Themes this year include the impact of geopolitical tensions and AI, new regulations, and those that top the wish-list, whether the education system is fit for purpose, and the hardest roles to fill.
BBJ: What impact, if any, has the war in Iran (and the ongoing invasion of Ukraine) had on the recruitment market? Are firms delaying or retreating from hiring decisions they had been considering at the start of the year?
Zsolt Beck: Geopolitical uncertainty, ongoing conflicts and elections have prompted a clear wait-and-see approach, with companies delaying or scaling back hiring decisions.
Gábor Krivánik: Uncertainty tends to slow decision-making, but does not stop hiring altogether. Companies are becoming more deliberate and thoughtful about whom they hire and why. In this environment, our role is to act as a partner: not simply filling positions, but aligning business objectives with human considerations.
Éva Paulovics: The current geopolitical environment is having a clearly noticeable impact on the Hungarian recruitment market. There is a strong sense of caution across companies. External uncertainties, combined with the rapid emergence of AI, are forcing many organizations to rethink their long-term strategies. Rather than postponing hiring plans made at the beginning of the year, most companies simply planned for fewer hires in 2026 from the outset. At the same time, we increasingly see companies hiring and laying off simultaneously, reflecting strategic shifts rather than pure cost-cutting. Employers are reassessing which capabilities are truly critical to future competitiveness and reallocating resources accordingly, leading to a more selective, focused hiring approach.
Gabriella Ruff: We do see some hiring slowdown, but this is less about the war itself and more about overall global uncertainty. Companies are more cautious, decision-making takes longer, and hiring is more selective. In practice, discretionary or greenfield roles are often delayed. Clients are focusing on replacements, revenue-generating positions, and operationally critical hires. Sectors exposed to energy costs, logistics or manufacturing are more sensitive, while shared services, finance, compliance, digital and certain IT roles remain relatively stable. We recently had one case related to the war in Iran: a senior finance role was canceled at a very late stage, after candidates had already been interviewed, due to uncertainty in the aviation sector.
BBJ: What is new on the regulatory front for the recruitment agencies market in 2026?
Tammy Nagy-Stellini: One of the most significant regulatory developments this year is the upcoming EU Pay Transparency Directive. While it primarily targets larger employers, recruitment agencies like Hays play an important role in supporting salary transparency, non‑discriminatory job advertising, and compliant hiring. This is a positive step for the industry, raising expectations around data accuracy, process discipline, and the advisory role of recruitment partners. We are seeing a shift: from salary negotiation to advising clients on pay strategy, market benchmarking, and compliance. AI in recruitment is also moving from innovation to accountability, with increasing expectations around governance and responsible use.
Bence Szalai: Wage transparency is certainly one area where the direction is clear, but the implementation is far from settled. In our day-to-day work, this can impact how we assess wage demands, represent our clients, and support the acceptance of job offers. We certainly have a busy period ahead of us, with many changes and the introduction of new guidelines. We welcome this guideline, as we believe in the power of transparency and equal treatment of all candidates.
GR: The key change is the EU Pay Transparency Directive coming into force in June. Employers will need to share salary ranges upfront and will no longer be allowed to ask about candidates’ previous salaries. This will have a real impact on recruitment. Salary discussions will become more transparent, and companies will need to align their offers much more closely with market benchmarks.
BBJ: What is missing? What rules and regulations would you like to see?
ZsB: The framework around employment, remote work, and contractor arrangements needs simplifying so people can freely choose the model that suits them. This is fundamentally about unified taxation and greater personal freedom.
Sándor Baja: Currently, several market-unfriendly regulations are stifling growth, contributing to low employment rates among younger generations and necessitating the import of labor from non-EU countries, even for high-value positions. Our priority should be creating the economic and social conditions necessary to attract back some of the 700,000 Hungarians currently working abroad.
BBJ: Are you yet seeing a concrete impact from AI on the recruitment market? Are certain job types disappearing? Is there a greater need for upskilling or retraining in some sectors?
ZsB: It’s the calm before the storm. SSCs and call centers are particularly exposed: thousands of jobs could disappear rapidly. The change is already visible in marketing, graphic design, and software development, and AI’s presence in HR itself is growing.
GK: AI is clearly present, but it has not replaced the human element. It accelerates processes and supports decision-making, but does not make decisions itself. The real value still lies in understanding people: their motivations, behaviors, and cultural fit. What we see is a growing demand for professionals who can effectively leverage AI while maintaining strong human sensitivity.
György G. Palásti: The adoption of AI is progressing, but more slowly than initially expected. Certain functions are more impacted than others: in IT, entry-level roles have declined alongside reduced demand for early-career talent. Across industries, AI-related skills are becoming increasingly important, as new technologies are integrated into nearly every workflow. This is gradually raising entry requirements and pushing companies to upskill their workforce to remain competitive.
TN-S: I would say it’s still more evolutionary than disruptive. Everyday tasks like CV screening or shortlisting have become faster and more data‑driven, freeing recruiters up to spend more time advising clients and improving the candidate experience. I don’t believe entire job categories will disappear, but task‑heavy roles will transform, driving stronger demand for a mix of technical, business, and human skills, particularly in IT, finance, or engineering. I think the real challenge in 2026 isn’t job loss, but how quickly people and organizations can adapt to new skill requirements in an AI‑enabled labor market.
ÉP: The impact of AI in recruitment is weaker in Hungary than we initially expected. In many organizations, HR and recruitment processes are still built on fragmented systems and basic tools that are not suitable for effective AI integration. Poorly structured processes simply cannot support advanced automation. In addition, GDPR and data security concerns remain significant barriers to adoption. Administrative and finance processes are far more advanced in AI use than HR and recruitment, where trust, data quality, and process maturity remain major challenges.
GR: We already see the impact, but it is more about changing job content than roles disappearing completely. Routine, repetitive tasks are increasingly automated, while demand is shifting towards profiles with stronger analytical skills, business understanding and digital literacy. We also see fewer junior roles compared to previous years. This is partly due to AI, and partly linked to the more cautious economic environment.
Péter Varga: Nearly 90% of companies already leverage AI in recruitment, and this figure continues to grow. The primary impact is the reduction of administrative burdens, including CV screening, interview scheduling, and database searches. However, this shift is not limited to the recruiter side; it is equally evident from the candidates. As a result, the recruitment process has become faster, but also significantly more “noisy,” with a growing volume of AI-generated application materials.
While certain roles are disappearing, this does not mean that AI will replace the workforce within a few years. Its primary effect is increased efficiency. The roles most exposed are entry-level positions in administration, support, and data processing. In parallel, new roles are emerging, particularly in AI development, automation, and process design.
Based on these trends, most jobs are not disappearing but transforming. Consequently, the need for reskilling and upskilling is increasing. Companies are placing greater emphasis on candidates who demonstrate proficiency with various AI tools. Even the most conservative estimates suggest that 60–70% of the workforce will need to acquire new skills within the next one to two years.
BBJ: Is AI helping you in your work with faster screening or targeting candidates? And if not now, will it do so soon?
BSz: We currently use several AI tools to make our work simpler, more efficient, and more sustainable. In the recruitment process, artificial intelligence currently provides the greatest added value for us in the sourcing area, but we expect major efficiency gains across our administrative processes, our online presence, and virtually all of our support functions. As a digital recruitment agency, AI transformation is a key priority in our 2026 strategy. With our current AI tools, we can search for candidates across all platforms simultaneously, with just a few clicks, and see immediate results. In the long run, this leads to greater efficiency and effectiveness.
ÉP: We have invested heavily in improving our own processes by combining workflow redesign, standardization, and AI tools. While efficiency has clearly improved, the impact is far from 100%. Several solutions that promised quick wins have failed in daily operations. Nevertheless, continuous testing and refinement are key. We believe sustainable progress comes from realistic use cases rather than over-automation.
BBJ: Which jobs or positions are hardest to find recruits for in Hungary? How has this changed, and how can you overcome it?
ZsB: Engineering and logistics roles remain difficult, but financial specialists (accountants, controllers, senior financial professionals) are increasingly hard to place, with talent migrating to large firms or abroad. IT is moving in the opposite direction: AI has increased the supply of junior developers. The answer lies in engaging passive candidates, competitive compensation, and genuine flexibility.
GK: It is not specific roles that are difficult to fill, but rather finding individuals who truly function well within an organization. Today, companies are looking beyond skills; they are seeking mindset, stability, and attitude. That is why we take a comprehensive approach, from recruitment to retention, because the real challenge is not hiring, but sustaining long-term performance.
GyP: Economic stagnation has significantly reshaped the market, with regional dynamics often outweighing industry-specific demand. Large-scale investments in eastern Hungary are driving demand for technicians, highly skilled blue-collar workers, and engineering professionals, creating strong regional attraction effects. Simultaneously, value chains are following these investments, increasing demand in logistics and support services.
Meanwhile, the growth of service and R&D centers is fueling demand for highly specialized, multilingual professionals, particularly in finance roles, which are now expanding beyond Budapest into major university cities. Combined with generational shifts, these changes highlight the need for more innovative recruitment approaches. The candidate pool is increasingly fragmented, while client expectations continue to rise, making a consultative, partnership-driven approach essential.
BSz: Overall, the Hungarian labor market and its challenges have not changed drastically compared to recent years. There are still traditionally “candidate-driven” sectors, such as IT, manufacturing, pharmaceuticals, finance, and construction. Candidates in sales and HR face the toughest situation, as many highly qualified professionals are applying for a limited number of open positions. Last year, based on feedback from our clients and market trends, we launched our Expert Pooling project, through which we maintain regular and relevant contact with the best candidates in the market. This helps us introduce the best experts to our partners in the shortest possible time.
PV: The most difficult remain skilled trades and blue-collar positions, particularly in industrial production, construction, and logistics. These professions face persistent shortages driven by demographic decline, international labor mobility, and their reduced attractiveness. At the same time, shortages are intensifying among highly skilled professionals, especially in engineering, IT, business development, and sales. Companies increasingly hire for integrated skill sets rather than standalone roles, with high demand for candidates who combine technical expertise, business understanding, and communication skills.
This challenge requires a combined response: competitive compensation, improved working conditions, investment in internal training, and greater access to international talent. In the longer term, closer alignment between the education system and labor market needs is essential, particularly in practical and digital skills development.
SB: The most difficult positions to fill remain expert-level skilled workers, both blue and white-collar, specifically in engineering, IT, and production. Interestingly, top management roles are currently the easiest to fill, as we are seeing a high degree of turnover and mobility at the executive level.
BBJ: Is the Hungarian education system turning out people with the skills they will need to be useful to a company and build a long and successful career for themselves? If not, what needs to be done?
ZsB: Companies are building their own training centers to fill the gap, as institutions cannot adapt fast enough. Greater dialogue between educators and employers is essential; recruitment firms are well-placed to help bridge that gap.
GyP: Internship and dual education programs have played a key role in preparing early-career talent, but education struggles to keep pace with rapidly changing market needs. Stronger integration between education and industry is required, along with faster adaptation of training programs and a greater focus on soft skills such as adaptability and resilience. Companies are increasingly engaging talent at earlier stages, while demand is growing for integrated recruitment solutions that combine student employment and effective communication with younger generations.
TN-S: Most schools provide a strong academic foundation, particularly in STEM, economics, and analytical thinking, areas where Hungarian professionals are highly regarded internationally. Dual vocational education is especially valuable, as it allows young talent to enter the labor market while studying, benefiting both employers and students. The upcoming generation is highly resourceful, valuing skills, multitasking, languages, adaptability, and meaningful work, the key drivers of innovation and long‑term careers.
SB: The Hungarian education system currently suffers from a paradoxical mix of scarcity and wasted potential. In my hometown, for example, there are only two chemistry teachers across eight schools. It is difficult to imagine producing the next Nobel Prize winner, like Ferenc Herskó (born there), if students never interact with a specialized teacher. Meanwhile, in some villages, teachers are underutilized in their subject areas and spend their time in afternoon daycare roles. Most alarmingly, 25% of Hungarians leave school functionally illiterate. To illustrate the severity, Randstad had to hire dedicated administrative support in Miskolc simply to help unskilled workers fill out basic contracts, as many struggled with standard personal details.
BBJ: Is there anything else you would like to address?
ZsB: Both AI and Hungary’s economic ambitions require government engagement through structured working groups with market players. Continuous consultation must be the foundation.
GK: We are proud that BetterMore Consulting is now ranked among the list of best recruitment firms in Hungary. We have achieved this by consistently prioritizing quality over quantity and focusing on long-term partnerships rather than transactional volume. At the same time, through the HR Talkshow, which has surpassed one million views, we aim to bring the profession closer to people. HR is not merely a function, but a field where human stories, decisions, and connections ultimately drive business success.
SB: The divide between the skills the market demands and the output of the current educational system is the single greatest hurdle for Hungary’s long-term competitiveness. Bridging this gap is not just an HR challenge, but a national economic necessity.
(Sorted in alphabetical order by company name.)
• Zsolt Beck, owner and CEO, Beck and Partners Ltd.
• Gábor Krivánik, CEO and founder, BetterMore Consulting
• György G. Palásti, country manager of Gi Group Holding Hungary
• Tammy Nagy-Stellini, regional director, Hays Hungary & Romania
• Bence Szalai, chief recruitment officer, IDBC Group
• Éva Paulovics, general manager, Jobsgarden Kft.
• Gabriella Ruff, managing partner, Karrier Hungária
• Péter Varga, Country manager, Manpower Hungary
• Sándor Baja, managing director, Czech, Hungary, Romania, Randstad
This article was first published in the Budapest Business Journal print issue of April 24, 2026.
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