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Varga: Labor shortage a serious issue

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Labor shortages have been such a serious issue in Hungary that the country recently lost a possible automotive investment as a consequence, Minister for National Economy Mihály Varga said today in an interview with weekly Figyelő, without naming the company.

Varga said that the efficiency of Hungarian labor is lower than that of Western countries, and until it improves, there is no way of forcing Hungary to catch up with those countries.

Although the minister believes that raising the minimum wage in Hungary would not be a solution to the issue, wages are nevertheless set to be increased radically in the ensuing years, Hungarian online daily index.hu reported.

According to Varga, attracting investments to each and every sector is no longer an achievable aim, as not all sectors have the sufficient workforce. He said that currently available labor and capital should be used for increasing the production capacity of Hungarian firms and enhancing their added value.

Varga said the demands of employers also need to be considered, adding that if the country has run out of sufficient labor, the possibility of inviting workers from outside the country needs to be considered, index.hu reported.

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