Social Entrepreneur of the year 2007 – Hungary ERASMUS+ Strategic Partnerships „HQVET”- Kick-off meeting January 2014, Dunajska Streda Labour market situation in the region of Érd and Pest County

Pest County is the third biggest county of Hungary with it’s 6394 km2, 187 settlements, including 40 towns. The number of inhabitants reaches It’s centre is at the same time the capital of the country. The transport network of the country is centered in Budapest. The County has a favourable geographic position: 30 national routes go across Pest County, 15 routes of those concentrate 75% of the daily traffic of the region. Along the main roads there are several commercial centers, industrial plants and parks ~ 9% The location of Pest County and its characteristics Érd

Pest County Pest County plays an important role in the economy of Hungary, it’s businesses gradually strengthening each year. Nearly 65% of the employees work in the service sector, approximately 30 % operate in industry and construction and remaining 5% are employed in agriculture. The most important industries of the County include machine industry, construction industry, electronic and motor industry as well as manufacturing industry. A typical sector of the County is creative business: software and database development, press and literature, arts, advertising and promotion. Pest County have large and valuable green areas: two national parks and eleven nature preserves (representing 12% of its total territory) More than 100 educational institutions, 6 universities and colleges. In terms of higher education cca. 12,000 university and college students attend the higher education institutions of 7 towns of the county. Érd

The location of Érd and its characteristics The region of Érd is situated in the Region of Central Hungary, in Pest County. Has a favourable situation due to the proximity of Budapest and the agglomeration ring It’s the largest settlement of the agglomeration ring and of Pest County. Érd area includes 6 settlements Population of this area: cca inhabitants, cca inhabitans only in Érd Most of the population still commutes to their workplace (Érd used to be called „sleeping city” in the past) No considerable manufacturing industry in the city, several shopping centres and an expanding industrial park, but more work and education opportunities in the surroundings Prosperous sectors of the region are logistics, trade, service industries and the banking and financial sector. Érd

Labor market trends in EU

Unemployment rates in the EU - seasonally adjusted values Source: Eurostat, 2014

Employment and unemployment rate in the member countries of the partnership II. quarter Source: CSO, 2014 Country Employment rate of ages (%) Unemployment rate (%) Austria52,54,7 Hungary23,18 Italy15,712,3 Slovakia21,213,2

Labor market trends in the country and in the region

The development of unemployment rate in the country Unemployment rate Source: CSO, 2014

The development of the unemployment rate in Pest County compared to the national average percent Source: CSO, 2014 Pest County Country

The evolution of the unemployement rates in the last 3 years in the country Period Nr. of unemployed (1000 people) Unemployment rate (%) Unemployment rate of ages (%) 2012.I506,511,928, IV.459,510,627, I.495,411,629, IV.398,59,124, I.361,18, III.331,57,421,6

Disadvantaged groups on the labour market  Job seekers over 50 years of age  Youth /school –leavers/ without any work experience  Disabled / handicapped persons  Long-term unemployed persons  Women getting back to employment

Data according to the National Employment Service (Oct. 2014) Educational level of the registered school-leavers% Elementary school (8 classes)40,0 Vocational school17,8 Secondary vocational or Technical school21,6 Secondary grammar school15,1 Higher education5,5 Nr. of registered job-seekers: , /men: , women: / Nr. of registered school-leavers : , representing 13.3% of the total nr. of registered job-seekers. Nr. of job-seekers ages represented 20,6 % of the total nr. of reg. jobseekers. Nr. of long-term unemployed job-seekers , ratio 25,6%. Nr. of job vacancies

The evolution of the number of registered jobseekers and the ratio of registered unemployed graduates Ratio of graduates in total nr. of jobseekers Nr. of registered jobseekers /1000 people/ percent

The ratio of young school-leavers among registered job-seekers in different regions of the country CSO (Dec 2012)

The number of students in Pest County and in Budapest (2013) BudapestPest County Nr. of elementary school students Nr. of secondary vocational school and high school students Nr. of vocational school students Nr. of higher education students In Pest County there are vocational education in 15 qualification groups. (training, arts, social sciences, economics and management, IT, natural sciences, mechanical engineering, agriculture, health, social care, services etc.)

The number of vocational schools in Pest County and in the region of Érd Professions trained in the 3 vocational schools of the region: Érd: shop assistant, office assistant, panel beater, electrician, house painter, pipe and central heating fitter, cook, pastry cook Százhalombatta: informatics, mechanical engineering, management, economics Budaörs: economics Maintainer Nr. of institutionsNr. of students State Ecclesiastical Private Total Source: Budapest and Pest County Development and Training Committee Development –Concept, 2013

Affecting factors of the situation of school-leavers on the labour market

 Situation of vocational education Infavourable changes in the field of vocational education starting from the 90’-ies -decrease of LM demand towards workforce without graduation -delayed react of education strategies to the changes in the needs and demands of the LM -high drop-out rate in vocational schools, few years later enhancing the unemployed people number -lack of technical conditions for practical training in the schools -vocational schools often unable to prepare their students for the increasingly complex professional skills -very uncertain perspectives for the school-leavers entering the job market -no adequate career guidance integrated into the curriculum, the young are not prepared for access to employment and are not familiar with job search methods In the last few years perceptible positive tendencies -significant changes in the whole system of vocational training -changes in VET legislation, starting from 1 January 2012, with the key objective of developing the VET system in accordance with the needs of LM labor market in order to enhance the employability

Youth/school-leavers/ -have no work experience, haven’t got developed working methodology, nor the skills required -haven’t got established discipline of work -still seeking their own way, do not know what they really want to work -irreal expectations about salary, impatience with the progress of their career -unwillingness of working mobility -have updated knowledge, but often not at required quality and standards -good physical bearing capacity Different aspects of the employment of school-leavers /youth/ Employers -prefer to employ experienced workers, with reliable professonal skills -young people without any experience are always a threat for the employer, because their efficiency is less predictable then those, who have filled more jobs -less stable work force, change jobs more frequently -still affecting impacts of the economic crisis: decreasing number of job vacancy, -each company tries to work with a minimum /effectively working/ staff -young people can be formed according to the company's needs, ensuring the workforce supply, have lower wages and less paid holidays.

Katalin Bartha programme manager Cellphone: Thank you for the attention! Social Entrepreneur of the Year – Hungary 2007