Major Hungarian companies continue workforce reductions across multiple sectors
The wave of layoffs at domestic large companies intensified in May, especially in retail and manufacturing. Most companies implemented workforce reductions, with expansions being rare, according to a joint report by HR Portál and Opten.
May marked the first time Lidl employed more people in Hungary than Tesco. Tesco's workforce decreased by 450 people to 9,326 in a single month, while Lidl's increased by 5 to reach 9,503 employees.
Five years ago, Tesco employed twice as many people as Lidl.
The decline affects not only retail but also manufacturing. At Audi Hungaria, the workforce decreased by 621 people over six months, reaching 11,677 by May. Linamar experienced a 10 percent workforce reduction over the past six months, while other companies showed smaller but mostly negative changes. Only a few service providers were exceptions.
Similar trends are partially reflected in the 'self-reported' unemployment data requested from the Hungarian Central Statistical Office (KSH) by Portfolio. According to this, nearly 400,000 people identified themselves as unemployed at the beginning of 2025, while official statistics recorded only about 210,000 people.
This could indicate an actual unemployment rate of 8%, compared to the official figure of 4-4.5%.
The difference arises because official data only counts those who actively sought work within four weeks and could start within two weeks. Self-reported data includes those who consider themselves unemployed, such as those serving notice periods or passive job seekers.
It's important to note that self-reported unemployment began decreasing again in spring months, potentially indicating a slow economic recovery.
However, labour market prospects remain uncertain due to weak industrial performance and subdued consumption. Current data suggests deeper structural tensions exist beneath surface stability.
Cover photo (for illustration purposes only): Portfolio
