This is why guest workers are essential for Hungary’s economy
The business association VOSZ has underscored the necessity of guest workers to support Hungary’s current phase of economic development, cautioning against administrative measures that could hinder such employment opportunities.
In a statement issued on Tuesday, VOSZ highlighted a critical shortage of blue-collar workers across the nation, emphasising that foreign labour is indispensable for completing investments that, in turn, generate additional local employment. Without the ability to secure essential hires, companies may be forced to scale back operations or relocate to business environments deemed more favourable.
Practical experience reveals widespread misconceptions regarding guest workers. Chief among these is the belief that their lower wages suppress Hungarian earnings or that higher domestic wages would eliminate the need for foreign labour. Yet, in many cases, employers hire guest workers despite the fact that the total cost of employing them can be substantially higher—by as much as 30 to 50 per cent—than for Hungarian nationals.
The reality is that the employment of migrant workers does not occur instantaneously. Integration entails considerable costs, including housing, training, travel, and the recurring expenses of replacing workers after their typical 2-3 years of availability. These factors illustrate that the value proposition of guest workers is far more nuanced than critics suggest.
As we reported earlier, Hungary lowers guest worker cap, 10 countries on the banned list
Addressing misconceptions about guest workers’ wages
The integration of foreign workers raises pertinent questions: how long does it take for a guest worker to start employment upon arrival in Hungary? And what are the associated costs to employers in readying these workers for their roles?
According to VOSZ, the principle of equivalence enshrined in the Labour Code guarantees that guest workers receive the standard wage for their role, irrespective of nationality. They can only earn more through overtime or additional responsibilities. Yet, the costs borne by employers in preparing guest workers for employment—covering accommodation, training, and logistical needs—far exceed those for Hungarian employees.
Guest workers tend to focus solely on their work during their temporary stay in Hungary, as their families often remain abroad. With a limited window of 2-3 years to provide for their loved ones, these workers are driven by necessity rather than choice. In contrast, Hungarian employees, living in their home country, balance their work responsibilities with family life, leisure, and social connections. This distinction significantly elevates the “value of free time” for Hungarian workers, shaping their preferences and readiness for certain roles.
The reality of differing priorities
It is not a matter of judgment between “good” and “bad” workers; rather, it reflects differing living conditions and priorities. Hungary’s rising standard of living has created a situation in which certain roles are no longer appealing or feasible for local workers. These gaps, therefore, must be filled temporarily by foreign labour—a pattern long observed in Western Europe and the United States, where less developed nations have historically provided workers for various sectors, not exclusively blue-collar.
As economic conditions evolve and technological advancements accelerate, the demand for guest workers may decline. However, in the interim, it is imperative to avoid the imposition of unnecessary bureaucratic hurdles that could stifle economic progress. The repercussions of such policies would be felt across the Hungarian economy and society at large.
After the worker cap: guest workers can still come to Hungary
Maybe the old hungarians will change their mind when the pension start to shrink 🙃
They already are shrinking, Jose. The magnitude of the increase in pensions is significantly below that of minimum wage, or indeed general wage growth. The chickens are coming home to roost. Pensioners form the most important block of voters for Fidesz, a failure to keep them happy is a surefire way to lose the next election, but there’s no money left in the piggy bank. They’ve already tapped the Chinese for billions, the budget deficit is sky high and they need to keep some cash in reserve for pre-election giveaways. In these circumstances you’d think they’d be at least pay lip service to the EU’s requests in order to restart the flow of cash, but no. Never mind, more for Ukraine and other deprived parts of the EU. The Minister of the Economy said Hungarians have no idea how good they have it. If they keep repeating this mantra some people might even start believing it.
Surely you realize that the entire social security system is the very definition of a Ponzi scheme. You will ALWAYS need ever more workers to support ever more retirees who live increasingly longer.
The only way to break the cycle is to reduce the payments, force people to retire much later, or supplement (or even replace altogether) the social security system with individual responsibility (such as the 401(k) system, which has its own, many, problems).
Go kick rocks. I’ll happily take a bit of hit to the economy than flood the country with “guest” workers who will inevitably change Hungarian demographics for the worse.
And even if “guest” workers are truly indispensable, do we REALLY have to import them from places like India and Turkey?!? Can’t we get them from nations that are more similar to ours???
The problem ia that nations similar to you only like Hungary as a tourist destination or dor retirements
I would like to ask Mr Michael which countries he thinks of?
and why would those people come here rather than going to Germany, Austria so on and getting triple salary than here?
finally what is your problem with India and Turkey? 😀
Skilled Hungarians working abroad would come home if the wages were decent. Business leaders are lying about it not being about cheap labour. Importing low wage workers is the start of a slippery slope, it only lines the pockets of a few and it ruins a country and it’s people. We don’t want 3rd rate cheap workers from 3rd world countries until every Hungarian at home and abroad has the opportunity for a decent paying job here first.
WIDESPREAD – not just the “Guest Worker” mess in the Migration / Immigration, changes by “Decree” in 2024 voted in by the Orban – Fidesz Government they “Made” Law.
Residency Permit – STATUS – of LIVING in Hungary.
WHY – WHY – have WRONGFUL changes BEEN “made into LAW” – that WE – can’t REMAIN – after living in Budapest, Hungary – for (7) seven years as RESIDENTS under PERMIT status – WHY are we being TOLD – future June 2025 on – next date of our APPLICATION needed – for another (2) two years – period of time maximum of this STATUS of Living in Hungary – WHY – from our Hungarian Layers specialising in Migration / Immigration LAW – we are being ADVISED / TOLD – you WILL Not – get APPROVED to STAY on – and LIVE, after (7) seven years living in Budapest, Hungary.
WHY – WHY ???
People in our thousands – from non European Union countrys – repeat NON – European Union Countrys.
Born in countrys that are DEMOCRACY’s – repeat – born in countrys that are DEMOCRACYS.
Passports of countrys of there birthplace – DEMOCRACYS.
Thousands of “Mature” age – RETIRED people.
SELF Funded – Retirees.
Self Funded – PRIVATE – Medical COVERAGE.
NOT – expecting nor TAKING from the “Good” people of Hungary – “bleeding” them – expecting THINGS for NOTHING.
Thousands of younger years people – employed working paying there “due” taxes – living in Hungary.
WHY – WHY are we looking at – after June 2025 – being CHUCKED out of Hungary ?
WHY ?
Who Politically – are you reading and LISENING the main opposition PARTY to the present Orban led Fidesz Government of Hungary – the TISZA Party – HELD us – be a VOICE for US.
EXPLODE it to Brussels – to the GLOBAL World of countrys that are DEMOCRACY.
Be a VOICE – that FALLS under – DEMOCRACY.
Matt – FACT stuff.
Appreciated as a reader / contributor to this platform provided by DNH.
Hungarians NEED to as time is RUNNING out – grow in SOLIDARITY peacefully under practice of Fact & Truth – to OUT the “toxic” in CULTURE present Government of Hungary, under the Prime Ministership of Victor Orban.
Hungary – deepening into being – the NADIR of its IMPACT – that will result in being a Cataclysmic DISASTER.
NOTHING is GETTING Cheaper in Hungary.