Economy 22 September 2022, 10:58am

Hungary reaches full employment

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Hungary's labour market continued to strengthen in the summer, with employment up and unemployment down compared to previous months, also reflecting seasonal effects. The Russian-Ukrainian war and the problems of the global economy have yet to make their mark here. However, most forecasts predict that the Hungarian economy will be hit by the energy crisis in the coming period.

ipar termelés worker dolgozó gyártósor bérek keresetek

In June-August, the average number of people in employment was 4,711,000, up 52,000 from same period last year. This also marks an improvement (growth) compared on the preceding months. In other words, the domestic labour market continued to strengthen, with data reflecting virtually full employment. The primary labour market is also strong, with employment above 4.55 million, excluding those employed in public works and temporary workers abroad.

166,000 Hungarians were unemployed in the summer months, which corresponds to a jobless rate of 3.4%. The U-rate is now at a pre-pandemic level and thus labour shortage is also the same as before the coronavirus outbreak. The good news is that, based on these numbers, the impacts of the Russia-Ukraine war have not yet been felt on the domestic labour market.

In the coming months, the situation is likely to get tougher as companies feel the effects of the energy crisis first-hand. This could trigger layoffs and bankruptcies, but the situation could be substantially improved if the government launches extensive programmes to support companies and retain jobs.

Cover photo: Getty Images