The number of employed hovered near 4.7 million before dropping to 4.669 million in May, leaving the March–May average 25,000 below that of the previous year. The employment rate among 15–64-year-olds remains high at 75%. Services continue to drive job creation, covering two-thirds of total employment. Meanwhile, industry is in structural transition: traditional manufacturing is shrinking, while new investments—such as battery and EV-related plants—promise future job growth, largely through foreign labour.
According to GKI’s monthly business surveys, companies’ willingness to hire has weakened in early 2025. In May, only 9% of firms planned to expand headcount over the next three months, while 12% anticipated reductions. In retail and construction, downsizing intentions outweigh expansion plans. In manufacturing, the two forces are roughly balanced, whereas business services show expectations of net job growth.
Expectations regarding changes in employment levels, 2019–2025
(balance indicators*, seasonally adjusted data)
*/ The balance is the difference between the proportion of respondents expecting an increase and those expecting a decrease. Source: GKI
New jobs are expected primarily in the private sector—in logistics, business services, tourism, and new industrial investments. Layoffs, by contrast, are more common in the public sector and traditional industries. In certain areas, such as manufacturing, a trend is emerging where vacancies left by retirees or job-switchers increasingly remain unfilled. Labour shortages pose serious challenges for every third service provider, every fourth construction company, and every fifth industrial firm. Employers struggle to find qualified candidates for engineering, IT, healthcare, and other highly skilled roles. Numerous physical trades also suffer from shortages—such as construction workers, machine operators, and drivers. Hospitality and tourism, too, are experiencing staff deficits, partly due to low wage levels.
In May, the number of unemployed stood at 210,000, translating to an unemployment rate of 4.3%, effectively unchanged from the previous year. However, concerns about labour market tightness persist: the average duration of job search now exceeds 12.8 months. A significant share of the unemployed are long-term jobseekers—one-third have been looking for work for over a year—although 42% still manage to find employment within three months. This highlights that, despite favourable aggregate indicators, there are groups that remain detached from the labour market. Regional disparities are also apparent: the unemployment rate is higher in Southern Transdanubia, while parts of Western Transdanubia display near-full employment—on paper at least. Additionally, some of those who exited the official register of jobseekers have not found employment and are counted among the “potential labour reserve”.
The number of job vacancies remains substantial. According to the Hungarian Central Statistical Office (KSH), there were an average of 65,000 unfilled positions nationwide in 2024—39,000 in the private sector, 24,000 in the public sector, and 2,000 in other categories. Although this is slightly below the peak recorded in 2022, it remains high by historical standards.
Foreign guest workers have become increasingly vital to the Hungarian labour market. In the spring of 2025, around 104,600 foreign nationals were employed in Hungary—an increase of 2,100 year-on-year. This represents roughly 2% of total employment, though their presence is concentrated in specific sectors: primarily in industry and construction (notably large factories and construction sites), as well as logistics and agriculture. Many come from third countries outside the EU, such as Ukraine, Serbia, Vietnam, and the Philippines. In 2025, the government introduced restrictions on the employment of foreign workers: no more than 35,000 new work-related residence permits may be issued, down from the 2024 quota of approximately 55,000. However, exemptions can be granted, undermining transparency.
Several major facilities—including BMW, CATL and Eve Power battery plants, and BYD—are scheduled to commence operations in 2025. These are expected to intensify local labour shortages and drive up wages in affected regions. Companies are responding by raising wages, investing in automation, or increasingly relying on foreign labour to fill the gaps.
While employment is expected to remain high throughout 2025, a slight decline appears likely. Addressing structural tensions in the labour market will require improvements in productivity and sustained efforts to ensure the supply of skilled labour. Long-term challenges include demographic pressures—fewer young entrants and more retirees—and the renewed acceleration of emigration (in 2023 alone, net migration resulted in the loss of 20,000 people). These dynamics will exacerbate shortages in certain occupations, potentially becoming a drag on economic growth.
