Migration Into Hungary
Migration Into Hungary
According to work permits, some 20 thousand foreigners work in Hungary today (23,486 people in 1999), as compared to the 25 to 30 thousand Hungarian employees working abroad. Nearly half of these foreigners (11,462 people) come from Romania, while more than a quarter of them (5,364 people) are from EU Member States and from overseas. But the actual number of foreigners working in Hungary legally must be significantly more than that according to the OECD SOPEMI Report, 1999. For example, their number was estimated to be between 90 and 92 thousand in 1997. Activities and positions for which no work permit is required vary greatly and are high in number. Entrepreneurs, highly qualified professionals, artists and scientists, for instance, are not required to hold work permits. According to the OECD study, Romanian nationals represent the largest share (more than 40%) in an estimated distribution by country of origin, of foreigners working in Hungary, while 10-15% of such foreigners (cca.12,000 people) are the Union’s citizens.5
It is a well-known fact that a considerable number of ethnic Hungarians live over almost every section of the Hungarian border. To improve the relations with the neighboring countries, and particularly to stabilize the situation of the Hungarian minorities living there, Hungary’s political circles made significant efforts over recent years. For the sake of its EU membership, Hungary must not risk its more or less significant achievements, among other things the movement of labor force, by strictly closing its borders as required. Migration into Hungary, due to its unfortunate characteristics, will have to be addressed before the negotiations about Hungary’s accession, at least by clearly outlining the country’s main endeavors.
Regarding the issue of migration, Hungary can realistically expect that, as previously, Hungarians living over the border will represent the decisive proportion of immigrants until Hungary’s EU membership. The majority of illegal migrants, who presumably outnumber legal ones by multiples, is also typically made up of Hungarians living over the border, who usually commute. After working in Hungary for a few days, weeks or months, they return home then come back again. Despite tighter controls destined to filter out illegal labor, it is mostly a modest part of those employed in the organized economy (i.e., construction companies, the catering industry, etc.) and of those doing extended seasonal work in agriculture that can be found in this way. Those, however, who take odd jobs in the non-organized economy (households) simply cannot be found by such inspections.
A violent interruption of migration into Hungary can, apart from its economic drawbacks, be the source of serious political conflict. Hungary cannot give up firmly advocating Hungarian interests concerning this issue. It will have to find the best possible compromises both with the countries concerned (Romania, Slovakia) and the representatives of the Hungarian organizations in these countries, as well as with the European Union. Legal and illegal immigration to Hungary (for the purposes of work) is essentially a Hungarian-to-Hungarian issue, which cannot be addressed in any other way.
If the countries outside Hungary where the vast majority of Hungarians live do not become members of the European Union in the first round, strict border regulations will essentially come into effect. Significant diplomatic efforts will, therefore, be needed to prevent another “iron curtain” from being built between Hungary and the countries concerned, and to ensure that Hungarians living outside the territory of Hungary are not deprived of the job and earning opportunities they have established over several years. Carefully elaborated agreements are presumed to be acceptable for the Union as well, particularly if it is guaranteed that the only Hungary is the destination country, and the migrants may not leave the country for any of the European Union’s Member States.
In addition to the Hungarians living over the border, employees from any of the EU Member States or from the countries expected to join the Union at the same time or later than Hungary (such as Poland, the Czech Republic or Slovakia) may also essentially appear on Hungary’s labor market. Apparently no masses of foreigners, however, are likely to flood the Hungarian labor market today. The living standards and wage levels in the EU Member States that, in most cases, exceed those in Hungary by magnitudes, as well as a lack of the knowledge of the Hungarian language do not really make work in Hungary attractive. It is not impossible, however, that plants built near the Austro-Hungarian border will create jobs for those living in the border zones. The number of those employed by foreign companies (belonging to the parent company) will probably rise to a reasonable extent. The appearance of the Polish labor force is a further open question. Thousands of Polish miners and construction workers worked in Hungary in the 1970s until the mid-1980s who are familiar with the country (which enhances their migration potential). Due to the lack of legal job opportunities, however, their massive presence cannot be expected. Therefore, the migratory balance would find a slight Hungarian migration outward more probable.
Those who have settled down in Hungary as entrepreneurs, however, may pose another problem. Today practically every activity done in the framework of a non-incorporated company, i.e., as an individual entrepreneur or an deposit partnership, may be pursued only if one holds an entrepreneur’s card. It shows that the Hungarian (taxation) practice has opened the scope of individual enterprise extremely wide (including e.g. peddling agents, those collecting produce in a forest, cleaners, and accountants, etc.) which makes it possible practically for everybody who holds an easily obtainable entrepreneur’s card to settle down in Hungary.
Despite the improbability of a massive migration from the countries of the European Union, it would be serviceable to review, along with the freedom to reside, our regulations concerning the operating conditions (such as professional aptitude and health requirements, etc.) of those who wish to settle down in Hungary on such legal grounds; by defining the actual circle of entrepreneurs more clearly.
By Andrea Borbély and Csaba Zalai
Table 1. Bilateral Contracts for the Flow of the Labor Force
Table 2. Foreigners and Hungarian Employees in the Austrian Labor Market (1997-2000)
