Observation (CEACR) - adopted 2014, published 104th ILC session (2015)

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

Articles 1 and 2 of the Convention. Implementation of an active employment policy. The Committee notes the Government’s report received in October 2013, which includes detailed information in reply to its 2012 observation. The Committee notes with interest that Section XII of The Fundamental Law of Hungary, which entered into force in 2012, enshrines the right of every person to freely chosen work, occupation and entrepreneurial activities; and the obligation of the State to strive to create conditions ensuring that everyone who is able and willing to work has the opportunity to do so. The Committee recalls that a structural reform programme was adopted in 2011 aimed at increasing participation in the labour market, so as to achieve, by 2020, a 75 per cent employment rate of the population aged 20–64, as envisaged by the Europe 2020 strategy. The Committee notes that the employment rate of people in the 20–64 age group was 62.1 per cent in 2012. According to Eurostat, the employment rate increased to 63.2 per cent in 2013 and the unemployment rate was measured at 8.7 in December 2013. The Government indicates that public work schemes contributed to the drop in the proportion of long-term jobseekers from 28.3 per cent in 2010 to 26.1 per cent in 2011. The number of people who participated in these programmes was 363,937 (242,136 men and 121,801 women) up to December 2012. The “Job Security” programme conferred on employers the opportunity to apply for allowances in the form of supported costs of wages, supplementary income for people with reduced working hours and training support; 82 per cent of the funds available were allocated to small and medium-sized enterprises. To improve the labour market situation in low-income areas, the Government issued a Decree in 2013 establishing “free enterprise zones” in economically depressed regions. Companies operating in these zones can benefit from tax deductions in order to enhance employment and investment growth. The Committee invites the Government to provide information on how active labour market measures have contributed to promote the objectives set out in Article 1 of the Convention. It also invites the Government to specify the manner in which the participants in public work programmes have moved into lasting forms of employment, including the types of occupations to which they have moved into. Please also continue providing information on labour market trends at the national level and in low-income regions (Article 2).

Women. Young workers. The Committee notes the measures taken to provide assistance to mothers with young children, women over the age of 50, career starters, women with low qualifications and the long-term unemployed to return to the labour market. Measures include vocational training programmes and financial support for employers to cover wages arising out of hiring vulnerable workers, among others. With respect to youth, in September 2012, the Government launched measures with the goal to raise the rate of employment among young people. The “First Job Guarantee” programme aims at facilitating the conclusion of first employment contracts for young people. The programme ensured job opportunities to 7,243 career starters up to 31 December 2013. A programme was also designed to help young people between 18 and 35 years to start their own businesses by supporting the development of entrepreneurial knowledge and skills as well as by providing financial support for young people starting their own businesses. The Committee invites the Government to continue provide information on the impact of the measures designed to integrate specific groups of workers in the labour market and how these groups are identified and targeted. It further requests the Government to include an assessment of the progress made through the implementation of measures designed to ensure lasting employment for young workers and women.

The Roma minority. The Committee notes that the measures aimed at improving the employment status and the capacity to accommodate vulnerable people are mostly focused on the Roma. Between May 2011 and April 2013, 16,500 Roma jobseekers, which correspond to the 15 per cent of the 110,000 people targeted for involvement, were supported as part of a programme to improve the employability of vulnerable workers to be implemented. The Committee also notes that a framework agreement was established with the National Roma Self-Government aiming at the inclusion of 100,000 unemployed Roma into the labour market by 2015, as well as the supply of marketable vocational qualifications for at least 50,000 Roma. By April 2013, the number of people covered by training programmes with low levels of education was 14,875, among them 3,100 Roma. In addition, government funds were allocated to micro, small and medium-sized enterprises who were willing to create employment opportunities for the Roma. The Committee would welcome examining updated information on the impact of the measures taken to increase full and productive employment and social cohesion of the Roma. Please specify the involvement of the National Roma Self-Government in enlisting support for such measures (Article 3).

Article 3. Consultation with the social partners. The Committee notes that a new National Economic and Social Council (NGTT) was established in 2011 as an advisory body aiming at enhancing macro-level dialogue with the social partners and other civil society organizations concerning economic and social issues. The Government indicates that mandatory consultation with the NGTT has been required during the legislative process for the adoption of the Vocational Training Act of 2011 and the Labour Code of 2012. It also underscores the role played by the Permanent Consultation Forum of the Private Sector (VKF) in strengthening cooperation between governmental bodies and the social partners. The Committee notes the observations made by the workers’ organizations represented at the National ILO Council indicating that, as a result of the adoption of the Act of 2011 establishing the NGTT, national and regional tripartite consultation bodies, including the National Interest Reconciliation Council, were abolished. Workers’ organizations indicate that the structure currently in operation is not adequate for holding substantive tripartite consultations at the national and regional level. The Committee invites the Government to describe the measures adopted with the view to ensure the cooperation of the social partners in the formulation and evaluation of the implemented labour market measures.