Poland benefits from labour market activation – European Commission report shows potential of hidden labour resources.

November 20 2025
IBS researchers contributed their insights on the Polish situation to the diagnosis of the European labour market contained in the Thematic Review publication.

Brussels/Warsaw, November 2025 – According to the latest European Commission report, ‘Hidden potential – People outside the labour force in the context of labour and skills shortages in the EU’, Poland needs to increase the professional activation of people outside the labour market, particularly by offering upskilling possibilities, and bearing in mind that options for early retirement and reforms that allow exiting the labour force at a younger age, are a clear driver for being outside the labour force.

Agriculture – hidden employment potential

The report indicates that as many as 8.2% of people working in Poland are employed in agriculture, which accounts for only 2.8% of the country’s GDP. This means that part of the employment in this sector is hidden unemployment. During the pandemic, agriculture acted as a ‘buffer’, absorbing people who lost their jobs in other industries.

New tools for employment offices

The new law on the labour market and employment services enables public employment services (PES) to reach economically inactive individuals. Employment offices will gain the right to contact, advise, and offer employment opportunities, both online and offline.

Parental support and gender equality

Poland has introduced regulations allowing remote working and flexible hours for parents of children up to the age of 8. Fathers are entitled to 9 weeks of paid parental leave, which is intended to support women’s return to the labour market and reduce gender inequalities – an area in which Poland still falls below the EU average.

Activation of seniors and people with disabilities

Among the good practices, the report mentions local initiatives such as the Gdańsk programme ‘Work for Seniors’, which combines career counselling, courses, and job placement. The Commission draws attention to the fact that the possibility of working part-time contributes to people near retirement age remaining in employment longer, but such options are lacking.

At the same time, the Commission notes that Poland still needs more effective measures for people with disabilities, as no progress has been made in passing a new law implementing the UN Convention in this area at the time of preparing the report.

Migrants and the labour market

Poland is mentioned in the report alongside Germany and Sweden as a country that actively integrates migrants into the labour market. The Act on Access of Foreigners to the Labour Market aims to provide them with better access to language courses and career counselling at employment offices.

Poland compared to Europe.

Across the EU, around 25% of people aged 15-64 remain outside the labour market. In Poland, this rate is similar to the EU average. The rate of people outside the labour force fell considerably in Bulgaria, Cyprus, Czechia, Malta, and Hungary, and the decline was sizeable also in Estonia, France, Lithuania, Poland, and Slovakia. These declines were driven by a decrease in the rate of people outside the labour force who did not want to work.

In Poland, inactivity remains high, particularly among younger people, people with disabilities with low levels of education, and women aged 55-64, due to their lower retirement age.

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