Highly-skilled Hungarian workforce fleeing the country – cause for concern?
Both the emigration rate and the number of Hungarians working abroad remain high. Despite the availability of 70,000 unfilled jobs in the Hungarian market, many in the Hungarian workforce try their luck abroad due to higher real wages and better living conditions.
Pénzcentrum.hu recently explored trends in the foreign employment of the Hungarian workforce, highlighting in its article that:
“emigration and employment abroad is a decades-old phenomenon and has a clear negative impact on the Hungarian economy.”
The news site reached out to Attila Katkics, a business consultant and HR specialist, who highlighted various factors influencing emigration, including economic recession, social disparities, high inflation, persistently low real wages, corruption as well as deficiencies and deterioration in the health and social systems. All these factors can well contribute to the outflow of the Hungarian workforce.
Considering the advantages offered by host countries, such as improved working conditions, better work-life balance, more leisure time, career advancement opportunities and higher professional recognition, it’s no surprise that many find working abroad attractive.
The Hungarian workforce on the international market: trends and characteristics
Germany, Austria, and England (despite its exit from the European Union) emerge as the top destinations for Hungarian workers, with around 400,000 Hungarians residing in these countries, a significant portion of whom are employed.
Additionally, Switzerland, the Netherlands, Sweden, Ireland, the United States, Canada, and Australia also host a substantial number of Hungarian workers. Moreover, over 100,000 individuals living in Hungary commute to neighbouring countries for work.
Typically, working abroad is common among younger individuals, singles, childless couples and recent graduates. Katkics distinguished between three groups of employees who work in foreign countries: highly qualified professionals, skilled workers on shorter-term assignments and seasonal workers engaged in temporary border-area contracts.
- highly qualified professionals (the “victims” of the brain drain process), who often settle for several years or even for the rest of their lives in the host country,
- skilled workers who work abroad for a shorter period of time,
- seasonal workers, who typically do contract labour for only one or two months, usually near the border of Hungary.
Brain drain severely affects the Hungarian workforce severely
In Hungary, the emigration rate among highly educated individuals stands at almost 7 percent, as highlighted by the HR specialist. Pénzcentrum noted that in 2022, the country experienced a substantial outflow of highly qualified Hungarian workforce, posing a significant challenge to the economy. This exodus results in a loss of valuable expertise, skills and creativity that could otherwise be utilised domestically.
“One of Hungary’s most pressing problems is that we are one of the countries least able to retain their talent”
– Attila Katkics explained.
While it is unrealistic and impractical to completely halt emigration, policymakers should aim to diminish both the quantity and quality of emigration from the Hungarian workforce.
Encouraging the return of expatriates should be a priority, as they bring back fresh perspectives, knowledge, ideas, foreign contracts and social capital, which could greatly benefit the Hungarian economy.
Read also:
Striking it rich: Guest workers paid millions in Hungary? – HERE
Russian discount chain recruiting in Hungary with dream salaries! – Read HERE
Source: Pénzcentrum
There are some people that says here that Hungary had enough PHds so i assume, according to that logic, that migration outside Hungary shouldn’t be a problem,(sarcastic mode off) if you are smart and you are some kind of neutral in politics i really think you can see that Hungary had some kind of dark future. No new born hungarians, more and more old people voting for fidezs, Hungarians being replaced by south asians, an economy that doesn’t grow up despite all the investment that is coming. If you can just leave to Austria, its a no brainier desicion. But of course, government will always have someone to blame, the EU, soros, and in some years the immigrants that are being brought by them.
It’s ELIMENTARY.
What is worsening, the subject of this article, just referring to paragraph one, is the EROSION disappearance, at a rapid trending rate of citizens, from “all stations in life” in the CONFIDENCE they have for there future, there families future, and Hungary over-all as a country.
It’s a broadsheet exodus spread throughout studentship, to graduates, the qualified in corporate and industry, that has just not occurred but been present gathering momentum especially post February 2020, the arrival of the Coronavirus pandemic in Hungary.
Confidence, opportunities and wage & salary levels, that have not aligned to the rapidness of cost of living in Hungary, in the period of time I make reference.
In the “people movement” the DISTILLATION of Democracy, being “aggressively” pursued by the current Prime Minister of Hungary – Victor Orban and his Fidesz Government, the growing KNOWLEDGE of Orban’s expanding RELATIONSHIP(s) with Communist Governed country’s of China & Russia, that our future remaining in the European Union, looks precarious un-certain, these FACTS – would be very much taken into consideration in regards to one’s FUTURE in Hungary.
The Economic and Financial position of Hungary, the cataclysmic capitulating MESS it is in, this would be or is, another major reason why we have the “people movement” on mass situation, that will not right it-self but continue to DETERIORATE.
It will WORSEN.
REMEMBER – the famous words the late President of the United States of America “challenged” Americans – John Fitzgerald. Kennedy, words he used in his inauguration speech way back in 1961 ?
The Political atmosphere all that is HAPPENING in Hungary, from the horrendous economic outlook, to the Fidesz-Government financially broke, with no money for investment into Education, or the country as a whole, the Distillation process embarked upon by the current Prime Minister – Victor Orban and his Fidesz-Government, the rapid growth progress in relationships with China & Russia, likelihood of being expelled or leaving the European Union, the famous words could not be used to the youth or citizens of Hungary, from any member of this Orban – Fidesz Government of Hungary.
It would be an INSULT to the youth/citizens of Hungary, through the Damage and Destruction, the ravaged lives of millions of Hungarians, through the DOINGS of the Orban Government, that we know, will WORSEN.
J.F.K. said :
“Ask not what your country can do for YOU,
ask what YOU can Do for your country.”
As an expat living in Bp I find there are few opportunities that pay well especially if one does not know the right people.
As a company we could not attract HU graduates nor foreigners wanting to come to here as we could not pay competitively. I recall 2 finance people we lured here who gave up as they realised they would never repay their student loans. Conversely, Hungarians who are not encumbered by educational debt can enjoy greater remuneration in the West, so why stay?
FIDESZ has had over a dozen years to address the wage, opportunity, housing and education problems that beset our newly minted professionals. If they don’t have ideas and retain power then I wonder how the country will ever develop an edge.