Editorial: In Praise of the Big Issue
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I have always enjoyed this issue, with its Special Report dedicated to Human Resources, because it enables us to take the pulse of the labor market in much greater depth.
I also like this issue because it is one of the biggest in the year, and this time round, it has set a new record for us (at least in recent memory) at 48 pages. That’s fully eight pages more than the equivalent issue last year. That availability of space means we can drill down in some depth into the challenges and opportunities that confront the leading players. I remain grateful to our partners in the various recruitment and temp agencies for their thoughtful input to our two Market Talk sections.
The Hungarian Investment Promotion Agency has done such an excellent job at drumming up foreign direct investment interest in this country (and you can see the latest examples of that in our Korea Country Focus on p14) that, at times, you are left with the impression there is a conveyor belt of FDI projects in near-constant operation. It was instructive, therefore, to hear from a couple of agencies that a relative (and that’s a word doing an awful lot of lifting in this sentence!) downturn in investments has led to a slight easing in labor force pressures. Since Hipa set a new record in terms of investment value in 2023, I guess this means that projects tend to be less labor-intensive than they once were, which makes sense if you think about the inexorable rise of automation in the workplace and the emphasis the government places on the quality of jobs (higher added value) than the quantity.
It is worth underlining, however, that no one is saying the labor shortage is over or that pressure won’t ratchet up again once some of the more significant projects get closer to opening and the need for workforce becomes more pressing. Indeed, one of the agencies spoke of already seeing the “market picking up on activity” this year. Similarly, none of our experts seem to think the need for third-country workers from outside the European Union will dissipate anytime soon. On the contrary, it now appears to be very much part of the HR fabric of this country. Other interesting concerns that bubbled up include the demographic pressures of more people exiting the workforce (whether retiring or moving abroad) than joining it, despite the very best efforts of the government to move the needle when it comes to population growth, and what one of our expert witnesses called “the backwardness of the educational system.” My favorite answer, however, was from the manager who, when asked what was the greatest challenge facing the market, said, “Finding a good recruitment agency!”
Enjoy this issue; there’s undoubtedly plenty of good reading material within it.
Robin Marshall
Editor-in-chief
This editorial was first published in the Budapest Business Journal print issue of April 19, 2024.
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