Poland's unemployment rate fell to a seven-year low in September and will likely translate into higher wages, the labour minister said on Wednesday, three weeks ahead of elections. Wages have lagged economic growth in the last eight years, leading many voters to back the opposition as they question the economic achievements of two Civic Platform (PO) party-led coalition governments.
Labour Minister Wladyslaw Kosiniak-Kamysz said the registered unemployment rate fell to 9.9 percent last month, according to preliminary estimates. "This fall in the unemployment rate is a result of sustained economic growth exceeding 3 percent and strong exports," Labour Minister Wladyslaw Kosiniak-Kamysz said. The labour ministry said in a statement that the number of job offers filed to employment agencies rose to 126,000 last month and was nearly 10,000 higher than in the same month last year.
"The situation in the labour market will cause pressure for wages to rise," Kosiniak-Kamysz said. The average inflation-adjusted corporate wage rose by over 4 percent in August. But it is still about a quarter of its German equivalent. The opposition Law and Justice party (PiS), which is leading in opinion polls ahead of the October 25 parliamentary election, has promised to raise wages by enacting a minimum hourly wage of 12 zlotys ($3.20). It also says it will extend monthly benefits of 500 zlotys per child and raise the personal tax allowance.
The economy has grown by about a third since the start of 2007, the best performance in Europe, while inflation-adjusted wages have risen by a quarter. According to EU data, Poland's unemployment rate stood at 7.2 percent in August, below the EU average of 9.5 percent. The opposition-backed President Andrzej Duda said earlier in September that growth had shown up "on paper" but the middle-class had been vanishing and many people were getting poorer.
Comments
Comments are closed.