Recent years of economic slowdown are now reflected in labor market data. The unemployment rate has risen to nearly 5%, a level not seen in almost a decade, while the number of employed people has fallen by approximately 60,000–70,000 over the past year. However, the deterioration has appeared gradually in the statistics, as many companies sought to retain employees despite the uncertain economic environment, the firm said.

“Companies have tried to retain their employees in recent periods because they have previously experienced how difficult it is to quickly find new workers during an upturn. Therefore, despite the worsening economic situation, many firms chose to wait and only later respond with headcount reductions,” said Gergely Gáspár, an expert at Gi Group Holding.

At the same time, labor market conditions vary significantly within the country. Demand has remained particularly strong in regions that have seen major industrial investments in recent years. One such area is Debrecen, where developments in the automotive and battery industries, along with the arrival of related suppliers and service providers, are intensifying competition for talent.

In recent years, employing third-country nationals has become an important tool for many companies to address labor shortages, especially in manufacturing and logistics. However, several factors have recently curbed interest in foreign labor.

Economic uncertainty and unpredictable orders make long-term planning more difficult, while recruiting and onboarding foreign workers often takes several months. According to official data, there are currently around 85,000 third-country nationals and more than 20,000 EU workers employed in Hungary. The incoming Tisza government is expected to set clear conditions regarding the employment of foreign workers.

“Employing third-country nationals remains an important option for companies; however, in the current economic and regulatory environment, many firms are weighing such decisions more carefully,” Gáspár said.

As a result, companies are expected to place greater emphasis on attracting domestic labor in the coming period. Large-scale investments have expanded recruitment zones in some regions, with firms searching for workers across increasingly wide geographic areas. Various mobility incentives are also becoming more common, such as housing support, relocation packages, or weekday accommodation, aimed at attracting workers from other regions.

Companies are also paying greater attention to labor groups that were previously underutilized. Student employment, reskilling candidates, and workers with reduced capacity are playing a growing role for many firms.

According to the analysis, recruitment methods are also evolving. In addition to traditional channels, data-driven, multichannel solutions are gaining prominence, enabling companies to reach a broader pool of potential employees. Gi Group Holding expects the labor market to remain highly differentiated in the coming period: while demand may moderate at the national level, intense competition for workers is likely to persist in certain regions and industries.