Péter Magyar said during the parliamentary election campaign that he does not want Hungary to remain an assembly-line economy with low value-added jobs. He believes the Hungarian economy should create more high value-added positions. As a result, fewer non-EU guest workers would be needed, while more Hungarians could return home from abroad.

Péter Magyar’s government aims to create high value-added jobs

New Economy and Energy Minister István Kapitány and Finance Minister András Kármán share the view that Hungary should become a modern economy built on high value-added jobs. Experts agree that they would seek to attract such investments, rather than creating new jobs in sectors such as manufacturing or processing.

The Orbán governments took a different approach. They aimed to create as many jobs as possible through investments from all parts of the world — including large-scale projects from China and India — mostly generating low-paid employment. As a result, many Hungarians moved abroad in search of higher wages. The surge in investment led to sectoral labour shortages, and vacant positions were filled by non-EEA guest workers. Their number has now reached over 120,000–130,000.

Chinese investment delays guest workers Hungary illustration
Illustration. Guest workers very much needed in the processing industry. Featured image: depositphotos.com

As we wrote in a separate article, their presence is essential to Hungary’s economy, even in sectors such as healthcare, where their numbers are relatively low. Due to chronic labour shortages, their absence could significantly affect service levels. In the processing industry, guest workers are indispensable, as they are in Hungarian agriculture — particularly during harvest periods — and in livestock farming, including cattle herding and the dairy sector.

Guest workers’ fate to be decided next week

The Magyar government said during the election campaign that it would halt the inflow of guest workers from 1 June and review the entire system. The issue was also raised at yesterday’s cabinet meeting. According to a government spokesperson, a decision on restricting the employment of guest workers from outside the European Union is expected at a cabinet meeting next week.

Péter Magyar and the government spokesperson
Yesterday the press conference was held by PM Péter Magyar and the government spokespersons together. Photo: MTI/Hegedüs Róbert

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The prime minister has asked the Minister for Economy and Energy and the Minister for Social and Family Affairs to coordinate discussions on work permits for non-EU nationals with the relevant ministries. The aim is to ensure that guest workers meet the needs of Hungarian businesses while preventing the development of an economic model reliant on their mass employment, she added.

India guest worker dairy farm hungary news
Indian farmer peeting cattle by kiisinng on forehead at farmland while tilling. The Hungarian dairy industry is said to collapse without the work of the Indian guest workers. Photo: depositphotos.com

The Ministries of the Interior, Finance, Agriculture, Social and Family Affairs, Economy and Energy, and Justice will be involved in the assessment, government spokesperson Anita Köböl added.

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