Hungary will stop issuing worker visas to nationals of the Philippines, Georgia and Armenia from Friday as part of a broader effort to tighten regulations governing foreign labor.
Government spokeswoman Vanda Szondi said the move marks the first phase of a long-term plan to regulate the inflow of guest workers into the country.
The decision follows a policy announcement by Prime Minister Peter Magyar’s Tisza party, which won the April 12 election and has pledged to halt the issuance of work visas to non-European Union nationals from June.
According to the government, the measures are intended to address concerns that foreign workers could place downward pressure on local wages. As part of the changes, Hungary will amend a decree that previously allowed manpower agencies to recruit workers from the Philippines, Georgia and Armenia through a simplified process.
Authorities said foreign workers already in Hungary will still be able to apply for extensions of their permits, while applications submitted before the new rules take effect will continue to be processed.
Official statistics show that foreign workers account for around 2 percent of Hungary’s workforce. However, several industries, including manufacturing and services, rely heavily on labor from abroad.
Some of the country’s largest foreign investors have warned that a complete halt to the recruitment of guest workers could create labor shortages and negatively affect businesses and the wider economy.