Surprisingly, Hungarians are not only going to the West to work

With Austria, Slovakia, and Romania drawing Hungarians across borders to work, recent statistics from the Hungarian Central Statistical Office (KSH) shed light on this growing trend of cross-border employment. Austria remains the most popular destination, with Slovakia and Romania emerging as surprising, though significant, alternatives for Hungarian workers.

Austria is the most popular foreign country for Hungarians to work

Source: depositphotos.com

In 2022, the KSH reported that 122,000 Hungarian residents commuted to work abroad, making up nearly 3% of Hungary’s total workforce, Portfolio reports. Around 80% of these cross-border commuters headed to Austria, especially from western border towns, motivated by Austria’s higher wages despite the country’s higher cost of living. As of April 2024, Austria employs 118,000 Hungarians, marking a 4.4% increase in one year, according to G7. This influx makes Hungarians the second-largest foreign workforce in Austria, only outnumbered by Germans. Projections suggest that Hungarians may soon become the largest expatriate group in Austria, driven by wage differences and economic opportunities.

Interestingly, almost half of Hungarian employees in Austria commute rather than relocate, given Austria’s higher living costs. Commuting allows them to take advantage of Austria’s higher median wages—around EUR 2,000 monthly for Hungarians—without paying Austria’s elevated rent and consumer prices. Despite earning 27% less than the average Austrian, Hungarian wages in Austria are significantly higher than comparable wages at home, making commuting an attractive option. Yet, Hungarians in Austria often hold physical, non-office roles, with limited options for remote work, and the Hungarian government has yet to support remote work arrangements through a framework agreement, adding a layer of complexity to these cross-border jobs.

More and more people commute to Slovakia and Romania too

Brassó (Brasov) in Transylvania, Romania. Source: depositphotos.com

Surprisingly, Hungary’s eastern and northern border regions are also seeing substantial commuting patterns to Slovakia and Romania. According to KSH’s findings, many residents from Borsod-Abaúj-Zemplén County travel to Košice in Slovakia, while others from southeastern Hajdú-Bihar County commute to Oradea in Romania. Sándor Baja, CEO of Randstad Hungary, noted during the Budapest Economic Forum that a trip to Biharkeresztes would reveal “dozens of buses transporting Hungarian workers to Oradea.” This observation hints at a shifting perception of Romania’s wage competitiveness.

Recent insights challenge Hungary’s traditional view of Romania as a lower-wage country. As Árpád Boros, Staufen’s country manager for Hungary and Romania, explained, Romania’s wages have largely caught up with those in Hungary. In certain regions, wages in Romania even exceed those in Hungary, positioning Romania as an increasingly viable destination for Hungarian workers seeking better pay.

Higher wages key motivator for Hungarians

Higher wages remain a key motivator for these commuters, yet the decision is not purely financial. Austria’s living costs, 1.6 times those of Hungary’s according to Eurostat, mean that cost-adjusted wage advantages diminish, as we wrote earlier. When factoring in the cost of living, the Austrian median gross wage only represents a 1.6 times increase over Hungarian wages, rather than the 2.5 times difference indicated by unadjusted figures. Despite hopes that Hungary’s rising wages might curb cross-border commuting, the widening wage gap is pushing more Hungarians to seek better-paying opportunities abroad each year.

Whether in Austria’s bustling sectors or Romania and Slovakia’s border industries, the appeal of cross-border employment persists, fueled by wage disparities and limited remote work options at home. As neighbouring countries attract growing numbers of Hungarian workers, these cross-border patterns underscore the ongoing economic challenges faced by Hungary’s workforce.

Read also:

• Leaving home in hopes of a better life: Here’s how much Hungarians in Austria earn
• Masses of Hungarians move to live and work in Austria