Labour shortage in Hungary: no pay rise for manual workers

According to nepszava.hu, the salaries of the semi-skilled workers grew more significantly than the salaries of the skilled workers. In spite of the brutal labour shortage, skilled workers get a salary very close to the minimum wage.

Multinational retail companies could raise wages

To start with, labour shortage is becoming an even bigger problem in Hungary affecting each sector of the economy. According to the data of the Hungarian Central Statistical Office (HCSO),

there are 74 thousand unfilled positions countrywide at present.

As we already reported, the most problematic sectors are public transport and service, tourism and IT. However, there is a huge demand for skilled manual labourers and mechanics in Hungary, as well. For example, it is more and more

impossible to find a skilled and experienced washing machine mechanic or a TV-repairman.

Even so, the salaries of the manual labourers did not grow last year in Hungary. Meanwhile, multinational retail companies like Aldi raised the wages of their employees significantly. For example, the gross salary of an Aldi store manager exceeds 720 thousand forints (EUR 2,326). This sum almost reaches the Western-European salaries in the sector, so it can prevent emigration towards London or Munich.

In spite of labour shortage skilled workers do not get significantly more money

However, manual labourers get only a salary close to the Hungarian minimum wage. In the fourth quarter of 2017 the average

gross hourly rate of a skilled or semi-skilled worker was only 892 forints (EUR 2.88).

Among manual labourers, skilled workers can get 929 forints (EUR 3.00) while their semi-skilled colleagues only 859 forints (EUR 2.78). If we calculate with a 40 hours/week schedule this is less than 150 thousand forints (EUR 485) per month. However, this sum does not cover the cost of living, for example, in Budapest.

In fact, there are

significant regional differences in Hungary, too.

For example, the average hourly rate is 800 forints (EUR 2.58) in the North-Eastern- and South-Western part of the country. Meanwhile, in Central Hungary this sum has already exceeded 1000 forints (EUR 3.23).

In fact, the minimum gross hourly rate was 733 forints (EUR 2.37) last year while the minimum wage was 926 forints (EUR 3.02)/hour. According to nepszava.hu, semi-skilled workers receive better payment than the compulsory minimum wage. However, skilled workers can hardly get a better salary than the minimum.

Finally,

markets expect that the wages of manual workers will rise this year.

The two main reasons are an 8 pc governmental minimal wage increase and the ever and everywhere existing labour shortage.

Source: nepszava.hu, Daily News Hungary