Strategic Report of Hungary - Unemployement

Contribution of ESF to achievement of the European Employment Strategy objectives and recommendations

The European Employment Strategy sets objectives such as to achieve full employment, to improve the quality and productivity of labor and to strengthen the social and territorial cohesion. To achieve these goals they defined the following priorities:

Since 2006 the economic policy focuses on creating budget stability. The objective was to help employees affected by the new reforms implemented.

In 2008 the economic policy confronted with a new situation. In the short-run easing the labor market and retaining jobs were in focus by promoting the integration of disadvantaged groups . The long-term goal was to increase the economic activity.

Increasing labor market participation and modernizing the social protection systems

In order to help employment, different modifications were implemented. To mention the most important things:

* 2009 - the implementation of "Pathways to work": to preserve labor activity and to guaranteeing access to social security.

* modification of the pension system

* helping the employment and integration of disabled people by reducing contributions.

Improving the adaptability of employees and enterprises

Elements were added to the Hungarian economic policy to improve the adaptability of labor market players. The success of integration of disadvantaged people is determined by the success of their workplace integration provided by the employer integration.

Another core element was to eliminate undeclared work. In the middle term the goal is to support legal employment, to increase labor safety and health.

Implementing more efficient human resource development through better quality of education and training

Modernisation of the education and training system is the key component of getting more improved qualitative and quantitative human resources. In June 2008 the government adopted a decision on the tasks connected with the elaboration of the National Qualification Framework System (NQFS). In 2007-8 EU supported Hungarian development founds to modernize the vocational training system. Distance learning framework provided numerous retraining and additional trainings for people. In 2009 approximately 5500 people applied for the programme.

Supported education opportunities and institutions were settled in disadvantaged regions to increase the number of graduates.

Contribution of the European Social Fund (ESF) to the relevant targets of the national strategy report on social protection and social cohesion and to other community priorities in the field of education and training

A strategic report on social protection and social cohesion has to be prepared to the EU every other year int he fields of pension system and healhcare just to mention some. For Hungary, these priorities are as follows:

* promote labour market integration and reduce inactivity,

* combating child poverty, and

* reduce territorial and residential disadvantages.

Promote labour market integration and reduce inactivity

To strengthen social cohesion Hungary tries to improve employment opportunities and integration for those areas were there is a significant difference in unemployment compared to other regions.

Large scales of trainings are provided for disadvantaged employees form EU funds. Moreover the programme offering discounts on contribution. The programme aiming the modernisation of social services, development of service standards and