Economy 27 June 2025, 9:40am

Hungarian labour market quietly loosens in Q2

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There were no significant changes in Hungarian labour market developments in May. The shifts within the sample fit into the picture of a slight downward trend in employment. However, this is not accompanied by an increase in unemployment, but rather a decrease in economic activity.

Between March and May 2025, the average number of people aged 15–74 in employment was 4,673,000, which was 38,000 fewer than a year earlier. The Central Statistical Office (KSH) reported on Friday that the number of employed men decreased by 18,000 to 2,478,000, while the number of employed women decreased by 20,000 to 2,195,000.

The domestic primary labour market employed 4,501,000 people, which was 44,000 fewer than in the same period the previous year. Meanwhile, the number of public sector employees and workers abroad remained stable at 66,000 and 106,000, respectively.

Between March and May 2025, there were 212,000 unemployed people aged 15–74, giving an unemployment rate of 4.3%. Both figures represent a slight decrease, but remain consistent with the stagnating trend.

In an economy that has been stagnating for three years, signs of slack in the labour market are already visible, but there is no sign of a sharp deterioration.

The number of people in work has also declined slightly, not necessarily due to people leaving the labour market, but also due to demographic changes. The number of people of working age (15–74) has fallen by 61,000 compared to spring 2024.