Employment agency sector shrinking in Hungary
While statistics show growing labor shortages in various sectors of the Hungarian economy, the number of employment agencies in the country is decreasing, business daily Világgazdaság reports, citing data from company information provider Opten.
According to official statistics, the number of firms offering labor placement as their main activity has shrunk from 1,000 in 2012 to 820 last year. Meanwhile, the number of employees in the sector has declined even more, from 14,000 in 2012 to 7,280 in 2017, Világgazdaság reports.
Most employment agencies are based in Budapest, with 57.8% of such firms operating in the capital, employing 67.63% of the total staff in the sector. Pest County ranks second, while other regions have a much lower number of companies engaged in labor placement.
The most difficult challenge ahead of the sector is complying with the EUʼs new General Data Protection Regulation (GDPR), Világgazdaság notes, given the amount of personal data such companies need to handle.
The new data protection rules are very complex and failing to comply can draw fines of up to EUR 20 million or 4% of a companyʼs annual turnover, so that conforming represents a significant additional administrative burden for Hungarian employment agencies, adds the report.
SUPPORT THE BUDAPEST BUSINESS JOURNAL
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.