1. Current labour market figures, facts and burning issues Hungary 2007 Tibor Bors Borbely borbelytibor@lab.hu chief consultant National Employment and Welfare Office Public Employment Service

2. 2 Current situation I. Labour market Economy Health – life expectations

3. 3 EU25 & HU main figures EU25 HU Employment rate (15-64) 63.8%(2005)56.9% (2005) 56.8% (2004) 57% (2008 national target) Total unemployment 8.7%(2006) 7,5% (2006) 9.1%(2005) 7,2% (2005) Youth unemployment (15-24) 18.7% 20.4%(2004) employment rate 36.8%(2004) 27.1% (2005) LTU 47.4% (2005) GDP growth 4.6% (2005) 3.9% (2006) Average unemployment period in HU: 16.2 months

4. 4 EiE 2006

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9. 9 1988-2006

10. 10 A reach, but a short life nation… Source: Eurostat 2004 Demographic Projections (Baseline scenario)

11. 11 Source:EIE 2006 p 5 Table 5

12. 12 New balance II. 2006; 2007-2009; -2013

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14. 14 New planning for the long term:  National Development Strategy 2020  National Regional Development Plan 2020 for the middle term:  Second National Development Plan, officially called New Hungary Development Plan 2007-2013, it contains 7 regional operative programme  Rural & Agricultural Development Plan 2007-2013 for sort term:  National Action Plan (NAP) 2006-2009  Program for Convergence 2006-2009

15. 15 Full list of the new documents:   Convergence Programme (1 September 2006)   New Hungary Development Plan (2007-2013)   Sustainable Development Strategy (under planning, date of presentation1 July, 2007)   National Cancer Control Programme (2006-2013)   National Infant and Child Healthcare Programme (November 2005 – 2013)   National Public Health Programme (2003-2013)   Green Paper on Hungarian Healthcare (26 July 2006)   Energy Policy 2006-2015 - GKM studies   Hungarian Information Society Strategy (2003- )   National Broad Band Strategy (2005-2013)   National Environment Protection Programme (2003-2008)   National Strategy Report on Social Protection and Social Cohesion (under planning –   Date of presentation: 15 October, 2006)   Pension Strategy Report (2005-2006)   Hungarian Strategy for Life-long Learning (2005-2013)   Knowledge for All! Action Plan (2006-2010)   Education IT Strategy (2004-2006)   Equal Opportunity in Education Work Programme (31 August 2006)   Medium Term Strategy for Science-technology and Innovation Policy (31 October   2006)   Reforms in Education 2002-2006   Vocational Training Strategy   National Tourism Development Strategy (2005-2013)   New Hungary Regional Development Strategic Plan (2007-2013)

16. 16 New Balance 2006-2009 Correction and Balance Source: Programme for Convergence Hungarian Republic September 2006 Ministry of Finance

17. 17 New measures in employment policy  Expected income tax base for 2x minimal wage (HUF 125 000 ~ EUR 460) 1 million citizens pay after the minimal wage  +3% employees’ social affix  Additional 4% ‘solidarity‘ income tax on HUF 6 000 000 wages (~EUR 22 200)  VAT 15%-- 20%  Less income tax allowance (i.e. for home PC, LLL etc.)  ~ 14 000 lay-off from the central government (- 2,1%)

18. 18 New structure to carry out employment policy: regionalisation  At 1st of January 2007 the PES structure was also changed: National Employment and Welfare Office (Budapest) Regional Employment Offices (7)Regional Training Centres (9) Regional Labour Centres (23) Local Job Centres (~ 170) local labour markets app. 900 thousands registered job-seekers / a year (app. 22-26% of the Hungarian market) 300-400 thousands registered employers / a year (app. 40-45% of the Hungarian market)

19. 19 Regional differences III.

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21. 21 Regional differences (NUTS IV. level) (unemployment) 2003

22. 22 Regional differences (NUTS IV level) (unemployed social beneficiaries) 2003

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24. 24 On Regional Development Planes 23,6% (1620,59 Mrd Ft.) will be used.

25. 25 For further information: Ministry of Employment and Social Affairs http://www.szmm.gov.huhttp://www.szmm.gov.hu (party English version available) Hungarian Central Statistical Office (HCSO) http://www.portal.ksh.hu National Employment and Welfare Office www.en.afsz.hu Institute of Economics, Hungarian Academy of Sciences http://www.econ.core.hu/eng/index.html Borbelytibor@lab.hu Thank you for your attention! You can contact me: