The number of foreign workers in Hungary reached an all-time high just before the government tightened its guest-worker rules. Now, tourism industry organisations are calling for more flexible regulations as businesses continue to struggle with labour shortages.
The number of foreign workers in Hungary surged to a record 112,300 in June, according to data cited by Portfolio, just as the new government was preparing to significantly restrict the employment of workers from outside the European Union.
The figure represents the highest number of foreign workers ever recorded in Hungary and highlights just how heavily parts of the Hungarian economy had come to rely on international labour.
The increase continued even after the April election. Foreign-worker numbers rose by around 2,000 in May and by another 1,500 in June, suggesting that companies continued bringing in workers from abroad in the final weeks before the new restrictions took effect.
Hungary tightens guest-worker rules
The government announced the tightening of the guest-worker system on 5 June, with the new rules taking effect the following day. Under the changes, citizens of several countries — including the Philippines, Georgia and Armenia — could no longer benefit from previously available fast-track arrangements for guest-worker employment.
As a result, bringing workers from outside the EU to Hungary became more complicated and, in some cases, more expensive.
However, the overall rise in foreign employment cannot necessarily be attributed solely to the traditional guest-worker system. Hungary’s immigration framework has become increasingly complex since reforms introduced in 2024. Employers can use several other residence and employment routes, including the National Card, Hungarian Card and EU Blue Card, as well as certain permits connected to investment projects.
This means that the number of foreign workers in Hungary cannot be fully understood simply by looking at the number of guest-worker permits.
In 2025, for example, authorities received 21,211 applications for residence permits for employment purposes, compared with 15,395 applications for National Cards and 15,307 for guest-worker residence permits. In other words, companies have had to navigate different legal routes to recruit workers from abroad.
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Tourism businesses warn of labour shortages
The issue is particularly important for Hungary’s tourism and hospitality sector, where foreign workers have become a significant part of the labour supply. Five major tourism industry organisations have called for changes to the government’s approach, arguing that Hungary needs a more predictable and flexible labour market, Portfolio writes.
The organisations — representing inbound tourism, travel agencies, hotels, restaurants, events and tourism employers — submitted a joint package of proposals to the Hungarian Tourism Agency. Among their key demands is more flexible regulation governing workers from third countries.
They argue that employers need greater flexibility, particularly in sectors where finding enough Hungarian workers remains difficult. At the same time, they support strengthening domestic training and improving cooperation between educational institutions and tourism businesses. The proposals also include reducing administrative burdens and making employment rules more predictable so businesses can plan ahead.
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Foreign workers could remain crucial despite restrictions
The tourism industry’s demands come as Hungary is moving in the opposite direction on guest-worker policy. The new government’s approach is to restrict the inflow of non-EU workers, while businesses are warning that they still need access to international labour.
The tension is particularly visible in hospitality, where hotels, restaurants and tourism companies often face seasonal fluctuations and difficulties recruiting sufficient staff. The industry groups have therefore called for a system that would allow employers to respond more flexibly to genuine labour-market needs while also strengthening domestic workforce development.
They are also seeking changes to taxation and employment rules, including a review of VAT regulations, the tourism development contribution and other administrative burdens. One particularly interesting proposal is the introduction of a hotel service charge, similar to the system already used in Hungary’s hospitality sector. According to the organisations, this could help improve employees’ incomes and make it easier for businesses to retain staff.
A balancing act for Hungary’s new government
The record June figure illustrates the scale of Hungary’s dependence on foreign labour: more than 112,000 foreign workers were employed in the country at the peak of the previous system. The challenge for the new government will be finding a balance between its pledge to restrict the recruitment of workers from outside the EU and the needs of employers in sectors facing labour shortages.
