One of the most important parameters that measures investment attractiveness of a given country or region, are labour costs. Labour costs in the EU increase by approximately 2-3% annually; but have been growing much more rapidly among the new EU members, particularly in countries where a high economic growth rate is recorded. Last year in Lithuania the rate rose by 19%, in Estonia and Latvia by 15% and 13% respectively and in Poland by app. 4%. However, the differences between countries remain large. In the wealthiest countries of the old EU, an hour’s labour costs 25 to 30 EUR on average, in Poland it’s less than 5 EUR.

Poland’s employment costs are among the lowest in the whole of Europe. The country’s wage costs are not only lower in comparison to western Europe, but also when compared to Slovenia, Estonia, Slovakia, the Czech Rep., Hungary and Latvia. Lower employment costs in national average incomes can only be found in Ireland, Greece and in Italy. When compared to Central and Eastern Europe, lower employment costs are only to be found in Rumania. Lithuania and Bulgaria have similar wage levels to Poland.

The most attractive cities in terms of labour costs
(point of reference, the average number of nominations for first, second and third places)

Source: European Cities Monitor 2005, Cushman & Wakefield;
the bracketed statistics are from the European Cities Monitor 2004, C&W

The average gross monthly salary in the national economy, over the period of the first three quarters of 2007, was at the level of 2,685 PLN, which is 8.6% higher than in the analogous period of 2006. In the public sector it was 2,964 PLN (an increase of 7.7% y-o-y) and in the private sector 2,527 PLN (an increase of 9.6% y-o-y).

According to the Central Statistical Office (GUS), Poland’s workers produced an average of 12.2% more in January 2007, than in the previous year. By comparison in January 2006, the output in production had risen by 9.6% and in 2005 by 2.9%.