According to economists at Pekao, Poland’s second-largest bank, wages converted into euros have doubled over five years and tripled over the past decade. The increase reflects a combination of high inflation, rapid nominal wage growth in the Polish zloty and a relatively stable national currency. The trend has boosted household purchasing power, but it also means labor in Poland has become more expensive from the perspective of foreign investors. That could affect sectors such as business services, which employ hundreds of thousands and have played a major role in the development of mid-sized Polish cities. Pekao economist Sebastian Roy said Western companies still have limited alternatives when looking for cost-effective outsourcing locations. Poland, he argued, remains cheaper than Germany, France or the United States — but must move further up the value chain.