Economics
Unemployment So Low It's Time for Poland to Worry About It
- Drop in labor supply, shrinking population behind joblessness
- Central bank holding rates as price pressures remain in check
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To the extent that Poland’s record-low joblessness matters for policy makers, it’s only as a sign of worse to come.
While the numbers dazzle, behind them is labor supply squeezed by emigration, a low participation rate and government policies such as a reduction in the retirement age that further shrink the pool of workers. Under Eurostat methodology, Polish unemployment was at 5.3 percent in March and February, among the lowest in the European Union. The central bank estimates the rate is already below the level that puts pressure on wages.