Hungarian Prime Minister Peter Madjar has enacted a directive halting the issuance of work visas and residence permits for nationals from Armenia, the Philippines, and Georgia, effective June 5. The government has labeled this move as an initial step toward regulating the influx of labor migrants.
This decision, confirmed by the Prime Minister’s office spokesperson, Wanda Sondi, means that Hungary will no longer issue new residence permits under a program previously established by former Prime Minister Viktor Orban. Additionally, the simplified employment mechanism for citizens from these countries through recruitment agencies has been revoked.
“This does not mean a complete cessation of residence permits for non-EU citizens. The ban specifically targets the simplified scheme for attracting foreign workers, which allowed easy hiring from outside the EU through Orban-controlled agencies. This practice faced significant criticism during the pre-election campaign in Hungary,” the report stated.
Sondi indicated that the primary motivation for this decision stems from concerns that foreign workers may depress local wages. Current estimates suggest that around 90,000 non-EU nationals are employed in Hungary, representing approximately 2% of the country’s total workforce. Many of these workers are engaged in the automotive industry, construction, agriculture as seasonal laborers, and delivery services, with a significant number coming from the Philippines, Ukraine, China, Vietnam, and India.
Several major foreign investors in Hungary have already warned that a complete halt to the recruitment of foreign labor could adversely affect their operations and harm the overall economy.
The restriction on labor migration was part of Madjar’s electoral promises. He justified the decision by stating that jobs should primarily go to Hungarians and that companies should not artificially lower wages by hiring foreign workers. However, industry associations and employer groups have noted a significant labor shortage across various sectors in Hungary.
Hungary's government has stopped issuing work visas for non-EU nationals, citing wage concerns for local workers. This policy shift may impact foreign investment and exacerbate existing labor shortages in several industries.
Source: dpa