100 new factories in Hungary for guest workers?
Hungarian PM Viktor Orbán recently made a bold promise during his annual state of the nation address: 100 new factories will be built in Hungary this year. This announcement has sparked both excitement and skepticism among experts, who question whether the country’s workforce can meet the demands of such rapid industrial expansion, or, again, a significant inflow of guest workers will be necessary.
The government claims this initiative will boost employment and improve labor mobility. However, details remain scarce, with no information provided on the types of factories or their locations, Pénzcentrum writes.
Labour market concerns
Experts have raised several concerns about the feasibility of staffing these new factories. Hungary is already experiencing near-full employment, making it challenging to find workers for new positions. Additionally, despite positive employment figures, many companies have been quietly reducing their workforce. This includes vulnerable workers such as retired individuals who have returned to work, whose contracts can be terminated without cause.
Expert opinions
Rajmund Roland Dénes, Vice President of Communications at the Hungarian Association of Temporary Employment Agencies (Magyar Munkaerő-kölcsönzők Országos Szövetsége, MMOSZ), believes that while there might be enough workers to start these factories, maintaining a full workforce for 100 new facilities seems unlikely without guest workers.
Melinda Mészáros, President of the LIGA Trade Unions, told Pénzcentrum she sees potential in the plan but notes demographic challenges. She points out that the working-age population decreases by about 30,000 people annually.
József Nógrádi, Director of Strategic Relations at Trenkwalder, emphasises the importance of new investments, especially given that 35,000 companies ceased operations in Hungary last year. He suggests that these new factories could absorb workers laid off from struggling industries, particularly the automotive sector.
Potential benefits
Despite the challenges, experts see several potential benefits from this initiative. The introduction of new factories often brings advanced technologies, potentially raising the overall skill level of the workforce. Additionally, the influx of new employers could drive up wages across the board as companies compete for skilled workers. These factories could also create opportunities for workers with higher education and specialised skills, as younger generations may be less interested in manual labor but more attracted to roles requiring advanced skills.
While the promise of 100 new factories has generated excitement, experts remain cautious about the practicality of staffing these facilities within the proposed timeframe. The success of this initiative will likely depend on factors such as the types of industries involved, the level of automation, and the ability to attract both domestic and foreign workers. The country may need to address challenges in workforce development and immigration policies to meet the demands of rapid industrial growth.
Read also:
- This is why guest workers are essential for Hungary’s economy
- Many guest workers leave Hungary to work in other countries, prompting PM Orbán to introduce stricter measures
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