• 4.8

    2019

0.5

Down

Key drivers

Talent Mismatch (6.0)

The long-term unemployment rate fell sharply last year to well below its historical average. The decline occurred across all duration categories of unemployment over a year.

Labour Market Participation (3.7)

The growth in Hungary’s participation rate is forecast to slow slightly this year, which would reduce the rate at which the supply of skilled labour expands.

Education Flexibility (8.4)

A slight decline in the number of graduates as a share of the total population has lowered the share of skilled workers.

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Education Flexibility

8.4
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Labour Market Participation

3.7
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Labour Market Flexibility

5.0
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Talent Mismatch

6.0
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Overall Wage Pressure

4.8
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Wage Pressure in High-Skill Industries

0.9
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Wage Pressure in High-Skill Occupation

4.7
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Tammy Nagy-Stellini

Managing Director, Hays Hungary

View from the Ground

Due to accelerating competition amongst employers for the best candidates, many companies have had to increase salaries throughout the year to retain and attract workers. Therefore, the importance of recruitment is being increasingly emphasised by companies, and in terms of strategic planning it is clear it takes priority. International companies have continued to invest in Hungary throughout the year, and over the next three years the newly built plants in Debrecen will absorb a significant amount of the workforce from the market. Many areas continue to be driven by jobseekers, the biggest shortage of potential workers being in the manufacturing industry. We continue to experience an IT labour shortage in the ever-changing IT market and the perception towards the IT profession has significantly changed: more and more people are moving into this area with different backgrounds and different ages – attempting to minimise the demand and supply gap.

Tammy Nagy-Stellini, Managing Director, Hays Hungary

Key Skills in Demand

  • Automotive Quality Engineers
  • Automation Engineers
  • Java Developers
  • Data Scientists
  • Front-end Developers

Market Insight

In 2018, Hungarian GDP grew by 5% – its fastest rate since this version of the GDP series began in 1995. The growth was stimulated by very rapid investment (in part stimulated by EU funding of public investment projects) and household consumer spending.

With the economy expanding rapidly, the labour market has tightened significantly. The unemployment rate fell to a record low of 3.7% in 2018. Recorded job vacancies rose by 22.6% in the year. There is evidence of skill shortages. The European Commission’s Business Survey in 2018 suggests 33.8% of service firms and 19.4% of manufacturing firms in Hungary think their output will be constrained by labour shortages. This has helped push expected overall wage growth to 9% this year, alongside an 8% increase in the minimum wage.