Kraków entered the second quarter of 2026 with a clearly mixed economic picture. The city recorded strong annual growth in wages, industrial production, construction output and housing completions. At the same time, average employment fell, registered unemployment rose sharply, and retail sales remained below last year’s level.
The April data from the Statistical Office in Kraków suggest that the city’s economy is not slowing uniformly. Investment and industrial activity look relatively strong, while the consumer side of the economy and parts of the labour market are weaker. This creates a more complex picture than a simple expansion or downturn.
Labour market: fewer jobs, more unemployed people
Average employment in Kraków’s enterprise sector stood at 244.1 thousand people in April 2026. This was 0.3% lower than in March and 1.9% lower than in April 2025. In absolute terms, enterprise-sector employment fell by around 4.7 thousand jobs year on year.
The biggest annual declines were recorded in professional, scientific and technical activities, transport and storage, information and communication, trade and vehicle repair, accommodation and food services, and culture, entertainment and recreation. At the same time, employment increased in administrative and support services, industry, real estate services and construction.
This shows that Kraków’s labour market is undergoing a structural adjustment. The fall in employment in professional and technical activities is particularly notable because this segment is usually associated with the city’s stronger, higher-value service base.
Registered unemployment also increased. At the end of April 2026, Kraków had 14,825 registered unemployed people, up 2.6% from March and 28.7% from April 2025. The unemployment rate rose to 2.8%, compared with 2.7% a month earlier and 2.2% a year earlier.
Despite this deterioration, Kraków’s labour market still looks relatively tight compared with the wider region and the country. The unemployment rate in Małopolskie province was 5.1%, while Poland’s national rate stood at 6.0%.
There was also a positive signal from job vacancies. In April, labour offices received 1,141 job offers, and at the end of the month there were 7 registered unemployed people per one job offer, compared with 9 in March. This was much better than the regional average of 18 people per offer.
Wages: high level, strong annual growth, monthly correction
Average gross monthly wages in Kraków’s enterprise sector reached PLN 12,509.32 in April 2026. This was 8.8% higher than a year earlier, but 6.9% lower than in March.
The monthly decline was broad. Wages fell compared with March in administrative and support services, industry, information and communication, real estate services, trade, accommodation and food services, construction, and transport and storage. The only major increases were recorded in professional, scientific and technical activities and in culture, entertainment and recreation.
The year-on-year picture was much stronger. Wages increased across all listed sectors, with the largest annual rises in professional, scientific and technical activities, industry, culture and recreation, real estate services, transport and storage, administrative and support services, accommodation and food services, information and communication, construction and trade.
The wage structure remains highly uneven. According to the chart on page 3 of the report, wages in information and communication were 47.2% above Kraków’s enterprise-sector average. Professional, scientific and technical activities were 35.0% above average. At the other end, accommodation and food services were 47.9% below average, while transport and storage were 32.3% below average.
This confirms that Kraków remains a high-wage city in knowledge-intensive sectors, but the gap between technology-oriented jobs and lower-paid services is very large.
Construction: one of the strongest parts of the economy
Construction data were clearly positive. Sold production of construction reached PLN 1.478 billion in April 2026. This was 24.3% higher than in March and 45.4% higher than in April 2025.
In January–April 2026, sold construction production amounted to PLN 4.967 billion, up 33.5% year on year. Construction and assembly production also increased. In April it reached PLN 376.0 million, up 5.5% month on month and 9.4% year on year.
For the first four months of 2026, construction and assembly production was 25.0% higher than in the same period of 2025. Growth was recorded in specialist construction works, building construction and civil engineering.
Productivity in construction also improved. Output per employee in construction stood at PLN 97.2 thousand in April, up 23.5% from March and 43.2% from April 2025.
This is a major difference compared with Warsaw, where the same month showed a clear annual decline in construction. In Kraków, construction activity appears to be supporting the local economy rather than dragging it down.
Retail trade: weaker consumer demand
Retail sales were one of the weaker elements of the April data. Retail sales by trading and non-trading enterprises were 2.2% higher than in March, but 2.7% lower than in April 2025.
The annual decline was broad. Sales fell in non-specialised stores, food, beverages and tobacco, motor vehicles and parts, the “other” category, press and books, pharmaceuticals and cosmetics, and clothing and footwear.
For January–April 2026, retail sales were 4.8% lower than in the same period of 2025. This suggests that the weakness was not limited to one month.
The data point to more cautious consumer behaviour, despite rising nominal wages. This may reflect higher living costs, weaker employment dynamics, changes in spending priorities or a high comparison base from the previous year.
Wholesale trade looked better. Wholesale sales in trade enterprises were 10.8% higher year on year in April, while wholesale enterprises recorded a 10.0% annual increase. In January–April, wholesale sales were also above last year’s level.
This contrast is important: business-to-business turnover remains relatively solid, while household-facing retail sales are weaker.
Industry: strong growth, but uneven structure
Industrial sold production reached PLN 4.597 billion in April 2026. In constant prices, it was 19.0% higher than in April 2025. Manufacturing output increased even more strongly, by 22.6% year on year.
The January–April data confirm this positive trend. Industrial sold production amounted to PLN 18.365 billion, up 16.6% year on year in constant prices. Manufacturing production increased by 22.2%.
The strongest growth was recorded in electrical equipment, where sales were more than 4.5 times higher than a year earlier. Increases were also seen in repair, maintenance and installation of machinery and equipment, production of computers, electronic and optical products, chemicals and food products.
At the same time, several manufacturing branches recorded sharp declines. These included pharmaceuticals, clothing, wood products, paper products, printing, non-metallic mineral products, machinery and equipment, furniture, textiles, leather products, other manufacturing, rubber and plastics, and metals.
This means Kraków’s industrial performance was strong overall, but not universal. Growth was concentrated in selected branches, while many traditional manufacturing segments remained under pressure.
Housing market: completions surge, but new starts decline
Housing completions were one of the strongest areas in the report. In April 2026, 1,287 dwellings were completed in Kraków, 91.8% more than in April 2025.
In January–April 2026, 3,450 dwellings were completed, up 79.3% year on year. This increase was driven mainly by dwellings built for sale or rent, where completions rose from 1,779 to 3,254 units, an increase of 82.9%. Individual housing also grew, from 145 to 196 dwellings.
However, forward-looking indicators are weaker. In January–April 2026, construction began on 2,935 dwellings, down 12.8% year on year. Permits and construction notifications covered 3,146 dwellings, down 3.0% from the same period of 2025.
This creates a two-speed housing picture. Current supply, measured by completed dwellings, is much higher than last year. But the pipeline of new projects is softer, which may affect supply in later quarters.
The average usable floor area of a completed dwelling was 63.1 sq m, down 3.0 sq m year on year. In housing built for sale or rent, the average area was 56.8 sq m, while in individual housing it was 166.9 sq m.
Business activity: the company base keeps growing
At the end of April 2026, 196,589 entities were registered in Kraków in the REGON register. This was 0.3% more than in March and 4.5% more than in April 2025.
Kraków accounted for 37.7% of all registered entities in Małopolskie province. The city had 43,173 commercial companies, up 5.7% year on year, and 125,269 sole proprietors, up 4.7% year on year.
The largest share of registered entities was in professional, scientific and technical activities, which accounted for 15.3% of all units. Trade and vehicle repair represented 14.4%, while information and communication accounted for 13.2%.
The fastest annual growth in the number of entities was recorded in administrative and support services, education, information and communication, health and social work, construction, professional activities and transport. Declines were recorded in water supply and waste management, mining and quarrying, and trade.
In April, 1,109 new entities were registered, while 587 were removed from the register. The number of new registrations was significantly lower than in March, but the net balance remained positive.
Kraków compared with other large cities
The comparative table in the report shows that Kraków remains one of Poland’s largest urban labour markets. Its enterprise-sector employment of 244.1 thousand people was far below Warsaw’s 1.110 million, but higher than many other major cities.
Kraków’s average gross wage of PLN 12,509.32 was especially notable. It was higher than Warsaw’s PLN 11,786.67 in the same comparison table, although direct interpretation should be cautious because city-level wage structures depend strongly on sector composition.
Kraków also stood out in industrial production. Its industrial output was 19.0% higher year on year, one of the stronger readings among the cities listed in the report. Housing completions were also strong, with the January–April total at 179.3% of the previous year’s level.
At the same time, Kraków’s unemployment rose more visibly than in many large cities, and retail sales were weaker than a year earlier. This confirms that the city’s economic performance is strong in selected sectors, but not evenly distributed.
