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Poland - Lodzkie

Short overview of the labour market

 

The Łódzkie Province is located in central Poland. It covers an area of 18 218.95 km². As of 31/12/2018, the population of the Łódzkie Province was 2.466m, which constitutes c. 6.42% of the total population of Poland. The urban population constituted 62.7% of the total population. The largest urban agglomeration is the agglomeration of Łódź, which has a population of about 1 million. At the end of March 2019, there were 67 700 registered unemployed persons and the unemployment rate was 6.2% (a drop of 0.4% as compared to April 2018). The counties with the highest unemployment were: Kutnów county – 9.5%, Łask county – 8.0 % and Pajęczno county – 7.8%. The unemployment rate was the lowest in the following counties: Skierniewice county – 4.0%, Rawa county – 4.0% and Wieruszów – 4.6%. The unemployment rate for Łódź stood at 5.6%. The unemployment rate according to the LFS was 4% (3.7% for men and 4.4% for women) in the fourth quarter of 2018. The employment rate was 55.2% (as compared to 54% for Poland) and the economic activity rate was 57.5% (as compared to 56.1% for Poland).

Łódzkie is one of the fast-developing provinces of Poland. The level of GDP in 2017 amounted to 48 400 PLN per person, which gives 6th place in the country and constitutes 93.5% of the national average.

Apart from the service sector, industry is the most important economic sector of the province, contributing greatly to the regional output. The most developed branches of industry are as follows: production of textiles and clothing, mining of lignite, generation and distribution of electricity, production of chemicals, production of foodstuffs, production of machines and equipment, production of electrical equipment and building materials. The spatial structure of the industrial sector is clustered around two centres: the Łódź agglomeration, where the textile and clothing industry, food and food processing industry, electrical machinery industry, pharmaceutical industry and chemical industry play a dominant role; and the Piotrków Trybunalski and Bełchatów centre, dominated by the mining industry, power generation, rubber industry, construction material production, furniture industry, timber industry, distilleries, glass manufacturing, and pharmaceutical industry.

Despite significant changes in the branch structure of the Province’s industries, the textile and clothing industry continues to play a leading role in the Province’s production. The leading companies in this sector include, among others, Redan S.A. Another area distinguished by high dynamics of development in the Łódź province is the pharmaceutical industry and wholesale trade in pharmaceutical products. Leading enterprises in this sector include: Pelion Healthcare Group, Polfa Pabianice (part of Adamed Group), Polfa Kutno, SENSILAB Polska Sp. z o.o. S. K. A, MEDANA PHARMA S.A, pharmaceutical works and producers of herbal medicines: Herbapol Łódź and Agropharm Tuszyn. A Slovenian pharmaceutical plant, Lek S.A. (member of the Sandoz group), has been active in Stryków near Łódź over the last 10 years. Another sector of industry developing dynamically in the Łódzkie Province is the production of building materials. The leading manufacturer is the Atlas group, a leader on the domestic market and Europe’s third largest manufacturer of construction chemicals.

Construction materials are extracted and processed in the Province. The Province is also the national leader in the production of ceramic tiles (Ceramika Opoczno, Ceramika Paradyż, Ceramika Tubądzin). There are also companies from the household appliances sector: Bosch Siemens Hausgeräte, Whirlpool Company Polska Sp. z o.o. (formerly Indesit). A major role in the province is played by the Łódź Special Economic Zone. It brings together more than 100 companies in the following sectors: logistics, pharmaceuticals, plastic processing, BPO (Business Process Outsourcing), household appliances, IT, the medical, cosmetics and food industries.

The outsourcing sector has also seen rapid development in recent years. The ABSL (Association of Business Service Leaders in Poland) report of 2019 on the development of the BPO/SSC sector in Poland shows that Łódź is one of the six largest BPO centres in the country. According to data for the first quarter of 2019, in the business services sector, including a cent of BPO, SSC, IT and R&D services, 85 companies providing services in foreign languages employed approx. 23 200 employees. It is expected that in the first quarter of 2020 the number of employees in these companies will exceed 25 000 people. Many foreign-invested enterprises operate in the province: Accenture, Asea Brown Boveri (ABB), BMS Poland, Ceri International, Citi, Fujitsu, GE Power Controls, HP, Whirlpool (formerly Indesit), Infosys, Mobica, Nordea, GFT Polska (Rule Financial), Samsung Poland R&D Center, Sii, SouthWestern, Takeda, Tate & Lyle. Most of the businesses specialise in IT services, financial and accounting processes, as well as research and development processes and work for companies from all over the world.  Companies are seeking to employ people with foreign language skills.  Employers representing the above sectors who in recent years used the services of the EURES network to recruit employees from other EU/EEA countries included:  Infosys BPO Poland, Fujitsu GDC Łódź and Nordea Bank A.B. S.A.

Another significant sector in the province (particularly in the city of Łódź itself) is the IT sector. Major employers include, among others: AMG.net, LSI Software, Tomtom, Intersoft, Centrum Komputerowe Zeto, Ericsson (formerly Ericpol), Gromar, Transition Technologies, HP, Xerox, HPCC Herkules PC Components, Farbrity Grupa K2, Xerox (ACS Solutions). The main vacancies in this sector are for application programmers, ICT system consultants, computer system and network engineers and application improvement and development professionals.

Over recent years, there has also been a significant development in the hotel industry and new roads and motorways are being constructed. Among the most numerous groups of occupations represented in job offers at the end of the fourth quarter of 2018 one can mention: industrial workers and craftsmen (1 900 offers), operators and assemblers of machines and equipment (1 600 offers), specialists (1 300 offers) and office workers (700 offers).

 

Text last edited on: 09/2019


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