Employment prospects improving in banking sector 

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Employment in Polish banks started to fall in 1999, with the total workforce being cut by several thousand per year thereafter. However, fewer jobs were lost in 2004 and many banks are intending to recruit new staff in 2005. The workforce reduction process in banking has been been regulated by collective agreements, with few protests by employees resulting.

For many years, a job in a bank was associated with stability and good pay in Poland, while university studies connected with finance and banking were among the most popular with students. The end of 1990s marked a turning point in these trends. In 1999, the employment level in the banking sector was at its peak. According to the National Bank of Poland (Narodowy Bank Polski, NBP), there were 174,700 employed in the industry, of whom 149,600 were employees of commercial banks and 25,000 employees of cooperative banks. In the following years, employment in commercial banks fell by several thousand a year. There were two main reasons for these reductions - banks mergers and the expanded use of information technologies. Furthermore, in 2002-3, when the economy was slowing down, the banks shed employees in order to reduce costs. Based on collective agreements with trade unions, the workforce reduction in banking has not been achieved through redundancies, but through 'natural wastage' and the retirement of employees. The banks usually provide assistance in finding surplus workers employment in other divisions of the same bank or in its affiliated companies. The workforce cuts since 1999 have not usually led to any workforce protests

At the end of 2004, the banks declared an end to major workforce reductions in the sector. In 2004, employment in commercial banks decreased by nearly 1,400, as opposed to several thousand annually in previous years. Many banks have declared that they will hire new employees in 2005. During 2004, 108 new commercial bank outlets were established, contrasting with the situation in previous years the banks tended to close down their offices, largely as result a wave of mergers that over 2000-4 (which also cut employment). However, experts are pessimistic as to the prospects for new employment. When banks need an employee they rarely seek people from the outside. Sometimes, internal recruitment constitutes more than 60% of human resources selection. Additionally, banks help their staff change and improve their professional skills.

Many observers believe that the labour market in commercial banking sector is still going to shrink as a consequence of technological advances and further consolidation. They see opportunities to alleviate the workforce reductions in the development of local financial institutions, different types of funds and small specialised banks. Forecasts regarding the employment capacity in the banking sector oscillate around 100,000 employees.