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Current labour market figures, facts and burning issues Hungary 2007 Tibor Bors Borbely [email protected] chief consultant National Employment and Welfare Office Public Employment Service Current situation I. •Labour market •Economy •Health – life expectations 2 EU25 & HU main figures Employment rate (15-64) EU25 HU 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) Average unemployment period in HU: 16.2 months 3 EiE 2006 4 5 6 7 1988-2006 9 A reach, but a short life nation… Life Expectancy 1960-2050, Males 90,0 1960 2004 2050 85,0 80,0 75,0 70,0 65,0 Source: Eurostat 2004 Demographic Projections (Baseline scenario) FR 10 IT ES SE FI AT D E BE EU 15 EL LU IE M T C Y N L U K PT S EU I 25 C Z D K 10 PL EU LT SK LV H U EE 60,0 Source:EIE 2006 p 5 Table 5 11 New balance II. 2006; 2007-2009; -2013 12 13 New planning for the long term: National Development Strategy 2020 National Regional Development Plan 2020 for the middle term: Second National Development Plan, officially called New Hungary Development Plan 2007-2013, it contains 7 regional operative programme Rural & Agricultural Development Plan 2007-2013 for sort term: National Action Plan (NAP) 2006-2009 Program for Convergence 2006-2009 14 Full list of the new documents: Convergence Programme (1 September 2006) New Hungary Development Plan (2007-2013) Sustainable Development Strategy (under planning, date of presentation1 July, 2007) National Cancer Control Programme (2006-2013) National Infant and Child Healthcare Programme (November 2005 – 2013) National Public Health Programme (2003-2013) Green Paper on Hungarian Healthcare (26 July 2006) Energy Policy 2006-2015 - GKM studies Hungarian Information Society Strategy (2003- ) National Broad Band Strategy (2005-2013) National Environment Protection Programme (2003-2008) National Strategy Report on Social Protection and Social Cohesion (under planning – Date of presentation: 15 October, 2006) Pension Strategy Report (2005-2006) Hungarian Strategy for Life-long Learning (2005-2013) Knowledge for All! Action Plan (2006-2010) Education IT Strategy (2004-2006) Equal Opportunity in Education Work Programme (31 August 2006) Medium Term Strategy for Science-technology and Innovation Policy (31 October 2006) Reforms in Education 2002-2006 Vocational Training Strategy National Tourism Development Strategy (2005-2013) New Hungary Regional Development Strategic Plan (2007-2013) 15 New Balance 2006-2009 Correction and Balance Source: Programme for Convergence Hungarian Republic September 2006 Ministry of Finance 16 New measures in employment policy Expected income tax base for 2x minimal wage (HUF 125 000 ~ EUR 460) 1 million citizens pay after the minimal wage +3% employees’ social affix Additional 4% ‘solidarity‘ income tax on HUF 6 000 000 wages (~EUR 22 200) VAT 15%-- 20% Less income tax allowance (i.e. for home PC, LLL etc.) ~ 14 000 lay-off from the central government (2,1%) 17 New structure to carry out employment policy: regionalisation At 1st of January 2007 the PES structure was also changed: National Employment and Welfare Office (Budapest) Regional Employment Offices (7) Regional Training Centres (9) Regional Labour Centres (23) Local Job Centres (~ 170) local labour markets app. 900 thousands registered job-seekers / a year (app. 22-26% of the Hungarian market) 300-400 thousands registered employers / a year (app. 40-45% of the Hungarian market) 18 Regional differences III. 19 REGISTER BASED UNEMPLOYMENT RATE 2003 Northern Hungary 16.2 % 14.1 % Central Hungary Western TransDanubia Central TransDanubia Northern Great Plain 2.8 % 6.7 % 5.2 % Southern TransDanubia Southern Great Plain 9.7 % 11.7 % 20 Regional differences (NUTS IV. level) (unemployment) 2003 21 Regional differences (NUTS IV level) (unemployed social beneficiaries) 2003 Rendszeres szociáli s segélyben r észesülõk száma ezer lakosr a 2002 Jel m agyar áz at 30.1 15.1 10.1 5.1 0.1 - 81.9 30.0 15.0 10.0 5.0 22 23 On Regional Development Planes 23,6% (1620,59 Mrd Ft.) will be used. 24 Thank you for your attention! For further information: Ministry of Employment and Social Affairs http://www.szmm.gov.hu (party English version available) Hungarian Central Statistical Office (HCSO) http://www.portal.ksh.hu National Employment and Welfare Office www.en.afsz.hu Institute of Economics, Hungarian Academy of Sciences http://www.econ.core.hu/eng/index.html You can contact me: [email protected] 25