The Tisza government, led by Péter Magyar, had intended to suspend the arrival of new guest workers to Hungary from 1 June. However, the necessary legislation has yet to materialise. The prime minister’s office has now addressed the prospect of a ban, while business leaders have offered their own assessment.
Reliance on foreign labour remains strong
The planned restriction—promised during the election campaign—which would have prohibited the employment of non-Hungarian guest workers from outside the European economic area, did not come into force on 1 June.
According to Economx, approximately 100,000 guest workers are currently employed in Hungary. Around 20,000 originate from Serbia and Ukraine, many of them ethnic Hungarians who speak the language, while a significant number arrive from the Philippines and other southeast Asian countries.
Previous Orbán administrations argued that such labour was indispensable, as the domestic workforce could not meet the demands of a growing number of investments. These roles are largely manual positions that attract limited interest locally. In sectors such as livestock farming and seasonal agricultural work, guest workers are widely regarded as irreplaceable.
The Magyar government, by contrast, has signalled its intention to prioritise higher value-added jobs, which may explain its earlier pledge to halt the inflow of new guest workers. Even so, most of these workers were never eligible for permanent residency or citizenship, typically being required to return home within two to three years. In some cases, individuals were compelled to leave despite having formed families in Hungary—an outcome critics have described as unduly harsh.
No decision yet from the Tisza government
The prime minister’s office, headed by political analyst Bálint Ruff, has confirmed that no final decision has been taken. For now, the employment of foreign workers remains permitted.
Labour market participants have greeted this development with relief. Magdolna Mihályi, managing director of Jobtain HR services, stressed the importance of avoiding abrupt tightening, arguing that it allows both policymakers and businesses time to prepare well-founded measures. A sudden, externally driven restriction, she warned, could cause serious short-term disruption across several sectors.
Hungarian smes also depend on foreign workers
Mihályi noted that while third-country nationals still represent a relatively small share of Hungary’s workforce, they play a critical role in certain industries. Manufacturing, logistics and construction in particular rely on their contribution. A previous international comparison cited in the statement found that foreign workers accounted for just 2.6 per cent of Hungary’s labour force—lower than in several neighbouring countries.
Tamás Horváth, owner and managing director of Menton Jobs, likewise pointed out that Hungary’s reliance on guest workers remains modest by international standards. He added that foreign labour is not confined to large industrial investments—often criticised in public debate, such as battery plants—but is also vital to many domestically owned small and medium-sized enterprises. Roughly half of the workers his firm places are employed by such companies.
Is there sufficient domestic labour?
At the heart of the debate lies a key question: can Hungary’s domestic labour reserves genuinely replace foreign workers, as Tisza claimed during the campaign?
The government’s position is that these reserves should be mobilised, alongside efforts to attract higher value-added employment and equip workers through training. Yet Mihályi argues that persistent labour shortages continue to affect multiple sectors, with some vacancies remaining unfilled for months. Recruitment, she notes, imposes significant organisational and administrative burdens, while also threatening operational continuity.
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Economx, citing data from the Hungarian central statistical office, reports that although some 318,000 individuals fall within the category of potential labour reserves, this does not mean they can be readily deployed. The group includes those not actively seeking work, those unable to start in the short term, and those content with part-time employment due to personal circumstances.
Mihályi goes further still, estimating that there is no immediately mobilisable reserve of 300,000 to 400,000 workers. In her view, only around 8 to 10 per cent of this group can reliably perform consistent, value-creating work. Increasing domestic participation, she argues, will require gradual measures, including training, mobility support and targeted programmes. While Hungarian workers already enjoy priority under existing regulations, certain roles simply cannot be filled from local sources.
Fears of economic disruption
Business leaders warn that a sudden ban could reduce production capacity. Mihályi suggested that some firms might lose workers more quickly than domestic replacements could be found, potentially leading to downsizing. For international companies, this could even result in production being relocated abroad—ultimately costing Hungarian jobs and reducing tax revenues.
For now, the fact that the promised immediate tightening has not taken effect is seen as positive news. The arrival of new guest workers remains possible, though uncertainty persists as the government’s final decision is awaited. In the meantime, economic actors are calling—understandably—for predictable and gradual regulation. Professional organisations have already initiated consultations with the new government, hoping that future measures will strike a balance between protecting Hungarian workers and maintaining business viability.
Far-right Mi Hazánk party is calling for a suspension of the inflow of guest workers
Right-radical Mi Hazánk, which secured six seats in the 199-member Hungarian Parliament, has called for a suspension of the inflow of guest workers to Hungary. MP János Lantos told MTI that the government’s failure to introduce the promised regulations may indicate a future capitulation to “multinational companies.”
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