Labor market in Central and Eastern Europe (CEE) - statistics & facts
The labor market in Central and Eastern Europe (CEE) is known for its lower labor costs compared to Western Europe in combination with a highly skilled workforce. This has made it a popular nearshoring destination for manufacturing, IT, and business services for Western European companies. The cost-of-living crisis and rising inflation limit the real wage growth in the region. Czechia, where real wages fell by over eight percent in 2022 and were expected to drop by four more percent in 2023, is the most prominent example.
Even though refugees from Ukraine have increased the number of workers in other CEE countries since 2022, employers in these countries still lack professionals in fields like manufacturing and services. Thus, the governments publish shortage lists for specific jobs and regularly increase the minimum wage to attract talent. Slovenia is the CEE country with the highest minimum wage of over 1,200 euros per month, while in Bulgaria, it stands at almost 400 euros.
Shrinking workforce in CEE
The CEE region sees a decline in the working-age population due to a low birth rate and emigration to Western Europe. While Czechia and Poland have themselves become attractive destinations for emigrants from countries outside the European Union (EU), Romania is significantly affected by emigration. Moreover, women in CEE have a notably lower labor participation rate, at roughly 15 percentage points below men, partially because women spend more time on parental leave.Even though refugees from Ukraine have increased the number of workers in other CEE countries since 2022, employers in these countries still lack professionals in fields like manufacturing and services. Thus, the governments publish shortage lists for specific jobs and regularly increase the minimum wage to attract talent. Slovenia is the CEE country with the highest minimum wage of over 1,200 euros per month, while in Bulgaria, it stands at almost 400 euros.
