Companies across Hungary are voicing strong opposition to the incoming government’s proposal to suspend work visas for employees from countries outside the European Union, warning the policy could damage production in an already strained job market.
The Tisza party, led by Prime Minister Peter Magyar, swept into power after defeating longtime leader Viktor Orban in an April 12 election that ended Orban’s 16-year tenure. The new administration plans to discontinue visa approvals for non-EU workers beginning next month.
“We will not allow foreign guest workers to take the jobs of Hungarians and push down salaries,” the party stated in its campaign platform, sparking concern among major international companies operating in Hungary.
Sandor Baja, who oversees Randstad’s operations across the Czech Republic, Hungary and Romania, cautioned that completely blocking workers from non-EU countries would create long-term problems for businesses that depend on international staff.
“An outright ban on workers from outside the EU would not be viable in the long run,” Baja explained, pointing out that significant portions of Hungary’s labor force will reach retirement age within the coming decade.
Speaking to Reuters on Friday, Baja expressed optimism that economic considerations would influence policy decisions. “I sincerely hope that (economy minister Istvan) Kapitany’s team will allow economic rationality to prevail here,” he said.
Government data shows international workers make up just 2% of Hungary’s total employment. The country has not experienced the large influx of Ukrainian refugees that has helped address labor shortages in Germany, Poland and the Czech Republic.
Despite the small overall percentage, business representatives say certain industries depend heavily on foreign employees for their operations.
Akos Janza, who leads the American Chamber of Commerce, reported that international workers fill as much as 20% of positions at some member companies, including both professional and manual labor roles.
“We have a member company, which would have to cut a full shift (without guest workers),” Janza noted on Friday, identifying the affected business as a manufacturer in Hungary’s important industrial sector.
While Baja estimated that younger Hungarians under 25, older workers above 55, and residents of rural areas could provide approximately 400,000 additional workers, he acknowledged that transportation and relocation challenges would limit their ability to fill current gaps.
Robert Keszte, representing German businesses operating in Hungary, issued a stark warning about the economic impact of halting visa approvals.
“In our view, the Hungarian economy cannot currently function without workers from third countries (outside the EU),” he stated last week.
