Planned guest worker ban linked to Hungarian government’s fears of rising unemployment?

Recent reports suggest that the Hungarian government may be planning to implement a ban on employing guest workers from non-EU countries, effective 1 January 2025. This move has sparked concern among local businesses, particularly those that rely heavily on foreign workers. While the government has not officially confirmed the proposal, industry leaders are speculating that rising unemployment rates may be the driving force behind this drastic measure.

As we reported before (HERE and HERE), sources indicate that, under the new policy, workers from most non-EU countries would no longer be eligible for new work permits, with the notable exception of those from Georgia. The measure would also prevent the extension of work permits beyond the current one-year option for workers who were initially granted two-year permits. This potential legislation has left businesses, especially in sectors like manufacturing, logistics, and delivery services, anxious about the future of their workforce.

No consultation between government and businesses

The government’s decision to introduce this policy with minimal consultation has caused confusion and panic among company leaders. Some have speculated that the government is attempting to preemptively tackle expected increases in unemployment in the coming months, 24.hu reports. Concerns are rising that, as the economic situation worsens, local workers may begin losing their jobs, and the government may want to avoid visible signs of foreign labour filling those gaps.

For companies like Master Good, which depend on a significant number of guest workers, the move could have dire consequences. Without guest workers, these companies fear that growth could be unsustainable, and current production levels may even decrease.

Though the details of the proposed regulation remain unclear, the rapid, potentially disruptive change is concerning for many businesses. Company executives argue that such a sweeping policy change cannot be implemented without proper discussion and a reasonable adjustment period. Given the economic challenges already facing Hungary, they worry that restricting guest worker employment could further harm the economy, potentially causing a significant downturn in the country’s GDP.

Read also:

• Shocking proposal: Hungary plans ban on non-EU guest workers starting 1 January
• Several companies in great need of guest workers shocked by Orbán cabinet’s ban proposal – UPDATED

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