More guest workers to come to Hungary?

A new government decree allowing workers from non-neighbouring countries to work in Hungary temporarily is about to come into effect.

As the vaccine seems to mitigate the many disadvantageous effects of the coronavirus, businesses and factories are ready to return to the pre-pandemic life. This situation causes a labour shortage in the country, which will lead to the increase of guest workers filing for a temporary work permit.

Serious labour shortage at Lake Balaton

The number of guest workers from neighbouring countries, mainly from Ukraine and Serbia, but occasionally from the Middle East and Latin America, was already relatively high before the virus appeared. In 2016, 14500 applications to receive a residence permit were filed, while this number grew to 78000 three years later.

Based on Eurostat data,

in 2018, over 31 thousand people received a residence permit for work purposes.

As there is a lack of workforce in Hungary in general, the government decided to open the country’s gates wide and give more opportunities to these people.

Minister of Foreign Affairs and Trade Péter Szijjártó announced in July that

the government would make it possible for people coming from non-neighbouring, third-world countries, who wish to work in Hungary on a temporary basis, to do so through work agencies.

He will set up a specific group of labour force agencies for this purpose. The government decree containing the decision will be in effect starting from September 1.

Guest workers in Hungary mostly do basic physical labour in factories belonging to the electronics and automotive industries. Work that Hungarians will not do. This solution might fill in this specific gap in the labour market; however, in the long run, there would be better ways to do so partly because it is not in the best interest of recruitment agencies to send workers to another country for longer than three months since their goal is to receive more of these orders on a regular basis. On the other hand, this solution is not the best one for the whole of the Hungarian economy either.
Zoltán László, vice-president of the Vasas Alliance of Trade Unions, told Népszava that

the Hungarian economy and local businesses would be much better off with committed people they can rely on.

Those who do not prepare to leave the country within a couple of months are the ones who can create real value. Keeping these workers would be crucial. Especially as the majority of guest workers, mainly those from Ukraine and Serbia, leave Hungary after some months hoping they would get a better-paid job either in Western Europe or even in Poland.

Moreover, the language barrier can lead to further problems, from an extended learning period to accidents or bad quality work. Zoltán László believes that trade unions can have a vital role in this respect, as their local representatives know the companies’ problems and can help Hungarian and guest workers get along better. The fact that guest workers are provided with accommodation and their travelling fees are covered causes dissatisfaction among Hungarians. They feel that their work is not as appreciated, and they receive less money for the same job.

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Source: nepszava.hu, Eurostat