Are government policies regarding third-country workers having an impact? How significant is recruitment process outsourcing becoming? We ask some of the leading market specialists to give us the low down on the local employment market.
BBJ: What is the mood of the sector as we start Q2 2025? Upbeat? In expansion mode? Wait and see? Is it candidate-driven or employer-driven?
Sándor Baja: The HR market is full of ambiguity. According to a Randstad survey from the beginning of the year, 50% of the companies expect net sales growth this year, which is 500 basis points more than a year ago. The Hungarian indicator is higher than in Romania or Czechia, which are considered reference countries for us. Analyzing the different industries shows that FMCG is the most optimistic about 2025: 75% of the companies expect to grow. IT and construction are more confident than last year, which shows the recovery in the economy. Finance and services are consolidating; they grew a lot last year, and now they want to match their 2024 results. It is fascinating that, within one industry, some companies can be on the decline while others have bright horizons in front of them (see automobile). On the other hand, only 30% of the companies want to grow the number of employees this year (the same as in 2024). Every 10th decreases, while 13% are not replacing those who leave.
Zsolt Beck: In Q2 2025, so many changes are happening on the international front that, at times, it feels like we’re in the trenches with bullets flying over our heads. The problem with this is that big companies are holding back, and small companies in the Hungarian economy largely depend on the big ones. So, the economic recession continues, which is bad because it’s not periodic but fluctuates, making business unpredictable and impossible to plan.
Tammy Nagy-Stellini: I feel a cautious optimism in the sector. This sentiment is shaped by a mix of expansion and caution among companies. Some businesses are actively expanding their workforce, driven by growth opportunities and needing to fill critical roles. However, economic uncertainties have led other companies to adopt a “wait and see” approach, delaying hiring decisions until the economic outlook becomes clearer. Depending on the industry, the market is a mix of candidate and employer-driven; there is a particularly high demand for talent in the healthcare and manufacturing sectors.
Bence Szalai: The market remains candidate-driven for key roles with skill shortages, with professionals holding the upper hand due to talent scarcity. However, for positions with lower requirements, it shifts to employer-driven, as candidates in these roles have fewer options. Overall, businesses proceed cautiously, focusing on strategic growth while navigating the turbulent external environment. Péter Varga: Manpower Group publishes a quarterly labor market forecast called MEOS. Our latest survey shows that 33% of employers plan to increase headcount. Many companies are already anticipating a revival in their markets, which could also lead to renewed growth in the recruitment sector. The unemployment rate will remain around 4%, predisposing the labor market to be candidate-driven in the upcoming quarter.
BBJ: Which permanent roles are most challenging to fill today? Is there an easy way to overcome this (retraining, better education)?
Zsolt Beck: As I see it, the abovementioned situation will be compounded by the waves of change brought by AI. This makes economic predictions pretty tough. Everyone will need to boost efficiency through developments and quality replacements in human resources. That’s the only way to prepare for all these changes.
Tammy Nagy-Stellini: The most challenging permanent roles to fill today are software developers, data analysts, healthcare professionals, and construction and manufacturing workers. The tech sector’s rapid growth, data-driven business decisions, expanding healthcare needs, ongoing urban development, and high manufacturing vacancies drive this demand.
Péter Varga: Above-average headcount growth is expected in healthcare and life sciences, finance and real estate, consumer goods and services, and information technology. Consequently, Hungarian employers are likely to face recruitment challenges in these areas. Overall, the “post and pray” method, where companies simply post job ads and hope for applications, is no longer effective. Companies must reach and engage passive candidates and actively sell the positions.
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?
Sándor Baja: More job seekers are a challenge and an opportunity. A challenge is that most of them do not really want to change; they want to get an offer with which they can go back to their current employer to negotiate a raise. It is difficult to filter the free riders who waste our only asset: our time. On the other hand, it is an opportunity to refresh our database as candidates are not as passive as two years ago.
Zsolt Beck: It is more a situation, and an indicator of the crisis.
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 the Hungarian picture, and do you expect similar growth?
Sándor Baja: AI just started to boom. According to a global Randstad survey of March 2025, 40% of surveyed companies intend to lay off people by 2030 due to AI. On the other hand, as always in the history of humankind, people will find or invent new, more creative jobs for themselves.
BBJ: Where are we in the remote vs. office vs. hybrid debate, and is this impacting Hungary? Can blanket policies set by multinational boardrooms hinder local recruitment?
Sándor Baja: It is undoubtedly true that the hybrid way is winning over fully remote. Hungary is considered to be a cheap location in international board rooms: I expect more jobs to be moved to Hungary from the West, and we see an influx of Eastern investors, too, due to our EU membership and our proximity to the EU markets.
Zsolt Beck: This mainly affects the small- and medium-sized enterprise sector because they have far less flexibility in this area. Big companies apply international standards and established technologies, with hybrid solutions being the primary focus nationally, but SMEs struggle to adapt to this. A warning sign in this area is that the government sector has scrapped all versions of remote work.
Tammy Nagy-Stellini: The debate is ongoing, but flexibility is key. Many companies, including ours, adopted a hybrid model allowing employees to work from home “x” times a week. This flexibility attracts talent, but blanket policies from multinational boardrooms can hinder local recruitment by not addressing specific local needs and cultural differences. Tailoring policies to fit the local context is crucial for effective talent acquisition.
Péter Varga: It can be stated with confidence that there is a shift from the remote working model that emerged during the pandemic. Hybrid work arrangements will be the ideal middle ground for companies in Hungary and globally. This is an advantage for employees in terms of achieving a better work-life balance and for also companies, as the pool of potentially available workers is expanding. Employees are now more willing to commute from farther locations a few days a week.
BBJ: How are government policies regarding third-country workers impacting your ability to do your job?
Sándor Baja: The government withdrew our license to import people, which creates a monopoly among some suppliers and thus makes the import more expensive for companies.
Tibor Bányai: Extremely negatively. We held a market-leading position in mediating Indian workers within the Hungarian labor market. Unfortunately, the legislation that came into effect in December 2024 no longer allows the recruitment of new workers from India. However, we are not the most significant losers or victims of this measure; rather, it is the companies that have ongoing needs for Indian employees. We have lost prospective colleagues who were exceptionally efficient, respectful of hierarchy and family values, humble in demeanor and, not least, extremely frugal. Their professional preparedness and expertise are beyond doubt. I am convinced that it is in the fundamental interest of the Hungarian economy to employ such workers. I trust that lawmakers will come to see it the same way soon.
BBJ: How much is recruitment process outsourcing becoming a part of your business?
Sándor Baja: RPO, recruitment process outsourcing, is a standard service offering of Randstad. We are, and long have been, present at dozens of clients with this tailor-made service.
Tammy Nagy-Stellini: It has been a key part of our business for years, reflecting the growing demand for efficient and scalable hiring solutions. Our successful RPO projects have allowed us to streamline recruitment processes, reduce costs, and improve the quality of hires for our clients. By leveraging advanced technologies and tailored strategies, we ensure that our partners can effectively meet their talent acquisition needs and stay competitive in the market.
Bence Szalai: Although there are asymmetries across different industries, Hungary does have a competitive labor market where RPO is a popular solution companies are turning to, and it is an increasingly integral part of our business. Talent shortages, especially in IT, engineering, and shared services roles, make attracting and retaining qualified candidates challenging, while internal HR teams face growing pressure to fill roles effectively. Outsourcing all or parts of their recruitment process allows companies to stay agile during fluctuating hiring needs without overstretching internal resources.
At IDBC, we see RPO not as a trend but as a practical response to a market where speed, specialization, and flexibility are essential for successful hiring.
BBJ: You have a magic wand but only one chance to use it. What do you do to improve the Recruitment market in Hungary?
Sándor Baja: In the long run, we will face serious workforce scarcity issues due to our serious demographic situation: the competition for talent is enormous worldwide. We cannot escape it.
Bence Szalai: I would make both candidates and employers more conscious of their recruitment processes. As a candidate, it is vital to identify why you are considering applying for a new job and what exactly you are looking for and stand by that through the whole process. As changing a workplace is among the top five most stressful life events, candidates tend to waver along the way, lose sight of why they originally started the process or become involved in a counter-offer situation. One of our top priorities as recruiters is to support our candidates through this emotional journey and help them take a leap of faith out of their comfort zone.
As for employers, the speed of the selection process is still the deciding factor. This statement is almost a cliché, as every recruitment agency probably quotes it. However, the fact remains that a prompt response to a namecheck or a presented CV can heavily influence the number of offers a candidate has at the end of the day; well-qualified professionals are approached more than once every day. The lower the number of competing offers, the higher the chance that the candidate accepts yours, and this is all about speed. As for internal recruitment, carefully prioritizing those roles where vacancies are the most painful for the operation is the most distinctive trait of a well-working HR team.
• Sándor Baja, managing director, the Czech Republic, Hungary, Romania, Randstad Hungary
• Tibor Bányai, managing director, Bányai & Partners Consulting
• Zsolt Beck, CEO, owner, Beck and Partners
• Tammy Nagy-Stellini, regional director, Hays Hungary and Romania
• Bence Szalai, chief recruitment officer, IDBC Creative Solutions
• Péter Varga, country manager, Manpower Hungary
This article was first published in the Budapest Business Journal print issue of April 22, 2025.
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