The unemployment rate has hit 4 percent, the lowest figure ever since the regime change in 1989 – according to data published by the Hungarian Central Statistical Office (KSH) for the period August-October 2017. The number of people in employment has also risen by 84 thousand on the primary labour market, and thus the total number of people with a job in Hungary was 4 million 445 thousand. Government measures have also contributed to steadily improving labour market indicators: since the change of government in 2010 the number of people in employment has increased by 736 thousand, and within that the number of private sector jobs has been up by 560 thousand.

Over the past seven years, the employment rate has improved from 54.6 percent to 68.7 percent, constituting growth of 14.1 percentage points. In the same period, the unemployment rate has declined from 11.5 percent to 4.0 percent, a decrease of 7.5 percentage points. Youth employment data also show remarkable improvement: while the unemployment rate in this age group was as high as some 30 percent seven years ago, the indicator now shows 11.1 percent, and the employment rate has nearly reached 30 percent in the observed period. The total number of jobless people continued to be very low: their number has fallen by 36 thousand, to 183 thousand, over the past one year.

Thanks to the six-year wage deal, which stipulates a significant increase in the minimum wage (for unskilled workers) and the guaranteed minimum wage (for skilled workers) as well as payroll tax reductions, the Ministry for National Economy is expecting favourable labour market trends and economic expansion to continue. Rising household consumption, ongoing capacity expansion projects at enterprises, dynamic investment growth and the acceleration of the disbursement of EU funds are also pointing to further job growth.

(Ministry for National Economy)