Hungary will ease immigration to meet labour shortage

Significance The poorly publicised law provides for an entirely new visa system, focused on streamlining guest-worker and skilled worker permits from third countries. It addresses an accumulated skills gap that will intensify as investments in electric vehicle (EV) battery manufacturing and defence flood in. The wider region is suffering tight labour markets, talent outflows, lacklustre education systems and ageing populations. Impacts That the new law was enacted nine months ahead of schedule suggests the urgency of supplying skilled workers for new industrial plants. Early enactment may give Budapest an edge over its Visegrad Four neighbours, especially Slovakia and Czechia. This may help in cementing Hungary’s position as Central Europe’s EV battery and defence manufacturing hub.