Hungary: Employment growth hits new record

Published at: 27/05/2016 03:15 pm

Hungary: Employment growth hits new record

The number of people in employment has been nearing 4 million 300 thousand in Hungary, according to the latest job report of the Hungarian Central Statistical Office (KSH). In the period February-April 2016, the number of people aged 15-74 years in employment rose by 153 thousand year-on-year, to 4 million 294 thousand.

This has been the highest figure in 26 years, and it is up by 585 thousand since 2010, when the term of the new (conservative) government began. The employment rate of those aged 15-64 years gained 2.8 percentage points, to 65.6 percent. As far as the gender aspect of employment is concerned, indicators show improvement for both men and women. The unemployment rate continued to fall: shedding 1.7 percentage points it dropped to 5.8 percent. The respective number of jobless people decreased by 73 thousand and it fell to 265 thousand. Incoming data show that job growth is accelerating, thanks mainly to private sector hiring. Hungarian reforms, such as lower taxes on labour and the Job Protection Action, and the positive growth trend reversal in 2013 have both contributed to favourable labour market data.

Retail sales on the rise for 33 months in a row

In March 2016, the volume of retail sales grew by 5.5 percent year-on-year. Since 2010, retail sales have increased by 15.1 percent in Hungary, well above the average growth of the EU (6.5 percent), and it is also one of the best figures in the region. The largest increase was registered within the non-food sector, which reflects the improvement of consumer confidence and the fact that households can and want to purchase durable consumer goods. Consumer confidence is a very important indicator for those, who are interested in the Hungarian Residency Bond Program. It also signals, that the economic growth in the country has strong basis, the investment climate is improving. The Ministry is expecting this high growth rate to continue this year, thanks to dynamic wage growth coupled with employment growth, low inflation and certain Government measures, such as the reduction of personal income tax rate or lower VAT on pork, eggs and milk.


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