Hiring Slows, Raises Disappear as Companies Turn Cautious in 2026

16 June 2026

The economic landscape in Denmark and Poland is shifting, as companies in both countries grapple with rising costs, supply chain disruptions, and global market volatility. This newfound caution is having a significant impact on the labor market, with many businesses scaling back hiring and scaling down pay raises for existing employees.

Hiring Freezes and Layoffs on the Rise

According to data from the Danish Ministry of Employment (Beskæftigelsesministeriet), the number of job postings in Denmark declined by 12% in the first quarter of 2026 compared to the same period in 2025. Similarly, the Polish Central Statistical Office (GUS) reported a 9% decrease in new job openings across the country during the same timeframe.

This slowdown in hiring is being driven by a range of factors, including rising inflation, which reached 7.5% in Denmark and 8.2% in Poland as of May 2026. Additionally, the fallout from the COVID-19 pandemic and the ongoing conflict in Ukraine have led to supply chain disruptions and increased uncertainty, prompting many companies to take a more cautious approach to expansion.

In a recent survey conducted by the Confederation of Danish Industry (Dansk Industri), nearly 30% of respondents indicated that they had implemented hiring freezes, with an additional 15% reporting plans to reduce their workforce in the coming months. Similarly, the Polish Lewiatan Confederation (Konfederacja Lewiatan) found that 22% of Polish companies had either already initiated layoffs or were considering doing so.

Pay Raises Disappear, Bonuses Shrink

Alongside the slowdown in hiring, companies in both Denmark and Poland are also scaling back on pay raises and bonuses. According to the Danish Employers' Confederation (Dansk Arbejdsgiverforening), the average wage increase in Denmark is expected to be just 2.5% in 2026, down from 3.2% in 2025.

In Poland, the situation is even more pronounced. The Polish Ministry of Family and Social Policy (Ministerstwo Rodziny i Polityki Społecznej) reports that the average salary increase in the country is projected to be just 1.8% this year, a significant drop from the 3.6% seen in 2025. Additionally, many companies are reducing or eliminating bonus payments, further cutting into workers' take-home pay.

Navigating the Changing Landscape

For workers in Denmark and Poland, these shifts in the labor market can be challenging to navigate. However, there are steps that employees can take to protect their livelihoods and position themselves for success:

Stay informed: Keep up-to-date with the latest labor market trends and changes to relevant laws, such as the Danish Working Environment Act (Arbejdsmiljøloven) and the Polish Labor Code (Kodeks Pracy).
Strengthen your skills: Invest in professional development and upskilling to make yourself more valuable to your employer or attractive to potential new employers.
Negotiate strategically: When discussing compensation, focus on the value you bring to the company rather than just asking for a higher salary. Consider alternatives such as increased benefits, flexible work arrangements, or a performance-based bonus structure.
Explore new opportunities: If your current employer is unable to offer the growth or compensation you desire, don't be afraid to look for new job opportunities that better align with your career goals and financial needs.

By staying informed, proactive, and adaptable, workers in Denmark and Poland can navigate the changing labor market and position themselves for success, even in the face of economic uncertainty.

Updated: 2026-06-16