Similarly to the EU, the Hungarian Government is also aiming to achieve a 75 percent employment rate up to 2020, well above today’s figure of 68 percent, Minister of State for Labour Market and Vocational Education Péter Cseresnyés stated at a conference in Kecskemét.

The number of people in employment is currently 4.3 million in Hungary, which figure must be increased to 4.5-4.6 million in order to reach this target, he pointed out. The Government’s recent pro-labour market measures have significantly contributed to job growth in the past couple of years, he added.

The timely launching of labour market incentives has been bearing result. Europe had suffered the largest setback with the economic crisis of 2008 and some countries have even until now failed to overcome their problems, but the Hungarian economy “began to speed up” in 2012-2013 and this has left a visible mark in employment data, he said.

Speaking of the labour market, the Minister of State said that employment has risen and unemployment has declined in the past five years. Even excluding public work employees and those working abroad, the number of people in employment is close to 4 million in Hungary.

As Péter Cseresnyés pointed out, the labour market has been characterized by a demand-supply imbalance, as unemployment and the shortage of labour are parallel phenomena. On the other hand, whoever wishes to work can find a job, as skilled labour is in high demand, he added. The Government has aimed to stimulate employment through, for example, the establishment of free entrepreneurial zones, in which companies that create jobs can enjoy massive support.

The Job Protection Action, launched three years ago, has also proven to be successful. This scheme has provided incentives for employers to hire disadvantaged jobseekers and assist the transition of public work employees to a private sector job.

The Youth Guarantee Programme was designed to help young jobseekers in finding employment and obtaining entrepreneurial skills through training courses. At the end of these courses, participants have to draw up a business plan, and the best aspirants could receive up to HUF 3 million to fund the launching of their enterprise, he underlined.

Among upcoming changes, Péter Cseresnyés highlighted incentives to increase labour mobility, which include a housing allowance for up to five years and the raising of commuter benefits from the current HUF 9/Km to HUF 15/Km.

(Ministry for National Economy)