Hungary: Péter Magyar Restricts Influx of Guest Workers

Hungary's new administration, headed by Prime Minister Péter Magyar, has implemented a significant tightening of regulations concerning foreign workers. Effective immediately, the government has stopped issuing new residence permits under the guest worker program established by the previous Viktor Orbán government.

While existing permits will remain valid until their expiration, the new decree leaves uncertainty regarding the renewal of these permits. This measure does not represent a complete halt to non-EU citizens obtaining residency but specifically targets the simplified guest worker system. This system had facilitated the recruitment of labor from outside the European Union through agencies reportedly linked to businessmen close to Orbán.

Magyar had pledged to restrict the influx of guest workers during his election campaign. He argued that the policy would create more job opportunities for Hungarians and discourage companies from suppressing wages by employing migrant workers. However, industrial and employer associations have voiced concerns, pointing to existing labor shortages across numerous sectors in Hungary.

Magyar's Tisza Party secured a decisive victory in the parliamentary elections held on April 12, and he assumed premiership on May 9. Currently, an estimated 90,000 non-EU nationals work in Hungary, constituting about 2% of the country's workforce. These workers are primarily employed in industries such as accumulator and automotive manufacturing, construction, seasonal agricultural work, and delivery services. The majority hail from the Philippines, Ukraine, China, Vietnam, and India.