Hungary considers banning guest workers due to fear of rising unemployment
The Hungarian government is reportedly considering a ban on employing guest workers from non-EU countries starting from 1 January 2025. This news has raised concerns among local businesses, especially those that heavily rely on foreign workers. While the government has not officially confirmed the proposal, industry leaders believe that the decision may be driven by rising unemployment rates in the country.
Under the potential new policy, workers from most non-EU countries would no longer be eligible for new work permits, except for workers from Georgia. Moreover, the extension of work permits beyond one year for those initially granted a two-year permit would also be prohibited. This has left businesses in sectors such as manufacturing, logistics, and delivery services worried about the future of their workforce.
The lack of consultation between the government and businesses has led to confusion and panic among company leaders. There are speculations that the government may be trying to address anticipated increases in unemployment by preventing foreign workers from filling job vacancies that may arise. Companies like Master Good, which heavily rely on guest workers, fear that without them, their growth may become unsustainable and production levels may decrease.
The sudden and potentially disruptive change has left many businesses concerned. Executives argue that such a significant policy change should involve thorough discussion and a reasonable adjustment period. Given the existing economic challenges in Hungary, restricting guest worker employment could further damage the economy and potentially lead to a significant decline in the country’s GDP.
As the details of the proposed regulation remain unclear, businesses are apprehensive about the potential impact on their operations. They stress the importance of proper dialogue and preparation before implementing such a far-reaching decision.
