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Hungary's labor shortage is the biggest challenge for businesses

Official figures show that 86 percent of the 400 managers who responded to the survey said their companies "struggle to find experienced labor and 71 percent said hiring career-starters is difficult"

Hungarian businesses believe the biggest challenge they face is the labor shortage currently visible in Hungary.

According to MTI, about 38 percent of Hungarian SMEs have highlighted the labor shortage as a cause for concern in the growth of their business.

In a survery conducted by the Hungarian Chamber of Commerce and Industry’s (MKIK) Economic and Business Research Institute (GVI), there was a two percentage-point increase from a survey conducted just six months ago.

Official figures show that 86 percent of the 400 managers who responded to the survey said their companies "struggle to find experienced labor and 71 percent said hiring career-starters is difficult."

What's more, 60 percent said staff turnover is a problem. The survey also showed that 34 percent have tried to attract and keep workers by offering higher salaries and packages. About 29 percent have invested in automation to reduce headcount and 20 percent have turned to student labor.

The survery also found that 70 percent of the managers said their companies have raised wages, 49 percent have offered training opportunities, and 47 percent are sweetening compensation with vouchers.