One of Hungary's most serious problems is over

Labour shortages have been the most serious problem facing the Hungarian economy in recent years. Companies were unable to find suitably skilled workers to further expand their production, so it is not surprising that the number of job vacancies has risen to unprecedented levels. However, while the number of job vacancies reached 100,000 in mid-2022, by the end of last year the number had fallen below 75,000.

The fall in the number of vacancies is due to the spectacular decline in the business sector. After a fall from a record high of 70,000, there are now only 47,000 vacancies. Excluding the shock of the coronavirus crisis, this corresponds to a 2017 low. In other words, the labour shortage is now smaller than it was when it started to become a serious problem.

Companies have been steadily reducing their open positions as a result of last year's recession, as production has declined. Many companies have not only cancelled advertisements but have also started to reduce their workforce, resulting in a significant increase in unemployment.

Industrial firms are also hit by the feeble local economic output and a drop in export orders. There are now fewer than 15,000 open positions in this segment, compared with 25,000 some 18 months ago. The construction sector is also struggling, where the fall in orders last year has led to a decrease in vacancies and a rise in unemployment in the sector. While the latest data show a recovery, it is questionable whether the momentum will be sustained.

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