Temp Market Talk: AI not yet Leading to Mass Layoffs, but is Transforming Job Content

BBJ: What impact, if any, has the war in Iran (and the ongoing invasion of Ukraine) had on the temporary staffing market? Are firms delaying or retreating from hiring decisions they had been considering at the start of the year?

Balázs Langó: In the short term, the effects of war-related events are not yet meaningfully noticeable in the temporary staffing market. Companies have responded quickly and effectively to occasional client-side disruptions, primarily related to the supply of raw materials and components, so these have not led to a significant decline in employment decisions.

Dávid Varga: Uncertainty is clearly felt across the market, making many companies more cautious. They are planning over shorter time horizons and, in some cases, postponing hiring decisions. At the same time, demand for flexible employment solutions is increasing precisely because of this uncertainty.

Attila Molnár: Despite higher costs triggered by the war in Iran, companies have maintained their labor demand. Naturally, if the crisis continues, it could negatively affect the economy and labor market.

Now in the fifth year of the war in Ukraine, we have seen that although many Ukrainian workers had previously sought opportunities in Western Europe, many have returned to the Hungarian market over the past year and are once again providing an accessible and reliable labor pool. One reason is that although earnings may be higher elsewhere in Europe, Hungarian employers, with the support of HR service providers, often offer a more inclusive and secure environment. This includes full support with immigration administration, suitable accommodation, and help in overcoming language barriers.

Tamás Hadházy: Yes, the war in Iran poses a significant source of uncertainty for the global economy, and Hungary is no exception. Rising commodity prices, combined with supply chain uncertainty, are causing economic decision-makers to be cautious, while the declining growth outlook is prompting them to reconsider their workforce policies.

BBJ: What regulatory changes have taken place in the temporary staffing market in 2026?

Géza Homonnay: The regulatory environment will be shaped primarily by the EU’s wage transparency principle and stricter rules governing the employment of third-country workers. The scope for foreign workers has narrowed: since January 2025, only citizens of designated partner countries may be employed, and the annual quota has been limited to 35,000 people. The Pay Transparency Directive must be transposed into national law by June 7, requiring the inclusion of pay ranges in job postings and imposing a pay reporting obligation on larger organizations.

Gábor Csizmadia: Two major changes are on the horizon. The first is pay transparency: the EU directive’s transposition deadline is June 7, requiring all employers to justify their pay practices in a more structured manner. This also affects the staffing market, as pay parity becomes even more sensitive. The second is AI regulation: the EU AI Act becomes fully applicable from August 2. AI systems used in employment decisions may fall into the high-risk category, requiring human oversight and documentation.

BBJ: What is missing? What rules and regulations would you like to see?

DV: Greater flexibility, as well as clearer, more transparent, and simpler administration, to support the efficient functioning of the market. Legal harmonization would help resolve existing contradictions in legislation. It would also be important to introduce regulations that better adapt to rapidly changing labor market needs.

TH: We consider it necessary to change the local business tax regulations. The current system clearly puts businesses operating in the sector at a competitive disadvantage and imposes a disproportionately high administrative burden.

GCs: I would welcome progress in three areas. First: faster and more digitally streamlined administration for the employment of third-country nationals. Second: practical domestic guidance on the HR use of AI tools; we need not only legislation but also interpretive support for market players. Third: reforming the local business tax rules for staffing agencies, as currently the employment costs of temporary workers are taxed twice, undermining our competitiveness, especially in the SME sector.

BBJ: Are you yet seeing a concrete impact from AI on the temp market? Are certain job types disappearing? Is there a greater need for upskilling or retraining in some sectors?

Magdolna Mihályi: The impact has already become tangible, although for now it is manifesting more in the reconfiguration of tasks rather than in the large-scale elimination of jobs. In certain administrative and entry-level roles, automation is reducing the need for manual labor, while demand for technology- and IT-related skills continues to grow. This is particularly evident in data analytics, cybersecurity and software development.

Market responses have focused less on downsizing and more on reskilling and internal capability development, especially in IT, data management and cybersecurity. As labor shortages persist, upskilling has become an increasingly important tool for maintaining operational continuity. Alongside employee loyalty, retained knowledge and adaptability have emerged as decisive factors in workforce sustainability.

Gábor Berta: Yes, we are already clearly feeling its impact. I wouldn’t speak about job losses in the classical sense, but rather about transformation. What is striking is the increase in the demand for digital skills. Generally speaking, in 2026, it is now an expectation in ever more roles that employees use various systems and AI-based tools confidently. This is evident even in production support roles, such as warehouse system administrators or quality controllers, where the use of digital measurement tools and terminals is now a standard requirement. Those employees who continuously learn and master the latest digital tools are at a distinct advantage compared to those who do not.

AM: Although AI is increasingly present in the lives of companies in Hungary, demographic change and wider economic shifts continue to have a far greater impact on the labor market. At this stage, the presence of AI is undoubtedly creating a continuously evolving environment. Our role, therefore, is to help strengthen companies’ ability to adapt through organizational development.

GH: AI is reshaping the labor market, but human relationships remain irreplaceable by technology, especially in the blue-collar sector, where the key to retention is authenticity, connection, and appreciation. Additionally, more employers are recognizing that the necessary knowledge and skills are not immediately available in the market. Based on our own research, we launched the PW School Desk initiative in 2025, which focuses on employee development and intergenerational knowledge sharing through short video content.

TH: Two key trends will have a significant impact on the labor market in the medium term. One is the spread of robots, particularly humanoid robots, which will lead to the elimination of low-value-added physical jobs; the other is artificial intelligence, which will initially cause job losses in traditional white-collar office roles. Changes will be particularly noticeable in data processing, marketing, and customer service roles, but they will also affect financial and legal positions.

Viktor Göndöcs: In our experience, automation and AI are actively reshaping recruitment, administrative, and other job functions. This does not mean that jobs are disappearing overnight, but their content is changing. Even in traditionally less digital environments, such as industrial roles, there is a growing need for employees who can operate in more technology-driven settings. At the same time, beyond technical capabilities, employers are increasingly looking for reliability, flexibility, and motivation.

GCs: Yes, but not in the sense that jobs are disappearing en masse; rather, the content of jobs is changing. The most exposed areas are routine administrative and data management tasks. According to the WEF’s 2025 report, around 22% of jobs may be transformed by 2030. In the staffing market, this translates to a decrease in back-office positions, while demand grows for technician, logistics, and more digitally mature roles. It’s not jobs that are disappearing, but that competency profiles are changing.

Viktor Göltl: AI is transforming job content by taking over repetitive, data-heavy tasks. In areas such as administration or logistics, manual data entry is increasingly automated, fundamentally reshaping these roles. As a result, employees are no longer expected to perform routine operations faster, but to supervise automated systems, interpret outputs, and contribute to higher-level decision-making. This shift creates a strong and growing need for upskilling and retraining. In Hungary, this transformation is expected to affect up to 20–25% of jobs over the coming decade, making continuous learning and adaptability essential for long-term employability.

Róbert Csákvári: The impact is already palpable; however, it manifests primarily not in the elimination of jobs, but rather in their content and competence-based transformation. A decline in demand is particularly noticeable in administrative and data entry roles, whereas in the industrial sector, especially in automotive and electronics, the need for reskilling and upskilling has increased significantly. Employees are increasingly expected not only to operate traditional technological tools but also to collaborate effectively with AI-based systems. Consequently, lifelong learning is no longer merely a competitive advantage but has become a fundamental criterion for employability.

BBJ: Is AI helping you in your work with faster screening or targeting candidates? And if not now, will it do so soon?

BL: Yes, developments based on artificial intelligence have already begun. These primarily support faster candidate pre-screening, more targeted searches, and greater efficiency in the selection process. 

DV: Increasingly, yes. AI enables faster pre-screening and more precise, better-targeted candidate profiling. A much larger volume of applicants can be processed in a short time, resulting in a broader talent pool. In the near future, it will become an even more defining tool in recruitment.

MM: At present, AI primarily enhances the efficiency of recruitment processes by enabling faster pre-screening, more accurate targeting and a stronger online presence. Human judgment remains a critical factor in the temporary staffing market, particularly in blue-collar roles where digital reach and engagement are still limited. The direction of travel is clear: AI is increasingly becoming a supportive tool, but it does not replace personal, professional assessment in hiring decisions.

V Göndöcs: Yes, particularly in high-volume recruitment, AI has a tangible impact. It significantly reduces pre-screening time and improves the overall efficiency of the recruitment funnel. AI enables faster processing of large candidate pools and more precise targeting, allowing us to react more quickly to client needs. That said, human judgment remains essential for assessing motivation, cultural fit, and long-term potential. We see AI as a strong enabler that enhances speed and efficiency, while human expertise ensures quality and long-term success.

V Göltl: It is already playing a significant role in improving the efficiency of recruitment. Automated pre-screening tools allow our recruiters to quickly filter large volumes of applications, reducing the need for unnecessary interviews and enabling them to focus on the most relevant candidates. This has made the overall recruitment process faster and more targeted. Their importance is expected to grow further in the near future, as AI increasingly supports candidate matching and predictive analytics.

RCs: AI in recruitment and selection processes is not yet fully integrated into daily operations; however, its implementation is a clear strategic objective. AI-based solutions hold significant potential for processing large candidate databases more efficiently, automating pre-screening, and reaching candidates more effectively. The implementation of this technology is expected to help reduce the administrative burdens of recruitment processes, enabling HR professionals to place greater emphasis on personal interactions and to strengthen their advisory roles. This is particularly relevant in the field of temporary staffing, where trust and personal relationships remain crucial factors.

BBJ: Is the growth in global digital workers a threat (Hungarian workers can work for better salaries remotely for foreign firms), an opportunity (it opens up new recruitment pools) or neutral?

BL: At present, no significant threat to the Hungarian labor market can be observed. The opposing effects of remote work abroad and domestic employment opportunities balance each other out, so the overall impact is rather neutral.

TH: Platform-based work in the so-called gig economy will fundamentally transform the world of work. Regulating and using this in the economy will be essential, and we must prepare to adapt and implement the technologies that enable it.

BBJ: Which jobs are hardest to find recruits for in Hungary? How has this changed, and how can you overcome it?

BL: Practically all job roles face challenges in finding suitable candidates. To address this, it is necessary to restructure the vocational training system and expand the potential workforce, as Hungary’s available labor supply is limited relative to the number of open (and future) positions.

DV: Skilled blue-collar roles and certain technical positions remain the most difficult to fill in Hungary, such as CNC operators, welders, metalworkers, and electricians. There is also a growing shortage in engineering and technical roles; finding experienced mechanical engineers or manufacturing technologists is increasingly challenging. In my opinion, the solution lies in targeted training programs, strengthening employer branding, and implementing more flexible employment models.

MM: Persistent labor shortages can be observed in blue-collar, production-line and hospitality roles, as well as in certain engineering and technology positions. Companies are moving towards hybrid employment models, where key positions are maintained in a stable core workforce, while operational roles are covered through flexible arrangements, such as temporary staffing. This approach does not necessarily reduce overall turnover, but does result in greater stability and predictability.

GB: Physical and skilled worker positions, in manufacturing or maintenance, for example, continue to pose a serious challenge. We see constant high demand for electrical maintenance workers, CNC machine operators, and certifiedforklift drivers, particularly in the industrial hubs of Győr, Fejér, and Veszprém counties. Additionally, the labor shortage persists in engineering and IT positions, including industrial automation and quality engineering roles. What has changed compared to previous years is that today recruitment is difficult not only for roles requiring specialized expertise, but also for experienced professionals with secondary education, for example, in finance or logistics, as seen in the search for certified accountants and supply chain coordinators. Currently, we see that the role of flexible employment forms, and thus temporary staffing, continues to strengthen.

AM: Labor shortages are present across the board, from simpler, entry-level positions and skilled blue-collar roles to higher value-added jobs. This indicates we are dealing with a persistent and broad-based market challenge.

GH: The labor market situation has not changed significantly in recent years, while the domestic workforce has been exhausted in several regions, and the number of employed people continues to decline due to demographic factors. The shortage can be bridged by bringing in foreign workers and by retaining and developing existing employees. The latter is the long-term solution: reducing turnover, ensuring internal training, and atypical forms of employment can together provide a sustainable response to this challenge.

V Göndöcs: The most difficult roles to fill remain skilled and semi-skilled blue-collar positions, such as welders and electricians, as well as more complex physical roles that require reliability. However, the challenge is not only technical. In many cases, the real gap lies in soft skills, motivation, and limited geographical mobility. Addressing this requires a comprehensive approach: strengthening long-term training and education, while improving working conditions in the short term, offering clear career paths, and integrating international workforce solutions.

V Göltl: On the blue-collar side, there is a significant shortage of highly specialized, skilled workers such as maintenance technicians and machine operators. High-skilled white-collar roles (in IT, engineering, or finance) also remain hard to recruit due to strong demand and limited supply. To address these challenges, we are shifting the focus toward long-term solutions such as internal training, reskilling programs, and hiring for potential rather than fully developed skill sets.

RCs: The most significant recruitment challenges are found in highly skilled blue-collar professions and engineering positions. In recent years, the structural labor shortage has deepened further, driven primarily by unfavorable demographic trends and international labor mobility. As a result of these processes, the shortage has now extended to lower-skilled, semi-skilled roles as well.

BBJ: Is there anything else you would like to address?

BL: We should strengthen dialogue between legislators, regulatory authorities, and industry stakeholders to make it more regular and effective. Joint workshops could help align the regulatory environment with practical needs and enhance the predictability of market operations.

2026 Temp Market Talk Panel

(Sorted in alphabetical order by company name.)

• Balázs Langó, sales manager, HD Direkt Hungary Kft.

• Dávid Varga, managing director, Human Service Agency Ltd.

• Magdolna Mihályi, CEO, Jobtain HR Szolgáltató Kft.

• Gábor Berta, managing director, Man at Work Kft.

• Attila Molnár, managing director, Pannonjob Kft.

• Géza Homonnay, chairman of the board, Pannon-Work

• Tamás Hadházy, management board member, Pensum Group Nyrt.

• Viktor Göndöcs, CEO, Prohuman Zrt.

• Gábor Csizmadia, CEO, Viapan Group, Vice President, Hungarian Association of Temporary Staffing Agencies

• Viktor Göltl, CEO, WHC Kft.

• Róbert Csákvári, Owner and CEO, Work Force Kft.

This article was first published in the Budapest Business Journal print issue of April 24, 2026.