Hungary halts new work permits for non-EU guest laborers

Hungary's new government has ceased issuing new residency permits for guest workers from non-EU countries, effectively ending a program established by the previous administration led by Viktor Orbán. The decree was officially published in Hungary's official gazette.

This policy shift comes after the "Tisza" party, led by the new prime minister, secured a decisive victory in the April parliamentary elections. Estimates suggest that approximately 90,000 workers from outside the EU are currently employed in Hungary, making up about 2% of the total workforce. These workers are predominantly employed in the battery and automotive industries, construction, seasonal agriculture, and delivery services, with many hailing from the Philippines, Ukraine, China, Vietnam, and India.

Restricting the influx of migrant workers was a key campaign promise made by the new prime minister, who sought to differentiate himself from the long-serving former leader, Orbán. The justification provided is that more jobs should be available for Hungarians, and companies should be discouraged from lowering wages by hiring foreign labor. However, industry and employer associations report significant labor shortages across many Hungarian sectors.

The new regulation stipulates that existing residency permits will remain valid until their expiration date, though it does not specify whether extensions will be permitted. This prohibition specifically targets the simplified guest worker program of the Orbán government, which facilitated the hiring of non-EU workers through agencies controlled by Orbán's administration. The new prime minister had strongly criticized this practice during his campaign.