SHOCKING: Hungary’s guest worker numbers exposed!

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The Ministry of Economy stated that, based on their data, there are currently 120,000 guest workers in Hungary. However, recent statistics from the Hungarian Central Statistical Office (KSH) present significantly lower figures.

As reported by Portfolio, the Department for National Economy has suggested that around 120,000 guest workers are currently in active employment in Hungary. Conversely, the KSH analysis reveals that in 2023, the count of employees with foreign citizenship rose by 11,700 to 92,700 compared to the previous year. This increase is attributed to a significant influx of workers from third-world countries.

This figure is nearly 30,000 lower than the one reported by the Ministry of National Economy. The influx of foreign workers in the country has been growing at an accelerating rate since 2021, as per the Hungarian Central Statistical Office.

According to Index, State Secretary Czomba Sándor stressed that guest workers are only permitted in occupations facing shortages where local and EU labour is insufficient. Hungarian job protection measures include quotas, country lists and restrictions on substituting long-term workers with guest workers.

Legislations aims to prevent the erosion of Hungarian wages by ensuring that the remuneration for third-country nationals does not significantly differ from the national average, thus maintaining competitiveness for Hungarian workers in the labour market.

How does the number add up?

In Hungary, there is a notable influx of workers from the Philippines, Vietnam and Kyrgyzstan, while the numbers from Ukraine, Slovakia and Romania are dwindling. The Filipino workforce has seen a remarkable surge from 1,100 in 2022 to nearly 6,300 in 2023.

This trend solidifies Hungary’s position as a significant destination for foreign workers, with Vietnamese and Kyrgyz nationals also constituting a considerable portion of the incoming workforce. Despite this surge, Hungary boasts the lowest proportion of third-country workers among the Visegrád Group (V4), with only 2.6% of the workforce comprising foreign nationals, compared to 3.8% in Slovakia, 6.4% in Poland and 17% in the Czech Republic.

Why opt for guest workers?

According to Portfolio, Hungary is facing a labour shortage that experts believe will worsen in the coming years due to a declining working-age population and heightened demand from expanding industries.

Both employers and workers agree that importing guest workers is necessary, albeit they differ on the approach. Trade unions advocate for stricter regulations, while company representatives prioritise access to foreign labour.

As of February, there were 80,000 unfilled jobs in Hungary, yet the quota for guest workers this year is set at 65,000, with only an anticipated 45,000 to 50,000 permits to be used. The regulated inflow of labour is deemed necessary, yet safeguarding Hungarian jobs remains a priority.

The dwindling Hungarian workforce is highlighted by instances of Hungarian workers being replaced by foreigners in certain companies. The consensus is that the labour shortage can only be mitigated through the employment of guest workers.

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