Since the new government was formed in 2010, 735 thousand more people have had a job in Hungary and the employment rate has reached a record high unseen since the regime change of 1989 – the latest data published by the Hungarian Central Statistical Office (KSH) from the period June-August 2017 show.

In the same period, the unemployment rate has plunged from 11.5 percent to 4.2 percent, the lowest figure in 27 years. Labour market data also confirm the success of the Government’s employment policy. The six-year wage deal as well as tax cuts may lend additional impetus to the labour market through a dual impact: first, through incentivizing work and second, through reducing labour force migration.

In the period June-August 2017, the number of people in employment hit 4 million 444 thousand. Within that, the number of new private sector jobs has increased by some 100 thousand year-on-year, while the number of public work employees fell by 40 thousand and the number of those working abroad has also declined. Youth unemployment, the indictor for those in the 15-24 years age group, was down by 1.4 percentage points to 11.4 percent, a figure well below the EU average. Incentives of the Job Protection Action aimed at youth under the age of 25 years have also contributed to these positive developments.

Compared to international data, Hungary’s unemployment rate is the fourth lowest within the European Union, behind only that of the Czech Republic, Germany and Malta in the month of July 2017.

The Government-initiated six-year wage deal is expected to stimulate enterprises to increase competitiveness and, as a result, indirectly contribute to the increase of high value added jobs.

Accordingly, the Ministry for National Economy expects favourable labour market trends to persist and economic expansion to continue.

(Ministry for National Economy)