Bloomberg News

Polish April Jobs, Wage Growth Slows, Point to Unchanged Rates

May 18, 2012

Polish jobs growth at companies with more than nine workers slowed along with wages, reinforcing arguments for interest rates to remain unchanged after the central bank became the first in the European Union this year to raise borrowing costs.

Corporate employment increased 0.3 percent from a year earlier after growing 0.5 percent in March, the Warsaw-based Central Statistical Office said today. That’s below the 0.5 percent median estimate of 23 economists in a Bloomberg survey. Hiring fell 0.1 percent from the previous month.

The Narodowy Bank Polski raised its main rate by a quarter- point to 4.75 percent on May 9, the first increase since last June. Higher borrowing costs “do not appear warranted” given government forecasts that inflation will ease this year as economic growth slows to 2.5 percent from 4.3 percent in 2011, the International Monetary Fund said this week.

“The number of employed will fall gradually as a result of weakening economic activity, especially in the manufacturing and construction industries,” Marcin Mrowiec, chief economist at Bank Pekao, wrote in a research note before the release.

Average gross wages advanced 3.4 percent from a year earlier in April after a 3.8 percent rise the previous month, the statistics office said in a separate release. That compares with a 3.9 percent median forecast of 27 economists in a Bloomberg survey. Wages fell 1.3 percent from March.

To contact the reporter on this story: Dorota Bartyzel in Warsaw at

To contact the editor responsible for this story: Balazs Penz at

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