Why nearly half of our young talent plans to leave Hungary — and what a leader can do about it

The number I cannot get out of my head

A recent survey finds that 45 percent of Hungarian university students intend to look for work abroad after graduation. Not “considering it.” Not “open to an opportunity.” Intending to. That is not an abstract statistical data point: it is the talent pipeline for the next five years, the middle-management layer of the 2030s, and the future executive bench of companies that still believe they have plenty of time to prepare.

As an executive search consultant, I see the mirror image of this number in the market every day. On the LinkedIn profiles of twenty-something candidates, “Budapest, Hungary” is increasingly being replaced by “Munich, Germany,” “Vienna, Austria,” or “Dublin, Ireland.” And it is not only new graduates moving: specialists aged 28 to 35 are seriously considering relocation too, especially in fields — finance, IT, pharmaceuticals, consulting — where their knowledge is well paid in euros.

The April 2026 election result and the new government’s programme can bring both relief and tension into this picture. Unfreezing EU funds and restoring rule-of-law in principle reduces the structural drivers of outmigration. At the same time, the post-election reshuffle — mass personnel changes at state firms, the contagion of the German automotive crisis, fiscal consolidation — generates short-term uncertainty, which can push precisely the young talent we need most to continue packing their bags.

“Labour shortage is not a future problem in Hungary. It is here, now, and it will only become more painful unless we change how we treat young people at work.” — HR director at a technology company, March 2026

What do the numbers show?

The three layers of the outmigration wave

When we analyse brain drain, it is worth separating the movement into three distinct layers, because each starts for different reasons and each requires a different HR response.

The first layer is new graduates. The 45% I mentioned applies to the student cohort — they have not worked yet, so their decision is based more on expectations and impressions. Vienna or Munich rents, the appeal of working in an international team, the opportunity to improve language skills, and the image of a “better standard of living” dominate the motivation.

The second layer is specialists with 3–7 years of experience. They have already worked in Hungary, they know what their forint wage buys, and they know precisely how much better off they would be financially in Germany or Austria. This layer does not “dream of escaping”: it makes a rational decision. A financial manager earning a gross 1.2 million forint in Budapest can earn 3,500–4,000 euros for the same job in Vienna. The difference in quality of life, savings, and housing is immediately tangible.

The third layer is the senior and executive level. They move physically less often — but increasingly take on roles where they deliver international work from a Hungarian base, largely at euro or dollar compensation. This is a silent form of brain drain: technically they stay, but their employer, their culture, and their career are no longer Hungarian. The country “keeps” them physically while losing them economically and in terms of knowledge circulation.

The generational gap

The 2024 KiTalent “Young Talent in Hungary” study reported that the 18–29 age group has employer expectations that differ radically from older generations. The question is not whether the company pays well — that is a baseline expectation. The question is how transparent the decision-making is, how much room for manoeuvre exists, how autonomous the work is, and to what extent the employer tolerates mistakes.

This generation is not only younger but structurally thinks differently about careers. “30 years at one firm” is not the goal — as it wasn’t for their parents on the open market. The goal is continuous learning, meaningful work, and an employer who behaves like a leader, not a boss. Companies that fail to understand this difference will spend three years wondering why they are not getting candidates even for a good salary offer.

What changed in April 2026?

The psychological impact of the political transition

In the weeks after the change of government, I am observing an interesting psychological phenomenon on the market. Young people who used to say “I want to get out of here” now cautiously ask: “Maybe it’s possible to stay?” This is a narrow, temporary window. Employers who communicate quickly and credibly that they understand the nature of the change and sense the future opportunity have a chance to win this cohort back right now.

The political change alone, however, will not bring anyone home. On the contrary. Short-term turbulence — a dismissal wave at state positions, the contagion of German auto industry troubles, fiscal tightening — looks to a young graduate exactly like what they were afraid of. “See, I told you this country is unstable.” The employer’s task is to demonstrate organisational-level stability and perspective — regardless of what macro politics is doing.

The myth of wage convergence

Many Hungarian companies hope that the 9–10% wage increase planned for 2026 will automatically solve the problem. It will not. Partly because the strengthening forint (currently around 366 EUR/HUF) improves Hungarian wages in euro terms on paper, but this alone does not make them competitive with Austrian or German offers. Partly because young talent is increasingly thinking about career as more than a wage question.

Real wage convergence is not a question of percentage increases, but of how well a Hungarian employer can bring the total compensation package — base salary, bonus, equity, health and private pension contributions, flexibility, development opportunities — closer to modern Western European standards. Companies that do this find excellent young people in Hungary too. Those that only adjust base salaries will continue to lose the competition.

The Executive Search perspective

“Zero-talent” positions

In the past two years a new category has emerged in my search projects: “zero-talent” positions. These are roles that we could fill in a month back in 2018–2019, and for which today, after 4–6 months of active search, we cannot find suitable candidates in Hungary. Senior data scientist, senior compliance officer, senior treasurer, senior cybersecurity specialist — all fields where the Hungarian market simply does not have enough experienced professionals.

For these positions there are two strategic responses. One: international search, targeting Hungarian-speakers in Brussels, London, Dublin, Vienna, who might be invited home. Two: a domestic “grow your own” strategy, where the company accepts mentoring a candidate 2–3 years junior into the role. Both are more expensive, slower, and require patience. But there is practically no alternative.

The returning Hungarian — available, but with conditions

The layer of Hungarian professionals working in Brussels, Munich, Vienna, London has grown substantially over the past fifteen years. Many of them have started families, bought homes, integrated — but part of them is open to returning, especially when children reach school age or parents grow older. From an executive search perspective this layer is a treasure: they have euro-based compensation expectations, but the rare combination of cultural fit, language fluency, and international experience makes them well worth it.

The critical question is: what kind of position can lure them back? Not as a finance expert or senior specialist — they can get that job in Vienna and get paid better. But as someone whose return represents a career step up: regional leadership roles, Central Europe or CEE responsibility, with proper authority and scope. For Hungarian companies, this means rethinking structures: there cannot be just a “Hungary country manager” — there needs to be a regional role that pulls Hungarian talent back.

Practical recommendations for leaders

1. Measure, don’t assume, retention risk

Most Hungarian companies do not know the scale of their own flight risk. A structured annual “stay interview” — not an exit interview, but a staying interview — is the best diagnostic tool. Ask: what are the three things that keep you here? What are the three things that would make you leave? Where do you want to be in three years? Two-thirds of the answers predict departures.

2. Put money into the cultural package, not just the base salary

In the Hungarian market, “salary raise” always means base. Try redistributing the same amount differently: 60% base, 20% development budget (international conferences, professional training, coaching), 10% flexible benefits (childcare, fitness, mental health), 10% additional leave. Same cost, radically different output.

3. Build international career paths within the Hungarian company

When young talent sees they can be seconded to Brussels, Vienna, Frankfurt for 6–12 months and return to Budapest, the desire to move abroad permanently drops. Multinationals know this and do it. Hungarian firms should do the same — through partner countries or allied companies.

4. Communicate politically neutral but strategically honest

During the 2026 transition, young talent is particularly sensitive to how their employer talks about the change. Avoid partisan positioning in either direction. But be honest about the economic effects: what is changing, why, and how the company is adapting. Compared to silence, this builds trust.

What is likely to happen

Over the next 12 months the 45% number is unlikely to fall dramatically — but it is also unlikely to explode further. Unfreezing EU funds, forint strengthening, and the return of legal stability will moderate outmigration pressure to some extent but will not reverse it. The real turning point could be 2027–2028: a tangible wave of returnees, if the economy stabilises and employment conditions improve.

Until then: every company serious about its own future is doing two things right now. One: holding its existing young talent with bated breath — raised pay, new roles, development packages. Two: structurally preparing to welcome back those returning from abroad in 2027–2028 — regional roles, euro-based compensation, international culture. A company doing only the first is defending. One doing both is building.

45% is not fate. But it is a warning: if three years from now we get the same number again, Hungarian employers — jointly and individually — have lost the competition for their most important resource.

Sources

About the author: Réka Mohos is an Executive Search Consultant & HR Advisor at HR Executives. With expertise in executive search and labour market trend analysis, she helps clients identify the right senior leadership talent and make strategic hiring decisions.

Contact: reka.mohos@hrexecutives.hu

The 45% Problem