Historic Drop in Unemployment in Poland Amid Rising National Debt

Poland has strengthened its position as a leader in the European labor market. According to the latest data from Eurostat, the unemployment rate in our country is currently the lowest in the community. Finance Minister Andrzej Domański indicated that this is proof of the stability of the employment sector, although locally, for example in Pomerania, there is a concerning increase in the number of young people remaining unemployed. However, this success is accompanied by a deteriorating situation in the public finance sector. The debt of the Treasury at the end of January 2026 rose to a level of PLN 1,998.3 billion, sparking a lively debate over budget stability. Since its accession to the European Union in 2004, the Polish labor market has undergone a fundamental transformation – from double-digit unemployment to its current status as the country with the lowest percentage of job seekers in Europe.The situation in agriculture is raising serious concerns among experts. It is estimated that cyclical droughts cost the Polish economy up to PLN 11 billion annually, threatening the country's food security. An additional burden for farmers is cheap imports of agricultural products and high apple stockpiles, which, combined with low purchase prices, are pushing many producers to the brink. Trade unions and agricultural organizations are putting pressure on the government, demanding subsidies for grains and milk, as well as reductions in fertilizer prices. Support for small and medium-sized enterprises continues to be provided by BGK, which over 12 years has enabled the granting of loans worth PLN 412 billion thanks to de minimis guarantees. 1,998 bln zł — was the Treasury debt in January 2026 Despite record debt and a decline in industrial activity indicators in February, international institutions are sending mixed signals. The Coface agency decided to raise the risk rating for Poland, which contrasts with the Fitch agency maintaining lower ratings. Experts note that the most difficult period for public finances may already be behind us, provided the government manages to control the pace of debt growth. During this time, the Polish złoty exchange rate against the euro remains stable, which is crucial for the predictability of foreign trade, although rising prices of some products, such as heating pellets, are causing consumer dissatisfaction. „Bezrobocie w Polsce najniższe w całej UE. Polska gospodarka pokazuje swoją siłę, mimo wyzwań płynących z otoczenia geopolitycznego.” (Unemployment in Poland is the lowest in the entire EU. The Polish economy is showing its strength, despite challenges stemming from the geopolitical environment.) — Andrzej Domański