Hungary halts new non-EU work permits amid labour shortage warnings
Hungary’s new Prime Minister Péter Magyar on Sunday halted all new work-permit issuance for non-EU labour, fulfilling a central campaign pledge and reversing the Orban-era policy that had allowed thousands of workers from Ukraine, China, Vietnam and India to enter the Hungarian labour market. The abrupt policy shift, announced within weeks of Magyar’s April 2026 inauguration, immediately drew warnings from industry leaders that the country’s already strained workforce could face further shortages.
Magyar’s decree, published late Saturday, suspends the issuance of new permits “until further notice,” leaving the status of the roughly 45,000 existing non-EU workers in Hungary unresolved. The Ministry of Interior confirmed the move in a terse statement on Sunday morning, adding that existing permits would be reviewed on a case-by-case basis. “The government is prioritising Hungarian workers and ensuring fair wages,” said a ministry spokesperson .
Industry federations reacted with alarm. The Hungarian Chamber of Commerce and Industry (MKIK) warned that sectors such as manufacturing, agriculture and construction—already facing chronic labour shortages—could see output declines of up to 12% by year-end. “We need predictable rules, not sudden reversals,” said MKIK president Márta Demeter .
The policy U-turn comes as Magyar’s government also faces pressure over Hungary’s stance on the EU’s 2026 Migration Pact. On Sunday, Fidesz lawmakers reiterated calls for Hungary to opt out, but Magyar dismissed the criticism in a two-sentence statement: “Hungary will protect its borders and its citizens. We will not participate in mandatory relocation schemes” .
Across Europe, the Hungarian move reflects a broader tightening of third-country labour rules. In Switzerland, voters will decide on 14 June whether to cap permanent immigration at 10 million, a referendum that business groups warn could cost the economy up to 1.8% of GDP by 2030. Meanwhile, in the Central African Republic, officials confirmed negotiations with the United States to accept deportees from third countries, a development that has intensified debates over global deportation policy .
Back in Budapest, the Hungarian Association of Non-EU Workers announced plans to file a constitutional complaint, arguing that the permit freeze violates existing bilateral labour agreements. “We built families here, paid taxes, and now we are told to leave,” said association spokesman Nguyen Van Thang, a Vietnamese welder employed in Debrecen since 2023 .
Magyar’s government has not indicated when the freeze might be lifted, but Labour Minister Judit Varga told state media on Sunday that “Hungarian workers will be given priority training programmes” to fill the gap. The first cohort of 2,500 Hungarian trainees is scheduled to begin in September.
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