Poland unemployment rate rises to 5.9% amid labor office funding shortages

Poland's registered unemployment rate rose to 5.9% in July, up from 5.8% in June. According to preliminary data from the Ministry of Family, Labour and Social Policy, over 907,300 people were registered as unemployed, an increase of 76,500 compared to the previous year.

Regional disparities remain significant. The highest unemployment rates were recorded in the Szydłowiec, Brzozów, and Przysucha counties, with rates of 22.8%, 19.3%, and 18.4% respectively. Conversely, Poznań and Warsaw reported low rates of 1.6%, while the Poznań county saw 1.4%.

Simultaneously, labor offices are facing a critical shortage of funds for unemployment activation programs. Funding for these services has decreased by 1.5 billion PLN compared to last year, with local governments receiving 2.1 billion PLN this year. This shortage has led some offices, such as the District Labor Office in Poznań, to stop accepting new applications for certain programs. The Ministry has stated it is using reserves from the Labor Fund to address these needs as they arise.