A decade of transformation. How are foreigners shaping Poland’s workforce?

The Polish Economic Institute’s (PIE) June 2024 report, ”Polacy o cudzoziemcach na rynku pracy – fakty, mity, opinie” (aka: Foreigners in the Labor Market - Facts, Myths, Opinions,) sheds light on the trends, challenges, and opportunities surrounding this subject. Let’s look at some of its most interesting findings, shall we?

Foreigners in Poland – what do the numbers say?

At the end of March 2024, 1.138 million foreigners in Poland were reported for insurance, with 1.08 million actively employed. Ukrainians dominate this group, making up 67% of foreign workers, followed by Belarusians (12%), Georgians (2%), and Indians (2%).

These numbers represent a trend in the Polish labor market, that has been on the rise over the last decade or so.

From 2012 to 2023, the number of insured foreigners grew more than twelvefold, reflecting a significant rise in Poland’s reliance on foreign labor. However, growth has slowed recently, with Q1 2024 recording an increase of just 10,500 workers – the lowest since 2014 (excluding the COVID-19 pandemic). This slowdown is partly attributed to Russia’s aggression in Ukraine, which has restricted Ukrainian men from leaving their country.

Foreign entrepreneurs in Poland

Foreign workers are not only contributing as employees but also as entrepreneurs. In 2023, one in ten newly registered companies in Poland was founded by foreigners, with Ukrainians leading this trend. These businesses are particularly active in the information and communications sector, which demands highly specialized skills.

Trends in employment contracts

The number of foreigners working under labor contracts has risen steadily. In 2023, foreigners made up 6% of insured workers, compared to less than 1% in 2012. Similarly, foreign workers on contracts of mandate or agency contracts have increased thirtyfold since 2012, now representing 31% of all such contracts.

What are the key challenges when hiring foreigners?

There is little doubt that foreign workers play a vital role in sustaining Poland’s economy. As their numbers grow, some key challenges remain. Employers seeking to hire outside the borders of the country must navigate legal requirements, provide training if need be, as well as address language barriers.

However, the benefits – such as a steady stream of accomplished workforce – can outweigh the administrative hurdles.