About the ILO in Hungary

Slowdown of the economy, high inflation, and a stable labour market

The Covid-19 pandemic and the energy crisis caused by the war against Ukraine interrupted the strong growth performance of past years on two occasions over a short period of time. Despite these two external shocks, the growth helped Hungary to further catch up with the average income level in the EU. Hungary’s GDP per person rose from around 69 per cent of the EU average in 2017 to 74.7 per cent in 2022. The labour market has improved significantly, with the employment rate (80.2 per cent) rising well above the EU average and the unemployment rate (3.6 per cent) remaining well below it in 2022. The main poverty indicators also improved, although indicators measuring material deprivation are still among the highest in the EU, indicating that some groups in society have benefitted less from economic growth.  Continue reading