Hungarian workers allegedly replaced by cheap guest workers: Orbán cabinet responds

guest workers
Hungary is witnessing a historic surge in the number of foreign workers, and new figures reveal a dramatic shift in the origins of its migrant labour force. Source: depositphotos.com

Portfolio recently reported a growing trend in Hungary: companies are dismissing Hungarian workers to hire cheaper guest workers instead. For example, Debrecen’s CATL laid off 150-200 Hungarian employees to fill their roles with foreign labour. The Hungarian National Economy Ministry issued a lengthy statement in response to media reports highlighting this controversial practice. The ministry said there was “absolutely no correlation” between a decline in the number of people employed in Hungary and the number of guest workers from countries outside of the European Union.

Hungarian workforce replaced by guest workers?

According to Telex, Portfolio revealed that the Hungarian economy is struggling, forcing companies to cut local jobs to protect profits. The number of employed Hungarians has dropped to 4.5 million—the lowest in three years—while the number of foreign workers in Hungary has climbed to a historic high of 105,000.

Interestingly, Hungary no longer attracts workers mainly from neighbouring countries. Instead, guest workers come from more distant places such as the Philippines, Vietnam, India, China, Türkiye, and Russia. Ukrainians form the largest foreign workforce in Hungary, with over 20,000 workers, followed by Filipinos (9,500) and Vietnamese (8,700).

  • In an unexpected turn, CATL in Debrecen dismisses Hungarian workers to allegedly make room for guest workers

Portfolio noted that Hungary’s appeal has shifted away from neighbouring EU countries and Serbia, now drawing mostly from what it calls “third world countries.”

  • Middle-aged Chinese guest worker suspected of raping an underage Hungarian girl in Debrecen

Ministry talks about false conclusions of the Hungarian media

The National Economy Ministry addressed reports on the local labour market “based on false conclusions” in a statement issued on Wednesday. The ministry said there was “absolutely no correlation” between a decline in the number of people employed in Hungary and the number of guest workers from countries outside of the European Union.

It attributed the recent decrease in the number of employed to demographic trends, and pointed out that Hungary’s employment rate stood at 81.2%, the fifth-highest figure in the EU. That rate is up from 59.9% in 2010, as the number of working Hungarians has climbed by 1 million since then, it added.

The ministry also said employment numbers were down in the industrial sector, where technological advances and improved efficiency impacted headcount, but up in the service sector.

Strict legal controls on the employment of guest workers

The ministry highlighted strict legal controls on the employment of guest workers from non-EU countries and said such labour was used mainly to complete big investments and put them into operation. It also acknowledged the benefits to foreign investors of using workers from their own countries, with the necessary know-how and skills, to complete and launch projects in Hungary.

The ministry said non-EU workers accounted for 2.8% of the employed in Hungary at present. Including foreign nationals from the EU and European Economic Area, that rate stands at 3%, it added. For comparison, the respective rates in neighbouring countries are 4.5% for Slovakia, 7.1% for Poland and 16% for Czechia, the ministry said.

Click for more articles on guest workers in Hungary.

Featured image: depositphotos.com

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