CMNT_TITLE

Employment Policy Convention, 1964 (No. 122) - Hungary (RATIFICATION: 1969)

Other comments on C122

Observation

Direct Request

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Articles 1 and 2 of the Convention. Employment policy measures implemented under the adjustment programme. The Committee notes the detailed report provided by the Government which sets out and defines several of its employment programmes during the reporting period ending in May 2011. Following the global economic crisis in 2008–09, the Hungarian national economy experienced severe difficulties, including limited access to market financing. To this end, the Government requested assistance from the European Union (EU) and the International Monetary Fund (IMF). To encourage and support economic recovery, the Government has been expected to meet headline fiscal targets. In this regard, the Committee notes that, in March 2011, the Government announced a Structural Reform Programme (Széll Kálmán Plan) to align with the long-term objectives of the Europe 2020 Strategy, which is set out in a two-part package: the 2011–15 Convergence Programme and the April 2011 National Reform Programme. In this regard, the Committee notes that restructuring the labour market benefits in accordance with the structural reform programme has been identified as a main objective of the Government’s 2012 budget. The Committee further notes the information provided by the Government that its negative trend of decreasing employment halted in 2010, when the employment rate remained at 55.4 per cent; however, this rate remains one of the lowest employment rates in the EU. The unemployment rate increased from 9.7 per cent in the first three months of 2009, to 11.2 per cent in 2010, to 10.9 per cent in 2011, and 10.5 per cent in 2012. The Government indicates that its economy is expected to continue developing slower than its neighbouring countries. The Committee further notes that the employment rate for persons aged 20–64 years was 60.6 per cent and was anticipated to increase to 61.1 per cent in 2011 and to 62.4 or 62.6 per cent in 2012, and that this low rate of employment has been attributed to loose labour market conditions affecting persons entering the labour market under the age of 25 or those above the age of 45 with lower levels of education. The Committee notes that, according to the National Reform Programme, the national economy may accelerate to a growth rate of 4–6 per cent from 2013, and the number of those employed may increase by 400,000 by 2015, owing to the indirect impact of structural reforms and improvements in competitiveness. The Committee invites the Government to provide information in its report due in 2013 on how measures taken by the adjustment programme, including the National Reform Programme and Convergence Programme, are coordinated so as to effectively translate into productive employment creation.

Implementation of active labour market measures. The Committee notes the measures and programmes outlined by the Government, including three programmes, “Job security”, “Road to work” and “New perspectives”, to provide job security and creation. The Government further reports on measures undertaken in 2010 to promote the gradual improvement of corporate profitability and the creation of new employment. The Committee invites the Government to provide in its next report information on the effects of these measures on the labour market.

Equitable regional development. The Committee notes that the National Reform Programme aims to achieve balanced and sustainable regional development, and that, pursuant to this programme, the Government places priority on national targets that aim to help regional convergence by incorporating regional considerations in its implementation of individual measures. The Government indicates in its report that, until April 2011, the total contracted amount of support reached 40,235,000,000 Hungarian forints in the framework of the application schemes announced for the most disadvantaged subregions. The Committee invites the Government to include in its next report information on the impact of the regional development policies adopted to generate employment in the low-income areas.

The Roma minority. The Committee notes that, on 20 May 2011, the Government concluded a framework agreement with the National Roma Self Government (ORÖ) in order to facilitate the achievement of the goals set out in the Convention. The Committee notes that, pursuant to the framework agreement, special emphasis is placed on job creation and cooperation in the field of education, and that a key priority is to replace abuse of power and discrimination with serving of the public interest, including the Roma community. To this end, the Committee notes Government Decree 1136/2011 and its accompanying action plan, which aim to: (i) involve 100,000 unemployed Roma persons in the labour market; (ii) implement a comprehensive educational reform; (iii) provide competitive vocational training for around 50,000 adult Roma persons with no higher than apprenticeship education and 80,000 additional adult Roma persons in basic skills training; and (iv) involve 150,000 Roma persons in organized permanent medical consultation. The Committee asks the Government to report in detail on the impact of the action taken within the framework agreement and measures to increase active employment policies and social cohesion of the Roma minority.

Youth employment. The Committee notes that the unemployment rate of young persons rose from 20 per cent in 2008 to 27 per cent in 2009, but then declined to 24.3 per cent in 2011, i.e. about 5 per cent above the EU average. The Government states that this high rate of unemployment is attributable to the low level of education, lack of work experience, and location in which they are seeking employment. The Committee further notes, in this respect, the measures set out in the Convergence Programme, including the development of a higher education and quota system that better conforms to the needs of the labour market. Pursuant to the National Reform Programme, in order to improve the chances of school drop-outs on the labour market, the Government introduced the early start of vocational training at grade 9, which will be mandatory from the 2012–13 school year and will make possible that, after finishing grade 8 of elementary school, pupils can directly enter a vocational training course. The Government further reports the introduction and development of a dual training system, which it states will be more responsive to the needs of the economy. The Committee invites the Government to include in its next report information on the progress of the development and implementation of the above measures, as well as the results of its new training system, to ensure that the skills acquired meet the demands of the labour market.

Other vulnerable categories of workers. Pursuant to the measures set out in the National Reform Programme, in order to increase the employment of persons with disabilities, the Government will support the organizations that employ these workers in order to stimulate their return to the labour market. In addition, new programmes launched in 2011 aim to train adults with disadvantages, and provide an opportunity for obtaining basic education. The National Reform Programme indicates that a programme will be started which aims to improve prioritized key competencies, such as foreign languages and information technology, and promote lifelong learning to enhance the adaptability of the adult population. The Committee invites the Government to supply information on these new measures and programmes to promote employment for vulnerable categories of workers, such as persons with disabilities, women and older workers, and on the results achieved in terms of introducing these workers in lasting and productive employment.

Article 3. Participation of the social partners in employment policy formulation and implementation. The Committee notes that, following the adoption in December 2011 of the Labour Code, the National Economic and Social Council (NGTT) has replaced the tripartite National Conciliation Council (OÉT). The Committee understands that the new provisions may alter the previous participation of the social partners. The Committee invites the Government to submit updated information on the manner in which it is ensured that consultations will take place with representatives of employers and workers concerning employment policies, with a view to taking fully into account their experience and views and securing their full cooperation in formulating and enlisting support for such policies, as laid out in the Convention.