Staggering! Half a million guest workers in Hungary
While many perceive Hungary as being anti-foreign, the statistics do not support this notion. It is estimated that there are already 500,000 guest workers employed in our country.
The share of foreign workers is on the rise
“If an employer cannot find local workers, they can look abroad. This has been available for several years, but previously, importing guest workers was a complex process that could take 3-5 months. There was a need for expediency, and to facilitate this, a simplified procedure was established, significantly shortening the process. Furthermore, the scope has been expanded to include workers from 15 non-EU countries,” explained Endre Kovách, director of Prohumán 2004 Service and Consulting Ltd.
The Labour Section of the Hungarian Economic Society organised an online conference on labour imports. Hungary is witnessing the creation of thousands of jobs, yet there is an insufficient local workforce to fill them.
According to the Hungarian Central Statistical Office, the number of potential job seekers currently stands at approximately 280,000. Eight years ago, this figure was half a million, and in 2010, it was 700,000.
What is behind this trend?
“If domestic wages were 20-30% higher, we wouldn’t be facing such a labour shortage,” said Balázs Pinczés, head of HR-Network Association. Therefore, the most pressing concern is not the labour shortage but the wage disparity.
Pinczés agrees with the growing sentiment in Hungarian politics that up to 500,000 guest workers could be potentially employed in Hungary. However, he believes the focus should shift towards keeping people in Hungary and encouraging the return of Hungarians who have emigrated abroad instead of attracting foreign labour.
Hvg.hu notes that the Hungarian government’s stance on migrant workers is unclear. A few months ago, the government endorsed a guest worker law, which was subsequently revoked in early October. Now, Hungary allows labour imports from 15 non-EU countries.
Secretary: Foreign workers to be recruited only when necessary
Under “rigorous” new regulations, foreign workers will be employed in Hungary solely if there is an absolute need for them, as stated by a government official in an interview with public television on Tuesday. Hungarian nationals will be given employment opportunities as long as local jobs remain available to them, according to Sándor Czomba, the state secretary for employment policy at the economic development ministry. Additionally, he mentioned that under the current regulations, foreign employees may retain a residence permit after the termination of their employment contract, and the new rules aim to tighten this loophole.
Czomba also highlighted that Hungary’s employment statistics are among the best in the EU, and job opportunities can be found in the country sooner or later for everyone. Employers, Czomba said, are keen to retain their workforces, while previously inactive individuals are increasingly entering the labour market. He further suggested that employers and employees are likely to reach an agreement on raising the basic minimum wage and the minimum wage for skilled workers next year, with the gap between these two categories diminishing over time.
Source: