The current Labour Market situation in Hungary and the new

service structure of the Employment Service

Presentation for the Delegation from Bosnia-Hercegovina

January 25, 2011Dr. Borbély-Pecze Tibor Bors

The current Hungarian LM in the European context

-2.5% HU

EU27 & HU main figures

EU27 HUEmployment rate (15-64) (2010q3) 69.1% 56.1%Gap 13%Total unemployment (2010) 10% 10.7% Employment service registry (15-64) 15%Youth unempl. rate (15-24) (2010) 17.5% 26.1%

Average unemployment period in HU: 18.9 months 53.8% more than 1 year

 (according LFS)

Changes (employed, employees)

Köllő János Foglalkoztatás, munkanélküliség és béreka válság első évében

Bálint Mónika, Cseres-Gergely Zsombor & Scharle Ágota A magyarországiMunkapiac 2009–2010-ben

New name & new structure• National Employment Service (NES) instead of

PES• Splitting employment and social & youth policies

– National Employment Office after NE_Social_O• Labour Centres are part of the County-Level

Government Offices (Prefecture) – Two types of LC

• Country-level organisation only• Country-level (&Budapest) organisations and branch offices

The new service structure of the Hungarian Employment ServiceHungarian Government

Ministry of Public Administration and Justice

Ministry for National Economy

Ministry of National Resources

Junior Minister for Employment Policy

National Employment Office (NEO)

Labour Centres of Government Offices(total: 20, with special authority: 7)

Branch Offices (total: 170) including service delivery centres

(total local administrative units: 174)

National level

Counties’ level

LAU1 / NUTS4 level

Gov. Decree 315/2010 (December 27, 2010)

Governing Board of the Labour Market Fund

National Employment Service (NES)

Employment Office• lay down the principles and main content requirements of the Labour

Centres’ mandatory internal professional policies;• determine professional requirements related to service delivery by the

Labour Centres, and coordinate the Labour Centres’ tasks linked to outsourcing labour market services

• help perform administrative and service delivery functions by working out procedures, methodological guidelines and professional recommendations

• develop labour market services• human resources development and professional staff training in the

National Employment Service;• promote the fulfilment of tasks arising from ILO and EU membership (also

EURES)• govern and coordinate the accomplishment of labour market programmes

and implement labour market programmes approved by the LMF;• Responsibel for LM statistics

The Labour Centre

• a county-level organisation only, or• county-level (metropolitan) organisation

and branch offices.

The Labour Centre (1)• govern and oversee the activities of the Labour

Centre’s branch offices• carry out tasks in connection with subsidies for

job creation funded from the centralised portions of the LMF’s Employment Sub-Fund and of budget appropriations for public works;

• cooperate with local authorities (Act III of 1993 on social governance and social benefits)

The Labour Centre (2)• cooperate with local authorities• draw up the Labour Centre’s internal

professional policies• In respect of private job placement activities, Act

LXXVI of 2009 on the general rules of taking up and pursuing service activities

• licensing the employment of foreign nationals in Hungary

• imposing fines

Branch offices• registering jobseekers and to terminating and recovering jobseeker’s

allowance and jobseeker’s benefit, as well as those tasks linked to employment promotion subsidies

• organise and deliver labour market services;• keep records of reported collective dismissals• carry out job placement• register reported vacancies• provide information and counselling• carry out customer service activities• carry out EURES-related information provision tasks• liaise with employers engaged in the economic life of the county

(capital) or micro-region• Service delivery tasks shall be carried out by the Labour Centre’s

branch office designated• Service delivery tasks… separate legislation as “branch office and

service delivery centre”.

Labour Centres with Priority Competence and Their Areas of Jurisdiction

1. Metropolitan Labour Centre (Budapest)• Budapest• Pest County2. Baranya County Labour Centre (Pécs)• Baranya County• Somogy County• Tolna County3. Békés County Labour Centre (Békéscsaba)• Bács-Kiskun County• Békés County• Csongrád County4. Borsod-Abaúj-Zemplén County Labour Centre (Miskolc)• Borsod-Abaúj-Zemplén County• Heves County• Nógrád County5. Fejér County Labour Centre (Székesfehérvár)• Fejér County• Komárom-Esztergom County• Veszprém County6. Szabolcs-Szatmár-Bereg County Labour Centre (Nyíregyháza)• Jász-Nagykun-Szolnok County• Hajdú-Bihar County• Szabolcs-Szatmár-Bereg County7. Vas County Labour Centre (Szombathely)• Vas County• Zala County• Gyır-Moson-Sopron County

Resources• KSH Foglalkoztatottság és munkanélküliség 2010.

szeptember–november • Employment in Europe EC 2010• Magyarországi munkaerőpiac MTA KTI 2010 • EUROSTAT DATABASE • Government Decree 315/2010 (XII. 27.) On the

National Employment Service• Ö S S Z E F O G L A L Ó Az Állami Foglalkoztatási

Szolgálat 2009. évi szakmai tevékenységéről, FSZH