The Hungarian government has ceased issuing new permits under the program for recruiting workers from non-European Union countries. The decision has become one of the first major steps of the new Prime Minister Péter Madjár after coming to power.
Hungarian Prime Minister Péter Madjár has started the implementation of one of the key promises of his election campaign. The government has ceased issuing new residence permits under the labor migration program for citizens of non-European Union countries.
The corresponding decree was published in the official state gazette. It cancels the mechanism that was introduced under the previous government led by Viktor Orbán for the simplified recruitment of foreign labor.
Madjár took over the government on May 9 after his party Tisza won the parliamentary elections. During the campaign, he repeatedly criticized the practice of mass recruitment of workers from third countries and promised to review migration policy.
It is estimated that around 90,000 citizens from non-EU countries are currently working in Hungary. This is approximately 2% of the country's entire workforce.
Most foreign workers are employed in the automotive and battery industries, construction, agriculture, and delivery services. The largest groups are citizens of the Philippines, Ukraine, China, Vietnam, and India.
What is important to know: this is not a complete ban on issuing residence permits to foreigners. The restrictions specifically concern the special simplified labor migration program that was in place under the previous government.
According to the new rules, already issued residence permits will remain valid until their expiration date. However, the authorities have not yet clarified whether their holders will be able to extend their permits in the future.
Supporters of the reform argue that it will help increase employment opportunities for Hungarians themselves and reduce pressure on wage levels. These are the very arguments Madjár used during his election campaign.
However, representatives of business and industry organizations point to another problem. According to them, many sectors of the country's economy are already feeling a shortage of workers, and foreign labor helps to compensate for the staffing deficit.
Thus, the new decision may become one of the first serious tests for the economic policy of Madjár's government. In the coming months, it will become clear how the labor market will adapt to the reduction in the influx of workers from non-European Union countries.
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