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Poland and Hungary Tighten Foreign Worker Rules Amid Labour Shortages

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Poland and Hungary have introduced stricter measures to limit the employment of non-EU workers as both governments seek to address public concerns over immigration. Poland has reduced work permits for non-EU citizens, while Hungary has stopped issuing worker visas to applicants from several countries, including the Philippines, Georgia, and Armenia.

Business groups and economists have warned that the restrictions could worsen labour shortages and slow economic growth. Many industries in both countries rely heavily on foreign workers due to ageing populations and declining birth rates, with employers saying they are already struggling to fill vacancies.

Companies have also raised concerns about delays in processing work and residence permits, prompting some skilled workers to relocate to other European countries. While the governments say they are balancing economic needs with immigration policies, businesses fear tighter rules could affect expansion plans and long-term competitiveness.

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Portugal’s Migration Curbs Worsen Construction Labour Shortage

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Portugal’s stricter immigration policies are creating labour shortages in the construction sector, raising concerns over the country’s ability to tackle its growing housing crisis. Industry leaders say migrants make up a significant portion of the workforce, and tighter rules have reduced the number of workers available for major housing and infrastructure projects.

The country faces a shortage of around 300,000 homes and aims to build 150,000 affordable houses by 2030 through an EU-backed programme. However, construction groups estimate the sector still needs tens of thousands of additional workers, warning that labour shortages could delay projects, including Lisbon’s new airport and affordable housing developments.

Many migrant workers already living in Portugal also face uncertainty over renewing their residence permits under the revised regulations. While the government says the measures are intended to control immigration and improve living conditions, industry experts argue that foreign workers remain essential to supporting Portugal’s economy and addressing its housing shortage.

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Germany Turns to India to Tackle Skilled Worker Shortage

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Germany is increasingly looking to India to address its growing shortage of skilled workers, driven by an ageing population and a lack of young domestic talent. The shift began when German trade bodies, facing acute hiring challenges, responded to outreach from Indian recruitment firms offering a pool of trained and motivated youth. What started as a small initiative in 2022, bringing a handful of Indian apprentices into sectors like butchery, has now expanded into a broader effort across multiple industries.

Recruitment agencies such as Magic Billion and India Works have played a key role in connecting Indian workers with German employers. From just 13 apprentices initially, the number has grown to around 200 Indians working in German butcher shops, with hundreds more expected to arrive for roles ranging from mechanics and bakers to road builders. This trend has been supported by policy measures, including the 2022 migration agreement between the two countries and Germany’s decision to significantly raise its skilled worker visa quota for Indians.

The move reflects a mutually beneficial dynamic: Germany urgently needs workers to sustain its economy, while India has a large young workforce seeking better opportunities, higher wages, and improved living standards. For many Indian workers, the transition offers financial stability and global exposure, while German businesses credit them with helping sustain operations. With workforce shortages projected to worsen, German officials say attracting foreign talent—especially from India—is no longer optional but essential.

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Russia Turns to Indian Workers to Tackle Labour Shortage

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Russia is increasingly recruiting workers from India to address a severe labour shortage worsened by the war in Ukraine. Officials estimate the country needs at least 2.3 million additional workers, particularly in manufacturing, construction and services. With fewer migrants arriving from Central Asia — traditionally Russia’s main source of foreign labour — Moscow has sharply increased work permits for Indians, approving nearly 72,000 last year compared with about 5,000 in 2021.

The shift reflects both economic necessity and strengthening ties between Moscow and New Delhi. President Vladimir Putin and Prime Minister Narendra Modi signed an agreement in December to simplify employment procedures for Indians in Russia. Russian officials say the country could accept an “unlimited number” of Indian workers, with hundreds of thousands needed across key sectors. A weaker rouble, stricter migration rules and rising anti-immigrant rhetoric have also reduced inflows from Central Asia, prompting the pivot toward South Asia.

Indian migrants are now working in textile factories, farms and service industries around Moscow and beyond. Employers say the workers are motivated and quickly adapt to new skills, while migrants cite higher wages compared to opportunities back home. Though U.S. pressure on India over its purchases of discounted Russian oil could affect broader ties, Moscow has downplayed tensions, and the inflow of Indian labour continues for now.

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