articleimg-1
Aug 04, 2016

Unemployed Hungarians are first in line for new jobs

A lack of skilled employees is viewed as an increasing risk to investment and growth in Hungary, and unemployed Hungarians will be given new opportunities to return to work

The Hungarian government has outlined plans to launch a new economic strategy, involving the amendment of several pieces of legislation, aimed at tackling the growing labor shortage.

A lack of skilled employees is viewed as an increasing risk to investment and growth in Hungary, and unemployed Hungarians will be given new opportunities to return to work.

Hungary will also aim to reduce its dependence on EU funds and diversify the economy, Minister of National Economy Mihály Varga told weekly newspaper Figyelo.

“A new situation is beginning to take shape in employment. From now on the objective is not only to promote new jobs but also to keep the existing ones,” Varga said. "In view of the current manpower situation, the new direction will be to lengthen value chains,” he added.

The government will also take measures to improve the labor flow to those areas of the country where labor shortages are most severe.

In parts of western Hungary - in particular around the auto-making hub off Győr - unemployment is approaching just 1 percent, analysts stressed to bne IntelliNews earlier this year.

Varga notes that the lack of labor already derailed Hungary's efforts to win one major investment in the automotive sector. The minister did not name the company involved.

That said, labor shortages are rising throughout the Visegrád region, and Hungary continues to attract new projects.

Daimler announced in late July that it will invest 1.6 billion euros to expand its current plant in Hungary. The Mercedes builder will need to find 2,500 new workers.

Minister Varga said that the cabinet insists unemployed Hungarians should be first in line.