Hungary faces looming labour-force crisis as employment drops sharply

During a GKI forum, senior officials—including two state secretaries, the Hungarian National Bank’s presidential adviser, and representatives from business groups—stressed that Hungary must act quickly to address a looming shortage of workers. The central bank’s newest inflation report reinforced this warning, describing a modestly revised medium-term growth outlook because of reduced investment rates and increasingly restrictive demographics.

Employment figures rose strongly from 2013 to 2019, then slowed, and after a brief Covid-related dip the trend remained positive until early 2023. Since then, the number of employed Hungarians has dropped by roughly 80 000, extending a three-year decline. Analysts see this as the most serious structural threat to the economy, surpassing concerns about health, education or public safety.