Low Ratio of Guest Workers in V4 and EU Markets
The Minister for National Economy, Márton Nagy, recently addressed a conference focusing on the resources and challenges of Hungary’s domestic labor market. According to reports from World Economy, Minister Nagy stressed the importance of tackling these issues and presented potential solutions, including upcoming programs geared towards supporting young people.
While recognizing the need for foreign workers to meet labor demands, Minister Nagy highlighted the significance of a well-regulated framework. He emphasized that third-country nationals can only reside in Hungary for specific purposes and durations.
To protect Hungarian jobs, the government has banned guest workers from nearly 300 professions and implemented stricter controls and penalties for illegal employment. Additionally, the Ministry for National Economy has limited the number of guest workers to 65,000 through a ministerial decree.
Despite acknowledging the necessity of foreign workers, Minister Nagy noted that the proportion of non-EU workers in Hungary remains relatively low compared to the EU and the V4 countries. To address this issue, he introduced three major government programs aimed at reducing unemployment and increasing workforce activity.
One of these initiatives involves a EUR 70 billion program to support on-the-job training, providing subsidies for companies to train workers and cover their lost wages during training periods. Another program, totaling HUF 150 billion (EUR 378.4 million), focuses on expanding the labor supply and assisting job seekers over 30 with employment support, wage subsidies, mobility assistance, and training support.
Furthermore, Minister Nagy addressed the shortage of certified drivers in Hungary by introducing a HUF 1.7 billion (EUR 42.8 million) training program. This program aims to reduce the shortage by enabling over 1,000 individuals to obtain driving licenses and facilitating their job placement.
The government’s commitment to supporting youth employment was highlighted through two programs. The Youth Guarantee Plus initiative, with a budget of HUF 200 billion (EUR 504.4 million), aims to help individuals under 30 find employment, gain work experience, or acquire marketable skills. Another program launched in January focuses on promoting generational change by transferring work experience from experienced workers to younger ones.
In conclusion, Minister Márton Nagy underlined the importance of employer participation in these programs, emphasizing the benefits of mentoring young job seekers by workers nearing retirement. These initiatives are expected to have a positive impact on Hungary’s labor market and workforce development.
