Labor shortages return in several areas - WHC Group
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The economic recovery following the virus crisis is clearly visible in the labor market: according to the latest figures of the Central Statistical Office (KSH), employment is at a record high, while WHC Group says that labor shortages are again affecting several sectors, which may even slow down further economic growth.
"There are some areas of the labor market that have been almost unaffected by the pandemic, and have even seen growth, such as IT, where, as in previous years, companies are looking for tens of thousands of professionals. But so is the field of business service centers, SSCs and BSCs, where growth seems unstoppable, with more than 10,000 new jobs created in this sector in 2020. Other sectors, such as manufacturing or hotels and catering, have been hit harder by the crisis, with many jobs being temporarily lost, but now these sectors are also experiencing labor shortages again," said Viktor Göltl, CEO of WHC Group.
The Hungarian-owned WHC Group, which offers recruitment, temporary employment, student and pensioner co-operatives, and payroll services, is currently recruiting for nearly 1,300 open positions for its clients in the manufacturing sector alone, but is also recruiting for a number of intellectual jobs, mainly in the IT and business service center sectors.
Chip shortages cause uncertainty, but no cuts in the automotive sector for now
WHC says that the global shortage of semiconductor components is also a major challenge for automotive companies operating in Hungary. However, automotive manufacturers are also not thinking of downsizing, but rather of retaining their existing workforce, as the market has generally become labor-driven again, workers are once again able to choose and employers offering stability and predictability have an advantage in this competition.
Foreign labor also needed
In some areas of shortage, the WHC Group believes that foreign workers from non-EU countries could help to alleviate the situation. They are also needed to maintain the pace of economic growth and to service the huge amount of job-creating investment coming into Hungary country, the company adds.
WHC says that temporary agency work, which is regulated and secure, is a good solution as it gives employers the flexibility they need and takes a lot of the administrative burden off their shoulders. The company, therefore, says that it welcomes the steps taken by the government to promote the use of foreign labor in times of emergency within a strictly regulated framework. Decree 407/2021 will enter into force on September 1 and will, among other things, make the employment of workers from third countries subject to strict qualification requirements.
"The WHC Group aims to connect job seekers with employers, thus helping all Hungarians to prosper at home. It seems that employment is currently at record levels, but there are still many vacancies in certain sectors, which could threaten the sustainability of economic growth. In order to achieve these economic policy objectives and the desired GDP growth, to which the government has linked a number of welfare measures, the targeted use of temporary foreign workers in certain sectors is a good tool. In our view, the government is creating the right framework for this to happen smoothly and in the interests of the Hungarian economy through the regulation that is now entering into force and the strict criteria it sets out," Göltl adds.
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