Direct Request (CEACR) - adopted 2022, published 111st ILC session (2023)

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 with interest the comprehensive set of measures undertaken by the Government with a view to attaining the objectives of the Convention within the framework of a coordinated economic and social policy. In particular, the Committee notes the adoption of the National Reform Programme (NRP) in April 2022, which envisages the implementation of measures aimed at improving the business environment and digitalization, further increasing employment through job creation, education, family policies, reducing poverty and supporting social inclusion, as well as environmental sustainability. The Committee further notes that the NRP 2022 sets the target of achieving an employment rate of 85 per cent by 2030 among 20–64-year-olds (compared to the EU target of 78 per cent). The Government plans to achieve this target by reducing the share of young people not in employment, education, or training (NEETs), bolstering the Youth Guarantee, and narrowing the employment gap between men and women (for instance by the introduction of flexible forms of employment facilitating increased participation of women in the labour market). Moreover, the Government refers to the implementation of the “Road to the Labour Market” project, which provides employment services and counselling to: improve the employability of jobseekers and inactive people over the age of 25, especially those with low levels of education, and support their placement in the open labour market; improve the efficiency of labour market tools; and promote the transition from public works to the private sector. From its launch in 2015 until June 2020, 194,000 persons participated in the project. The Committee also notes that, according to the NRP 2022 report, programmes co-financed by the EU to support the integration of disadvantaged workers in the labour market continue to play an important role among the various labour market measures implemented. The Committee notes in this regard the implementation of, inter alia, the “Workforce subsidy for businesses” programme (which provides a 50 per cent wage subsidy to all employers who employ jobseekers that have been registered as unemployed for at least one month) and the “Work experience acquisition” programme (which provides aid to companies for employing and providing professional training to young people, persons in disadvantaged situations and people with low levels of education). The Committee further notes the information provided by the Government on the measures taken in the context of the COVID-19 pandemic to keep employees and avoid job losses, such as start-up subsidies for young entrepreneurs, job creation aids for employers, flexible working arrangements for workers with family responsibilities and subsidies for employment with reduced working hours. Lastly, the Committee notes that the NRP 2022 report refers to the implementation of a range of measures to support post-pandemic adaptation and a capacity building subsidy of small and medium enterprises (SMEs), such as the provision of a compensatory allowance for self-employed persons with no employees (available between June and November 2021) and an SME capacity-building subsidy for SMEs with 3-25 employees, to subsidise costs to increase personnel. In addition, the Workforce intensity enhancing programme and the Innovative capacity building programme also support SMEs with funding for technological development to encourage higher productivity and increased workforce qualification levels as a result of technology-related training. With regard to labour market trends, the Committee notes that, according to the NRP 2022 report, the overall employment rate among persons 15-64 years of age was 78.8 per cent in 2021, exceeding the 75 per cent employment target set in the European Union (EU) 2020 Strategy. The COVID-19 pandemic only moderately affected employment in Hungary (the employment rate in the 20–64 age group only decreased by 0.1 percentage points to 77.5 per cent in 2020), and the labour market began to grow again in 2021. The Government reports that the unemployment rate remains among the lowest in the EU, at 4.6 per cent in the second quarter of 2020. The NRP 2022 report indicates that, in 2020, the number of workers in the primary labour market increased by 58,000, while the number of public workers fell by 6,000 and the number of workers working at foreign sites decreased by 21,000. The Government indicates, however, that while the size of the public works system has decreased, it is still too large and not sufficiently efficient to direct participants toward the primary labour market. The Committee requests the Government to continue to provide detailed updated information on the nature, scope and impact of the employment measures taken under the NRP 2022, including measures to promote full, productive and freely chosen employment for youth, women, and those persons belonging to other disadvantaged groups. It also requests the Government to continue to provide information on employment trends, disaggregated by age and sex, as well as on the procedures for deciding on and reviewing employment measures implemented within the framework of an overall economic and social policy.

Young persons. The Committee notes that, according to the data available from the ILO Department of Statistics (ILOSTAT), in 2021, the unemployment rate of young people stood at 13.5 per cent (12 per cent for men and 15.5 per cent for women) and the NEET rate was 10.6 per cent (8.2 per cent for men and 13.2 per cent for women). In this context, the Committee notes the Government’s indication that HUF177 billion have been allocated for the implementation of measures to ensure that at least 160,000 young persons under the age of 25 enter the labour market and/or obtain a vocational qualification by 31 December 2022. The Government reports that, between June 2019 and June 2020, 26,200 young persons under the age of 25 participated in the Youth Guarantee Programme. It adds that a new scheme was launched at the end of 2018 to support young persons aged between 18 to 30 in becoming entrepreneurs, including by providing financial support for the initial cost of setting up their business. The Government also refers to the launching of a new internship programme in 2019, which provides a 6-month wage subsidy to help young people acquire early work experience to improve their employability. The Committee further notes that the eligibility requirement to receive job assistance subsidies was expanded to include young persons under the age of 30, up from the previous maximum age of 25. The Committee requests the Government to continue to provide detailed updated information, including statistical information disaggregated by sex, on the nature and impact of the employment policy measures targeting young persons, particularly those belonging to disadvantaged groups.

Persons with disabilities. The Committee notes the Government’s indication that its priority is to increase employment, including for persons living with disabilities. The Government indicates that, due to the measures implemented, the percentage of persons with disabilities in employment has increased from 18 per cent in 2010 to 42 per cent in 2020. The Government reports that in 2020, 5 500 persons with disabilities benefited from developmental employment, through which employment services adapted to the particular needs of the jobseeker are provided with the objective of preparing the person for independent work or placement in the open labour market. The Government adds that, in the framework of sheltered employment with rehabilitation purposes, an annual average of 350 accredited employers provide rehabilitative employment for approximately 31 000 persons with disabilities. Furthermore, measures are taken to support access to the open labour market for persons with disabilities, including the provision of wage subsidies and the exemptions from the payment of social contributions for companies employing persons with disabilities, and the establishment of a 5 per cent employment quota of persons with disabilities. The Government adds that the amount of the subsidy granted to companies hiring persons with disabilities was increased from 1 January 2020. The Committee also notes the statistical information provided by the Government on the number of companies and persons with disabilities that have benefited from these measures during the reporting period. The Committee refers to its 2020 direct request on the application of the Discrimination (Employment and Occupation) Convention, 1958 (No. 111), in which it noted in the establishment in 2016 of the KILATO Centre, a multifunctional career orientation institution, whose main objective is to support equal opportunity access to career guidance, further training and labour market services, in particular among young people with disabilities or those with special education needs. The Committee also noted that the Training Act of 2019 provides for students with special education needs to benefit from vocational training which is adapted to their special educational needs and individual skills. Lastly, the Committee notes the launching of the programme “You are an asset” in January 2020, with the objective of drawing the attention of society to the value of persons with reduced capacity to work and those living with disabilities. The Committee requests the Government to continue to provide detailed updated information on the nature, scope and impact of the specific measures taken to promote full, productive and freely chosen employment for persons with disabilities in the open labour market.

Older jobseekers, workers with parental obligations andpersons living in disadvantaged regions and small settlements. The Committee notes the information provided by the Government on the measures taken to improve the employability of persons in vulnerable situations, such as persons with family responsibilities, older workers and persons living in disadvantaged regions and small settlements. The Government reports that, between 2019 and 2020, 7,800 persons over the age of 50 benefited from the “Road to the labour market” project. The Committee also notes that a number of measures were introduced to bring women and parents raising small children to the labour market, by introducing flexible employment conditions and a scholarship programme to facilitate training for parents with toddlers, and the provision of subsidies for daytime childcare services to support these persons in returning to the labour market. According to the NRP 2022 report, measures have been taken to increase nursery capacities (55, 000 places have been created out of a planned 70,000 places) and reform the financing of nursery care (for instance, subsidies provided for places providing care significantly increased in 2021 and 2022). Lastly, the Government refers to the implementation between 2016 to 2022 of various EU-funded projects aimed at supporting social enterprises operating in the social economy to facilitate the creation of new jobs in disadvantaged regions and small settlements. In addition, support was provided to 178 social cooperatives organised on the basis of public works, which created 1,290 new jobs. The Committee requests the Government to continue to provide detailed updated information on the nature and impact of the active employment policy measures targeting groups such as older jobseekers, women and men with family obligations and persons living in disadvantaged regions and small settlements.

The Roma minority. The Committee notes the information provided by the Government concerning the different employment projects implemented targeting the Roma minority, such as the programme “Training of Low-skilled workers and Public Workers”, completed at the end of in December 2020. The programme aimed at promoting inclusion and the acquisition of competencies, educational attainment or vocational qualifications to meet the needs of the labour market. The project participants were monitored during the training period and during the process of labour market integration, and public workers received a subsidy as an incentive in case they found employment in the private sector. According to the data provided by the Government, as of July 2020, 196,107 persons had participated in the programme, 33.1 per cent of whom self-identified as Roma. The Government adds that, thanks to the placement benefit, 17,000 Roma left the public works sector for employment in the private sector. The Government also indicates that, in the framework of the EU-funded project targeting Roma women “The chances are increasing”, 1,014 persons obtained qualifications as a child and youth supervisor or social caretaker and or nurse between 2018 and 2020. Moreover, the Government refers to the launching of the ‘Emerging Settlements’ project in 2019, with the objective of improving the low educational attainment levels and employability, as well as the unfavourable labour market situation of persons living in the most disadvantaged settlements (including persons from the Roma community). The project envisages the adoption of measures to promote public works, local economy development and small garden agricultural production. The Committee nevertheless notes that, in its concluding observations of 6 June 2019, the UN Committee on the Elimination of All Forms of Racial Discrimination (CERD) indicated that it remained highly concerned at the persistence of discrimination against the Roma minority and at the segregation and extreme poverty that they face. The CERD expressed its concern at the high levels of unemployment among Roma, and the extremely wide income gap that exists between Roma and the rest of society (document CERD/C/HUN/CO/18-25, paragraph 20(f)). In this context, the Committee notes the Government’s indication that, in 2019, the employment rate among the Roma population stood at 45.5 per cent (53.9 per cent for men and 37 per cent for women), compared to 70.8 per cent among the non-Roma population. The Government adds that the share of public workers is particularly high among the Roma population (26.1 per cent in comparison with 2.1 per cent among the non-Roma population). The Committee requests the Government to continue to provide detailed updated information on the nature and the impact, including statistical information disaggregated by sex and age, of the measures taken to address the labour market challenges faced by members of the Roma community, as well as of the measures taken to promote their access to education and vocational guidance and training opportunities to enhance their employability on the open labour market.

Article 3. Consultations with the social partners. The Committee notes from the NRP 2022 report that stakeholders as well as social and professional bodies are consulted in relation to EU programmes. Furthermore, the social partners, together with civil society organizations, monitor the entire selection and evaluation process of EU projects via monitoring committees. The Committee nevertheless observes that the Government does not provide concrete examples of consultations of the social partners and representatives of other segments of the economically active population, such as those engaged in the rural sector and the informal economy. The Committee therefore reiterates its request that the Government provide concrete examples of cooperation with the social partners in the formulation, implementation, monitoring and review of employment policies, with reference both to consultations with representatives of employers’ and workers’ organizations and to consultations with representatives of other segments of the economically active population, such as young persons, members of the Roma community and those working in the rural sector and the informal economy.