Budapest has restricted new work permits for non-EU workers
Hungary has decided to restrict the issuance of new work permits for migrants from non-EU countries, effectively phasing out the simplified scheme introduced by the previous government. The government explains this as a measure to protect jobs for Hungarian citizens, although businesses are already warning of a labor shortage.
Hungary has changed the rules for migrant workers and decided to significantly restrict the issuance of new residence and work permits for citizens of countries outside the European Union. Prime Minister Péter Magyar signed a decree that effectively dismantles the simplified migration scheme introduced by Viktor Orbán’s previous government. It was this system that allowed for the rapid recruitment of workers from outside the EU through special agencies.
New permits under this program will no longer be issued, but documents already issued remain valid until their expiration. The question of their renewal remains open for now. This is not a complete ban on labor migration, but rather the abolition of the simplified mechanism that has been actively used in recent years to address labor shortages in certain sectors of the economy.
In Budapest, the decision is explained by economic and social considerations. According to the government, the new restrictions are intended to provide more employment opportunities for Hungarian citizens and reduce downward pressure on wages. During the election campaign, Péter Magyar criticized the previous model for attracting foreign workers and promised to review it. “The decision is intended to provide Hungarian citizens with more jobs and prevent companies from lowering wages by hiring foreigners,” the new prime minister’s team explains. At the same time, employers are already warning that the country could face a labor shortage in key sectors, particularly in manufacturing and construction.
According to estimates, about 90,000 citizens of non-EU countries currently work in Hungary, accounting for approximately 2% of the country’s total workforce. Most of these workers are employed in industry, particularly in the automotive sector and battery manufacturing, as well as in construction, agriculture, and the delivery sector. The largest groups of migrants include citizens of Ukraine, the Philippines, China, Vietnam, and India.
Labor market experts note that the consequences of the decision may not be immediate but will gradually affect certain sectors that are already experiencing a labor shortage. At the same time, the Hungarian government insists that the new policy will help stabilize the domestic labor market and reduce dependence on foreign labor.
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