Observation (CEACR) - adopted 2001, published 90th ILC session (2002)

Employment Policy Convention, 1964 (No. 122) - Hungary (Ratification: 1969)

1. The Committee recalls the discussion that took place at the Conference Committee in May-June 2000 and its request for further information on the effect of the Government’s strategy to promote growth and increase employment opportunities and to ensure the coherence of employment policy in light of the dissolution of the Ministry of Labour. In particular, the Conference Committee asked the Government to ensure promotion of employment in conformity with provisions of the Convention, in particular the provisions of Article 3 pertaining to consultations.

2. In this regard, the Committee notes the Government’s report for the period July 1998-September 2000. It observes the detailed statements of the workers’ and government representatives at the National ILO Council in its meeting of 2 October 2000 when the report was discussed. The workers’ representatives drew attention to, inter alia, regional imbalances in employment promotion, most importantly the unemployment rate in eastern Hungary. They remained concerned that the Government, without previous consultation, had fragmented the administrative responsibilities in the field of employment between different ministries (Ministry of Economic Affairs, Ministry of Social and Family Affairs, Ministry of Education). The government representative indicated that the aim of the new institutional management of employment policy was its integration into economic policy. The Ministry of Economic Affairs is responsible for comprehensively shaping and elaborating the strategy of employment policy; the Ministry of Social and Family Affairs is responsible for equal opportunities, vocational rehabilitation and labour health and safety; and the Ministry of Education is in charge of vocational training and supervision of the regional centres for workforce development and training. The Committee would appreciate being kept informed of the coordination achieved between the different ministries concerned when deciding and reviewing the measures to be adopted for attaining the objectives of an active employment policy, in consultation with representatives of employers’ and workers’ organizations and other sectors concerned, as required by Articles 1, 2 and 3.

3. Article 1. The Government states that GDP grew by 4.9 per cent in 1998, 4.5 per cent in 1999, and 6.2 per cent in the first half of 2000. About 20 per cent of GDP is produced in the informal economy. Employment increased and unemployment decreased. The participation rate rose from 57.8 per cent in 1997 to 59.9 per cent in 1999, with 49.4 per cent for women and 62.5 per cent for men. However, it still remains high due to availability of early retirement and young people staying in school longer. Employment increased from 52.7 per cent in 1997 to 55.7 per cent in 1999, mainly due to increased participation rather than decreased unemployment. Employment has increased among older workers (50-59) due to a decrease in early retirement. Employment grew in the service sector and declined in industry and agriculture. Growth in unemployment came from firms exposed to global economic pressures or inclined to substitute technology for labour. Long-term unemployment decreased to 3.2 per cent of total unemployment. But the average period of unemployment remained high, at just below 18 months, due to the generally low level of qualifications of the unemployed. Unemployment among youth (15-24) decreased from 14 per cent in 1997 to 12 per cent in 1999, due to activation measures. The relatively high rate of youth unemployment is due to the fact that many more young people are staying in school, and that a better measure is the ratio of unemployed to total youth population.

4. The Government has changed its goal from decreasing unemployment to increasing employment. The Government emphasizes intensive job search in its labour market policy. It provides jobseekers with job search assistance including job search training, transportation costs, and allowances during the job search training. Unemployment benefits are more closely linked to job search efforts or participation in training. The duration of benefit has decreased from 360 days to 270, but with the possibility to extend the limit if the person is participating in a training programme. Social assistance for the unemployed has been eliminated, and replaced by a guarantee of 30 days of employment with the local government authority.

5. The Government states that there is no data on employment trends for Roma because legislation prohibits filing the details of the ethnic background of jobseekers. However, it estimates that the employment rate for Roma is one-half that of non-Roma and the unemployment rate is three to five times higher. The Government states that these poor comparisons are due to the fact that the Roma tend to live in economically depressed areas, but prejudice in hiring also is a factor. The Government is devising a long-term strategy for labour market integration. The objective is to develop agriculture, local economies, and social, health and housing programmes, as well as launching an anti-discrimination campaign. Please continue to provide information on progress made in promoting employment for the Roma communities.

6. Article 2. Further to discussions of the Conference Committee in 2000, the Committee requests information on the procedures adopted to ensure that the principal measures of employment policy are decided on and kept under periodical review within the framework of a coordinated economic and social policy.

7. Article 3. The Committee notes the statement of the workers’ spokesperson made at the tripartite National ILO Council. The workers’ spokesperson draws attention to, inter alia, regional imbalances in employment promotion, most importantly the unemployment rate in eastern Hungary, which is four to five times higher than in the western region. Please continue to supply information on measures taken to ensure more balanced regional employment growth.