Foreign Workers in Hungary: Statistical Data and Legal Background
Brief history of foreign workers in Hungary after joining the EU, current situation at workplaces, statistics on foreign nationals and employees, and the future need for new workers in Hungary to support economic growth.
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Presentation Transcript
Foreign Foreignworkers workersin Hungary in Hungary Statistical Statisticaldata Legal Legalbackground background Organizing Organizing data
Brief history after joining EU In the past Hungarian workers went to Austria and Germany shortage Workers from neighboring countries (Romania, Slovakia), mainly Hungarian nationals Wages became the same or better Outside of Europe: Serbia, Ukraine (first Hungarians then the others) Hungary is not as attractive, competitive (low wages, weak HUF): workers from further away Labor shortage threatens growth (future FDIs, threat of relocations) Contradict with the harsh anti-migration policies
Statistics what we know Number of foreign nationals Sources: KSH (Hungarian Central Statistical Office latest data, 1st January), NFSZ (National Employment Service latest data from 2019), perception 250000 200000 150000 Number of Chinese: stagnated (18-19 thousands) 100000 Europeans: only the number of Ukranians increased significantly (from 10 to 36 thousands) 50000 0 2018 2019 2020 2021 2022 2023 SUM Men Women Europe Asia Africa
Statistics what we know Number of foreign employees compared to all foreign nationals 250000 200000 150000 Share in employment: 2019 1% 2023 2% 100000 50000 0 2018 2019 2020 2021 2022 2023 Employees All foreign nationals
Current situation at the workplaces perception Model working via temporary agencies Big groups (20-300 employees) from one country to one workplace This causes the tensions and the perception of higher increase and debates about 3rd country nationals Different rules, housing or food allowance So far no signs of social dumping, employing foreigner is more expensive But advantages for employers: more overtime, less sick leave, more flexibility as no families longer terms possible race to the buttom At some companies early signs of preference of foreigners (temporary aganecy workers)
Future Prime minister 500.000 new workers are needed in the near future to the new sectors, factories Employment is already 70%, foreigners are needed Mainly from Asia number of Filipino workers are estimated to grow up to 80.000 Official data Main sectors of employment: services, building, production
Current legislation Law from 2007 on third country nationals based on EU legislation Very strict for individuals staying more than 90 days (within 180 days) Many permits, visa, purpose of stay, insurance, money, accomodation, etc. 2 years maximum Bureaucratic On the role of temporary agency companies 2022 Make it easier to employ foreigners if it happens via qualified a temp agency Can bring employees from 17 countries
Planned changes in legislation from 1st November It was withdrawn before enters into force, but the direction likely to stay Less bureaucracy, the basis of legal employment is a combined (residence and work) permit Introduce the concept of guest or migrant worker Two ways of easier employment of migrant workers: via qualified temporary agancy companies or to be in a Special group of preferential employers: which have strategic partnership with the government (exists for a decade, still not clear what are the conditions), make an investment which has strategic economic importance, or is an important exporter
Planned changes in legislation from 1st November To get the permit the migrant worker has to have Legal documents, adaquate accommodation, financial background, and national security aspects This permit is maximum 2 years (can be extend by 1) No right for settlement or family reunification Reason of withdrawal: not strict enough It will be a question if a strict law would be competetive enough
Organizing Earlier experiences with Serbian and Ukranian workers Some successes with Filipino workers Problem is with their temporary status (less protection for them, less rights for trade unions to represent them)
Thank Thank you you! !
