Fostered work programʼs budget allocation to rise next year

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The Hungarian government is expected to allocate the equivalent of 1% of GDP for fostered work programs next year, up from this year, state secretary for social affairs Károly Czibere said at a conference yesterday. Spending on fostered work programs rose to HUF 270 bln this year from HUF 230 bln in 2014, he said.

Hungaryʼs final use GDP was about HUF 31,891 bln last year, at current prices.

Fostered workers are employed by the government and paid less than minimum wage to work at jobs such as street sweepers or Metro ticket takers.

Fostered work is not a goal in itself, but a bridge between welfare and the primary labor market, Czibere said. Incentives for fostered work must remain flexible to help those workers get a foothold in this market, he added.

There were 168,900 Hungarians in full-time fostered work programs in February, when the total number of people employed in the country was 2,856,000, the latest data from the Central Statistics Office (KSH) show.

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