Hungary restricts non-EU labor access as new PM fulfills campaign promise

Hungary's new government has moved to restrict the influx of non-European Union workers, a key pledge from Prime Minister Péter Magyar's Tisza Party. A new government decree, published in the official gazette, immediately halts the issuance of new residence permits under the previous "guest worker" program established by Viktor Orbán's administration.

Magyar, who took office on May 9 after his party's decisive victory in the April 12 parliamentary elections, stated that the policy aims to ensure more Hungarian citizens find employment. He also seeks to deter companies from using foreign labor to suppress domestic wages. This policy shift directly addresses concerns raised during his election campaign.

Industry and employer associations have voiced concerns, however, pointing to existing labor shortages in various sectors across Hungary. Currently, an estimated 90,000 non-EU workers are employed in Hungary, primarily in the accumulator and automotive industries, construction, seasonal agriculture, and delivery services. Most of these workers hail from the Philippines, Ukraine, China, Vietnam, and India.

The government's decision is a significant departure from previous policies and could have implications for sectors reliant on foreign labor. While the administration frames it as a move to protect domestic jobs and wages, business groups warn of potential economic disruptions due to labor scarcity.