The Hungarian Labour Market 2009 [antikvár]

FOREWORD BYTHE EDITORSThe series of our labour market yearbooks was launched with the goal of reviewing the main developments in the Hungarian labour market annually, and of giving an in-depth analysis of selected issues.1. Labour Market Activity and Wages in 2007-2009The introductory chapter of the volume discusses trends and recent changes in employment, activity, and unemployment in Hungary between 2007 and the first quarter of2009. Because the first part of the "In Focus" chapter discusses certain important aspects of the Hungarian labour market in an international comparison, this chapter concentrates mostly on recent events. Although not much data is available for in-depth analysis, the Introduction discusses the first signs of the impact of the economic crisis which unfolded following the autumn of 2008 along with other dominant features of the macroeconomic environment.Unfortunately, the last two years did not bring about positive changes in the employment situation in Hungary. Not only was Hungary already performing the worst in terms of employment figures within the EU by mid-2008, it is also likely that the crisis will make it even more difficult to escape from this situation. Indeed, the Hungarian GDP contracted by 2.5 percent in the first quarter of 2009, and is expected to shrink further at a rate of 6 percent during the whole year - this has a direct effect on employment, but also an indirect one through contracting domestic demand. 'Vnt Introduction analyses stylised facts to show how employment has changed in different groups of the population, with an emphasis on the largest groups which were already displaying small initial employment rates. Data show that the employment situation had already worsened among the least educated prior to the outbreak of the crisis, and did not improve among the young mothers with small children, and inhabitants of the least developed regions especially those in the small villages. Improvement is visible only among the highly educated and among older workers who were affected by the increase in the pension age.Differences in employment rates of distinct groups of the population and their changes are affected by factors that can be influenced by policy on different time horizons. The employment rate of the least educated can only be improved through the systematic development of the education system to help