Are guest workers really taking away Hungarian jobs?

The above may seem surprising at first glance, but reality shows that the flexibility and resources provided by employing guest workers are needed at the current stage of the Hungarian economy’s development. We are in contact with many employers who cannot find enough employees among Hungarian workers for either their operations or the expansion of their activities. The areas with a labor shortage are primarily so-called “blue-collar” jobs, i.e. physical, typically trained, lower-skilled jobs. If they do not have the flexible opportunity that foreign workers provide for the development of their company, they will reduce their activities or ultimately relocate them to countries that provide a more favorable business environment – ​​suitable labor force. This will result in the loss of some of the jobs occupied by Hungarians: the company will first start fewer shifts, produce fewer products, and maintain fewer jobs. If the employer decides to withdraw from the country – because it has a better permanent opportunity for expansion elsewhere – then everyone who has worked for this company can look for a job elsewhere!

Based on practical experience, it has also been proven to be a misconception that the low wages of guest workers will depress Hungarian wages, or that it would be possible to find labor at home by assuming higher wage costs. Guest workers are hired for these positions even though the total cost of employment is higher – by as much as 30-50%! – than for domestic workers. The employability of guest workers is not available overnight, but in order to successfully integrate, they must incur additional costs: such as housing, training, travel costs, and the recurring costs of returning and replacing the workforce after the 2-3 years available for work have expired.