BBJ: What is the general mood of the sector as we start Q2 2025? Are firms looking to take on or let go of temporary staff?
Gábor Berta: In many instances, our clients have started to replace lost staff. Larger volumes can be observed in specific projects, but this is not the trend. Most of our clients primarily prefer local Hungarian employees, and only after 1-2 months of searching do they start to open up to foreign employees.
Róbert Csákvári: Many companies are scaling back their workforce needs and downsizing their leased staff. Economic uncertainties forecast for Q2 2025, particularly the potential effects of a new trade war, may negatively impact labor market trends. While some segments remain active, the focus has shifted from expansion to cost efficiency and optimization in managing the leased workforce.
Viktor Göltl: Based on temporary employment data and the demand observed in the first quarter of this year, it is evident that companies have a higher labor demand than this time last year. The volume reported at WHC is nearly two and a half times greater than what we experienced last year, which we consider an extremely positive sign. An exception to this growth is the automotive industry, which continues to exhibit subdued recruitment trends, although some increase in demand has emerged in connection with new developments. Recruitment efforts for workforce needs related to recent automotive investments in the country are already underway, impacting the affected regions. Meanwhile, the commercial, logistics, and tourism sectors demonstrate a clear upward trend in temporary staffing, providing further optimism for this year.
Balázs Langó: HD Direkt has every right to be optimistic in its outlook; our order book is going up. Government policies have ensured that our industry is even more professional and concentrated; HD Direkt alone consolidated two other qualified agencies with further transactions in the pipeline. There is also an unprecedented level of FDIs arriving in Hungary.
Péter Makay: Based on our experience at Pannon-Work, companies are still very cautious about hiring new employees. Currently, they are only considering replacing employees who are leaving and are not planning to increase their staff numbers much. They are, however, striving to retain high-quality labor in their workforce.
Lóránt Pestovics: Temporary agency work is one of the most sensitive sectors. When the economy is in a cyclical upturn, demand for our services increases. However, the last one year has been a de-cyclical period, and this applies to the whole sector. We look forward to Q3 2025 with confidence. Companies are both hiring and letting go of colleagues at the moment. Now again, in certain jobs (I stress, on a temporary basis), companies have the opportunity to pick and choose their workforce, as in many parts of the country, there have been plant closures, production volumes have fallen, and in some cases, entire companies have closed. Labor freed up from these places has thus entered the market.
BBJ: Which temporary roles are most challenging to fill today? Is there an easy way to overcome this (retraining, better education)?
Gábor Berta: We have projects with clients where employees start in unskilled positions while competency-based selection also takes place; at the end of the training process, they can move into higher positions that match their competencies. We see that a process jointly developed with the client, which starts with a competency-based selection and is followed by internal training, is currently the simplest and fastest way to fill those positions for which there is not enough skilled workforce in the market.
Róbert Csákvári: Even semi-skilled positions are affected. Fewer young people are choosing blue-collar jobs, which makes replenishing the workforce unsustainable in the long run. Although the slowdown in the economy has slightly increased the supply of Hungarian labor, it’s still insufficient to meet overall demand. Mobility remains low, with workers less willing to relocate. More companies are prioritizing internal training and retraining programs, but structural changes in the Hungarian education system are also necessary.
Balázs Langó: It is hard to find an adequate number of skilled Hungarian workers in most places. There is no easy way to overcome this, but our sector is obliged to do our best to ensure we fill positions with local workforce. HD Direkt has had some remarkable successes in this field; we have many clients with large local contingents.
BBJ: Almost one in two Hungarian employees aged 18 to 65 are either actively seeking a new job or open to switching positions, according to Q1 data for 2025 from a national, representative survey on job search attitudes conducted by profession.hu. Is this a challenge or an opportunity for you?
Gábor Berta: In a certain sense, every employee considering a change is a “potential candidate” for a recruiter. However, this does not necessarily mean that the upcoming period will be favorable for all those seeking change, as the number of available positions is not exactly at its peak. Whether the intent to change ultimately materializes, whether the resume is ever sent out, depends on many factors. However, if someone leaves, a gap is created in their place. From this perspective, the employer may use a temporary agency, a headhunter, or a recruiter to find a replacement.
Róbert Csákvári: It’s an opportunity in that more Hungarian workers are becoming available, which can be utilized with the right client base. However, it’s also a significant challenge, as the turnover rate is exceptionally high; workers are willing to switch jobs for even minimal wage differences. Therefore, retention has become as crucial as recruitment in managing the leased workforce.
Viktor Göltl: We also observe and experience this job mobility trend, which we evaluate as a positive development and an opportunity. We are dedicated to helping people find employment or advance to better positions; this is how we contribute to strengthening the labor market, particularly in the white-collar sector. The increased job-seeking creates a favorable environment for HR service providers like WHC, as companies actively search for new talent, directly stimulating our core business activities.
Balázs Langó: No, HD Direkt has cultivated a strong core team, which has been further strengthened during our finalized and pending acquisitions.
BBJ: The World Economic Forum says global digital jobs will increase by 25% by 2030. How much of a feature are these remote workers in Hungary, and do you expect similar growth?
Gábor Berta: The growth is visible, but I do not want to predict its extent. Currently, there are many variables in the global economy. Artificial intelligence and the tech sector are undergoing a revolution where exponential advancements may come, undoubtedly bringing many changes to the labor market.
Balázs Langó: The HD Direkt forecast suggests digital jobs are prone to be adversely affected by AI; our team working on digital projects shrunk with the emergence of AI-powered tools. So, our micro-level experience somewhat contradicts this statistic by the WEF.
Dávid Varga: Yes, Hungary is seeing an increase in remote digital jobs, especially in IT, marketing, and customer service. Growth is expected to continue, although perhaps slower than globally. One thing is clear: workers increasingly value remote work, and in many cases, it has become a key factor during job interviews.
BBJ: A report from the United Kingdom last year found a steep increase in businesses hiring temporary staff, freelancers and contractors as a short-term fix to address skills shortages. Are we seeing anything similar in Hungary?
Gábor Berta: There is already some openness to this at the project level, but the Hungarian market is a bit less flexible, and I would describe it as like the real estate market. Everyone wants their own property, and everyone wants a full-time employment relationship. This will also change if the legal environment is better adapted and ceases to be an obstacle.
Róbert Csákvári: In Hungary, the spread of temporary employment forms is not primarily due to skill shortages but rather a response to the general labor shortage that has emerged in recent years. Leased labor has increasingly become a part of operational routines. Freelancers are most prominent in the IT sector, but stricter regulations have led to a decline even in this area.
Balázs Langó: We have seen no such significant trends in the normal course of HD Direkt’s industrial business.
Dávid Varga: To some extent, yes, but the shift in Hungary is more cautious, reactive, and less strategic. Companies turn to temporary or flexible labor solutions, but mostly as a last resort, not a proactive workforce strategy. The culture of freelancing and subcontracting is less developed, but pressure is increasing; as labor shortages and wage costs rise, the need for more flexible models will inevitably grow.
BBJ: How are government policies regarding third-country workers impacting your ability to do your job?
Róbert Csákvári: Regulations on the recruitment and employment of third-country workers are changing rapidly, requiring constant adaptation from companies. Recent legislative changes have posed significant challenges to the market. Currently, the import of Filipino workers seems to be the most viable solution, but the future direction of regulatory changes remains uncertain. The instability of the regulatory environment significantly impacts strategic planning and recruitment practices.
Viktor Göltl: Although the core of our temporary employment activity focuses on mobilizing the domestic workforce, we also employ third-country nationals. As such, regulatory changes have an impact on us as well. We believe that third-country national employment can be effectively managed through strict, controlled processes designed specifically to address domestic labor shortages. The Hungarian labor market faces significant challenges due to low birth rates, an aging population, and skilled labor deficits. Consequently, several industries, particularly construction, agriculture, and manufacturing, have struggled with severe labor shortages for years. In these sectors, guest workers employed through carefully regulated channels fill critical positions that cannot be adequately staffed locally, thereby maintaining the operational stability and competitiveness of Hungarian companies. Moreover, these staffing solutions help preserve domestic jobs by ensuring business continuity at investing companies.
Balázs Langó: Like every other industry, the top players must be open to working in changing legal environments. As one of the top three agencies, HD Direkt must accept the challenges and be proactive. We see more benefits in government policies creating a favorable business environment for FDI, whether it’s a new factory from China or an expansion of production from Germany or the United States.
Péter Makay: Since decisions are often made very suddenly, our experience is that companies are cautious about opening to foreign labor. Currently, companies can fill vacant positions with Hungarian workers, so importing third-country workers has been pushed into the background.
Lóránt Pestovics: At MENTON Jobs, as a Qualified Employer, we must be fully compliant with legislative changes. The fact that the legislation has changed several times in the past has not been a problem for us, because we have reacted in a timely manner and have been able to respond to these changes optimally, thanks to our proprietary foresight.
Of course, the legal framework sometimes required multiple interpretations and resolutions, but our team is highly qualified and professionally prepared, so we have always dealt with these difficult circumstances with maximum competence.
Dávid Varga: The complexity and slow pace of procedures represent a serious challenge. What makes it more complicated is that legal changes can happen overnight, and slow administration makes it difficult to adapt to new rules. Several institutions and legal frameworks may affect the employment of third-country nationals, and these are not always aligned, which creates further inconsistency. At the same time, it’s positive to see the government increasingly recognizing the importance of foreign labor, and some areas have already seen regulatory improvements.
BBJ: How much is the Managed Service Provider (MSP) becoming part of the temporary staffing scene in Hungary?
Dávid Varga: At this stage, the MSP model is primarily used by large corporations where flexibility and unified supplier management are essential. While the volume of temporary labor is high, many companies still manage their staffing suppliers internally. However, the need for cost transparency and centralized vendor management is increasing, and I’m convinced that the MSP model will become more widespread in Hungary in the near future.
BBJ: You have a magic wand, but only one chance to use it. What do you do to improve the Temporary market in Hungary?
Róbert Csákvári: I’d ensure everyone operates within legal frameworks, creating a safer market that serves the long-term interests of both clients and employees.
Péter Makay: First of all, I would like to improve the profession’s prestige. It should have a better reputation in the labor market among job seekers; it should be known that temporary employment companies do not take away from employees’ salaries, and so on. I think this could be achieved through communication campaigns that present the verified results and values of credible, law-abiding, and possibly certified temporary employment companies. I consider the joint action of the key players in the temporary employment sector to be essential on this matter as members of the Hungarian Association of Temporary Staffing Agencies.
Dávid Varga: I would create a system that supervises and coordinates the entire process. I would simplify and digitize administration both for employers and employees. A faster, more transparent, and unified system would reduce bureaucracy, improve legal clarity, and accelerate recruitment.
BBJ: Is there anything else you would like to address?
Dávid Varga: It’s important that, as a society, we better recognize temporary employment as a modern and flexible form of work, not just as a last resort, but as a valid career path.
• Gábor Berta, managing director, Man at Work
• Róbert Csákvári, CEO, Work Force
• Viktor Göltl, managing director, WHC
• Balázs Langó, head of sales, HD Direkt
• Péter Makay, sales director, Pannon-Work
• Lóránt Pestovics, director of sales, Menton Jobs
• Dávid Varga, managing director, HSA
This article was first published in the Budapest Business Journal print issue of April 22, 2025.
Producing journalism that is worthy of the name is a costly business. For over 30 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.
