The unemployment rate has fallen to 3.8 percent, a level unseen since the regime change, and this means that “every Hungarian able and willing to work has got a job”, Minister for National Economy Mihály Varga said. The country has reached a milestone in employment, he added, and that has been brought about by the Government’s pro-growth policy, the steady expansion and sound growth structure of the economy.

Thanks to dynamic job growth, the number of people in employment has increased by 750 thousand since the change of government in 2010. The bulk of growth was registered in the private sector, where the number of jobs has risen by 570 thousand, the Minister noted. It is a major result, he added, that while the number of people working in the primary labour market has increased by 85 thousand, the number of those working abroad has been down by 11 thousand and the number of public work employees has also fallen by 37 thousand over the past one year.

Government measures, the six-year wage and tax reduction agreement, the Job Protection Action, the Youth Guarantee Programme and incentives facilitating job-creating projects have also helped boost the number of people who make a living from work.  The country still has some labour reserves; the Government wants to assist the entry of currently inactive and unemployed people, mothers with small children and pensioners back to the labour market, Mihály Varga said. The transformation of the vocational and adult education system must be continued, and the number of programmes aiming to increase labour mobility must be extended, he stated. As part of these efforts, more funding must be provided for companies and local governments for the building and refurbishment of workers’ hostels. Under this new job situation, employers should also reconsider future hiring plans and find ways of retaining labour force. The Government is also offering support for technological development projects which result in lower human labour intensity, the Minister stressed.

(Ministry for National Economy)