Warmia-Mazury region, one of the poorest in Poland, faces the deepest (as compared to all regions of the EU) labour market crisis. The mixture of social and economic problems represents a huge challenge for regional authorities. The chances for fast improvement are limited by several factors, such as low quality of transport infrastructure, low innovation potential and productivity, large share of unskilled labour force, etc. One necessary condition of the improvement is the reform of public finances at country level. Nonetheless, regional authorities should undertake the activity in order to increase the potential of human capital in the region, e.g. by improving the quality of schools. While directly fighting unemployment more effort should be put on stimulating the demand side of the labour market and co-operation with NGOs.