Jan 08, 2018

Hungarian wages set to increase by 10 percent in 2018

A hot labor market is causing firms to increase wages up and down the country

Businesses up and down the country are raising wages to encourage skilled workers to Hungary.

According to KSH, small and medium-sized enterprises based in Hungary lack skilled workers, while their capital is healthy.

Two-thirds of Hungarian companies have faced difficulty finding skilled workers to fill positions and official figures show that twice as many companies are looking for workers this year compared to 2017.

KSH’s survey shows that a record number of job vacancies were registered in the third quarter of 2017. There were almost 53,600 unmanned positions in the enterprise sector, which is a 30 percent increase from last year.

What’s more, the national economy lacked more than 70,000 employees between July and September last year.

Viktor Zoltán Kovács, KSH’s marketing manager, stated that 67 percent of the enterprises faced challenges related to the lack of labor this year. He said that 36 percent more companies are planning to recruit new employees in 2018.

Official figures show that 75 percent of small and medium-sized enterprises are planning to raise wages by an average 9.5 percent in 2018.