Direct Request (CEACR) - adopted 2008, published 98th ILC session (2009)

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

1. Implementation of an active employment policy. The Committee takes note of the comprehensive information provided in the Government’s report received in September 2007 in reply to the Committee’s 2006 direct request. The Government reports that, in 2006, the labour force participation rate was 62 per cent, which was eight percentage points lower than the average rate of the member States of the European Union.  The employment rate increased between 2005 and 2006 from 56.9 per cent to 57.4 per cent. From 2002 to 2007, the number of persons employed in the agricultural sector fell from 240,900 to 190,800 persons, while persons employed in industry fell from 1,319,900 to 1,269,400 persons. In this time, the number of employees in the service sector increased from 2,309,800 to 2,469,900 persons. Only 4.9 per cent of wage earners have been engaged in agriculture, while 32.3 per cent and 62.8 per cent were engaged in the industry and service sector, respectively.

2. The Government continues to pursue its employment policy targets set forth in the Lisbon Agenda of the European Union, and seeks to pursue Active Labour Market Programmes aimed at countering the impact of structural adjustments.  Many of these programmes take the form of wage subsidies to employers (15.5 per cent of participants), public works (29.1 per cent of participants) and labour market training (approximately one-third of all programmes). In particular, the Hungarian Public Employment Service (PES) adopted a strategy to achieve the targets set forth in the National Action Plan for Employment for the period 2004–10. This strategy envisages: (i) the strengthening of the administrative capacity of the PES to deliver on its core functions, including the implementation of active labour market programmes; (ii) the definition of performance objectives to improve service delivery; and (iii) a workplan to implement the strategy. The Committee notes that the progress report on the implementation of the aforementioned strategy indicates improvements in the functioning of the PES towards a client- and outcome-oriented service. The Committee requests the Government to provide information in its next report on the impact these active labour market programmes have had on workers affected by structural adjustments and other disadvantaged groups. In this regard, the Committee hopes that the Government will be able to provide information in its next report on the progress made towards achieving the employment policy targets set under the current National Action Plan for Employment.

3. Equitable regional development. The Committee notes that there are marked disparities in the labour market situation experienced in the Western and Central counties, and that experienced in the Eastern counties. The Eastern counties experience unemployment rates which are almost double the national average (14.5 per cent in 2006). The Government indicates that the Cserehát Regional Development Model Programme seeks to address the complex development of the region with cross-border cooperative efforts addressing employment, human resource development, improvement of the conditions of education, improvement of access to social and healthcare services, dissemination of IT technologies, reinforcement of community initiatives, and the creation and activation of internal resources for the local economy. The programme embraces ten geographical micro-regions with approximately 100 settlements and a population of around 100,000 people. One-third of the resources expended under this programme were used to finance small local projects which aimed to mobilise the local society and to improve their development faculties. The Committee notes that 40 per cent of the 100 preferred local applicants were Roma organizations, or belonged to projects that were implemented for local Roma communities as target groups. The Government indicates that the coaches contributing to the programme have already started to provide assistance to the most segregated Roma population so as to enable their integration into the labour market. The Government is requested to continue to provide information on the steps taken, with the involvement of social partners and representatives of other affected groups, to enhance balanced development across the regions. Furthermore, the Government is requested to provide information on the impact of the programmes on the Roma population, in terms of employment and earnings of the beneficiaries.

4. Youth employment. The Government indicates that the labour market situation is highly influenced by age. The Committee notes that employment indicators slightly improved for prime-age and older workers, while the employment rate of young people decreased from 30.7 per cent in 2001 to 21.7 per cent in 2006. The National Employment Service pays special attention to the situation of young people, in particular career starters, with a view to improving their chances of entering the labour market.  The Government indicates that this objective is well served through the guidance provided to young people on the selection of their career, vocation and school, in addition to services and support provided in assisting such young persons in identifying the most suitable jobs and workplaces. The Committee further notes that since October 2005, the Government has been supporting the labour engagement of career-starting young people within the framework of the START Programme through the provision of allowances from the associated public dues. In the framework of this programme, 11,030 business entities engaged 17,209 career starting young people between October 2005 and the end of March 2007. In addition to this support, 804 business entities relied on allowances from social insurance contributions, thus ensuring the employment of 1,201 employees. The Committee requests the Government to continue to report on the impact such measures have had on improving the employment opportunities of young persons in the labour market.

5. Education and vocational training. The Government indicates that in 2006, 23 per cent of the 101,413 persons who were registered as career-starting jobseekers had just left school. From this group, 15,064 persons had secondary school vocational qualifications, 6,574 persons held higher-education qualifications, and 2,000 left with no qualifications. The Government indicates that the specialized training system was restructured in order to reduce fragmentation in the institutional system. The restructured training system is expected to ensure that participants obtain specialized qualifications which respond to labour market demands, facilitate job-seeking and start-up enterprises.  The Government indicates that it has taken, or plans to take, a number of measures to foster a closer relationship between the specialized training curriculum and the economy. In this regard, Act CXIV of 2006 modified certain legislative acts concerning specialized trainings and adult education, and established a legal framework for the broadening of the scope of competence of business chambers and other bodies which represent business interests. It is envisaged that the Chamber, together with other bodies which represent business interests, will play a significantly increased role in the control of the practical elements of such training, as well as professional examinations. Furthermore, representatives of business entities have participated, and will continue to participate, in the development of the National Training Registry (NTR), which will establish professional and examination requirements. The Government also indicates that, within the framework of the Social Renewal Operative Programme, it is continuing the “One Step Ahead” Programme and a grant application procedure has been announced for the development of competencies required for the preservation of jobs. The Committee would appreciate receiving information on the impact such measures have had on improving coordination between education and training policies and prospective employment opportunities. The Government is also requested to report on mechanisms that are put in place, in cooperation with social partners, to ensure coherence between education and adult training policies and to provide disaggregated data on the results of school-to-work transition measures.

6. Article 3. Participation of social partners. The Government indicates that, following the half-time review of the Lisbon Strategy in 2005, an inter-ministerial workgroup was established to frame the national action plan for the Lisbon Programme, to continuously monitor the related measures, and to prepare progress reports to be submitted each year. The permanent members of the said workgroup are the Ministries that shoulder the responsibility for the three chapters of the Action Plan. The Government indicates that while social partners are not directly involved in the activities of the workgroup, professional issues connected with the Lisbon Strategy and development policy are invariably discussed at the National Interest Reconciliation Council (NIRC). The Committee also notes that a subcommittee was also established within the NIRC, which serves to make arrangements for consultations concerning the preparation of the National Strategic Reference Framework and for discussions on professional issues relating to the domestic enforcement of the Lisbon Strategy. The Committee requests the Government to continue to provide information on the manner in which consultations on the matters covered by the Convention are ensured, including any examples of the questions addressed or the decisions reached on employment policy through the tripartite boards and committees that exist in the country.