Human Capital and Employment in Hungary 1997 [antikvár]

As a result of the economic transformation following the political transition employment declined dramatically in the 1990-96 period. Economic activity, relative to the totál population dropped by 10%, while in terms of the active aged population it contracted by 20%. Labour markét processes are driven by demand that declined mainly in the competitive sector and as a result of this the number of employees diminished by about 1.5 millión, unemployment rose to about 700 thousand from almost zero - later gradually sank below 500 thousand (to about 11% of the economically active population) - while the number of inactive people in the active age increased by 80%. Tensions on the labour markét were helped to be reduced by several factors. Thanks to the radical restriction on the employment of retired people the totál labour source decreased by 3.5% in the aforementioned period. By extending the training period of young people and through the capacity-expansion of higher education the young labour supply's entry into the labour markét was successfully spread in time, somé part of it even past the millennium. Over the past six years, these measures, that resulted partly out of necessity, lead to a spectacular improvement of the qualification standards of the Hungárián population. Until the turn of the millennium - even assuming the best possible course of economic development - only a slight improvement may be expected in employment compared to the level of 1997. The sensible, slight growth of GDP will primarily provide somé better employment perspectives only for young generation groups having high qualifications and up-to-date knowledge. The structure of employment has changed through a gradual and not particularly fast process. The number of employed decreased more substantially in the enterprise sector, while the number of those working in the budgetary sector has decreased only to a minimum degree. Of the branches of the national economy the largest loss of employment has occurred in agriculture, followed by industry and building/construction. In six years, as a result of the substantial rearrangements in employment the weight of agriculture in employment dropped by half, that of the industry and the construction branch declined