Public work programs, jobs abroad drive down unemployment

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Hungary’s level of employment is back at pre-crisis levels, but this state was achieved via public work programs and an ever higher number of Hungarians working abroad, business site Portfolio reported.

Employment remains under pre-crisis levels in the private sector, although corporates have not just cut their headcount, but also reduced working hours in order to avoid layoffs. As growth picks up, however, the businesses may first reraise working hours while demand for labor is not to increase much.

Staff of the National Bank of Hungary (MNB) sees the rate of unemployment around 10% both this year and next, because the rising labor supply cannot be taken up by the market, the bank’s quarterly report on Inflation showed on Thursday.

Compared to the same period last year, the number of employed in the total economy was 1.4% and 1.7% higher in second quarter in 2013 and July, respectively. The number of employed exceeded pre-crisis levels.

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