More and more foreign workers are flooding Hungary

The number of foreign nationals residing in Hungary has been steadily increasing over the past decade. As of January, foreign nationals accounted for 2.3 percent of the country’s population.

Neighbouring countries’ nationals constituted half of the foreign population in 2013. However, their share has declined and stabilised at around 35-37 percent since 2019. In January, approximately two-thirds of foreigners in Hungary were European citizens. The remaining 29 percent came from Asia, 4 percent from Africa and 3.4 percent from the Americas, writes Portfolio.

Where do they come from?

Official figures show that the number of foreign workers in Hungary increased by 14 percent. It was up to 81,000 in the previous year. Ukrainian workers accounted for the largest increase, with 5,200 more workers arriving in one year.

Additionally, the analysis by the Hungarian Central Statistical Office (KSH) indicates that there is a slight shift in nationalities, with an increase in employees from non-EU countries such as the Philippines and India. This change is attributed to the relaxation of admission conditions for workers from several non-EU countries.

Foreign migratory trend

At the beginning of 2019, Hungarian companies employed approximately 50,000 foreign workers. This number rose to 60,000 by the end of that year, before seeing a decline during the Covid crisis. However, the temporary decline was soon followed by a resumption of the trend of growth in foreign employment.

Experts believe that the trend of increased influx of foreign workers and residents will persist. The government argues that the availability of sufficient workforce, which requires the employment of guest workers at least on a temporary basis, is crucial to maintain and develop investments and ensure competitiveness.

Way for development or dead end?

Meeting the above-mentioned labour needs is essential to retain Hungarian jobs and attract foreign investment to the country. Although some regions have extremely low unemployment rates, new labour sources are required to support investments and draw in foreign investors. This has to be done, as the existing reserves of Hungarian workers are insufficient.

But some analysts argue that increasing the labour force may not be the best way for a country to catch up.

“The question arises whether extensive growth based on attracting additional labour is the right way for the Hungarian economy to catch up. Wouldn’t it be better to take advantage of the constraints of labour scarcity to move on and start to lead the country towards higher value-added, more efficient, less labour-intensive sectors?”

asks Orsolya Nyeste, chief economist at Erste Bank.

She further added, that by investing in human capital, improving education and healthcare, we would be more likely to break out of the middle-income trap than by importing large numbers of foreign labour.

Source: Portfolio

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5 Comments

Talking to the Wall says:

15/06/2023 at 04:15

It would be interesting to hear suggestions for solving the healthcare and educational investment challenges mentioned by Nyeste. The current strategy of leveraging the desire to work in those sectors for nonliving wages isnt long term. The most recent bandaid, rather than increasing wages, is to make it more difficult to resign. Rather than debate or negotiate better wages and conditions, the government vilifies the sector in the press, souring the public’s opinion of education & healthcare. In turn, the disdain makes it harder to deliver those services and discourages others to even enter these fields.

The knock on effect will be fewer capable high school gradustes and healed citizens, and an even greater demand to import skilled labor. And that ironically will erode Hungarian culture as those skilled workers will doubtfully speak Hungarian which is essential to the national identity.
Michael Steiner says:

15/06/2023 at 07:08

There is nothing “temporary” about these “guest workers.” If they want to stay here permanently, they will. Assume every “guest worker” will stay here permanently, get the residence, and eventually become a citizen, which will enable him/her to pull in the rest of the family, “employ” friends, etc. That’s precisely how immigration has worked across the West. If you’re okay with that, then do whatever you want with the immigration policy, but have it in mind.
Norbert says:

15/06/2023 at 09:38

@michelsteiner – please consider all the passports our Politicians issued over the years to “eligible people”. For example, lots of Ukrainians able to claim some sort of Hungarian descent obtained one. Contrary to popular belief, not for the love of Hungary per se – a Hungarian passport means access to the EU labor market and Hungary’s wages were already higher than Ukraine’s.

Factor in we cannot source labor from Ukraine at the moment (let’s just say their labor pool is committed) – we will need to source from elsewhere.

Last point – no, they don’t want to stay in Hungary … They’re all dreaming of other countries in the EU – a Schengen visa. It is a magical thing! Don’t know if you were able to look at the Ukraine refugee stats yet – https://www.consilium.europa.eu/en/infographics/ukraine-refugees-eu/ : we really are not that popular as a place to settle.
Rázs Gábor says:

15/06/2023 at 09:43

Michael reply:
surprisingly, this is exactly what Hungarian guest workers did in Germany, England, and so on!!!
better to blame the guest workers who accept the lowest wages, government should help getting better health life, schools, and so on
Insulted; says:

15/06/2023 at 11:51

Lived in Hungary for (5) five Years.
In the process of making my 3rd application – for residency under my status, to the Hungarian Government which is just for a (2) two year period.
I do not speak nor write Hungarian.
Financially extremely sound, cover ALL my own Medical “needs”.
The application paperwork to re-apply for a Residency Permit Card – my 3rd time of APPLICATION – Mindboggling.
Lived in same house, in District V under a Contract of Lease and in-put paid out over 5 years THOUSANDS of Forints/huf into the Hungarian Economy.

Orban and his Government – these changes to Guest Workers, the qualifications and “Soft” requirements for them to move into Hungary – INSULTING to what I have to endure in the submission the re-application after 5 years – my 3rd application to receive a further 2 “meagerly” years of a Resident Card.

My age is 73 and remembering that I receive from the Orban led Government of Hungary – NO – benefits – absolutely NONE.

Its WRONGFUL and Insulting to me personally this “Soft” policy of Orban and his Government, for entry into Hungary, that will have immediate effect on the workforce in Hungary and “drive” wages LOWER.

The long term effect, it opens GATES for a FLOODING into Hungary from a Immigration perspective, that will FURTHER drown out cause DEEPER erosion into the true blood DNA population of Hungary.

They WILL come – that’s a CERTAINTY and there IMPACT – destructive to the FUTURE of Hungary, the Hungary, we have known, or read about post 1989 to this year of 2023.