Poland’s median wage rises 15.3% year-on-year in January 2025, but gender and regional gaps persist

The median gross monthly wage in Poland’s national economy stood at PLN 6,882.80 in January 2025, reflecting a nominal year-on-year increase of 15.3%, according to data released by Statistics Poland. However, despite the overall rise in wages, disparities remain significant across gender, age groups, sectors, and regions.

The median wage was 21% lower than the average gross wage, which reached PLN 8,717.18 in January. Compared to December 2024, the median wage decreased by 5.3%, while the average wage dropped by 4.3%.

Gender differences remain evident. The median wage for men was PLN 7,032.61, exceeding the median for women by PLN 298.27. The gap widened in higher income brackets: among the top 10% of male earners, wages were at least PLN 15,088.60, while the comparable figure for women was lower.

Age also plays a significant role in wage levels. Employees aged 35-44 had the highest median wage at PLN 7,196.56, while the lowest was among workers aged 24 or younger, at PLN 5,474.54.

Wages varied significantly based on the size of the employer. The median wage in companies employing 1,000 or more people was PLN 8,102.28, compared to PLN 4,666.00 in businesses with nine or fewer employees.

Sectoral differences were pronounced. The Information and Communication sector recorded the highest median wage at PLN 11,098.52. In the public sector, the highest median wage was in Agriculture, Forestry, and Fishing (PLN 18,841.26), while in the private sector, Mining and Quarrying led with a median of PLN 12,298.62. In most industries, men earned higher median wages than women, with the largest gender gap of 41.4% seen in Financial and Insurance activities. However, in the Construction sector, women earned 32.8% more than men on average.

Geographical disparities were also highlighted. In around 29% of municipalities (gminas), the median wage was PLN 5,500 or lower. However, differences were smaller when measured by employees’ places of residence rather than the location of their employers.

Statistics Poland emphasized that these findings are based on a nationwide survey covering both employment contracts and other forms of work agreements linked to an employment relationship.

Czech unemployment rate at 2.8% in May 2025

The unemployment rate in the Czech Republic stood at 2.8% in May 2025, according to data released by the Czech Statistical Office (CZSO). This figure represents a slight increase of 0.03 percentage points compared to the same month in 2024.

The employment rate for individuals aged 15–64 reached 75.8% in May, up by 0.7 percentage points year-on-year. The employment rate for men was 80.5%, while for women it was 70.8%.

The economic activity rate, which measures the proportion of economically active people in the total population aged 15–64, stood at 77.9%, showing a year-on-year rise of 0.8 percentage points. The rate for men was 82.6%, exceeding the rate for women by 9.5 percentage points, which stood at 73.1%.

Dalibor Holý, Director of the Labour Market and Equal Opportunities Statistics Department at the CZSO, noted different trends between men and women in the labor market. “Among women, who are more frequently employed in services, we continue to see growth in employment and economic activity. In contrast, for men, who are more affected by uncertainties in the industrial sector, economic activity has been declining for the fifth consecutive month,” Holý said.

All figures in the report are based on the Labour Force Sample Survey (LFSS), which is conducted by the CZSO in private households and aligns with International Labour Organization (ILO) standards. These results are methodologically distinct from administrative data collected by the Labour Office of the Czech Republic on registered job seekers.

For international comparisons, Eurostat reports the unemployment rate for the broader age group of 15–74 years. In this age category, the Czech unemployment rate was also 2.8% in May 2025.

The LFSS does not cover individuals living in collective accommodation facilities or temporary shelters. Data tables accompanying the report provide both trend-cycle and unadjusted time series for employment, unemployment, and economic activity rates dating back to 1993, with a focused time series from 2015 used for modeling purposes.

Source: Czech Statistical Office

Czech government deficit rises to 3.7% of GDP in first quarter of 2025

The Czech Republic’s general government sector recorded a deficit equivalent to 3.7% of GDP in the first quarter of 2025, according to data published by the Czech Statistical Office (CZSO). Government debt rose slightly to 43.4% of GDP.

The overall deficit amounted to CZK 73.6 billion, representing a year-on-year increase of CZK 10.7 billion. The central government contributed significantly to the shortfall, posting a deficit of CZK 105.7 billion, CZK 12.0 billion higher than the same period last year.

In contrast, the local government sector reported a surplus of CZK 33.8 billion, though this was CZK 0.5 billion lower year-on-year. Social security funds, including health insurance institutions, recorded a deficit of CZK 1.7 billion.

“In the first quarter of 2025, the general government sector ended with a deficit of CZK 73.6 billion, corresponding to 3.7% of GDP. The government debt ratio increased by 0.3 percentage points compared to the previous year,” said Helena Houžvičková, Director of the Government and Financial Accounts Department at CZSO.

Government revenues grew by 4.5% year-on-year, reaching 39.8% of GDP. This increase was driven primarily by higher social contributions and taxes on production and imports. Meanwhile, government expenditure rose by 5.5% year-on-year to 43.5% of GDP, with higher spending noted in employee compensation, social benefits, and subsidies.

The nominal value of government debt rose by CZK 202.0 billion year-on-year to a total of CZK 3,539.1 billion. The debt-to-GDP ratio edged up from 43.1% to 43.4%. Nominal debt growth added 2.5 percentage points to the ratio, but this was partially offset by a higher nominal GDP, which reduced indebtedness by 2.2 percentage points.

On a quarter-on-quarter basis, government debt increased by CZK 47.2 billion. While nominal debt growth contributed an increase of 0.6 percentage points, the rise in nominal GDP reduced the ratio by 0.5 percentage points, resulting in a net quarterly increase of 0.1 percentage points.

A significant year-on-year increase was observed in issued debt securities, which rose by CZK 144.7 billion.

After seasonal and calendar adjustments, the government sector balance showed a deficit of CZK 46.4 billion, equal to 2.2% of GDP. This adjusted balance deteriorated by CZK 6.8 billion compared to the previous quarter.

Source: Czech Statistical Office

Demolition underway in Zlín city center for new high-rise development

Demolition has begun on a former bank building in the center of Zlín, clearing the way for a planned 16-story high-rise project known as Prospect. The development, led by Juraj Surovič, majority shareholder of the PSG construction group, will include offices, rental apartments, a hotel, and an observation terrace. The project’s estimated cost is just under one billion Czech korunas. Demolition is expected to be completed by mid-August, ahead of the Barum Czech Rally Zlín. Construction could begin early next year, Surovič told reporters today.

“We hope the project won’t be delayed in administrative processes,” Surovič said. “Design work is ongoing and should finish by the end of summer. In September, we plan to submit the project documentation to the authorities, aiming for a permit by year-end.” He noted that work is progressing on elements such as the building’s façade design.

The Prospect development will include the high-rise structure and a lower adjacent building housing an 80-room hotel. The project will feature 58 apartments, 3,700 square meters of office space, a restaurant, an underground garage with around 200 parking spaces, and a pedestrian zone. The planned high-rise will reach a height of 58 meters, making it the city’s second-tallest building after the Baťa skyscraper.

However, the proposed height has drawn criticism from the National Heritage Institute’s Kroměříž office. In April, conservationists expressed concerns that the building could disrupt Zlín’s urban panorama and impact views of the city’s heritage zone. The Zlín Department of Culture and Heritage Care will be responsible for reviewing and commenting on the project’s approval.

“We’ll try to convince the conservationists that height alone doesn’t determine whether a building dominates its surroundings,” Surovič said. He emphasized the building’s slender design and its integration into the urban environment. “We believe the project belongs in this location,” he added. The city architect’s office supports the proposal, and Zlín Mayor Jiří Korec (ANO) has also praised the project.

The former bank building, constructed in the 1990s, and its surrounding area are currently fenced off for demolition, which has closed sections of the sidewalk and nearby parking. The site sits between Práce Square and Gahura Avenue, close to landmarks such as the Great Cinema, Interhotel Zlín, the Zlín Department Store, and former Baťa dormitory buildings.

Demolition crews will avoid working on weekends and will take measures to reduce dust. The building has already been stripped of its façade and roof, and heavy equipment, including a 3.7-ton safe, has been removed.

“We aim to complete the building demolition in about a month, followed by two weeks of land leveling to leave the site clean,” said Michal Pohl, director of the PSG Construction plant in Otrokovice. The structural framework will be cut apart and removed in stages, with around 15 trucks operating daily over the next three weeks.

Source: CTK

Jablonec nad Nisou plans competition for new transport terminal

Jablonec nad Nisou is preparing to launch a tender for the construction of a new transport terminal intended to integrate bus, rail, and eventually tram services, Mayor Miloš Vele (ODS) announced today. The city has been working on the project across four electoral terms, with preliminary costs now estimated at 450 million Czech crowns. Funding for the terminal is expected to come from a combination of a municipal investment loan exceeding half a billion crowns, European grants, and contributions from the Liberec region.

“Preparations for the terminal are close to completion, with my colleagues finalizing the tender documentation,” Vele said. “A feasibility study for the grant application is underway, and we hope to announce the tender in the second half of the year.”

Discussions are ongoing with the Liberec transport company, which is planning to extend the tram line from Tyršovy sady, its current terminus, to the new terminal site.

The terminal design was developed by the Prague-based firm DOMYJINAK architekti, which won an open urban-architectural competition in 2018. This construction project is considered the largest in the city’s modern history. The municipality hopes to secure around 100 million crowns from the European Union’s Integrated Territorial Investments (ITI) program for the Liberec–Jablonec agglomeration. According to regional governor Martin Půta (Starostové pro Liberecký kraj), the region’s financial contribution will depend on the outcome of the tender process.

Rising costs have accompanied the lengthy preparation phase. Initially estimated at 160 million crowns, the project’s cost has now nearly tripled. Deputy Mayor Jakub Chuchlík (Piráti) explained that the higher figure reflects more than just the terminal itself. “It’s a revitalization of a large area, including adjustments to riverfront pathways on both sides of the river and the development of a park. The terminal is a major component, but it’s part of a broader urban renewal effort,” he said.

In the future, the terminal is expected to serve as the endpoint for the tram line from Liberec, requiring approximately 800 meters of new track along Soukenná Street and across Dolní náměstí. However, construction on this extension is unlikely to begin before 2026.

“I’m a bit pessimistic about that timeline because the design work is not progressing as quickly as I’d like. It’s not under our direct control, as the investment falls under the Liberec transport company,” Vele noted, adding that the region has pledged financial support for the tram extension project.

Source: CTK

Hercesa Romania launches Vivenda Prime residential project in Bucharest

Hercesa Romania has announced the launch of Vivenda Prime, a new residential project in eastern Bucharest aimed at the medium-high market segment. The development will include 105 apartments and introduce new amenities to the company’s portfolio, reflecting contemporary urban living trends.

“Vivenda Prime is Hercesa’s most ambitious residential project in Romania and directly addresses changing expectations in the housing market,” said Alejandro Solano, CEO of Hercesa Internacional. “Our strength lies in our in-depth understanding of Bucharest’s residential market, where we have been active for over 20 years, and our ability to adapt to the evolving needs of our clients,” he added.

The project features various amenities designed to enhance urban living while maintaining a sense of community and comfort. These include an outdoor pool exclusively for residents, energy-efficient systems such as heat pumps to ensure low energy consumption and year-round comfort, and secure access to the complex. Additional infrastructure supports modern lifestyles, including dedicated parking for delivery services and couriers.

Vivenda Prime will also offer commercial spaces accessible to the public, as well as a multifunctional area reserved for residents, suitable for meetings, events, or private gatherings. The development allows for a high degree of home customization to meet individual resident preferences.

“Vivenda Prime represents a significant upgrade for the Vivenda community, bringing together comfort, innovation, and an integrated urban lifestyle,” said Romeo Ghica, Operations Manager at Hercesa Romania. “The project was developed using insights gained from Building L in Vivenda Residencias, which offered a limited selection of 3- and 4-bedroom apartments that performed strongly in sales, confirming demand for medium-high segment housing in this area,” he added.

Vivenda Prime responds to feedback from existing residents of the Vivenda Residencias project, many of whom are seeking modern, sustainable homes without relocating from their current neighborhood. The new development will consist entirely of 3- and 4-bedroom apartments, ranging in size from 83 to 218 square meters, with starting prices at €182,700 plus VAT. Hercesa aims for Vivenda Prime to meet the growing demand for high-quality housing that supports community living, sustainability, and modern comfort.

Develia sells Arkady Wrocławskie property to Vastint Poland

Develia has completed the sale of the property housing the Arkady Wrocławskie complex in Wrocław to Vastint Poland, part of an international group focused on commercial real estate investments. The net transaction value is EUR 42.967 million, equivalent to approximately PLN 182 million.

Arkady Wrocławskie, a mixed-use retail and office complex commissioned in 2007, is situated within the streets Powstańców Śląskich, Swobodna, Komandorska, and Nasypowa in Wrocław. The sale agreement includes the land and all associated buildings. The complex is currently undergoing demolition.

“With the sale of Arkady Wrocławskie, we have achieved one of our strategic goals—exiting our office and retail portfolio. In recent years, this strategy has allowed us to redirect capital into expanding our core residential business, both organically and through acquisitions, strengthening our market position,” said Andrzej Oślizło, CEO of Develia. “I am pleased that the site of Arkady Wrocławskie, which has long been a significant landmark for Wrocław residents, will now be redeveloped by an experienced investor specializing in mixed-use projects. This will contribute positively to the attractiveness of this area of the city,” he added.

Paweł Ruszczak, Vice President of Develia, explained that proceeds from the sale will be partly used to repay a loan previously secured to finance the property, with EUR 26 million allocated for that purpose. The remaining funds will be invested in the residential segment, where the company expects higher returns. “This will be possible in the near term with the completion of our acquisition of Bouygues Immobilier Polska,” Ruszczak said.

The ongoing demolition, initiated by Develia, involves dismantling external structures of the complex and will be continued by Vastint Poland. The new owner plans to develop a modern, mixed-use project on the site.

“For years, Arkady Wrocławskie was a central place for shopping, gatherings, and cultural activities, playing an important role in Wrocław’s commercial landscape. We are now beginning a new chapter for this location,” said Roger Andersson, Managing Director of Vastint Poland. “Our vision is to demolish the current structure and develop a modern, multifunctional complex that is thoughtfully integrated into the urban fabric of the city centre. We aim to create a vibrant space that will attract residents and businesses alike, providing a dynamic environment for living, working, and leisure.”

Vastint Poland has previously developed projects in Wrocław, including the Business Garden office complex and the B10 office building, which houses the Element by Westin hotel.

Develia received legal advisory support from Dentons and commercial advice from Avison Young during the transaction. Vastint was advised on legal matters by Legal Kraft.

Rosanna Woods takes over European commercial sales at Westbridge

Westbridge Advisory GmbH (Westbridge), a European energy and sustainability consultancy serving institutional clients in the real estate sector, has appointed Rosanna Woods to a new expanded management role. Effective 1 June 2025, Woods has become Head of Commercial Sales Europe in addition to her current position as Managing Director. In her new role, she will oversee Westbridge’s commercial sales team across Europe and report directly to Chief Revenue Officer Rüdiger Salzmann. Her responsibilities will include a focus on the key German market as well as selected markets in other European countries.

For the past two years, Woods has led the development of Westbridge’s international sales operations from London, contributing significantly to the company’s growth in the pan-European market. Her expanded role reflects Westbridge’s strategy to strengthen cross-border sales efforts and implement consistent standards for customer management and business development across its European operations. The commercial sales team, which she now leads, has grown considerably in recent months and consists of around 20 employees based in cities including London, Zurich, and Warsaw.

“With the appointment of Rosanna Woods, we are placing an internationally connected leader at the head of our commercial sales,” said Yama Mahasher, CEO of Westbridge. “Rosanna embodies a market- and solution-focused approach that helps our clients achieve their sustainability goals.”

Commenting on her new responsibilities, Woods said, “I am pleased to be entrusted with leading Westbridge’s commercial sales across Europe. Our aim is to further harness synergies between markets, diversify our service offerings, and support our clients beyond national borders.”

Hauck & Aufhäuser Fund Services Group gains independence following bank sale

Hauck & Aufhäuser Fund Services Group (HAFS Group) has begun operating as an independent alternative investment fund management company (AIFM) following the completion of the sale of Hauck Aufhäuser Lampe Privatbank AG to ABN AMRO on 30 June 2025. The group, comprising Hauck & Aufhäuser Fund Services S.A. (HAFS) and its subsidiaries Hauck & Aufhäuser Administration Services S.A. (HAAS) and HAL Fund Services Ireland Limited (HALFI), remains wholly owned by the Fosun Group.

Christoph Kraiker, CEO of HAFS, stated that the company’s previous affiliation with Hauck Aufhäuser Lampe Privatbank AG provided a solid foundation for this transition. He noted that as an independent entity, HAFS can now focus entirely on its core business of asset servicing for financial and real assets. The firm aims to offer more flexible and tailored services, including fund structuring, portfolio and risk management, and ESG advisory.

Looking ahead, Christian Mader, CEO of HAAS, emphasized plans to expand the group’s Luxembourg platform to provide clients with a broader range of operational and regulatory solutions within Europe. A key element of this strategy is the development of digital infrastructure, particularly the implementation of eFront as a central system to enhance client reporting capabilities.

With over €110 billion in assets under management and service, the HAFS Group is positioning itself to strengthen its presence in the DACH region (Germany, Austria, and Switzerland) while selectively expanding its international operations.

The group also plans to introduce new investment products, including actively managed ETFs in Luxembourg and Ireland, in response to increasing demand for innovative investment solutions. In Germany, efforts will focus on refining structured products to align more closely with evolving investor needs.

Schengen under pressure as European countries reinstate border controls

The Schengen Area, long regarded as a key symbol of European integration and free movement, is facing growing challenges as several member states reinstate border controls in response to security and migration concerns. Currently, 11 of the 29 Schengen countries have reintroduced controls, many of them maintaining the measures for extended periods.

Under the Schengen Borders Code, member states are permitted to temporarily reimpose border checks in exceptional and justified circumstances. However, Germany, Austria, the Czech Republic, Denmark, and Italy have used this provision on a near-continuous basis, citing reasons ranging from illegal migration and cross-border crime to internal security and major public events. Although member states are required to notify the European Commission of such measures, the Commission has limited tools to challenge these decisions effectively. As a result, border checks have become more entrenched, raising concerns about the future of one of the EU’s significant achievements.

At the same time, member states are taking varied approaches to handling returning migrants. Some rely on formal procedures under regulations such as the Dublin III Regulation, while others use expedited methods, with decisions often made at the discretion of border police and without full administrative processes. In recent months, Germany has intensified its measures along the Polish border, returning individuals immediately after detention and often without allowing them to apply for asylum. German authorities view this as a successful strategy for reducing asylum claims and managing migration flows. However, critics argue that this practice shifts the burden onto neighboring countries, particularly Poland.

The situation has contributed to social tensions in Poland, where grassroots groups of residents and activists, known as social patrols, have emerged along the western border to protest what they see as the unfair transfer of migrants from Germany. Protests in towns such as Świnoujście, Słubice, and Lubieszyn have led to border blockades, police interventions, and the use of tear gas. Opposition parties have called for stricter border controls and swift returns of migrants.

The Polish government initially maintained that it was managing the situation and safeguarding national sovereignty but did not formally oppose Germany’s actions. Prime Minister Donald Tusk addressed the matter publicly only after several weeks of mounting public and media scrutiny, stating that he would seek explanations from the German government and emphasizing that Poland should not become the destination for all migrants redirected from German territory. Some observers characterized the government’s response as delayed and cautious.

Poland currently lacks a clear and comprehensive migration policy, often responding reactively to developments in neighboring countries. Migrants returned from Germany frequently arrive without clear legal procedures, leaving Polish authorities without a consistent approach or strategy. Analysts warn that in the absence of decisive policy and coordination, Poland risks losing control over migration management and could become subject to decisions made by other countries. Furthermore, prolonged governmental inaction could allow grassroots initiatives to dominate the public discourse, introducing greater volatility and uncertainty into an already sensitive issue.

Observers caution that failing to address migration policy proactively can ultimately undermine state authority and stability.

Source: WEI

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