More and more industries in Hungary dependent on guest workers: new reality of the labour market?

By autumn 2025, Hungary’s labour market has reached a peculiar state of equilibrium. While the economy is showing only cautious signs of growth, the proportion of foreign workers continues to rise. According to experts, several sectors could already become inoperable without guest workers.

Rising demand in a slowing economy

According to the latest figures from the Hungarian Central Statistical Office (KSH), around 106,000 foreign nationals are currently working in Hungary, and this number is expected to continue increasing by the end of the year. Although the unemployment rate has risen slightly, companies are still struggling with a severe shortage of skilled labour, particularly in industry, logistics, and manufacturing.

Magdolna Mihályi, CEO of Jobtain HR Service Ltd., told Portfolio that firms are increasingly relying on efficiency improvements and flexible forms of employment to weather the economic slowdown.

The role of foreign labour

Even though the stricter immigration rules that came into force late last year have made hiring foreign workers more difficult, companies remain committed to them. The regulation introduced in 2025 capped the annual number of guest workers at 35,000 and significantly narrowed the list of source countries. At present, most workers arrive from the Philippines, as well as several Eastern European and Caucasus countries.

According to József Nógrádi, a specialist at Trenkwalder, many companies employ foreign workers for two main reasons:

• Managing seasonal fluctuations: when Hungarian workers leave in the spring for seasonal or overseas jobs.
• Stability and savings: turnover rates are significantly lower among workers from non-EU countries, reducing recruitment and training costs.

Tougher conditions

Dávid Maier, CEO of Terendo, believes market sentiment is improving, but the restrictive permit system is curbing growth. Recruitment experts say the list of approved countries is so limited that it has become almost impossible for most small and medium-sized enterprises to employ guest workers legally. While large companies can still obtain labour more easily through priority channels, smaller plants often cannot take advantage of this due to administrative or cost-related obstacles.