Labour Market Challenges and Opportunities: Key Insights

Powerful statements were made at the October event jointly organized by the Budapest Chamber of Commerce and Industry (BKIK) and KKVHÁZ – The Café of the Hungarian Economy. As the leading platform for online SME events, KKVHÁZ provides monthly analyses of current economic issues affecting everyone.

The recurring central theme emphasized by the organizers was competitiveness. As József Gulyás, the series organizer, explained: “The foundation of any economic actor’s competitiveness lies in the quality of state regulation, the flexibility of economic financing, and the knowledge of the participants.” Yet, the key piece of this large puzzle remains the workforce. Without an adequate quantity, proper regional distribution, and sufficient quality (meaning a skilled, healthy, and motivated workforce), there can be no competitive production and thus no competitive economy. The presentations were delivered with this perspective in mind.

Noémi Csaposs, Director of HR Consulting at BDO Hungary, highlighted in her remarks that the labour market will undergo a structural transformation in 2025. While the total number of open positions is declining, a persistent labour shortage and intense competition for talent continue, particularly in the IT, engineering, healthcare, and skilled trade sectors.

The market has become candidate-driven, meaning job seekers are far more selective. Consequently, employers must employ various strategies and tools to attract and retain professionals with the right skills and personal attributes.

When asked whether salary remains the primary consideration for employees, Noémi Csaposs cited research to explain the key factors influencing workforce preferences:

Work–Life Balance and Flexibility: This extends beyond remote work to include flexible choices regarding working hours, shifts, and schedules. Such flexibility has become especially valued among younger generations, but also among older employees since COVID.
Meaningful Work and Recognition: Employees seek roles where they feel their work adds value and their efforts are appreciated. This includes non-financial feedback and touches upon the well-known issue in Hungary of an underdeveloped feedback culture.
Opportunities for Development: Internal training and continuous professional growth are crucial for companies operating in a highly competitive environment.
Effective Communication and Positive Workplace Atmosphere.

Recruitment systems are also undergoing significant transformation due to automation, digital tools, and artificial intelligence (AI). Video interviews and social media recruitment are gaining prominence, while employee referral programs are becoming increasingly important, offering reliability and trust.

Among the emerging challenges, Csaposs emphasized the growing number of atypical and foreign workers. Despite strict entry regulations, the demand for labour remains high, requiring new approaches to corporate communication, culture, and integration. She also pointed out that the employment potential of retirees and the 50+ age group remains largely underutilized.

According to Noémi Csaposs, addressing labour market challenges demands conscious leadership and a holistic mindset.

Source: KKVHÁZ