1. Conference on Productivity, Investment in Human Capital and the Challenge of Youth Employment Bergamo (Italy) 13-18 December 2010

2. Youth Employment in Hungary An Empirical Study of the Hungarian Situation Balazs Rossu Assistant Research Fellow University of Szeged (Hungary)

3. Employment Related Problems Number of registered unemployed in January 2009: 509.907 in August 2010: 546,094 Peak reached: January 2010: more than 650.000

4. Source in the Past A Trend Born Major change in the patterns of work and learning: 1989 (Regime change): 2004: Number of people employed: Number of students in higher education: 5.2015 million 100,868 3.9916 million 378,466

7. -Outdated thinking by most of society: - Education = Well paying jobs - Vocational qualification  Lower salary - ”Prestigeous” professions are oversupplied   Intense need for professional (manual) workers -Inaccurate vision of the labour market and future salaries; - Low level of mobility; Basic Problems (Background Philosophy):

8. Labour Market Possibilities - Teachers: In 2004 it was in sync, later there became an oversupply - Computer studies: In sync (no accurate data regarding the private sector) Ratio of the employed and the ones aiming to be (among registered unemployed): - Engineering: 2.5 times more registerd etrants, than those currently employed (no data on specialised) - Health care: according to the registered unemployed, not too many aim to work in this sector

9. Youth Perspective - Results of studies (in an inverse proportion) - Knowledge of languages (most commonly English) Factors influencing the expectation of a higher salary: - Education of parents (the lower, the lower wage accepted) - Internet connection at home (higher if positive) - The institution or faculty and the chosen profession itself

10. - Gaining work experience during school years Factors influencing the expected amount of time to pass before employment: - Education of parents (affects in reverse  the lower, the less time is expected to pass) - The institution or faculty and the chosen profession itself - Knowledge of languages (most commonly English) (reversed effect)

11. Effective Support Programs - Effectively helps entrants to be employed for at least two (or one for graduates) years (full-time) - ”Compensates” the employers for the entrants’ lack of field experience by considerable allowances - Instead of 27% (of the gross wage) as employers’ contribution and social insurance contribution, the employer only has to pay 10% during the first year, (or first 9 months for graduates) and 20% during the second year (or the last three months for graduates) The START-Card:

12. Main advantages: - regular employment-like conditions; - actual wage-like grants; - participants are insured (in aspect of social security); - can be combined with the Start Card Scheme; - tax reduction; - preferential contributions; -the participant is provided a letter of recommendation certifying the work experience The Paid Internship Employment

13. Other Possibilities: - Organization of job fairs and open days by various institutions - Operation of informational services and consultation offices (e.g. In schools) by Employment Centres -Support of simple needs, e.g. reimbursement of travelling expenses to promote mobility and widen the range of possibilities for the individual

14. Conclusion - Necessary information do not get to people; - Families and society influences the younger generation based on false or absolete conceptions and values; - There is not enough focus on practical and manual training in education; - Supply and demand do not match on the labour market; - Flaws of the current system should be mended; - Thinking in general should be modernized

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