Layoffs take off in Hungary
The number of employed persons in Hungary decreased by nearly 50,000 to 4.661 million between April and June compared to Q2 2024, the Central Statistical Office (KSH) reported on Friday. Excluding Hungarians working temporarily abroad (105,000) and those employed in public works (66,000), the number of people in employment in the second quarter of this year fell below 4.5 million.
We have not seen such a low employment figure since 2022.
On the one hand, population decline has held back employment, and on the other, years of economic stagnation have put employers in an increasingly difficult position, leading more and more of them to opt for redundancies. Furthermore, it seems unlikely that this year will mark a turnaround, with firms struggling to adjust costs as the economy weakens.
The KSH noted notes that
the decline in employment was primarily driven by a fall in the so-called prime working-age population (25–54 years old).
However, this age group does not simply 'disappear'. One possible explanation is that fewer young people are entering the labour market than older people, and another is that more young people are emigrating. If this is the case, we may see a change in the number of people working abroad over the next period.
Meanwhile, unemployment is rising only slightly, currently standing at 4.5%, a bit higher than the 4.3-4.4% seen in recent months. However, as Portfolio has pointed out, many more people are claiming to be unemployed this year than the official statistics show the number of unemployed rising.
According to the stats office,
- the average duration of job searches in the second quarter was 12.2 months;
- of the unemployed, 41.3% had been looking for a job for less than three months, while
- 31.8% had been unemployed for at least a year.
Cover image (for illustration purposes only): Getty Images
