Full Breakdown
Poland and Hungary Clamp Down on Non-EU Worker Permits, Raising Business Concerns
7/22/2026, 12:47:50 PM
Policy Shift Overview
In July, both governments announced new restrictions on foreign labour. Poland’s ruling centrist coalition reduced work permits for non-EU citizens by roughly 22 % in the previous year, while Hungary’s administration halted the issuance of visas to workers from the Philippines, Georgia and Armenia as a “first step” toward broader guest-worker regulation. The moves aim to counter nationalist accusations of being soft on immigration.
Economic Context
Economists warn the curbs could undermine growth. Marcin Tomaszewski, lead economist for the EU region at the European Bank for Reconstruction and Development, explained that “Fewer workers mean slower growth and less tax coming in, while an older population costs more in pensions and health.” Poland’s labour force already depends on over one million foreign employees—about two-thirds of whom are Ukrainian. A 2024 forecast by the Polish Economic Institute projected a shortfall of 2.1 million workers by 2035, potentially shaving 6 %–8 % off GDP. A 2026 report by Deloitte, Ipsos and the Institute of Public Affairs found non-EU workers contributed up to 10.7 % of Poland’s economic output last year.
Business Reaction
Polish business federation Lewiatan’s deputy labour director Nadia Winiarska reported that work-permit processing now exceeds six months and residence-permit applications take nearly a year, prompting skilled workers to look elsewhere. Restaurant owner Rahul Jha recounted losing a chef who left for Denmark after waiting over a year for a temporary residence permit. In Hungary, Master Good’s owner László Barany argued that its 580 Filipino staff are essential given the country’s ageing demographic.
Data Snapshot
- Poland: work permits cut by ~22 % last year; visas issued in Q1 2026 eight times fewer than in 2022.
- Hungary: new visa ban for three non-EU countries as of June.
- Poland’s foreign workforce: >1 million workers, 10.7 % of GDP contribution.
- Projected shortfall: 2.1 million workers by 2035, 6 %–8 % GDP impact.
Verbatim Quotes
- “Fewer workers mean slower growth and less tax coming in, while an older population costs more in pensions and health,” — Marcin Tomaszewski
