Poland's Resilient Labor Market: A Magnet for FDI and Equity Opportunities in Manufacturing and Technology

Poland's labor market has emerged as a cornerstone of economic resilience, defying global headwinds such as the war in Ukraine and lingering pandemic effects. In 2025, the country's employment rate for the 15-64 age group reached 72.5%, a 15.5 percentage-point increase since 2010. This robustness is particularly evident in manufacturing and technology sectors, which together account for nearly 30% of Poland's workforce. For investors, this labor market dynamism signals fertile ground for foreign direct investment (FDI) and equity opportunities, especially in industries poised to benefit from nearshoring, digital transformation, and green energy transitions.

Labor Market Resilience: A Foundation for Growth

Poland's workforce has become a critical asset for global manufacturers and tech firms. The manufacturing sector, which employs 25.8% of the labor force, has maintained strong demand despite a talent shortage affecting 60% of employers. Meanwhile, the technology sector's job vacancy rate in 2023 stood at 2%, outpacing the national average. This demand is driven by Poland's strategic location between Germany and the Baltic states, its cost-efficient labor force, and a growing pool of STEM graduates.

Wage growth has further solidified Poland's appeal. Average gross wages surpassed 8,500 zloty by the end of 2024, with manufacturing and tech professionals commanding premium salaries. However, challenges persist: an aging population and a shrinking workforce threaten long-term sustainability. To mitigate this, the government has implemented policies to extend working years and integrate women and underrepresented groups into the labor force. These efforts are critical for maintaining productivity and attracting capital.

FDI Inflows: Logistics, Green Energy, and Tech Lead the Charge

Foreign investors are increasingly targeting Poland's manufacturing and technology sectors, drawn by its labor market stability and strategic infrastructure. In H1 2025, logistics and industrial real estate attracted €694 million in FDI, with U.S. firms accounting for 64% of investments. Long-lease industrial assets and value-added logistics projects, such as the €253 million sale of the Eko-Okna production plant, underscore a shift toward asset-light, high-growth opportunities.

The National Recovery Plan (NRP) is amplifying this momentum. By prioritizing green energy, digital infrastructure, and industrial modernization, Poland is positioning itself as a hub for sustainable manufacturing. Deutsche Bank Polska's 25-year loan to Polska Grupa Energetyczna (PGE) for offshore wind farms exemplifies the sector's potential. Similarly, the European Investment Fund's €18.7 million guarantee to catalyze €290 million in SME financing highlights Poland's commitment to innovation.

Equity Market Opportunities: Tech Sector's AI-Driven Transformation

Poland's technology sector is a standout performer, with 88% of IT companies planning to recruit in 2025. Despite 43% anticipating recruitment challenges, demand for cybersecurity, data analytics, and AI expertise is surging. The adoption of AI tools has already risen to 61% of IT professionals, with 45% expecting new career opportunities from automation.

Equity investors are capitalizing on this growth. The Polish IT services market, projected to grow at a 6.15% CAGR to $13.1 billion by 2029, is attracting firms like Google, Oracle, and IBM. Visa's planned global technology hub in Poland further validates the country's nearshoring appeal. For equity investors, companies with strong R&D pipelines and partnerships with global tech giants are prime candidates.

Navigating Risks and Regulatory Complexities

While Poland's labor market and FDI environment are robust, investors must navigate regulatory hurdles. The 2024 FDI regime revision has increased scrutiny for transactions in strategic sectors like energy and tech. Additionally, high developer turnover and complex labor laws require careful due diligence. However, these challenges are offset by Poland's alignment with EU green and digital goals, offering access to cohesion funds and tax incentives.

Strategic Investment Recommendations

1. Logistics and Industrial Real Estate: Prioritize long-lease assets in logistics hubs like Warsaw and Wrocław, where e-commerce growth and infrastructure upgrades are driving demand.
2. Green Energy and Clean Tech: Target firms involved in offshore wind, photovoltaics, and hydrogen projects, which align with Poland's NRP and EU decarbonization targets.
3. AI and Cybersecurity Firms: Invest in Polish tech startups and mid-sized companies with expertise in AI-driven solutions and cybersecurity, supported by a growing talent pool.
4. Financial Sector Consolidation: Monitor the PZU-Pekao merger, which could unlock 15–20 billion zloty in surplus capital for reinvestment in high-growth sectors.

Conclusion

Poland's labor market resilience, coupled with its strategic focus on manufacturing and technology, positions the country as a compelling destination for FDI and equity investments. While challenges like talent shortages and regulatory complexity exist, the government's pro-investment policies and the private sector's innovation drive are creating a fertile environment for long-term gains. For investors with a horizon of five years or more, Poland offers a unique blend of stability, growth potential, and strategic alignment with global trends. As the WIG20 index continues to outperform its European peers, the time to act is now.