Current Hungarian labour market, shortages, surpluses, measures 2007 Tibor Bors Borbely senior consultant National Employment and Social Office Public Employment Service

2 Current situation I. economy and labour market

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4 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) 1.4% (2007Q3) Average unemployment period in HU: 16.2 months

5 Hungarian labour market main facts  active age citizens with only compulsory education (8 classes) = 30% of the active labour force In 30% Romas In 30% Romas  Activity rate -10 % to OECD average It’s – 20% between low / under-skilled It’s – 20% between low / under-skilled  Employment rate could be raised + 1,5% to 2015

6 Languages… as a key for the European labour market, appr. 20% of the population speaks at least one foreign language (professed by themselves!)

7 A homogeneous nation…

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Hungary among the NMS10

Hungary

11 New balance II. 2006; ; -2013

12 New Balance Correction and Balance Source: Programme for Convergence Hungarian Republic September 2006 Ministry of Finance

13 Regional differences, shortages and surpluses III.

14 Unemployment rate (ILO) ys. 2007Q1 Észak- Alföld Dél- Alföld Dél- Dunántúl Észak- Magyarország Közép- Dunántúl Közép- Magyarország Nyugat- Dunántúl 8,2 % 9,9 % 11,3 % 11,4 % 5,5 % 4,9 % 5,5 % Munkanélküliségi ráta I. név 11,0 - 11,9 9,0 - 9,9 8,0 - 8,9 4,0 - 5,9

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

17 Regional differences (NUTS IV level) (unemployed social beneficiaries) 2003

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19 Short term forecast: labour demand

20 Quarterly taken short-term labour market forecast 2007Q2 latest results

21 Shortages / surpluses by sectors +3 months

22 Shortages / surpluses by regions +3 months By occupations, positions

23 Summary on demands and supplies 2007Q2 (spring)  +27 thousands dressmakers, tailors, conveyor belt workers, semi skilled mechanics, unskilled workers, IT engineers  - health care: nurses, GPs  - compulsory education: primary and secondary school teachers

24 Wages and earning  You can find a detailed wage statistics at our website: html html html The structure of the earning survey is available in English as well at The structure of the earning survey is available in English as well at surv surv Let’s check an example:

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26 For further information: Ministry of Employment and Social Affairs (party English version available) Hungarian Central Statistical Office (HCSO) National Employment and Social Office Also for Hungarian EURES daily news Institute of Economics, Hungarian Academy of Sciences Hungarian PLOTEUS site (NPK)

27  olumes.html EN olumes.html olumes.html The Hungarian Labour Market 2007 (HAS IE)  The Hungarian Labour Market 2007 (PES) en_labour_market_information en_labour_market_information

28 Thank you for kind your attention! You can contact me at: Borbelytibor[at]lab[dot]hu