Hungary’s Unemployment Reaches 3.5-Year High
Hungary’s Unemployment Rate Increases to 4.5 Percent in January
According to the Central Statistical Office (KSH), Hungary’s jobless rate rose to 4.5 percent in January, up from 4.2 percent in December. This increase translates to 222,000 unemployed individuals in January, which is 14,700 more than the previous month. The three-month average jobless rate also saw a slight increase to 4.6 percent in January.
While the current unemployment rate of 4.6 percent is not considered high, it is the highest it has been since May 2020 when it reached 4.7 percent. Data from the National Employment Service (NFSZ) shows that there were 233,000 registered job seekers at the end of January, marking a 4.4 percent decrease compared to a year ago.
In terms of employment, the rate for the 15-74 age group was 64.4 percent in January, down from 64.7 percent in December. This resulted in 4,698,500 people being employed in January, which is 24,900 fewer than in the previous month. The total number of economically active individuals in this age group was 4,920,600, reflecting an activity rate of 67.4 percent.
Sándor Czomba, the state secretary for employment policy, highlighted the government’s efforts in protecting jobs and families. He pointed out that the number of jobholders has increased by 1 million since the previous Socialist governments. The government’s focus this year is on achieving a GDP growth rate of 4 percent, restoring consumption, maintaining an investment rate above 25 percent, and boosting labor-market activity.
To aid in raising the activity rate of the 15-64 age group to 85 percent from the current 78 percent, the government plans to implement a HUF 460 billion (EUR 1.19 billion) GINOP Plusz European Union-funded economic development scheme. This initiative aims to stimulate economic growth and create more job opportunities for the Hungarian population.
