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Warsaw with the Highest Employment Rate in the EU, Surpassing Stockholm

Poland's capital region posts the highest employment rate in the European Union, but nationwide figures tell a more mixed story.

Poland-24.com Team by Poland-24.com Team
2 October 2024
in Economy, Featured, NEWS
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According to the latest Eurostat data, the Warsaw capital region has emerged as the leader in employment across the European Union. With an employment rate of 86.5% in 2023, the region surpassed other major European cities, including Stockholm, Prague, and Bratislava. However, while the data shines a spotlight on Warsaw’s labor market success, it also reveals disparities between the capital and other Polish regions.

Eurostat’s report places Warsaw and its surrounding counties ahead of regions in Germany, Sweden, and Slovakia in terms of employment. These findings are based on the NUTS 2 classification system, which divides countries into smaller statistical regions. In Poland’s case, this includes 17 areas, with the Warsaw capital region ranked separately due to its distinct economic and demographic profile.

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The region includes not only Warsaw but also nearby counties such as Piaseczno, Pruszków, and Wołomin, forming an economically dynamic area. This strong employment rate of 86.5% places the Warsaw capital area at the top of the EU’s rankings, surpassing Stockholm (85.2%), Prague (84.8%), and several regions in Germany, such as Trier and Swabia.

Strong Performance in Warsaw, But Challenges for Poland as a Whole

While Warsaw’s employment success is noteworthy, the overall national picture is more nuanced. Poland, as a whole, ranks 14th in the EU with an employment rate of 77.9%, lagging behind countries such as the Netherlands (83.5%), Sweden (82.6%), and Estonia (82.1%). The contrast between the capital’s booming labor market and the national average highlights regional disparities, with other Polish regions struggling to keep up with Warsaw’s pace.

In 2023, the employment rate in the EU was 75.3% for the core working-age population (20–64 years).💼

Which region had the highest employment rate in the EU❓🤔#EurostatRYB

— EU_Eurostat (@EU_Eurostat) September 30, 2024

For instance, the Pomeranian region (Pomorskie), which includes Gdańsk and other cities on the Baltic coast, recorded an employment rate of 79.8%. Lower Silesia (Dolnośląskie), home to Wrocław, posted a similar rate of 79.4%. Both regions are far behind Warsaw in employment figures, with other Polish areas trailing even further.

This divergence reflects broader economic trends within Poland, where wealth, development, and job opportunities are concentrated in a few key regions, leaving other parts of the country grappling with slower growth and higher unemployment.

Low Unemployment, But Geographical Disparities Persist

Despite these regional differences, Poland has maintained one of the lowest unemployment rates in the European Union, a point of national pride. As of September 2024, the country’s unemployment rate stood at 2.9%, just behind the Czech Republic’s 2.6%. These figures put Poland among the top performers in the EU, with Malta (3%) rounding out the top three.

However, there are important caveats. Eurostat’s unemployment figures differ slightly from those published by Poland’s Central Statistical Office (GUS). Eurostat does not include individuals who are not actively seeking work, while GUS counts all registered unemployed people in the workforce. According to GUS, Poland’s unemployment rate was 5% in August 2024.

Furthermore, unemployment in Poland varies widely depending on the region. The August 2024 GUS data shows a significant gap between areas such as Greater Poland (Wielkopolskie), where unemployment was as low as 2.9%, and Subcarpathia (Podkarpackie), where the rate was 8.4%. This geographical disparity underscores the uneven nature of economic growth and employment opportunities across the country.

The Broader European Context

Looking at the broader European context, Poland remains part of a cluster of countries in Central Europe that have consistently low unemployment rates. This “low unemployment zone” stretches across Germany, Poland, and the Czech Republic, reflecting the region’s resilience in the face of economic challenges.

In contrast, southern European countries like Spain, Italy, and Greece continue to grapple with much higher unemployment rates, often exceeding 10%. These nations are struggling with structural unemployment and sluggish economic recovery, which have been exacerbated by the COVID-19 pandemic and geopolitical tensions.

Conclusion: A Success Story with Caveats

Warsaw’s labor market performance is undoubtedly a success story, placing the Polish capital region ahead of many well-known European economic centers. However, the broader Polish labor market tells a more complicated tale, marked by regional imbalances and differing economic fortunes.

While the capital enjoys the highest employment rate in the EU, much work remains to be done to bridge the gap between Warsaw and the rest of Poland. As the country continues to evolve within the European economy, ensuring more equal opportunities across all regions will be key to maintaining long-term growth and stability.

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