Hungary's Planned Visa Halt for Non-EU Workers Alarms Businesses

Hungary’s new government, led by Prime Minister Peter Magyar of the Tisza party, faces significant backlash from business leaders over its plan to stop issuing visas to non-EU workers starting next month. The policy, intended to protect local jobs and wages, has raised alarms among major foreign investors and industry groups who warn it could severely disrupt output in an already tight labor market. While official statistics indicate foreign workers comprise only 2% of the workforce, sectors like manufacturing and services rely heavily on them, with some companies reporting up to 20% foreign staff. Business representatives, including officials from Randstad, the American Chamber of Commerce, and the German business chamber, argue that an abrupt ban is economically unviable. They highlight demographic challenges, such as an aging workforce and limited domestic labor mobility, which make third-country workers essential for current economic functioning. Critics urge the government to prioritize economic rationality, warning that the halt could force production cuts and strain companies dependent on foreign labor, potentially harming Hungary’s economic stability despite the political mandate to end previous administration policies.