Polish Toledo

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Friday, January 18, 2008

Costs of Employment Up

The shortage of skilled labor is hitting the earnings of domestic Polish enterprises, with almost half admitting that salary emigration is negatively affecting their financial results.

Employment costs for each worker have increased by at least 30% since Poland's accession to the EU. Entrepreneurs are only now beginning to wake up and smell the coffee.

"Ten percent claim that employment difficulties cost them from 4% to 7% of revenue. 5% of enterprises estimate this share at 8-12% of revenue," said Leszek Wroñski. Experts from the employers' organization PKPP Lewiatan believe that not only should companies attract labor by offering higher wages, but also try to activate 1.6 million of those who are currently jobless. At the same time growth in wages should be accompanied by increasing efficiency as otherwise companies will face restructuring in the future. (Rzeczpospolita, p. B1)

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