Warsaw - Unemployment in Poland rose to 10.9 per cent in February and was up 0.4 per cent from the previous month, the Central Statistical Office said on Tuesday.

Retail sales were down 1.6 per cent in February compared to a year ago, the statistics office said.

The number of building permits in January and February also fell by 9.6 per cent compared to that same period last year in a country that's increasingly feeling the effects of the global economic recession.

The statistics come amid gloomy predictions from the prime minister's advisors, who warn unemployment levels could rise to 14.5 per cent.

Poland's unemployment rate will keep rising and remain at about 14 per cent for a year, head advisor Michal Boni told TVN24 on Monday.

Analysts also expect the economy to slow as mass layoffs take effect this year and more Poles return from home after working abroad. (dpa)