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Local cost effectiveness

Send Print Download added: Patrycja Operacz | 2017-04-20 14:36:41
poland, macreconomic indicators, local cost effectiveness

Local cost of labour and transport

Costs of Labour

During past years one of the main reasons for direct investment in Poland has been its lower average labour costs compared to other European Union countries. It is indeed still the fact that average labour costs are both low and competitive. On the other hand, what really counts is the fact there is a high availability of labour on the market. The young structure of Poland’s population and the high standard of Universities ensure a continuing and growing potential for a highly skilled and educated labour force. Looking deeper, the low labour cost are combined with competitive productivity, which indicates the crated value per working hour. This combination of competitive productivity alongside the total amount of average salaries serves to back up the argument for underlining direct investments in Poland.

The next indicator shows, that in Poland, the hourly labour costs during 2014 – 2015 changed by only 3,5% in EUR. It is worth mentioning that the labour costs in the other CEE countries changed by similar amount 2015, such as 3.5% in Slovakia, 5.3% in Czech Republic or 3.0% in Hungary. These rises in wages are the result of shortages in availability, and in this example – the qualified labour force. Since direct investment decisions are based on a longer time horizon, it is important to have a closer look at the size of the country. Bigger countries tend to develop in a more stable fashion in each of the indicators than smaller countries, where shortages and capacity limits occur suddenly and within a short period of time. Due to the fact that Poland (with almost 40 million citizens) is by far the largest country to join the EU in 2004, it can be considered rather stable when taking the actual economic core data into account.


Cost of transport

Due to exceptional investments into its infrastructure, Poland has recently rapidly increased the number of motorways and expressways and improved its transport conations Over 3 000 km of expresways and motorways were built in Poland, which makes it the 6th highest in the EU. In the close future, the main cities of Poland will all be connected by motorways. 2 030 km of new highways and 5 770 km of new expressways are planned to be built.

The costs of transport were reduced in the past when Poland became part of the Schengen Agreement, allowing fast and easy travelling within the countries which are part of Schengen. Today a country becomes automatically part of Schengen by joining the EU.


Source: Polish Investment and Trade Agnecy, Investor's Guide - Poland: How to do business 2016.

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