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Hungary's economy sheds 90,000 jobs because of crisis

The global downturn has reduced the number of jobs in Hungary by net 90,000, mainly in more developed regions such as Central Transdanubia and Central Hungary, Social and Labor Affairs Minister László Herczog said at a conference in Zalakaros on Friday.

The country's unemployment rate - 9.7%, or 2.2 percentage points more than a year earlier - is lower than in other EU countries, but the number of young people and qualified people among the unemployed is high, Herczog said.

The economic downturn hit Hungary at a time when its employment situation is characterised by structural tension and imbalances, Herczog said. While the percentage of Hungarians out of work and not looking for job is extraordinarily high compared to other countries in the region, there is no shortage of those working full-time employees. “Few people work a lot,” he added.

Based on European employment data, the rate of young and old Hungarians who are employed is very low, which is closely related to the school system, student jobs and the pension and disability systems, Herzcog said.

We must concentrate on three areas: supporting job preservation, programs that help uneducated people work and to make workforce more adaptable, Herczog said.

Hungary's economic growth has to reach at least 3% if the employment rate is to rise. At the same time, there is a shortage of qualified laborers in some areas. (MTI-Econews)