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.