (BWUK), which reflects individual consumption trends, dropped to -17.1, a 1.3 percentage point decrease from the previous month and 2 points lower than in November 2023.
“Despite low unemployment levels, our view of the labor market is worsening. Media reports on group layoffs, even though minimal in scale, significantly affect public sentiment,” said Zielonka.
He added that while inflation and budgetary issues are troubling Poles, perceptions of the economy’s trajectory remain unchanged from May 2023. Household assessments of current and future financial situations have also shown little variation over the past ten months.
Zielonka noted a silver lining, suggesting that expectations of lower inflation next year are prompting consumers to make significant purchases, sustaining strong consumption levels. “If sentiment surveys are any indication, next year will also see robust consumer activity, much like this year,” he concluded.