Brake on growth, rising pessimism: a tough year ahead for the Hungarian labour market

 

 

Confidence among Hungarian labour market players has continued to weaken, while companies are planning much more cautiously than before – according to the freshly published Hays Hungary Salary Guide 2026. The survey shows that 72.5% of employees and 65% of employers are pessimistic about the economic outlook for the next 2–5 years, exceeding even the negative expectations of previous years. This caution is clearly reflected in salary planning as well.
 

While 31% of employers were still able to offer double‑digit pay rises in 2024, this figure dropped to just 10% by 2025. For 2026, most companies are planning a 2.5–5% salary increase, a significantly narrower range than a year earlier. Employees have adjusted their expectations accordingly: only 18.5% expect a pay rise of more than 10%. At the same time, the latest figures show that in the absence of strong growth prospects, many companies have already begun investing in alternative retention tools this year, such as more flexible benefits packages or redesigned career paths. Several employers also indicated that instead of salary increases, they are strengthening internal mobility and training programmes to ease wage pressure.

Cautious employers: 2026 will be “the year of careful planning”
 

Tellingly, 47% of companies planned headcount growth last year, yet the latest data suggests much more muted expansion expectations for 2026. The uncertainty is pushing many organisations towards more conscious, long‑term planning. “With so many factors at play, next year will undoubtedly be about careful planning. Employers are prioritising stability over rapid growth: responding to uncertainty with more cautious salary increases, more targeted hiring and a stronger focus on training programmes,” said Tibor Katona, Commercial Director at Hays Hungary. However, caution does not mean passivity: the survey shows that many companies are actively strengthening their foundations and preparing for market shifts expected later in the year.

Pay transparency: the biggest shift is yet to come
 

From 7 June 2026, the EU Pay Transparency Directive will come into force in Hungary, fundamentally reshaping job advertisements, pay practices and career structures. Employers will be required to communicate the salary range at the start of the recruitment process, and employees will be entitled to request information on the average pay of colleagues performing work of equal value. The change is widely welcomed by employees: 74% believe greater transparency is necessary, and 91% say they would be more likely to apply for a job if the salary appeared in the advertisement. Despite this, 61% of employers have not yet taken steps to prepare for the regulatory transition. “Pay transparency will be a turning point in the labour market. For the first time, companies must clearly articulate how they value the true market worth of each role. This creates clarity on both sides – but also tests how prepared organisations are in terms of their pay structures,” said Tammy Nagy‑Stellini, Managing Director of Hays Hungary.

Skills shortages and overload: why internal training is on the rise
 

91% of companies experienced skills shortages over the past year – whether technical, digital or even basic work‑related competencies. This shortage makes recruitment difficult and directly affects retention: according to Hays data, aside from salary considerations, employees most often cite the lack of progression opportunities and burnout from overload as reasons for leaving. Recognising this, more and more organisations are responding proactively: internal training and reskilling have become the most effective strategies. More than half of companies (56.5%) already run targeted development programmes to close capability gaps, which is also crucial for retention.

Skills development also connects directly to the next major challenge: the rapid spread of AI. Expanding digital competencies is no longer just an efficiency issue but a fundamental requirement for competitiveness – especially in a labour market where 63% of employees already use AI tools regularly.

AI: employees are already using it, companies are now speeding up

The spread of artificial intelligence has accelerated further: 63% of employees now use AI in their daily work, mostly self‑taught. Despite its rapid adoption, most labour market participants remain unconcerned: 71.5% of employees and 75% of employers do not worry that AI could threaten their job security. AI’s perceived benefits are strongest in efficiency, creativity and idea generation, as well as data analysis. “AI is no longer a new tool – it’s part of everyday work. The real question now is who can turn it into an advantage: companies that not only use the technology but also teach their teams to work with it intelligently will be the ones to move ahead,”

said Tamás Seres, Manager responsible for engineering and IT recruitment at Hays Hungary.

Technological readiness has therefore become not only an innovation issue but a key pillar of long‑term organisational resilience – especially in a year shaped simultaneously by the introduction of pay transparency, restrained salary growth, deepening skills shortages and the explosive spread of AI‑driven work.

The Hays Hungary labour market research is based on responses from 4,229 participants and is published in the Hays Salary Guide 2026. The Hays Hungary Salary Guide 2026 can be downloaded here: Hays Salary Guide 2026 | Hays Hungary