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Labour shortage replaces unemployment

December 6th, 2019

Analyst welcomes the fall in the jobless rate and are confident that Hungary’s mounting labour shortage can be resolved.

In his report on a conference on employment problems, Mandiner’s Balázs Rádi quotes experts who offer an upbeat evaluation of the prospects of the labour market. One professional labour recruiter complains about the increasing shortage of manpower and, based on her personal experience, says “employers virtually hire anyone with a heart rate”. An analyst, on the other hand, thinks Hungary still has considerable labour reserves. Sure, he says, the employment rate (the ratio of wage earners within the active age cohort) is high, at 70 per cent, up from 60 per cent ten years ago, thanks to consistent efforts by the government aimed at reducing easy welfare entitlements. But from this perspective, Hungary nevertheless lags behind the 78 per cent reported by the Czech Republic. The analyst believes further potential workforce can be mobilised among students, pensioners and the 13 per cent employed illegally by companies which can only survive by not paying public contributions, and which thus leave employees without health and retirement insurance.

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