The Government has launched the Youth Guarantee programme, a scheme to improve the job prospects of those under the age of 25 years in six so-called convergence regions of Hungary. Young jobseekers in the Central Hungary region are to join the programme in the coming weeks, Minister of State for Employment Sándor Czomba said at a press conference in Budapest.

He said that the Youth Guarantee scheme was launched as one of first programmes financed from EU funding made available in 2014-2020. Under the programme, until the end of 2017 the European Union provides HUF 15bn for the four most deprived regions – Northern Hungary, Northern Great Plain, Southern Great Plain and Southern Transdanubia – while the Government of Hungary adds HUF 200bn to fund the programme projected to operate until 2020.

Sándor Czomba added that the programme is set to be implemented in four stages; until the end of 2017 the scheme will address those young jobseekers that have been registered for at least six months.

According to recent data, the programme will cover some 174 young jobseekers in Hungary and at the start employment centres recommended the programme for as many as 3000 registered young jobseekers from the six convergence regions, the Minister of State pointed out.

Would-be applicants will receive a letter from regional employment centres which are also to prepare a customized plan that determine labour market, wage supplement, training and education options.

As Sándor Czomba explained, unemployment has been one of the most pressing issues in Europe and Hungary, and young people have been especially badly affected. However, over the past three years the employment rate has improved significantly in Hungary among those aged 15-24 years. The indicator hit bottom in 2009 with 18 percent, while in the fourth quarter of 2014 it was 24.6 percent and thus it has reached pre-crisis levels. It is also higher than the EU average. Within this age bracket, the unemployment rate was around 20 percent in 2008, after that it increased to above 28 percent by 2012 and it has recently hit 18.3 percent, far higher than the 7 percent figure among those aged 14-65 years.

Sándor Czomba stressed that the Youth Guarantee scheme was adopted by the EU one year ago. In Hungary, several programmes have in the past years addressed youth unemployment. As an example, the Minister of State mentioned the Job Protection Action Plan, under which employers received subsidies for the employment of 180 thousand young people. Under the First Job Guarantee Programme, the employment of some 18 thousand young people is being supported and another programme assists young people to become entrepreneurs. Student job schemes provided 40 thousand young people with part-time jobs over the past two years.

(Ministry for National Economy)