In a paradoxical twist, many Hungarians could soon find themselves out of work: not due to an influx of foreign labour, but because government restrictions are making it increasingly difficult and costly to hire guest workers. Business owners warn that without enough staff, they may be forced to shut down operations entirely, potentially driving up unemployment in Hungary.

Without guest workers, Hungarians would also lose their jobs

Telex published a detailed report outlining the growing difficulties small and medium-sized enterprises in Hungary face in hiring guest workers and maintaining previous levels of production. They spoke with agricultural entrepreneurs, waste management executives, and managers in the food and timber industries, all of whom agreed that recent government restrictions have made it more difficult and more expensive to bring in foreign labour.

Asian guest workers Hungary jobs risk government crackdown
Source: depositphotos.com

We previously reported that renowned restaurateur Master Wang may be forced to close several of his establishments because he can no longer attract the highly skilled chefs required to maintain authentic Chinese cuisine. The crux of the issue is that there’s no agreement between China and Hungary that would allow Chinese guest workers to be deported, nor is there any designated agency to manage such procedures. While it’s hard to imagine enforcing such measures on master chefs, current Hungarian laws don’t allow for exemptions, leaving Wang (Wang Qiang) with no choice but to shutter some locations.

Practically only Filipinos can enter

Wang’s situation is unique, but many business owners are in similar straits. Just before Christmas last year, the government passed a regulation allowing only 35,000 guest workers into the country in 2025. These workers must also come from non-EU countries that either have repatriation agreements with Hungary or have an approved agency willing to take responsibility for returning workers who violate the rules.

India guest worker dairy farm hungary news
Photo: depositphotos.com

Reportedly, this measure was enacted because the government foresaw a potential economic contraction and rising unemployment, which could fuel public dissatisfaction ahead of upcoming elections. In previous years, especially after 2010, the government enjoyed a boost in popularity due to a tight labour market, where workers could easily find better jobs if treated unfairly. Some analysts believe this environment, along with anti-migration sentiment, helped deliver the 2018 supermajority victory.

Currently, aside from a few exceptions like Georgia and Armenia (from which few people are applying), only workers from the Philippines are effectively allowed. The Philippines partially relies on exporting labour—mainly to the Gulf States and Asia—with remittances making up nearly 10% of its GDP. However, it requires employers to commit to employing workers for at least two years at a single location.

Many Hungarian businesses could collapse

This two-year mandate poses challenges for many small- and mid-sized Hungarian companies, which often seek seasonal rather than permanent workers due to market fluctuations. According to Hungary’s Central Statistical Office, the employment of non-EU foreign workers is on the rise. In July of last year, 78,900 such workers were employed in Hungary; by this June, the figure rose to 83,300—a jump of 4,400.

Guest workers in Hungary job
Guest workers are also active in the construction industry. Illustration. Photo: depositphotos.com

If a company fails to meet the two-year employment requirement, it must pay the remaining wages as a penalty.

According to Hungarian SMEs, the skilled domestic workforce is largely employed in Western Europe, and they can’t find reliable local replacements for vacant positions. Either the candidates lack the necessary skills or are unreliable. Larger corporations haven’t reported such issues. For instance, according to Telex, the Chinese-owned CATL and Germany’s BMW are aggressively hiring in the Debrecen area—leaving smaller firms unable to compete.

This trend carries serious risks, as the downfall of even a single small business can leave entire Hungarian families facing financial despair.

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