Poland, Hungary curb foreign labour; businesses warn of shortages
Aug 4, 2026
Category: Foreign Workers Hungary News Poland
Poland and Hungary are tightening restrictions on foreign workers, prompting employers to warn of labour shortages and slower economic growth.
Both governments have reduced non-EU labour over the past year, betting voters will back tighter immigration. Reuters reported from Kisvarda, Hungary, and Gdansk, Poland, on how the changes are affecting factories and restaurants.
Permits dry up
Hungary stopped issuing worker visas to nationals of the Philippines, Georgia and Armenia in June, calling it the first step in regulating guest workers.
Poland moved earlier, cutting work permits for non-EU citizens by 22% last year.
The Interior Ministry also said it issued eight times fewer work visas in the first quarter of 2026 than in the same period in 2022, although changes to the rules for Ukrainians affected the comparison.
Politics drives policy
Hungarian Prime Minister Peter Magyar, elected in April, and Polish Prime Minister Donald Tusk have both faced criticism from nationalist rivals over immigration.
Polls suggested public support for tighter controls. An IBRiS survey in January found about two-thirds of Poles wanted fewer non-EU migrants.
A Republikon Institute analysis published in July found that almost half of Hungarians opposed admitting migrants from poorer countries, while another 40% favoured admitting fewer migrants.
Ageing populations squeeze labour
Economists warned that the restrictions could deepen workforce shortages.
“Fewer workers mean slower growth and less tax coming in, while an older population costs more in pensions and health,” Marcin Tomaszewski, lead economist for the EU region at the European Bank for Reconstruction and Development, told Reuters.
He said that Poland and Hungary face greater demographic pressure than western Europe because both are ageing rapidly after only recently becoming destinations for migrants.
The Polish Economic Institute estimated in 2024 that Poland could lose 2.1 million workers by 2035, with industrial declines potentially reducing GDP by 6% to 8%.
More than one million foreigners work in Poland, around two-thirds of them Ukrainian. A 2026 report by Deloitte, Ipsos and the Institute of Public Affairs estimated that non-EU workers generated up to 10.7% of Poland’s economic output last year, while birth rates remain at their lowest since the Second World War.
Business backlash
Hungarian poultry producer Master Good said it could halt a factory expansion due to visa restrictions.
Magyar accused the company of trying to “threaten the government and the Hungarian people”, arguing it could attract local workers by offering higher pay.
Owner Laszlo Barany disagreed, saying that his 580 Filipino employees are vital.
“People get old, they retire and there is no demographic supply, while those entering the workforce are not looking for this type of job,” Barany said.
Delays push workers elsewhere
Polish employers say lengthy processing times are also driving skilled workers away. Nadia Winiarska of business federation Lewiatan said that work permits take more than six months, while residence permits can take almost a year.
Restaurant owner Rahul Jha said that he lost a chef after the worker waited more than a year for a temporary residence permit.
“Denmark gave him a five-year visa … like immediately, a skilled visa. So he just moved out from here,” Jha said.
Deputy Interior Minister Maciej Duszczyk said that Poland is modernising its visa system, though employers argued that other European countries process applications far more quickly.
Poland seeks tighter control
Duszczyk said that Poland is adapting to its shift from a country of emigration to one of immigration.
“If we changed our status from typical emigration country to migration one, we have to also adjust our whole system of functioning of the society,” he told Reuters.
He added that Poland does not want its economy to rely mainly on cheap labour.
Slow economic cost
Neither government appears likely to reverse course before the next election. While the political benefits of tighter immigration remain clear, employers and economists warned that labour shortages and ageing populations will continue to weigh on growth.
The Hungarian visa suspension and Poland’s permit delays are already encouraging skilled workers to move to other EU countries with faster processing systems.