3.1 General context
On this page
On this page
Labour market situation in the country
Changes caused by the political transition
The years of regime change in Hungary (1987-1990) had a profound impact on the characteristics of employment. Various uncertainties made the transition from education to the labour market more difficult. Career planning and achieving goals, as well as considering global processes, are very complex tasks.
Since the 1990s, changes in the education system and social and economic changes have significantly altered the conditions for starting an individual life. Nevertheless, the time spent in the education system has increased, leading to an inflation of qualifications that shifts the differences upwards.
According to the latest data dated 2024 of the Hungarian Central Statistical Office (HCSO), the number of unemployed has increased since 2022. Employment has decreased in the last year, but in increased in the sectors of primary labour market (primary labour market means the employees who do not work abroad or do not work in the Public Work Scheme). The number of those decreased who worked in the Public Work Scheme.
Trends of youth employment and unemployment
The primary available data sources on youth employment and NEET youth can be found in the general labour market data published by the HCSO. According to the HCSO data from the end of 2024, the rate of unemployed youth under the age of 25 has increased compared to the same period last year.
Youth employment and unemployment trends do not differ significantly from regional trends: until the 2008 crisis, the youth unemployment rate was below the EU average and increased slightly until 2012. From 2012 onwards, it improved rapidly, approaching pre-crisis levels and falling below the EU average in 2014 (20.4% compared to EU average of 22.2%) reaching 16.7% in the third quarter of 2015.
The average share of NEET young people under 25 dropped to 11% in 2016, below pre-crisis levels and the EU average (11.5%). The NEET rate remained unchanged in 2019 (11%) but slightly increased in 2020 (11.7%) and decreased in the last years (it was 9.8% in 2023, still higher than the EU average of 9.2%). Data available for 2023 show that the unemployment rate of Hungarian young people under the age of 25 dropped since 2020 and it was 12.8% in 2023 (compared to the EU average of 14.5%).
The employment rate of young people
The employment rate of young people in Hungary has been historically very low compared to the EU figures; the employment rate of 15-29-year-olds increased above 40% in 2014 and reached 47.1% in 2019, which is a return to the pre-crisis level, in contrast to the lowest point of 34.8% in 2011.
According to the Eurostat data, the employment rate of young people between the ages of 15 and 24 was 27.5% compared to the EU average of 35.2% in 2023. The rate of those employed part-time is very low in society as a whole, and it is not different for young people, either.
According to the latest HCSO data from 2024, the employment rate of 15-24-year-old young people was about 27.8% in the third quarter of 2024 which has slightly increased compared to 2023.
The employment possibilities of young people
Since 2008, the employment possibilities of young people have changed notably. According to the secondary analysis of Eurostat data, the Oeconomus Economic Research Foundation (Oeconomus Gazdaságkutató Alapítvány) found that the proportion of those who work alongside their studies increased significantly between 2009 and 2016. This is important because young people who gain work experience during their higher education studies are less likely to become unemployed after they obtain their degree. In Hungary, the government policy also ensures that young people have the opportunity to gain work experience during their higher education studies through the mandatory internship included in the Act CCIV of 2011 on National Higher Education (2011. évi CCIV. törvény a nemzeti felsőoktatásról).
Youth entrepreneurship
According to the Global Entrepreneurship Monitor study in 2024, young people under 25 may feel insecure about starting a business but unlike the results from 2022, the data from 2023 indicated no significant difference in the fear of failure among age groups (it was 37.6% among 18-24-year-olds and about 41% in other age groups). They also believe as much as the other age groups that they have the appropriate knowledge and skills for starting a new business.
The current trend of more and more young people working in start-ups and the growing visibility offer the opportunity for attitudes and motivation to change in the long term. According to the most recent youth research from 2020, 19% of 15-29-year-olds consider becoming an entrepreneur in a few years.
Main concepts
The term 'youth' may refer to various age groups, depending on the context and the data examined. The National Youth Strategy 2009-2024 (NYS) analysed the 15-29 age group based on the youth research but in its indicators, it refers to the activity rate of the 15-34 age group. The HCSO in its recent analysis from 2024 refers to the 15-24 year olds. The National Employment Service (Nemzeti Foglalkoztatási Szolgálat) publishes data on the below 25 year olds.
Recently, there has been a significant focus on the age group of 15-24, mainly due to the promotion of the Youth Guarantee Programme, which has popularised the acronym NEET. It's important to note that, given the inherent nature of entrepreneurship, which typically demands more experience, the primary audience of the largest non-state organisation, the National Association of Young Entrepreneurs (FIVOSZ) is the 18-40 year-olds.
The indicators related to employment (and independent existence) of youth in the National Youth Strategy 2009-2024 were as follows:
- the activity rate of 15–34 year-olds,
- number of registered unemployed career starters,
- the ratio of employees within the group of youth who are not students or pensioners,
- the period between the date of school leaving and the first day of employment in youth groups with different qualifications,
- the ratio of youth aged 15-29 living in households independent of their parents to those who aspire to live independently,
- the ratio of young entrepreneurs to all young people who are not students or pensioners.
The strategy expired in 2024 and currently Hungary has no strategic policy document on youth.