1. The labour market situation in Hungary 28 th Meeting of the Heads of PES 23-24 June 2011 Budapest, Hungary Irén Busch Head of Research and Analysis Department National Employment Office E - mail: buschi@lab.hubuschi@lab.hu 24 th June 2011

2. Capital: Budapest Area: 93.032 km 2 Population: 9,9 million (01.01.2011) GDP Growth 2011 Q1: 2,2% GDP Growth in 2010 Q1: -0,9% Employment growth: 2011 Q1 : 0,4% 2010 Q1 : -1,3% Activity rate: 2011 Q1 : 61,9% 2010 Q1 : 61,9% Employment rate: 2011 Q1 : 54,6% 2010 Q1 : 54,5% Unemployment rate: 2011 Q1 : 11,6% (ILO) 2010 Q1 : 11,8% (ILO) Hungary

3. Percentage change of GDP, non-seasonally and non-calendar effects adjusted data (corresponding period of the previous year ) Source: Eurostat

4. Activity rate between 15 and 64 years 200220032004200520062007200820092010 Activity rate, % Source: Eurostat EU27 68,669,069,269,870,370,570,971,171,0 Hungary 59,560,660,261,362,061,961,561,662,4

5. Employment rate between 15 and 64 years 200220032004200520062007200820092010 Employment rate, % Source: Eurostat EU27 62,462,762,863,564,565,465,964,764,2 Hungary 56,257,056,656,957,3 56,755,4

6. Employment rate between 20 and 64 years Employment rate (aged 20-64), % Source: Eurostat 200220032004200520062007200820092010 EU-2766,867,267,368,169,170,070,469,168,6 Hungary61,462,462,062,262,6 61,960,560,4

7. Unemployment rate between 15 and 74 years 200220032004200520062007200820092010 Unemployment rate, % Source: Eurostat EU27 8,99,09,28,98,27,17,08,99,6 Hungary 5,65,8 7,27,57,47,810,011,2

8. Inactivity rate between 15 and 64 years 200220032004200520062007200820092010 Inactivity rate, % Source: Eurostat EU-27 31,431,030,830,229,729,529,129,0 Hungary 40,539,439,838,738,038,138,538,437,6

9. Employment rate between 15 and 64 years by gender Source: Eurostat

10. Employment rates in EU27, Hungary Source: Eurostat 20102009 EU27HungaryDiff.EU27HungaryDiff. %%-point% 15-64 years64,255,4-8,864,655,4-9,2 15-24 years34,118,3-15,835,118,1-17,0 55-64 years46,334,4-11,946,032,8-13,2 15-64 years Pre-primary, primary and lower secondary education 45,125,9-19,246,225,7-20,5 Upper secondary and post-secondary non-tertiary education 68,461,1-7,369,161,67,5 Tertiary education82,377,8-4,582,978,14,8

11. Economic Activity of Population aged 15-74 Q1 2011 Source: Labour Force Survey

12. Number of registered jobseekers at the end of the month between January 2000 and May 2011 Source: PES-register

13. Number of registered jobseekers at the end of the month between January 2006 and May 2011 Source: PES-register

14. Composition of registered jobseekers Source: PES-register persons 2008/052009/052010/052011/05 Recepients of social benefit148 905153 055158890182608 Eligible for jobseekers' allowance120 608198 255173137147927 Jobseekers without any benefit154 988212 511224178241478 Total424 501563 821556205572013

15. Inflow of vacancies during the period January-May 2008-2011 and in the whole year 2008-2010 by type of employment Source: PES-register

16. Inflow of vacancies during the first 5 months in 2011 Source: PES-register Top of inflow of SUPPORTED vacancies during the first 5 months by occupations (2011) Top of inflow of NON-SUPPORTED vacancies during the first 5 months by occupations (2011) Labourers and helpers n.e.c. (e.g. odd- job persons) 88 535Production-line assemblers6 961 Cleaners and related elementary occupations n.e.c. 15 072 Labourers and helpers n.e.c. (e.g. odd-job persons) 6 628 House, flat and office cleaners5 825Shop assistants2 543 Garbage collectors, street sweepers5 345 Tailors, dressmakers, needlewomen, model makers 2 459 Office administrators, clerical writers3 710Heavy-truck and lorry drivers2 164 Services elementary occupations3 430Cooks2 034 Kitchen helpers2 913Locksmiths1 621 Park and landscape workers2 571Bricklayers, masons1 412 Shop assistants1 879Meat, fish and poultry processing workers1 298 Office clerks n.e.c.1 791Welders, flame cutters1 227 Mechanics, repairmen n.e.c.1 783Manual materials handlers, hand packers1 202 Forestry, hunting, fishery labourers (e.g. fishing wardens) 1 775 Watchpersons and related elementary occupations n.e.c. 1 144

17. Major layoffs during the period January-May 2008-2011 and in the whole year 2008-2010 Source: PES-register

18. Issued work permits and registered employment of foreign workers by countries Source: PES-register

19. Valid work permits and registered employment of foreign workers Source: PES-register

20. Participation in active labour market programs Source: PES-register *the public work, public social work and public works program **non-employed participants, employed participants and participants in One Step Forward program

21. The expected changes in the number of employees at the enterprises participating in the quarterly survey of human resource management Source: Quarterly manpower management survey

22. Europe 2020 National employment rate targets set by MS in their 2011 NRPs

23. Hungary intends to increase the employment rate to 75 per cent for the population aged 20-64 until 2020

24. Reforms affecting the labour market National Plan for Work outlining the programme in support of the creation of 1 million new jobs until 2020. New Public Work Programme will be prepared until July 2011. The basic principle of the Programme (to be launched as of January 2012) is to provide for earned income to those with working capacity but pushed out of the labour market temporarily or permanently In connection with the National Plan for Work, until September 2011 the new Labour Code will be adopted.

25. COUNCIL RECOMMENDATION on the National Reform Programme 2011 of Hungary concerning the labour market and the PES Enhance participation in the labour market by alleviating the impact of the tax reform on low earners in a budget- neutral manner. Strengthen measures to encourage women's participation in the labour market by expanding childcare and pre-school facilities. Take steps to strengthen the capacity of the Public Employment Service and other providers to increase the quality and effectiveness of training, job search assistance and individualised services. Link funding of programmes to results. In consultation with stakeholders, introduce tailor-made programmes, for the low skilled and other particularly disadvantaged groups.

26. Measures to support the national employment targets linked to the Europe 2020 Transformation of active labour market policies Facilitating the reconciliation of work and family life Adult training programmes aiming at the improvement of skills Facilitation of the employment of disabled people Developing the vocational training system and strengthening its labour market relevance Measures encouraging labour force demand Increasing employment by improving the health condition of the population and facilitating active and healthy ageing Regionality as a horizontal priority of the National Reform Programme

27. Thank you for your attention!