Hungarian lake resort suffers from labor shortage

WITH its inviting turquoise waters, white sandy banks, picturesque mountainous landscapes and resort towns, Hungary’s Lake Balaton has plenty for tourists to write home about.

But a labor shortage exacerbated by low salaries and Hungary’s anti-immigration policies is making life difficult for the lake’s tourism industry.

Visitors still flock in increasing numbers to central Europe’s largest lake to soak up its warm summer climate and enjoy the beaches, bars and eateries, as well as locally produced wines.

But that’s proving a headache for restaurant and hotel owners, who struggle to find workers, as unemployment in Hungary is historically low at 3.6 percent, while nationalist firebrand Prime Minister Viktor Orban is strongly against immigration.

“It’s impossible to find a gardener or a waitress or a cook,” said Balazs Banlaki, the owner of Kali-Kapocs, a restaurant nestled in the hills of Mindszentkalla on the northern shore of the lake, which lies about 80 kilometers southwest of the capital, Budapest.

With a national average salary of less than 530 euros (US$610) per month and half a million people having left the country to work in Western Europe over the past decade, Hungary lacks workers. Despite having one of the lowest fertility rates in the OECD (Organization for Economic Cooperation and Development) and a population currently of less than 10 million, its government has not heeded appeals to open its borders to qualified workers.

“We advertise (job openings) everywhere and all the time... The lack of qualified workers is a constant problem,” manager Erzsebet Mazula said.

Due to its trendy image Plazs Siofok can attract student workers, Mazula said.

“They are certainly not professionals, but we train them before the season starts,” she said. “But even with this system, you can see there are not enough waiters and waitresses to serve our clients.”

Seeking to offer a solution, the government is trying to convince pensioners to return to work by exempting them from having to pay social contributions and capping taxes at 15 percent. Since last year, Budapest has permitted workers from neighboring non-EU countries Ukraine and Serbia to work in Hungary for up to 90 days without a work permit. But, so far, the measures have failed to solve the shortage.