Hungarian Firms Increase Headcount Again 2nd Quarter

26% of Hungarian employers expect to increase their current workforce in the second quarter of 2023, while 22% plan to reduce it, with staff increases mainly in larger companies, ManpowerGroup said on Tuesday, based on its Labor Market Forecast.   

ManpowerGroup conducted its quarterly survey of more than 41,000 employers in 41 countries around the world, asking a representative sample of 510 employers in Hungary about their hiring intentions for the second quarter.

It highlighted that jobseekers can expect strong demand for labor in the energy and utilities, finance and real estate, and IT sectors in this period.

The Managing Director of ManpowerGroup Hungary, Tamás Fehér stressed in the statement that after two quarters of decline, a positive hiring trend is expected to resume among domestic employers in the next three months. The turnaround is particularly noticeable among companies operating in the central part of the country and those employing more than 250 people.

According to the release, the seasonally adjusted net employment rate (nfm), derived from employer responses, averaged 2%, 10 percentage points higher than the previous quarter, but 10 percentage points below the 12% level a year earlier.

The widest job growth is expected in Budapest and Central Hungary, while layoffs are still expected to outnumber hiring in South Transdanubia, North Hungary and Central Transdanubia. In the lowland regions and Western Transdanubia, the forecasts show a minimal increase, in line with the average, ManpowerGroup said.

The largest increases in headcount are expected in the energy and utilities, finance and real estate and IT sectors, but slight growth is also expected in the transport, logistics and automotive, consumer goods and services sectors. However, further job cuts are likely in materials and manufacturing, communication services and health and life sciences, ManpowerGroup said.