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Tightening Regulations on Guest Workers and the Rising Value of Student Work in 2025
Due to the tightening regulations, the demand for local labor is expected to increase in the job market. Within this, student work can play a key role, as it provides a flexible and fast solution for seasonal or temporary workforce needs.
Changes in the Labor Market: How the New Regulations Impact Employment
In recent years, employing guest workers has been a solution to labor shortages in many industries. However, in 2025, significant changes will come into effect regarding regulations for guest workers. Government Decree 450/2024 (XII. 23.) and related regulations have introduced stricter measures that could substantially reduce the number of guest workers in Hungary. These changes may significantly increase the importance of student employment in the economy.
What Are the Key Restrictions in the New Regulation?
For 2025, the government has capped the number of guest worker residence permits at 35,000, a significant decrease from the 65,000 permits allocated in 2024. Additionally, only guest workers from third countries that guarantee the repatriation of their citizens in case of legal violations can enter Hungary. Currently, Georgia, Armenia, and the Philippines meet these conditions.
Why Has Hiring Guest Workers Been Popular?
In recent years, guest workers have played a crucial role in industries such as hospitality, courier services, and manufacturing. They have provided a quick solution to seasonal labor demands and were often willing to work for wages that were more favorable to employers compared to local labor costs. However, with the new legal restrictions, these advantages will be limited, forcing businesses to seek alternative solutions to labor shortages.
Reduced Opportunities for Employing Guest Workers
The list of certified labor leasing companies has also been narrowed. Currently, only 21 companies are authorized to bring in guest workers through expedited procedures. Moreover, only employers with valid strategic partnership agreements with the government or those carrying out nationally significant investments can hire guest workers. Even these companies can only recruit workers from the previously mentioned countries.
The Increasing Importance of Student Employment
Due to these restrictions, the demand for local labor is expected to rise in the job market. Student work can play a crucial role in this shift, offering flexible and fast solutions to seasonal or temporary labor needs. Organizations like Y Diák Iskolaszövetkezet can respond swiftly and efficiently to these changes, providing businesses with properly trained and motivated young workers, even for seasonal employment.
Which Sectors Can Student Work Replace Guest Workers?
- Hospitality: Student workers can be quickly trained and provide flexible service in restaurants and cafés.
- Retail: Tasks such as stocking, cashiering, and shelf organization can be efficiently handled by students to cover temporary workforce shortages.
- Courier Services: The rise of e-commerce has increased demand for flexible couriers, where student workers can fill critical gaps.
- Manufacturing & Logistics: Students can be effectively deployed in simpler manufacturing processes and packaging tasks.
Why Should Businesses Consider Hiring Students?
Employing students is not only a cost-effective solution (as student cooperatives benefit from tax exemptions, making student wages free of employer contributions) but also helps bridge temporary labor shortages. Additionally, young workers bring a fresh perspective, technological expertise, and dynamism to business operations.
With Y Diák Iskolaszövetkezet, businesses can quickly and efficiently find the right student workers for their needs. This ensures a flexible and effective response to workforce challenges in a changing market environment.
How to Prepare for These Changes?
Given the new legal framework, businesses that previously relied on guest workers must reconsider their workforce strategies. The advantages of hiring students, such as flexibility and cost-effectiveness, can help companies adapt to these changes.
Get in Touch!
Y Diák Iskolaszövetkezet is ready to help businesses navigate labor shortages. Whether you need seasonal workers, project-based employees, or long-term student workforce solutions, we’ve got you covered.
Visit our website at ydiak.hu to learn how we can support your business in finding the right workforce!
