Employment is continuing to increase dynamically in Hungary according to the latest flash report from the Hungarian Central Statistical Office (KSH). The number of people in employment rose to 4 million 182 thousand in the July-September 2014 period, which is 192 thousand more than during the same period in the previous year. Unemployment fell by 2.4 percentage points to a new low of 7.4 in the third quarter.

The private sector is increasingly contributing to the rise in employment, thanks to the Government’s effective active employment programmes.

The employment rate among the 15-64 age group increased to 62.8 percent, which represents a year-on-year growth of 3.6 percent.

With regard to changes in the employment rate by gender, indices for both men and women improved significantly. The employment rate for men within the 15-64 age group increase by almost 4 percentage points from the same period in the previous year, hitting 69.3 percent. The employment rate for women is currently at 56.5 percent, following a year-on-year increase of 3.4 percent, a figure with regard to which we are expected to be in first place among the EU member states once again in Q3. This is the first time that the number of women in employment within the 15-64 age group has reached 1 million 900 thousand, a figure which has never before even been approached. The employment rate for the 15-24 age group achieved a year-on-year increase of 3 percent, meaning there are now 262 thousand people employed within this category.

In Hungary, 102 thousand fewer people were without a job during the July-September 2014 period than during the same period in the previous year, meaning that the number of people who are unemployed has dropped to 333 thousand and the unemployment rate has fallen by 2.4 percentage points to 7.4 percent. The last time that the level of unemployment in Hungary was this low was in the third quarter of 2007.

An important role in the significant increase in the number of people in employment is played by the decrease in taxes on labour, the Job Protection Action plan, measures designed to promote activity and the growth upturn experienced in 2013. Favourable employment figures have a positive effect on budget revenues, in addition to which they also lead to an increase household consumer spending, and as a result they in turn facilitate the expansion of the economy.

Details of the report are available on the Central Statistical Office website: http://www.ksh.hu/?lang=en

(Ministry for National Economy)