Hungary’s Labor Woes May Trigger Wage Explosion, Minister Says
- Government working to shift efforts to raising productivity
- Labor import proposal generates political controversy
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Hungary’s labor shortage is getting so dire that a wage explosion appears inevitable, posing risks to the nation’s ability to attract and keep foreign investors drawn by affordable, qualified labor, Economy Minister Mihaly Varga told Figyelo weekly.
With unemployment at a record low, the government is working on steps that will shift state efforts from job creation to raising productivity, Varga told Figyelo in an interview published Thursday. Average monthly salaries after taxes rose 8.4 percent in January-May compared with last year to 180,800 forint ($646), including a 12.3 percent jump for state employees, according to statistics office data excluding public works jobs.