Alexandra Béni | Apr 21, 2019 | 1
Hungary in great trouble – critical lack of labor force
More and more companies struggle with the lack of labor force. The most recent data shows that the number of vacant jobs hit a historical height, as Világgazdaság reports.
The Hungarian Central Statistical Office (KSH) revealed that Hungary’s lack of labor force is becoming critical. 48,460 empty jobs were registered in the private sector in the second quarter of the year, which means ten thousand new ones compared to the same time last year. It is also two and a half times more than four years before.
National economy has 65,700 vacant jobs.
Public sector does not give any fresh data since 2016, so KSH counts the numbers from the end of 2015. These show 14,510 unmanned positions. There might be even more in the financial sector, as it also shows a tendency of increase.
About 50,000 jobs are unfulfilled in the competition sector.
This is critical for companies, as they are facing higher and higher lack in many sectors despite the lowering of requirements. And there are probably more unmanned positions than the statistics show. Experts estimate that Hungarian labor market could take 100,000-200,000 more skilled workers.
The most problematic sector is production industry, which could accept 19,000 more workers anytime. Eurostat claims that 80 percent of the companies blame lack of labor force as their greatest hindering factor. It was about 70 percent last year.
Due to the boom in housing market and the faster calling for EU funds made building industry is prospering, but it still lacks about 3,000 workers. It was only 2,000 a year before. According to the survey of Eurostat,
half of the construction enterprises claim that the lack of proper workers is the main detaining factor.
Service enterprises managed to avoid increase in the lack of labor force, as their vacancy rates is still at one third.
Thousands of additional workers are needed in commerce, vehicle engineering, shipping and storage industry, as well as accommodation and catering. Education, healthcare and administration also struggle with a similar problems. The branch of social services has a lack of labor force rate of 7,000 jobs.
Hungarian economy is descending into a critical stage concerning the lack of skilled labor. This might mean even greater problems later, as the increasing branches would require even more free labor.