Small businesses suffer the most from the guest worker restrictions

The new regulation has capped the number of residence permits that can be issued at 35,000 and only allows entry from countries with a state-recognized supervisory body. In practice, this has narrowed the source countries almost exclusively to the Philippines. However, the employment of Filipino workers is tied to a two-year contract, which companies must guarantee – even if the job opportunity disappears in the meantime.

The scheme is more expensive than the previous import of guest workers from Vietnam, Indonesia or Mongolia, and excludes flexible, seasonal employment. This mainly affects SMEs that have so far solved the labor shortage through temporary labor agencies, for example in agriculture, the food industry or processing plants.

Several company managers told the newspaper that despite job advertisements, few Hungarian workers apply or they quickly give up the job. One entrepreneur from Somogy put it this way: if he cannot employ guest workers, he “essentially cannot work.”