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Conference on Productivity, Investment in Human Capital and the Challengeof Youth Employment Bergamo (Italy) 13-18 December 2010
Youth Employment in Hungary
An Empirical Study of the Hungarian Situation Balazs Rossu Assistant Research Fellow University of Szeged (Hungary)
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
Source in the Past A Trend Born
Major change in the patterns of work and learning: 1989 (Regime change): Number of people employed: Number of students in higher education: 2004: Number of people employed: Number of students in higher education: 5.2015 million 100,868 3.9916 million 378,466
Basic Problems (Background Philosophy):
-Outdated thinking by most of society: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;
Labour Market Possibilities
Ratio of the employed and the ones aiming to be (among registered unemployed):
- Teachers: In 2004 it was in sync, later there became
an oversupply
- Computer studies: In sync (no accurate data regarding
the private sector)
- Health care: according to the registered unemployed,
not too many aim to work in this sector
- Engineering: 2.5 times more registerd etrants, than those
currently employed (no data on specialised)
Youth Perspective
Factors influencing the expectation of a higher salary:
- Results of studies (in an inverse proportion) - Knowledge of languages (most commonly English) - The institution or faculty and the chosen profession itself - Education of parents (the lower, the lower wage
accepted)
- Internet connection at home (higher if positive)
Factors influencing the expected amount of time to pass before employment:
- Gaining work experience during school years - The institution or faculty and the chosen profession itself - Education of parents (affects in reverse
less time is expected to pass) the lower, the
- Knowledge of languages (most commonly English)
(reversed effect)
Effective Support Programs The START-Card:
- 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 Paid Internship Employment
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
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
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