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Hungary – Government may invite foreigners in to combat labour shortage (Reuters)

16 September 2016

The government of Hungary may let in more foreign workers to cope with a labour shortage, but only certain kinds of foreigners, reports Reuters.

According to Hungary’s economic minister, Mihály Varga, the foreigners that would be allowed should be from similar "cultural and historical" backgrounds as Hungarians.

Varga said Hungary has lost about half a million people who have left for better-paid jobs in western Europe. Consequently, employers can't fill as many as 50,000 private-sector jobs.

"In the professions affected, we temporarily need to enable employers to take in workers from the EU, where there is free movement of labour, or neighbouring third countries," Varga said.

Varga did not specify which countries he meant but Reuters suggests it could mean those from other European countries that do not belong to the EU, such as Ukraine and some of the Balkan countries.

“Government efforts to fill the shortages, such as vocational training reforms, need time to take effect and Hungary is under pressure to avoid losing potential investment,” Varga said.

Varga also stated that businesses should raise wages to prevent workers from leaving for higher paid jobs elsewhere in the EU.