Challenges and Trends in Agricultural Employment: The Case of Hungary

Abstract

The agriculture and food industry faces many challenges, including a shortage of skilled and seasonal workers, low productivity, and a demographic shift towards an ageing agricultural population. The agricultural productivity and efficiency of Central and Eastern European countries, including Hungary, are relatively low compared to that of Western Europe. This study explores the complex landscape of agricultural employment in Hungary by analysing its situation and challenges that are in line with international standards. Using national- and company-level data, the study applies an analytical framework comprising descriptive statistics and a non-parametric Kruskal-Wallis test to explore patterns and trends in the sector’s performance. In Hungary, more than 70% of farm managers are over 45 years old. Furthermore, despite the increase in the number of people with an agricultural education, around 150,000 farms still rely on experience-based management. We identify statistically verifiable and notable differences in the investigated indicators (sales revenue in proportion to number of employees, wage efficiency, personnel expenses per capita, assets value per capita) according to the founding period (pre-1989, 1989-2004, post-2004). The study concludes by arguing for generational change, better agricultural education and emphasis on the concentration of skills and capital within families as a sustainable solution, thereby addressing the complex challenges of the agricultural labour market and creating flexibility in the sector by attracting younger and educated people.