GKI: “Is cheap labor still one of the bases of our competitiveness today?” – on the margin of a myth
The phrase in the title as a question came out as a statement from the mouth of the MKIK president. What is true about this? According to economic theory, the evolution of production costs and productivity together shape competitiveness. And productivity depends partly on the technology used and partly on the people operating it, their skills and knowledge.

Trained work processes dominate the activities of multis in Hungary
Among the costs, the weight of labor is relatively low in industry, but high in services (since the demand for live labor is higher). In 2020, in the case of Hungarian companies with 322,000 double-entry books, the revenue was HUF 89,500 billion, while personal payments amounted to HUF 9,900 billion (11%). Just as an interesting addition: the profit before taxes reached 7.6 thousand billion HUF despite the Covid-19 epidemic!
Hungarian economic policy treats the resettlement of manufacturing companies in our country as a priority area. Of these, car manufacturing is the flagship. According to the 2020 reports, the ratio of personal expenses to sales revenue in this sector was 6.8% (in the case of the largest player, Audi, this figure was only 5.9% in 2021). But in the case of the new favorite, battery production, 6.8% was also the appropriate indicator, which will decrease later on, until the production capacity is reached.
GKI
Related news
GKI expects a 2-2.5% economic growth in 2025
GKI Economic Research Zrt. forecasts a 2-2.5% GDP growth for…
Read more >GKI analysis: Productivity in trade has grown 6 times faster since 2010 than in manufacturing
In the third part of our series examining labor productivity…
Read more >Manpower: Employment may expand slightly in the second quarter
Sorry, this entry is only available in HU.
Read more >Related news
Change of leadership at the head of Henkel’s Hungarian Consumer Brands business
Maurizio Salvaggio will be the new Head of Consumer Brands…
Read more >You can still save, but not on all margin-stopped products
Although the effect of the Hungarian price caps is starting…
Read more >The BioTechUSA group was able to grow despite market challenges
The purely domestically owned BioTechUSA group has published its annual…
Read more >