Bad news has come: quarter of Hungarian businesses plan lay-offs

A quarter of Hungarian businesses plan lay-offs by the end of the year, according to a survey by ManpowerGroup.

While half of companies forecast no changes to headcount, only 20 percent plan new hires, so lay-offs could exceed the latter for the first time since the outbreak of the pandemic, the survey found.

Lay-offs are mainly expected in the capital and in western Hungary. Headcount may expand in manufacturing while remaining stagnant in banking, insurance and the real estate sector. A decline is expected in raw material production, IT, technology, telecommunication, communication and the media.

Also, 39 percent of hotels and restaurants plan cutbacks, ManpowerGroup said.

What is expected depends on the size of firms, with smaller firms less likely to lay off employees this year, they said.

Based on the data, ManpowerGroup believes that the labour market has entered a new phase, with job seekers facing tougher times as labour shortages ease. The change has been explained by a surge in raw material and energy prices and an expected fall in solvent demand, which is forcing employers to adapt quickly.

ManpowerGroup’s forecast is based on feedback from a representative sample of 500 employers. The quarterly survey covered 41 countries, according to the release.

• read also: More Hungarians working in Austria than ever

Read alsoHorrific price rise in real estate, food sectors in Hungary – numbers

Source: MTI