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Strong rise in employment in September: result of weak August or strong activity?


After last year’s wave of lay-offs, employment in the enterprise sector has risen steadily since March 2010. This was a result both of seasonal increases in labour demand as well as of the strong upturn of activity in the manufacturing sector observed during the past several months. However, with capacity utilisation in the enterprise sector still relatively low and with persisting uncertainty about the strength of the global recovery, the rise in employment, though continuous, has been modest. This makes the monthly increase in employment figures observed in September all the more impressive. At 11,800, the number of jobs added during this period was on a scale which at this time of the year was only achieved during the best of economic times. Although the result may be a consequence of the meagre (by 2,500) increase in employment in August, it may also indicate continued strength of economic activity and companies’ preparedness to increase output further going forward. In the coming months we should expect a certain easing of employment numbers as seasonal jobs disappear. But if the anticipated economic softening during the autumn and winter months does not lead to any deeper fall in economic activity in Poland, and if the global economy continues to pull itself from recession, the spring of 2011 should bring a more permanent improvement in the labour market and a more appreciable increase in employment in the enterprise sector.

Paweł Sionko
Construction Market Analyst, PMR

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