How Has the Pandemic Affected the Business Sector?

The global pandemic has been ongoing for almost a year and was bound to lead to an economic crisis. Although lockdowns introduced not only in Poland but also in other European countries seem to cause the most disruption, research by Statistics Poland (GUS) indicates that – in most cases – enterprises are functioning without major changes. How is this possible?

Companies are not all equal

Although the spectre of economic problems still hangs over Polish entrepreneurs, the November GUS statistics on employment and remuneration in enterprises tell quite a different story. Companies employing at least 9 workers were invited to take part in the survey. Other studies on the condition of companies from various sectors also provide surprisingly optimistic data.

According to the statistics, November 2020 saw only a 1.2% fall in employment, which in these difficult times seems to be a good result. Of course, recent weeks' events must also be taken into account; they may change this situation and, above all, alter the proportions between different industries.

Lockdown as a verdict

The restrictions that have been in place for many weeks do not affect all businesses equally – only selected industries. It is no secret that the greatest losses are being suffered by the tourism, catering and sports (gyms, ski slopes) industries, and in these sectors one can unfortunately expect a wave of bankruptcies unless entrepreneurs quickly receive real financial support from the government. On the other side of the scales, we have large manufacturing companies, which are now working at full steam and where nobody is considering layoffs. Indeed, many factories are urgently seeking employees! The disparity between industries is therefore enormous, which is why statistics – mere dry numbers – can often indicate only a half-truth in the overall picture. Declining industries will indeed lay off workers, but large enterprises will offset those losses on the market by hiring.

Stable unemployment rate

The percentage of unemployed people is not changing significantly. We are talking about an increase in unemployment of around 1% compared to previous years. This may be due to a smooth transition to new jobs among those who have lost theirs. Furthermore, outsourcing agencies are becoming increasingly popular, allowing people to maintain a flexible yet stable professional situation and offering a good solution for those ready to acquire new qualifications and sometimes change their line of work.

On the other hand, employee outsourcing is becoming an increasingly favoured solution for employers, who shed a whole range of obligations imposed on them by the Labour Code (in this type of cooperation, the agency is the actual employer). Outsourcing essentially guarantees them rapid acquisition of competent workers – including workers from Ukraine and Asia – for exactly the period of time they actually need. There is no risk of having to maintain an empty position when there is no work, and there is no need to carry out time-consuming and expensive recruitment processes. This solution is increasingly proving to be a response to the needs of both employers and employees themselves.

The future of the labour market

The pandemic has accelerated many changes that were already occurring in the labour market. Remote work, flexible employment, and cooperation with employment agencies have become the new normal for many companies. The key is to adapt quickly to changing conditions and use the tools available – including outsourcing – to maintain business continuity and financial stability even in the most difficult of times.