labour shortage

Hungary prioritises workforce training to address labour market challenges

Hungary’s government has made a policy priority of training for people who are out of work with low skills or without qualifications, the state secretary for employment policy said at a conference in Budapest on Wednesday.

Addressing the conference on managing demographic challenges by mobilising disadvantaged groups of people, Sándor Czomba noted that Hungary had a “labour market reserve” of around 200,000-300,000 people who could join the workforce.

He pointed to the need for state or corporate programmes to train or retrain older people, slower to adapt to technological development, in order to stay competitive in the labour market. Workplaces must adapt to the needs of an ageing society, allowing people to work longer, while preserving their health and skills, he added.

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Hungarian minister highlights challenge of skilled labour shortage in Brussels

National Economy Minister Márton Nagy said the shortage of skilled labour is the “most important challenge” facing the European labour market ahead of a meeting of the Employment, Social Policy, Health and Consumer Affairs Council in Brussels on Monday.

Nagy noted that 77% of European companies had said that the shortage of skilled labour was the “most challenging” factor for their operations, while 60% had said that it was a “barrier to investment.”

He said the ministers would also discuss the employment and social policy priorities for the 2025 European semester and the traineeship directive. Although a qualified majority does not yet support the traineeship directive, he added, the sides are moving closer.

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Filipino workers step in to milk cows in a small Hungarian village

Is Hungary’s safety at risk? Police face serious challenges

Read more news about labour shortage in Hungary

 

Number of jobseekers continues to fall in November

The state secretary for employment policy said on Monday that the number of jobseekers in Hungary stood at 224,914 in November, 1,200 fewer than in the same month a year earlier, citing data from the National Employment Service (NFSZ).

The November figure was the lowest for the month in more than three decades, Sándor Czomba said. The number was down 1,300 from the previous month, he added.

He said the government aims to boost the employment rate by tapping the 300,000-strong labour market reserve. Around 23,000 job seekers have found work as a result of recently launched European Union-funded government placement programmes.

The Minister of State for Employment Policy added that in addition to further employment growth, the government’s priority is to increase the purchasing power of incomes. The government has fulfilled the first point of the New Economic Policy Action Plan, which consists of 21 measures. As a result, the minimum wage will rise by 40 percent by 2027, by 9 percent to 290,800 forints in 2025, by 13 percent to 328,600 forints in 2026, and by 14 percent to 374,600 forints in 2027, setting the stage for a fourfold increase compared to 2010. Related article: Three-year minimum wage agreement set to impact everyone’s pay in Hungary

The government will help employers who employ workers on the minimum wage to secure a wage agreement. They will have to pay the increased social contribution tax “on a sliding scale”, i.e. in 2025 they will have to pay the 2024 rate in 2025, in 2026 the 2025 rate and in 2027 the 2026 rate.

read also: Filipino workers step in to milk cows in a small Hungarian village

Featured picture: Depositphotos

Filipino workers step in to milk cows in a small Hungarian village

Filipino workers milking cows in small Hungarian village

In the Hungarian village of Homokszentgyörgy, Filipino workers have stepped in to fill crucial roles at a dairy farm, caring for cows and handling demanding year-round tasks. With local interest in agricultural jobs dwindling, the farm turned to foreign labour through an agency, providing accommodation and integrating the workers into the community. Despite the challenges, both the villagers and the workers have formed a positive relationship, showcasing a unique solution to rural Hungary’s labour shortages.

Filipino workers and locals get on well

In the small Hungarian village of Homokszentgyörgy (with a population of around 900), Filipino workers have taken up a surprising role—milking cows and caring for livestock at a local dairy farm. While the presence of foreign labourers in industrial sectors is now commonplace in Hungary, seeing them in rural agricultural roles marks a significant shift.

According to the report of Sonline, the six Filipino workers live in a refurbished house on Petőfi Street, provided by their employer. Despite not speaking Hungarian, they have integrated into the village community with their polite demeanour and cheerful greetings, endearing themselves to neighbours like Mária Serdültné Kuti, who praises their manners and finds no issue with their presence. The villagers, however, recognise the necessity of hiring foreign workers, citing the lack of interest among locals in such demanding jobs.

Filipino workers milking cows in small Hungarian village
Illustration. Photo: depositphotos.com

According to Homokszentgyörgy’s mayor, János Czinke, the positions at the dairy were likely advertised locally, but either there were no applicants, or they lacked the necessary qualifications. He also notes that foreign workers often accept lower wages, which might make them more attractive to employers.

The need for year-round labour is crucial

At the Bos-Frucht Agrárszövetkezet farm, which manages 700 Holstein Friesian cows and 600 hectares of land, the need for reliable year-round labour is critical. President Barna Egyed explains that maintaining a livestock operation requires dedication every day of the year, from feeding and cleaning to handling veterinary procedures and regular milking schedules. Unfortunately, the local workforce has dwindled, with few young, motivated individuals willing to take on such demanding work.

The Filipino workers, most of whom have prior experience in animal husbandry, were recruited through an employment agency. They quickly adapted to the farm’s rigorous schedule and formed a positive impression of the village. Justine Neil Delgado, one of the workers, shares their perspective with Sonline:

“The work is hard, but we manage. The local people are kind and respectful, and we appreciate them.”

Work and rest: The life of the Filipino workers in Homokszentgyörgy

Life at their accommodation reflects their simplicity and adaptability. With bicycles in the yard and laundry drying on the fence, the Filipinos focus on their work and rest rather than venturing into the village. The cold Hungarian November is a stark contrast to their tropical home, but they’ve adjusted to their new surroundings.

This situation underscores broader trends in Hungary’s labour market, where an ageing population and a lack of interest in certain jobs are paving the way for foreign workers to fill essential roles in unexpected places.

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Featured image: illustration, depositphotos.com

Is Hungary’s safety at risk? Police face serious challenges

police

Hungary is a popular tourist destination because it is perceived as a safe place, but one question arises: how long can this be maintained when there is a huge police shortage?

Police shortages

An article by HVG reports that police shortages could be much higher than the officially published police figures, according to trade unions. They say the government is hiding the problem and that in the central part of the country, for example, they can often only ensure adequate numbers by sending uniformed officers from other parts of the country.

Official figures show a shortfall of only 4-5,000, with a 91.3 percent saturation rate, yet there are reports that fish guards have been deployed to patrol some areas.

Police presence

It also tells us that Isaszeg, for example, which is part of the Budapest agglomeration, has only sent patrols to its 12,000 residents when the municipality pays millions extra to the police. This also means that in Hungary, police presence in cities is not included in the basic service.

Additionally, a key element of the police shortage is that, since the border police were disbanded under the first Orbán government, the police are still protecting the southern border from migration pressure, where they are being deployed. In addition, the government’s policy also requires police officers to serve abroad, for example, in the Balkans, in the fight against migration, while there are not enough local police.

Low pay, low number of applications

The situation is no better regarding police recruitment: around 2,000 police officers are recruited yearly. The 10-month patrol training course is attended by 500-700 people a year, while the two-year officer training course attracted thousands more a few years ago. This September, only 116 people started their studies at police technical schools, HVG reported, citing the National Police Headquarters.

In an interview with RTL last year, police human resources chief Csaba Czene said that, including all training and recruitments, 1,000-1,100 new police officers are recruited each year. This also means that they can broadly compensate for those leaving, but he admitted that the other sectors have a solid drain, especially in Budapest and the central part of the country.

Police salaries are not very attractive, despite pay rises in recent years, because much of them have been eroded by inflation: the average salary for professional staff is around HUF 470,000 net (EUR 1,100), including bonuses.

Firefighters have the same problem

In fact, the problem is not unique, the fire brigade has an official understaffing of 10 percent, but the union understands that there are municipalities where the problem is much greater. The firefighters’ union said that in Debrecen, Hungary’s second-largest city, a quarter of the staff is missing.

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Will employment of guest workers in Hungary face further restrictions soon?

The Hungarian Ministry of National Economy has proposed stricter rules on employing guest workers in Hungary while encouraging local jobseekers through training and subsidies. In Tolna, Vietnamese guest workers have filled labour shortages, with employers praising their efficiency and reporting minimal extra costs compared to local hires.

New draft regulation

Portfolio reports that the Hungarian Ministry of National Economy has released a draft regulation concerning the employment of guest workers in Hungary. Under the proposed rules, foreign work permits will be denied if employers have been fined for labour violations or employing third-country nationals without permits within the past year. Applications will also be rejected if the employer is undergoing liquidation, or if they refuse to hire qualified Hungarian jobseekers without valid reasons. Additionally, companies involved in major investments must report the number of non-EU workers they employ each year, and cooperate with government offices to place Hungarian jobseekers.

Battling unemployment

The Hungarian government has introduced measures aimed at integrating a significant portion of the unemployed and inactive into the workforce, alongside guest workers in Hungary. Supported by EU funds, the initiative focuses on providing training and human services, particularly for those in public employment. The programme includes mobility housing and travel allowances for jobs located 10 to 60 kilometres from home, along with subsidies for labour market training costs, such as exam fees and childcare. Jobseekers in training will receive allowances to replace lost income and cover travel expenses. From January, firms hiring the long-term unemployed could receive subsidies up to 150% of the monthly minimum wage per employee.

unemployed people unemployment labour
Photo: depositphotos.com

Experts’ take on the new rule

With Hungary’s planned tightening of rules on employing guest workers, recruitment agencies have shared their perspectives on the impact. According to Magdolna Mihályi, managing director of Jobtain HR Services Ltd, authorities were always able to reject foreign work permit applications if companies have been fined for labour violations, but the new regulations would make this mandatory. This could significantly affect companies employing guest workers in Hungary.

Dávid Maier, from the Asian recruitment agency Terendo, explained that the new process would also account for previous fines when issuing permits, regardless of the worker’s nationality. Both experts agreed that while the changes are significant, they aim to prevent employers from bypassing local candidates with unjustified conditions. However, abuses are rare as agencies strive to fill roles quickly and efficiently.

Guest workers in Hungary

As Világgazdaság writes, in Tolna, Vietnamese guest workers in Hungary are praised for their hard work and efficiency. Around 50 workers from Vietnam are employed by companies like Interplus and Tolnatext, with most residing in the Hotel Thelena. After struggling for over a year to find reliable local workers for multi-shift roles, companies turned to foreign labour as their only option. Vietnamese workers, mostly aged 20-40, have been employed since April, following thorough screening. While language barriers were initially a challenge, interpreters and smartphone translators have helped overcome these issues. Employers report positive experiences with these dedicated and efficient workers, with minimal additional costs compared to local hires.

foreign workers guest
Photo: Pixabay

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PM Orbán promises incredible wages in Hungary, says Brussels bureaucrats destroy our lives

PM Orbán promises incredible wages in Hungary

Prime Minister Viktor Orbán said an “economic cold war” was “the worst thing that could happen” to Europe and Hungarians in a weekly interview with public radio on Friday.

Orbán said an economic cold war presented a “huge danger” to Hungary’s export-oriented economy, and that the government was adopting a policy of economic neutrality to protect families’ standard of living.

He noted that the European Union would take a decision in the course of the day on punitive tariffs on Chinese goods, a measure Hungary opposed. He warned that the measure would harm the EU’s own competitiveness, adding that even the Germans were opposed to the step.

He said a cabinet meeting earlier in the week had discussed measures to support the policy of economic neutrality.

PM Orbán promises incredible wages in Hungary
Photo: MTI

Economic growth should be 3-6%, Orbán says

Orbán warned of attacks against the government’s policy of economic neutrality, with the aim of pushing the country down the path of blocs, “where there’s no growth, no development and no future”.

He said Hungary didn’t want to return to a time in which the world was divided into blocs, adding that a policy of economic neutrality could boost Hungary’s economic growth to 3pc-6pc. He added that decoupling the economies of the East and West would make it more difficult for Hungary to find markets for its products, and that would impact workplaces and wages.

He said Hungary wanted to trade with both blocs, without being “squeezed into” any one and would apply its policy of economic neutrality to markets, investments, financing and energy.

He added that the success of the government’s policy would be its validation.

Ambitious wage increase plans

Assessing the economy, Orban acknowledged that some sectors were in a difficult position, while others were doing well. He added that the tourism sector had finished a record year and the food industry was doing well, but the automotive industry was “sputtering” as export markets in the West stagnated.

Orbán said Hungary’s minimum wage could reach EUR 1,000 per month in the coming 2-3 years, while the average wage could rise from around HUF 600,000/month (EUR1,500) to HUF 1m (EUR 2,500).

He noted that talks were ongoing between employers and unions on an agreement on minimum wage rises. He added that the economy minister had been tasked with seeing an agreement was reached by year-end.

He said the agreement should extend for several years and result in the average wage reaching HUF 1m/month at the end of the period. He added that higher wages were the only way to manage higher prices in the long term.

He said the government faced a “dilemma” with regard to cutting taxes and the impact on public sector wages. He explained that if employers’ tax burden was reduced, they could afford to pay their workers more, but public sector wages could only rise if there was more tax revenue.

Labour shortage in Hungary

He said public sector wage growth wasn’t keeping pace with wage rises in the business sector, with the exception of sectors, such as healthcare and education, in which the government had launched wage programmes.

Orbán said there were now 60,000-70,000 unfilled positions in Hungary, more than the number of people who could and wanted to fill them, while the government had brought the unemployment rate down from 12.5pc when it came to power. That “fantastic success” is “taken for granted” today, he added.

He said the quality of Hungary’s labour force was a draw for investors.

Hungary’s EU presidency promoting peace, Orbán says

Hungary, as part of its EU presidency, is striving to promote peace, Orbán said in an interview to public radio on Friday. “We have a peace mission,” he said. If a broader war emerges in the Middle East, the effects would be felt immediately as the world economy would become cautious, putting downward pressure on the forint, Orbán said.

What happens in the world, he said, was not only an important economic consideration, and a war in the Middle East could also affect the country’s security, he said, noting the “large number of citizens of Jewish origin” in Hungary affected either directly or indirectly.

Orbán noted that he had convened the National Security Cabinet to discuss how to ensure the security of all Hungarian citizens, regardless of their origin.

Meanwhile, referring to the Friends of Peace international group established recently, Orbán said that when Hungary took over the EU presidency, promoting peace as a Christian spiritual consideration and state interest had been “unavoidable”.

Storm-like Hungarian EU presidency

“We began with a storm: Kiev, Moscow, Beijing, Donald Trump,” he said, adding that the peace strategy that then ensued was based on the understanding that the warring parties had no intention of making peace with each other.

He said that if, as it appeared, the belligerents were unwilling to make pace, then an agreement between key international forces was needed to establish a world policy that could guide the warring parties in the direction of peace.

Hence, the Friends of Peace was founded “at our initiative, alongside Brazil and China”, Orbán said.

Meanwhile, Orbán said conflicts due to migration would “tear the European Union apart” and “paralyse its operations … if Brussels does not come to its senses and changes its policy that supports and attracts migrants to a policy that … that protects the border.” He added that if Brussels carried on “tormenting Hungary with all kinds of punishments” in connection with migration, then “we’ll transport the migrants to the main square [in Brussels] by bus…”

Brussels bureaucrats destroying the life of the people

European people, he said, would no longer tolerate “Brussels bureaucrats in their protected bubble” forcing a policy on Europe “that destroys the lives of ordinary Italian, German, French and Hungarian people”.

The prime minister said this is why Andrej Babis won in Czechia, why the Freedom Party in Austria, and why the AfD was performing well, why Marine Le Pen was “at the front gate”, and why the Italian prime minister had won.

On the domestic front, Orbán announced that families with children would see their situation improve noticeably in the next two years as the government planned to double tax relief for children in 2025. He said the measure was planned to be phased in two steps next year. “I’m not going to compromise on this,” he added.

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Number of jobseekers around historical low in Hungary

Hungary news – The number of registered jobseekers in Hungary stood at 228,356 in September, practically level with the number a year earlier, the National Economy Ministry said on Tuesday, citing data from the National Employment Service (NFSZ).

The ministry said the September figure was the lowest for the month in more than three decades.

Sandor Czomba, the state secretary for employment policy, said the number of Hungarians in the primary labor market had increased by 42,000 over the past twelve months, while the number of people in fostered work programs had dropped by 10,000 to 58,000. Employment among women has climbed in recent months, showing the impact of government measures to boost labour market activity, he added.

According to the latest data from the Hungarian Central Statistical Office, the number of employed persons increased by 39 thousand to 4.748 million in August 2024 compared to the same period of the previous year. In addition, the number of economically active people is also growing steadily, with an increase of 53 thousand compared to August 2023, the ministry said.

The unemployment rate has stabilised at a low level, with Hungary being the eighth country in the European Union with the lowest unemployment rate.

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Does the Hungarian government let in many Eastern guest workers unchecked with card scheme?

Hungary"s population Hungary guest workers government ban golden visa guest workers in Hungary third-country nationals' tax benefits

The Hungarian government expanded the National Card scheme programme from 8 July with Russian and Belarusian citizens. The scheme allows them to come to Hungary even with their families, get a job in sectors that are not struggling with labour shortages, and extend their permits multiple times. Finally, they could even get residence status in Hungary. A Russian expert believes the expansion raises lots of national security concerns.

Lots of Eastern guest workers may come with families

According to forbes.hu, the Hungarian government opened the Schengen national security gate for Russians and Belarusians coming with National Cards to work and live in Hungary. Guest workers from eight countries may get a National Card: the citizens of Bosnia and Herzegovina, North Macedonia, Moldova, Montenegro, Serbia, Ukraine, Russia, and Belarus. Before 8 July, Russia and Belarus were not on the list.

Guest workers Hungary
Guest workers in Hungary. Will Russians and Belarusians flood the market? Photo: PrtScr/Youtube

The National Card has multiple advantages. First, there is no limit to the number of guest workers coming with it. Secondly, there are no excluded jobs and the future guest workers do not have to submit certificates that their work is needed in Hungary. When they prolong the permit, they do not have to take a cultural knowledge exam. Finally, those obtaining a National Card can bring their family to Hungary. You may get your National Card for 2 years, but your stay can be extended for three years for unlimited times.

But where will the Russians and Belarusians work?

The simplest answer is the Paks II nuclear power plant extension carried out by Rosatom. András Rácz, a Hungarian Russian expert, said thousands of Russians already live in Hungary and are taking part in the operation of Paks. Hungarian authorities adapted to that.

However, since Rosatom cannot make an EU-conform authorisation plan for the expansion, the nuclear technology phase of the construction will not begin soon. Therefore, it is hard to explain why the Hungarian government would like to let in many Russians and Belarusians now.

paks expansion guest workers
Paks II. Will the Russians literally build it? Source: Facebook/Szijjártó Péter

Even if Russians came to help build Paks II, they would not need a National Card, making them eligible for all jobs in Hungary. Russian discount chain Mere is also coming to Hungary, but it is hard to imagine that Russian cashiers will work there.

The new scheme may substitute the Russian ‘spy bank’

The International Investment Bank (IIB) ceased operations in Hungary after US Ambassador David Pressman’s concerns. Forbes wrote that the bank provided background for Russian intelligence, so it was a Trojan horse of the Russian government in Europe. Even so, the Hungarian government granted it exceptional freedom. For example, they were tax-free, and their employees and guests could come and commute unchecked in Hungary.

The American pressure made them leave Hungary, though they still owe billions and a Budapest palace to Hungary. Mr Rácz believes the new expanded National Card scheme allows crowds of Russians and Belarusians to come to Hungary unchecked. As Alexander Graham Bell said, “when one door closes, another door opens”.

Putin Orbán guest workers
Putin and Orbán in July in Moscow. Did they touch on the issue of Russian guest workers? Photo: FB/Orbán

Rácz said the Hungarian authorities were unprepared to check masses of Russian and Belarusian guest workers and their families. “I see serious national security risk in that depending on how many will come”, he highlighted.

Rácz suggested that if Russia wants to send spies with the programme, their activity may not be confined to Hungary, but to any Schengen Zone country. Obtaining a National Card allows you to travel everywhere in the zone.

Of course, there is a chance that the government will modify the rules of obtaining and using the National Card.

Read also:

  • Here’s the new list of countries from which guest workers can come to Hungary – read more HERE
  • Number of guest workers exceed psychological barrier in Hungary – details in THIS article

Featured image: depositphotos.com

Here’s the new list of countries from which guest workers can come to Hungary

guest worker workers guest workers in Hungary Orbán cabinet

Two lists were published in the 8 July issue of the Hungarian Gazette concerning guest workers arriving in Hungary. Previously, only Serbian or Ukrainian citizens could apply for a National Card (Nemzeti Kártya), which was available to those seeking work in Hungary.

The latest issue of the Hungarian Gazette published two lists concerning guest workers coming to Hungary, Világgazdaság reports. They detailed the National Card, which allows temporary residence in Hungary for more than 90 days but not more than two years within a 180-day period. It can be used to provide employment for those who come to work, including temporary employment, or for those who work as owners or managers of companies.

Over a hundred thousand guest workers were in Hungary in January

guest workers
Photo: depositphotos.com

In January, Sándor Czomba, State Secretary for Employment Policy, told Világgazdaság that about 120,000 foreigners were working as guest workers in Hungary. The vast majority of them, about 40,000, were Ukrainian citizens. There were also a significant number of Serbs, around 16,000 Vietnamese, and slightly more than 10,000 Filipinos. The number of other nationalities, such as Indians and Mongolians, was well below 10,000.

According to the new list published by the Hungarian Gazette at the beginning of July, third-country citizens who are eligible for employment with the National Card may come from Bosnia and Herzegovina, the Republic of North Macedonia, the Republic of Belarus, the Republic of Moldova, the Republic of Montenegro, the Russian Federation, Serbia and Ukraine.

Persons from the Philippines, the Republic of Indonesia, the Republic of Kazakhstan, Mongolia, the Socialist Republic of Vietnam, the Federative Republic of Brazil, Georgia, the Kyrgyz Republic, the Bolivarian Republic of Venezuela and the Republic of Colombia are eligible for employment as general residence permit holders in Hungary. This permit is similar to the National Card but can also be obtained by anyone whose employer is a registered preferential employer or a registered lender, 24.hu reports.

foreign workers guest
Photo: pixabay.com

The publication of the two lists follows the Ministry of National Economy’s announcement at the beginning of the year that it will cap the total number of guest worker residence permits and residence permits for employment purposes at 65,000 persons in 2024, based on the law on guest workers adopted last year. The decree was signed by Prime Minister Viktor Orbán.

As we previously reported, the Asian workforce is steadily increasing in Hungary. Due to the labour shortage experienced in recent years, companies are trying to compensate for the lack of Hungarian workers by employing guest workers. However, the government has recently tightened the sanctions regarding the employment of foreign workers. Among Asian guest workers, Filipinos have been the most frequently employed group. Most of the employees have high school degrees or even college degrees.

There now appears to be a general consensus regarding the employment of a foreign workforce: if Hungarian companies plan to hire foreign workers, they prefer to hire Asian guest workers. Hungarian companies not only offer salaries but also benefits. These include accommodation, catering, and travel passes, which could offset the lower wages compared to what they might earn in Western Europe.

Read also:

  • Number of guest workers exceed psychological barrier in Hungary – Read here
  • Filipino guest workers in Hungary may far exceed government claims – Read here

Filipino guest workers in Hungary may far exceed government claims

Péter Szijjártó, filipino guest workers

According to news agencies in Manila, there are over 16,000 Filipino guest workers in Hungary, contradicting previous claims by Péter Szijjártó. The Hungarian foreign minister visited the Philippines last week, where he held talks with Philippine foreign minister Enrique Manalo and also met with President Ferdinand R. Marcos.

While in Manila, the Hungarian foreign minister made a statement regarding relations between the two countries. He emphasised that illegal migrants should not be confused with those who travel to another country to work in lawful conditions, as illegal border crossing is not a human right but a crime. This meeting was particularly significant as Hungary is set to take over the presidency of the European Union on 1 July, amid a challenging global security and economic climate.

Although the minister did not provide an exact figure on Thursday, he stated that there are more than 10,000 Filipino guest workers in Hungary, who are not considered illegal migrants, as reported by24.hu. Both Hungary and the Philippines agree that a country has the sovereign right to decide who it allows within its borders and with whom it wishes to share its territory.

How many Filipino guest workers are in Hungary?

Szijjártó Péter, filipino guest workers
Photo: FB/ Szijjártó Péter

Szijjártó’s visit was also covered by the Manila newspapers, which highlighted that many Filipinos have recently chosen Hungary as their “second home”. According to these reports, in 2023, Hungary was the Philippines’ 46th trading partner, 30th export market, and 64th source of imports. One news agency reported that as of December 2023, there were approximately 16,098 Filipinos residing in Hungary. This figure is significantly higher than the one previously mentioned by the Hungarian foreign minister, as 24.hu highlighted.

Manila newspapers also reported that the majority of Filipino guest workers in Hungary are employed in various sectors, including automotive technicians, machine operators, drivers, forklift operators, hotel workers, agricultural workers, warehouse workers, logistics operators, and truck drivers.

We previously reported, according to Szijjártó, cooperation between Hungary and the Philippines is “the best example of successful East-West relations”. Furthermore, the turnover of bilateral trade has exceeded 300 million dollars, largely due to Hungary’s significant increase in agricultural exports to the Philippines. He added that Hungarian companies are undertaking major water management projects in the Philippines, and preparations are being made to start nuclear cooperation between the two countries, as they celebrate the 50th anniversary of establishing diplomatic ties.

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Hungarian FM Szijjártó: ‘Law-abiding guest workers’ not to be mixed up with illegal migrants

szijjártó in switzerland

Illegal migrants should not be mixed up with people that go to another country “under organised circumstances” to work, the Hungarian foreign minister said in Manila on Thursday.

FM Szijjártó talks about guest workers

Péter Szijjártó said that illegal border crossing “is not a human right but a crime”.

According to a statement from the foreign ministry, Szijjártó met Enrique Manalo, his Filipino counterpart, for talks and said both countries saw eye to eye that “any given country should have the right to decide to whom it wants to grant entry and whom it wants to live together with”.

Hungary holds the over 10,000 Filipinos working in Hungary in great esteem, Szijjártó said.

The foreign minister noted that the Philippines and Hungary were celebrating the 50th anniversary of establishing diplomatic ties. He said the two countries were similarly affected by the recent global security and economic crises, and were interested in promoting peace and a balanced economic development in the world. Szijjártó said that conflicts should be resolved “through dialogue and diplomacy rather than constantly passing judgements and criticism.”

According to Szijjártó, Europe is “in very bad shape” with a war going on for the past two and a half years on the continent and with “political and ideological endeavours aimed at hindering East-West cooperation”. “The upcoming Hungarian EU presidency will work to improve the situation, but it requires peace on the continent,” he said.

Cooperation between Hungary and the Philippines is “the best example of successful East-West relations”, he said, adding that the turnover of bilateral trade had exceeded 300 million dollars as a result of Hungary’s significantly increasing its agricultural exports to the Philippines. He added that Hungarian companies were completing major water management projects in the Philippines, while preparations were being made for starting nuclear cooperation between the two countries. The Hungarian FM shared his thoughts in a Facebook post:

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Everything you need to know about guest workers in Hungary

guest worker workers guest workers in Hungary Orbán cabinet

On the 10th of May, a conference was held addressing the growing impact of guest workers in Hungary. This professional gathering offered an excellent opportunity to learn about legislative changes and the practical experiences of recruitment companies and employers. Here is everything you need to know about guest workers in Hungary: the growing need, the protection of Hungarian workers, stricter legislation and more.

Growing need for guest workers in Hungary

Turizmus.com reports a rising demand for guest workers in Hungary. Ferenc Rolek, Vice President of the National Confederation of Hungarian Employers and Industrialists (MGYOSZ), pointed out that demographic trends are reducing the number of available workers in both Europe and Hungary, with no expected change for the next 20-25 years. All EU countries face this issue and are seeking high-quality foreign labour. Many Hungarians will continue working abroad due to income disparities, making Hungary increasingly dependent on foreign labour.

foreign workers guest

Protection of the Hungarian workforce

Ferenc Rolek highlighted the complexity and socio-political aspects of the new legislative framework. Legislators aimed to ensure that the new law clearly states that guest workers are to be employed for a limited period under controlled conditions to protect Hungarian workers.

Third-country nationals from 15 countries (including Belarus, Bosnia and Herzegovina, Colombia, Brazil, Georgia, Indonesia, Kazakhstan, Mongolia, Montenegro, Vietnam, Russia, Kyrgyzstan, Venezuela, the Philippines and North Macedonia) can come to Hungary as guest workers with a simplified group permit. However, the list of around 300 occupations where third-country nationals cannot work as guest workers has been updated.

Strict legislation

Under the new legislation on aliens, the process for obtaining a residence permit for employment purposes remains the same, taking at least 70 days and requiring proof that no Hungarian workers are available for the job. Despite this, the rejection rate for applications is high, at around 40-50%.

The government prioritises guest worker residence permits, limiting the number of companies, countries, and jobs involved, and imposing strict controls. Employers who fail to comply with these obligations face heavy fines.

Highly skilled workers to come

One of the conference speakers highlighted the challenge of fluctuating income outflows and the pressure on employers to recruit during peak seasons, suggesting that labour should be priced flexibly. He noted that internal fairness is often sacrificed during these periods to maintain external competitiveness, with emergency hires receiving higher wages. He views employing third-country workers as a temporary solution to this issue and anticipates that guest workers in Hungary will eventually fill senior positions.

Others shared this view, expressing confidence in attracting more highly qualified professionals from third countries within 4-5 years. They emphasised that guest workers are well-suited for positions that cannot be filled domestically.

guest workers
Photo: depositphotos.com

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Number of registered jobseekers edges lower in Hungary

#hungarian #labour #physical #work #sitting jobseekers

There were 225,978 registered jobseekers in Hungary in May, 1 percent fewer than the same month a year earlier and down 2 percent from April, the National Employment Service (NFSZ) said.

In May, 3,070 Hungarians registered as job seekers for the first time, while 26,804 job seekers registered, including repeats.

Jobseekers receiving no benefits accounted for 43 percent of the total, while 35 percent had sought work for more than a year. Jobseekers were registered for 495 days on average.

Sándor Czomba, the state secretary for employment policy at the national economy ministry, said after the data was released on Tuesday that the steady decline in the number of registered jobseekers continued in May which saw the third lowest figure since the 1990 change in political system.

There are now 1 million more people working than during the term of the previous Socialist-led government, with an average salary three times higher, he said, adding that compared with 2010, the number of people looking for work has fallen by more than 400,000.

The government’s goal is to boost employment further by mobilising the domestic labour market reserves of around 300,000 people as well as increasing employment among the 20-64 year-olds from the 81 to 85 percent, financed by programmes worth 460 billion forints until 2030.

As we wrote earlier, service industry professionals expect no major price hikes this year at Lake Balaton. Labour shortages could be eased by the employment of guest workers mainly from third countries, details HERE.

Lake Balaton forecast: guest workers to ease labour shortage, relatively low price increase

Balatonalmádi

Service industry professionals expect no major price hikes this year at Lake Balaton. Labour shortages could be eased by the employment of guest workers mainly from third countries, while the difficulties of the construction industry could benefit employers and holidaymakers this summer.

Világgazdaság spoke to László Kovács, president of the Hungarian Caterers’ Association (MVI) about the labour market situation at Lake Balaton this upcoming summer. The president gave promising forecasts for both the labour market and the prices holiday goers may face.

László Kovács pointed out that while in the past two years, the shortage of labour and the price increase have hit both the catering and the service sector at Lake Balaton, “this has changed significantly, with the situation consolidating since 2022”.

Guest workers could alleviate labour shortages

According to László Kovács’s experience, Lake Balaton experienced its largest labour shortage in 2022, which can be attributed to the long-term effects of the COVID-19 pandemic. During lockdowns, a large amount of employees had to change careers, moving, for example, to the construction industry from catering. In addition, the closing of country borders severely limited the possibility of hiring guest workers to fill the gaps.

Now, it looks like changes are on the horizon. First, as László Kovács points out, the construction industry is currently in a period of stagnation. This means that a reverse labour drain is taking place: those who used to work in construction are now looking for work in the service industry near Lake Balaton. This helps hoteliers and restaurateurs a great deal.

Secondly, significant facilitations have been introduced for the employment of third-country workers in Hungary, which will also help to address labour shortages for hotel owners.

“I know of a hotel with 50 Singaporean and Indian employees,”

said the president of the MVI, who also pointed out that guest workers are not more expensive than Hungarians, and that they work to a high standard. The drawback is that they are more difficult to contract because of the bureaucratic procedures, but intermediary companies can help businesses with this.

At the same time, László Kovács explained that guest workers are mainly employed in unskilled jobs: in areas where highly trained individuals are needed, such as for chefs or confectioners, businesses have to find labour through other means.

A price increase of around 8-10 percent is expected at Lake Balaton

A similar positive change is expected when it comes to prices: the factors that have pushed up prices since 2022 are now less present, as raw material costs and energy prices are expected to decrease.

The only factor that remains unchanged is labour costs, but László Kovács thinks that even in this field there is room for compromise. The problem that he highlights is that many places promise an irrationally high income to get workers, that they can only pay in the first month of business when there is a boom in the industry. However, if interest in the restaurant declines, it may close the following month, leaving employees in a tough situation: while initially they received outstanding salaries, now they are jobless.

On the holidaymakers’ side, the president sees a price rise of around 8-10% this year. He says the market will not accept a bigger increase than that: those who raise prices more than that are likely to lose visitors.

This holiday season could be exceptionally strong

Világgazdaság also spoke to restaurant owner Balázs Csapody, who looks forward to a very good season this year. “I have a feeling that Balaton is developing a fan base who are not looking for anything else but Balaton. The feeling of Balaton, the flavours, and everything that makes it unique,” he says.

He also finds that the labour shortage is easing. As far as wages are concerned, he says there is nothing to be surprised about, it is quite normal that wages are much higher today than five years ago.

“It’s good when wages are catching up because the quality of service is rising at the same time.”

He is also optimistic about prices and says that we should not expect the same level of price increases this season as last year or the year before.

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Giant Chinese battery plant in Hungary launches active recruitment

hungary china flag

China’s Eve Power has started recruiting for a 400 billion forint (EUR 1bn) battery plant it expects to complete in Debrecen, in eastern Hungary, by the end of 2025, the PR company for the project said on Monday.

Eve Power has set up recruitment centers in Hungary’s second-largest city and in Budapest.

It earlier signed a cooperation agreement with the University of Debrecen that extends to HR training, a scholarship program, joint R+D, and the establishment of a battery research institute.

eve power
Eve Power is sponsoring the local football club, DVSC. Photo: MTI

Eve Power is also sponsoring the local football club, DVSC, in the current season.

The company broke ground for the battery plant in Debrecen, its first in Europe, at the end of 2023. The first production line is set to start in 2026. The company plans to employ 1,000 people.

In recent years, Hungary has become one of China’s main investment destinations in the EU. In addition to the negative environmental impact of the much-criticised Chinese battery factories, there is the question of who will work here or in the BYD car factory in Szeged. Hungary has an unemployment rate of around 4%, and investors face labor shortages in many areas. It is expected that large numbers of guest workers will be needed to meet the needs of the factories, even though the Hungarian government has often spoken out against economic immigration.

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The shocking reason behind companies choosing guest workers over Hungarian labour

guest workers rules in Hungary

In recent years, Hungary has experienced a surge in the arrival of foreign guest workers, primarily from Asia, which caused widespread moral unease. This influx of foreign workers has sparked protests and outrage, drawing disapproval from Hungarian labourers.

Several incidents demonstrate the outrage of the Hungarian people, such as protests in Nagymaros against a Korean company’s plan to accommodate Asian workers, outbursts over Hungarian workers allegedly being replaced by Vietnamese workers at the Bumchun factory (later proven false) and false rumours circulating about Indian owners of Dunaferr in Dunaújváros replacing Hungarian workers. Furthermore, Arriva’s (Operator of Budapest Transport Centre) recruitment of Filipino drivers also sparked political controversy, as reported by Telex.

The Orbán Government, previously known for its poster campaigns promoting hostility towards foreign workers, initially drafted legislation to regulate the situation of guest workers but later withdrew it. Shortly afterwards, they introduced a new regulation to tighten controls on the importation of guest workers. Despite their anti-immigrant rhetoric, Prime Minister Viktor Orbán said that:

The country could need up to 500,000 workers.

Guest workers statistics

The latest data from the Hungarian Central Statistical Office (KSH) reveals that in November 2023, there were 98,500 foreign nationals employed in Hungary, with over 76,000 being from outside the EU. This marks a 13% increase in foreign workers over the past year largely due to the arrival of nearly 14,000 more third-country workers since November 2022. While guest workers were previously predominantly from neighbouring countries like Serbia and Ukraine, their numbers have declined especially since the outbreak of the Russian-Ukrainian conflict in 2022.

Since then, Asian workers, particularly from Vietnam and the Philippines, have been increasingly replacing the Serbian and Ukrainian guest workers. However, despite this uptick, the proportion of guest workers in Hungary remains lower compared to Western Europe, with roughly 9% of workers in that region being guest workers, as opposed to less than 2% in Hungary.

The government has facilitated the import of Asian guest workers through the Immigration Act, making it easier for Vietnamese, Indonesian, Mongolian and Filipino workers to enter Hungary. Guest workers receive a two-year residence and work permit, renewable for up to one year. Upon expiration, they may return to their home or relocate, as their EU residence permit remains valid for a longer duration. This legislation also introduced qualified temporary employment agencies, initially designating 13 companies for this purpose, which was later increased to 28.

However, recent amendments to the Immigration Act have imposed limitations by setting a yearly maximum of 65,000 non-EU workers allowed into Hungary, corresponding to available job vacancies. Moreover, companies can only hire guest workers after notifying local labour centres of their labour needs and receiving certification of insufficient Hungarian candidates. These measures are expected to somewhat mitigate the influx of workers.

Reasons behind companies’ choice of guest workers

Despite temporary employment and recruitment agencies emphasising the significantly higher costs associated with employing guest workers (approximately HUF 1 Million (EUR 2,500) in one-off fees for a Filipino worker, lower costs for Vietnamese and Indians) compared to hiring Hungarian workers, employers still find themselves compelled to opt for them. Hungary boasts a high employment rate of 74.8% and a low unemployment rate of 4.2%, indicating a perceived lack of usable labor reserves.

Many unemployed individuals face challenges such as lack of skills, geographic constraints or health issues, rendering them less employable. When foreign companies seek to establish operations in Hungary, they often require a large workforce that is difficult to fulfil locally. Therefore, despite potential improvements in employing local unemployed individuals, foreign companies often opt for guest workers due to their perceived higher productivity compared to domestic workers (despite the slightly higher costs involved). According to employment agencies:

 Guest workers cost employers 10-20% more, but they outperform domestic workers by 20-30% in productivity.

Some argue that Hungarian/European workers perceive work as a necessary evil and may not put in their best effort. In contrast, others suggest that different life situations may be the cause. Guest workers’ lack of family and responsibilities and short-term outlook may motivate them to maximise earnings through overtime and dedication to work. Similar trends are observed with Hungarian workers who temporarily migrate to Western countries, where their productivity often increases.

Read also:

  • Hungarian CEOs’ surprising experiences with foreign worker – HERE
  • Non-EU citizens can apply for Hungarian Card, 65 thousand guest workers may come – HERE

MKIK head: foreign guest workers should be employed in a regulated way to strengthen the economy

Parragh MKIK head

Hungarian businesses must tap opportunities created by the government, László Parragh, the head of the Hungarian Chamber of Commerce and Industry (MKIK), said at a conference on Monday.

Parragh said the labour market was still tight, but the fact that jobs had been maintained during the crisis had been a boon to the economy.

But migration, he added, was not a solution to domestic labour shortages, and guest workers must be employed in a regulated way, aimed at generating economic growth and stimulating further job-creation.

Foreign direct investment, he noted, exceeded 13 billion dollars last year. Still, cautious consumer behaviour was an obstacle to economic growth, which, he added, was “also reflected in investments”.

At the same time, he welcomed the curbing of inflation and rising real wages.

Parragh said domestic businesses were “in the midst of generational change”, noting the green transition, steps towards energy efficiency, AI and a change in consumer needs as big challenges.

“A future beckons to those that are prepared now,” Parragh said, adding that Hungarian businesses that habitually rely on instinct should switch to gaining a more acute awareness of the market environment.

Concerning European Union funding, Parragh said Hungary had handed over some of its markets so “the country is entitled to the EU funds in return”.

Referring to the international situation, Parragh noted “considerable restructuring between the US, China, and the EU”, adding that “the EU lags behind in this competition more and more”.

Meanwhile, he said Hungary had taken “huge steps” when it came to the automotive green transition, which may “secure a good position for the country”. In the coming period, he said, the country should “find a balance between healthy sovereignty and dependencies that benefit from international transformations”.

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