The shocking reason behind companies choosing guest workers over Hungarian labour

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.