Current labour market figures, facts and burning issues Hungary 2007 Tibor Bors Borbely chief consultant National Employment and Welfare Office Public Employment Service
2 Current situation I. Labour market Economy Health – life expectations
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 EiE 2006
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10 A reach, but a short life nation… Source: Eurostat 2004 Demographic Projections (Baseline scenario)
11 Source:EIE 2006 p 5 Table 5
12 New balance II. 2006; ; -2013
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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 , it contains 7 regional operative programme Rural & Agricultural Development Plan for sort term: National Action Plan (NAP) Program for Convergence
15 Full list of the new documents: Convergence Programme (1 September 2006) New Hungary Development Plan ( ) Sustainable Development Strategy (under planning, date of presentation1 July, 2007) National Cancer Control Programme ( ) National Infant and Child Healthcare Programme (November 2005 – 2013) National Public Health Programme ( ) Green Paper on Hungarian Healthcare (26 July 2006) Energy Policy GKM studies Hungarian Information Society Strategy (2003- ) National Broad Band Strategy ( ) National Environment Protection Programme ( ) National Strategy Report on Social Protection and Social Cohesion (under planning – Date of presentation: 15 October, 2006) Pension Strategy Report ( ) Hungarian Strategy for Life-long Learning ( ) Knowledge for All! Action Plan ( ) Education IT Strategy ( ) Equal Opportunity in Education Work Programme (31 August 2006) Medium Term Strategy for Science-technology and Innovation Policy (31 October 2006) Reforms in Education Vocational Training Strategy National Tourism Development Strategy ( ) New Hungary Regional Development Strategic Plan ( )
16 New Balance Correction and Balance Source: Programme for Convergence Hungarian Republic September 2006 Ministry of Finance
17 New measures in employment policy Expected income tax base for 2x minimal wage (HUF ~ EUR 460) 1 million citizens pay after the minimal wage +3% employees’ social affix Additional 4% ‘solidarity‘ income tax on HUF wages (~EUR ) VAT 15%-- 20% Less income tax allowance (i.e. for home PC, LLL etc.) ~ lay-off from the central government (- 2,1%)
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 % of the Hungarian market) thousands registered employers / a year (app % of the Hungarian market)
19 Regional differences III.
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21 Regional differences (NUTS IV. level) (unemployment) 2003
22 Regional differences (NUTS IV level) (unemployed social beneficiaries) 2003
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24 On Regional Development Planes 23,6% (1620,59 Mrd Ft.) will be used.
25 For further information: Ministry of Employment and Social Affairs (party English version available) Hungarian Central Statistical Office (HCSO) National Employment and Welfare Office Institute of Economics, Hungarian Academy of Sciences Thank you for your attention! You can contact me: