Randstad leader: Every tenth company is planning downsizing, many are announcing layoffs

Sándor Baja

According to the world’s largest HR service provider, companies are planning an average salary increase of 9 percent in Hungary by January. He added that if the minimum wage does not increase substantially, the labor shortage will increase, as many people will take up work abroad. For this reason, it is necessary to raise minimum wages by at least two digits.

Based on your experience, to what extent has the demand for labor weakened? Which sectors are most affected?

Earlier this year, we asked about 400 companies of different sizes and industries about their employment plans. 89 percent of the respondents wanted to increase the number of employees, and no one wanted to reduce them. This was a serious challenge considering the demographic situation. Last year, 36,000 more people retired than entered the labor market.

We asked company managers again in September. In the more difficult economic environment, only 38 percent plan to increase the number of employees, while 49 percent do not plan to change. At the same time, 9 percent of the companies decided to downsize.

The wave of downsizing has also started in the hospitality sector, the hotel industry, and in some sub-areas of the trade and service sector. Many have introduced a headcount freeze. This also means that if someone leaves the company, no one can be hired to replace them. For example, some leasing companies have introduced a definite headcount limit.

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