ABSTRACT
This chapter explores labor market developments in Poland after its European Union (EU) accession and discusses factors lying behind the spectacular unemployment fall. It provides a more detailed view of the Polish labor market performance during the consecutive phases. Unemployment in Poland after EU accession declined significantly, though it exhibited clear cyclical patterns. The rise in unemployment slowed down after 2001, although falling labor demand engendered labor force withdrawal, particularly of the elderly approaching the retirement age. The Russian crisis was the most important, although not the only macroeconomic shock which contributed to the unemployment rise. The main reason for the unemployment fall was growing demand for labor. The rapid economic growth resulted not only in a decrease in actual unemployment, but also in a gradual decrease in equilibrium unemployment. The relatively mild unemployment rise remains in stark contrast to the post-1997 unemployment soar.
