Planned Cuts to the 2026 Labor Fund: Labor Market Impact Analysis

Agnieszka Socha, representative of Employers of Poland (Pracodawcy RP), analyzes the consequences of drastic funding cuts for vocational activation in 2026. Funding in the Silesian Voivodeship could drop by over 61%.

Planned Cuts to the 2026 Labor Fund: Labor Market Impact Analysis

Budget decisions concerning the Labor Fund for 2026 carry far-reaching consequences for the national economy. Agnieszka Socha, owner of WorkerService and representative of Employers of Poland (Pracodawcy RP) at the County Labor Market Council in Zabrze, points out the serious threats resulting from the planned reductions in funds for vocational activation.

Drastic decline in funding in Silesia

According to documentation from the Conventions of Directors of County Labor Offices, funds allocated for labor market activation in 2026 are expected to be, on average, 40–45% lower compared to 2025. In some regions, the situation appears even more severe. In the Silesian Voivodeship, the planned funding level is set to drop from approximately PLN 169.6 million in 2025 to just PLN 65.3 million in 2026. This represents a budget reduction of over 61%.

More responsibilities with a smaller budget

The Ministry of Family, Labor, and Social Policy justifies these decisions by citing the low unemployment rate and the need to consolidate public finances. However, expert analysis indicates that these arguments rely on macroeconomic averages that do not reflect specific regional risks.

A key challenge is the fact that a new law on the labor market and employment services will take effect on June 1, 2025. It expands the catalog of individuals eligible for support and the range of tasks performed by labor offices. Consequently, the system will face more responsibilities with radically less funding, directly impacting its operational capacity.

Risks for employers and the economy

The deep reduction of the Labor Fund, which serves a stabilizing function, could lead to several negative outcomes:

• Reduced training opportunities: Lower availability of programs for upskilling and retraining workers.
• Slower response to crises: Diminished capacity of labor offices to react to mass layoffs and corporate restructuring.
• Challenges for the SME sector: Weakening of support for small and medium-sized enterprises.
• Risk of structural unemployment: Increased threat of long-term unemployment, particularly in industrial regions.

Cutting expenditures in this area does not eliminate costs; instead, it shifts them onto the social assistance system and local governments. We invite you to follow the news on the WorkerService website to monitor changes in the labor market.