Level of migration increases in Hungary

Source: KSH, 2008

The data signal an increase in the number of legal migrants in Hungary, with the highest number arriving around the time of Hungary’s accession to the European Union, although the proportion of migrants is small compared with the EU average, at 2%–2.5% according to some estimates (Adler et al, 2006). The majority of migrants are ethnic Hungarians from neighbouring countries. The extent of migration has increased with the opening up of Hungary’s borders after the economic and political regime change. Since then, a large number of studies have been conducted, using both quantitative and qualitative methods, to explore the various dimensions and aspects of migration in Hungary.

Labour migration

The pattern of labour migration is specific to each migrant group (Futó, 2008). The following major labour market trends can be distinguished among migrants in Hungary:

• migrants with Romanian citizenship are predominantly of Hungarian ethnicity, and offer skilled work, seasonal work, homecare and nursing services;

• Slovakian migrants are typically cross-border commuters, working in local transnational companies or in seasonal work;

• Ukrainian migrants are typically cross-border commuters, engaged in seasonal work;

• Chinese and Asian minorities are referred to as so-called ‘mediating minorities’, given their economic role in offering cheap products from their home countries in the Hungarian markets.

Research reports indicate that the majority of Hungarian employers are reluctant to employ migrant workers. As part of the NEEDS (Network – Education – Employment – anti-Discrimination – Socialisation) project ‘Labour market research on asylum seekers’ (Munkaerő-piaci kutatás a menedék-kérőkről) carried out under the EU EQUAL Initiative, a survey was conducted among companies in the area, as well as looking at media reports and the relevant legislation (NEEDS, 2006). It found that 8% of the enterprises employed foreigners, while 16% of companies had employed foreigners at some time in the past. However, the majority of companies do not even consider the idea, for reasons such as the unclear legislative background, knowledge of Hungarian as a requirement by most employers, negative stereotypes and the assumption that most migrants stay in Hungary only temporarily.

Another study (Adler et al, 2006) found that 21% of the companies employing at least 50 people employed foreign workers. The proportion of such companies was highest in central Hungary (32%), especially in the Budapest area, and lowest in the Northern Great Plains (6%). Many foreign workers find employment in the regions near the borders with Ukraine, Romania, the former Yugoslavia and Croatia.

Undeclared work

Experts estimate (Juhász, 2006) that the extent of undeclared work in Hungary is between 10% and 30%, which is equivalent to the full-time employment of about 300,000 people a year – a figure which stands out among the countries of central and eastern Europe. According to a survey carried out in 2000 (cited by Juhász, 2006), 30% of undeclared work is performed by foreign employees.

In the framework of the Juhász study, interviews were conducted with migrants who work illegally in the Hungarian labour market, and with employee and employer organisations, along with representatives of various governmental bodies. The researchers found that people have a generally permissive attitude towards irregular employment, with many people referring to the high tax burden and social contributions as reasons that ‘force’ entrepreneurs and companies to find ways to reduce financial obligations in order to remain competitive. This is the main motivation behind employing people, whether Hungarians or migrants, on irregular terms. The researchers pointed to flexibility as another important motivation behind employing workers irregularly, as it takes a long time and considerable effort to acquire work permits for foreign employees, which employers often choose to forego. Small and medium-sized enterprises (SMEs) are more often found to be employing migrant workers irregularly than large enterprises.

Most illegal migrants commute weekly or monthly from neighbouring countries (Futó, 2008). Temporary migrants often work illegally, mostly in the construction, agriculture, catering, and clothing and textiles sectors. Many migrant workers come to Hungary for a short period of time with the aim of earning money and then returning to their home country (Juhász, 2006). This can often lead them to take up irregular employment, reinforcing the structure of circular migration.

The vocational education structure of migrant workers largely corresponds to the skill demands of certain segments of the Hungarian labour market (Juhász, 2006). This includes the demand for unskilled workers, mostly in temporary jobs. This is probably partly why irregular employment was assessed to also have benefits by employers interviewed in the 2007 round of the ‘Migration and irregular work in Europe’ (MIGIWE) project (Juhász, 2007).

Cross-border commuting

Temporary labour migration – or cross-border commuting – is highest along the Slovakian-Hungarian border. Two surveys (Hardi and Lampl, 2008) explore various aspects of this movement of workers. With both countries joining the EU in 2004, cross-border economic contacts intensified. The number of Slovakian commuters in 2004–2005 was estimated to be 30,000 persons, with mobility driven by the difference in wages between the two sides of the border. No exact figures are known, as employers sometimes fail to register foreign employees with the labour office.

The researchers estimate that of the 30,000 Slovakian daily commuters to Hungary, Slovakian temporary agency workers comprise the largest group (10,000–20,000) and an estimated 9,780 people were employed directly by Hungarian companies. The majority of the respondents (56%) were skilled workers who had completed vocational education and training (26%). Motivation for taking up work in Hungary included higher wages (36%), better working conditions (15%) and the lack of work in Slovakia (11%).

References

Adler, J., Kis, G., Lőrincz, V., Munkácsy, A. and Timár, S., Kutatás a munkavállalók mobilitásával kapcsolatban magyarországon [Research on employee mobility in Hungary], Budapest, GKInetKft, 2006.

Futó, P., Undocumented migration. Counting the Uncountable. Data and Trends across Europe (1.81Mb PDF), Country Report Hungary, Clandestino Project, November 2008.

Hardi, T. and Lampl, Z., ‘Határon átnyúló ingázás a szlovák-magyar határtérségben’ [Transborder commuting on the Slovakian–Hungarian border region], Tér és Társadalom, Vol. 12, No. 3, 2008, pp. 109–126.

Juhász, J., Migráció és feketemunka Európában – Migration and irregular work in Europe (MIGIWE) (1.25Mb PDF), Zárótanulmány [Final report], Budapest, Hungarian Academy of Sciences (Magyar Tudományos Akadémia, MTA) Földrajztudományi Kutatóintézet, Panta Rhei Társadalomkutató, 2006.

Juhász, J., Migráció és feketemunka Európában II – Migration and irregular work in Europe (MIGIWE II), Zárótanulmány [Final report], Budapest, MTA Földrajztudományi Kutatóintézet, Panta Rhei Társadalomkutató, 2007.

Orsolya Polyacskó, Institute for Political Science, Hungarian Academy of Sciences