Poland and Hungary are tightening restrictions on foreign workers. Economists warn the move could slow economic growth as both countries face labor shortages and aging populations.
Politicians respond to public sentiment
Hungarian Prime Minister Peter Magyar and Polish Prime Minister Donald Tusk have introduced curbs on non-EU labor. The measures aim to counter criticism from nationalist opponents who claim the governments are too lenient on immigration. Public opinion supports these limits, despite businesses needing more workers.
Poland reduced work permits for non-EU citizens by 22% last year. Hungary halted worker visas for employees from the Philippines, Georgia, and Armenia in June, describing it as the first step toward regulating guest workers.
A January survey showed two-thirds of Poles want fewer non-EU migrants. In Hungary, nearly half of respondents opposed accepting any migrants from poorer countries, while 40% supported only small numbers.
Economists warn of long-term risks
Both nations depend on foreign labor. Poland’s workforce includes over 1 million foreigners, mostly Ukrainians. Non-EU workers contributed up to 10.7% of its economic output last year. A forecast by the Polish Economic Institute predicted a shortfall of 2.1 million workers by 2035, potentially cutting industry output by 6% to 8%.
Marcin Tomaszewski, lead economist for the EU region at the European Bank for Reconstruction and Development, said the shortages could strain public finances. Fewer workers mean slower growth and reduced tax revenue, while an older population increases costs for pensions and healthcare. These pressures highlight the challenge of aging before achieving prosperity.
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The transition from emigration to immigration has forced governments to rethink policies. Polish Deputy Interior Minister Maciej Duszczyk said the country must adapt to its new role as a migration hub but does not want an economy built on cheap labor. “If we changed our status from a typical emigration country to a migration one, we have to adjust our whole system of functioning of the society,” he stated.
Businesses report problems from the restrictions. In Hungary, poultry producer Master Good warned it might cancel a factory expansion after the government blocked visas for its Filipino workers. Owner Laszlo Barany said the workers were essential due to Hungary’s shrinking labor pool. “People get old, they retire and there is no demographic supply, while those entering the workforce are not looking for this type of job,” he said.
The conflict intensified when Magyar accused the company of trying to pressure the government. He suggested Master Good could hire locally if it offered higher wages.
Processing delays frustrate employers
Polish businesses face lengthy delays for work and residence permits. Some applications take nearly a year to process. A deputy director of the labour department at a Polish business federation said the slow bureaucracy is a growing concern.
The Polish Interior Ministry acknowledged the need for visa system updates but has not announced specific changes. Work visas issued in the first quarter of 2026 dropped sharply compared to the same period in 2022, though the comparison was affected by rule changes for Ukrainian workers.
Political priorities currently favor restrictions. Economists and employers continue to warn about the consequences of persistent labor shortages.