The Minister for National Economy recently spoke at a conference focusing on the domestic labor market’s resources and challenges, reports Világgazdaság. Márton Nagy emphasized the importance of addressing these issues and outlined potential solutions, including forthcoming programs aimed at supporting young people.
Minister Nagy acknowledged the necessity of foreign workers to meet labor demands but emphasized the importance of a well-regulated framework. He stated that third-country nationals can only reside in Hungary for specific purposes and duration.
To safeguard Hungarian jobs, he highlighted the government’s prohibition of guest workers in nearly 300 professions and emphasized stricter controls and penalties for illegal employment.
Moreover, he mentioned that the Ministry for National Economy has limited the number of guest workers to 65,000 through a ministerial decree.
Despite acknowledging the need for foreign workers, Mr. Nagy pointed out that the proportion of non-EU workers in Hungary remains notably low compared to the EU and the V4 (Hungary, Czechia, Slovakia, Poland). He then introduced three significant government programs aimed at reducing unemployment and increasing workforce activity.
The first program involves a EUR 70B initiative to support on-the-job training. Companies can receive subsidies to train workers and cover their lost wages during training periods. The program has already benefited over 50,000 workers from around 1,200 companies.
The second program, totaling HUF 150B (EUR 378.4M), focuses on expanding the labor supply and aiding job seekers and inactive individuals over 30.
Services include employment support, wage subsidies, mobility assistance, and training support for labor market adjustment.
He also addressed the pressing shortage of certified drivers in Hungary, introducing a HUF 1.7B (EUR 42.8M) training program aimed at reducing this shortage. More than 1,000 individuals will have the opportunity to obtain driving licenses, with the program designed not only to provide licenses but also to facilitate job placement.
The government’s commitment to supporting youth employment was highlighted through two programs. The Youth Guarantee Plus, with a budget of HUF 200B (EUR 504.4M), aims to assist individuals under 30 in finding employment, gaining work experience, or acquiring marketable skills. Another initiative, launched in January, focuses on promoting generational change by facilitating the transfer of work experience from experienced workers to younger ones.
Márton Nagy concluded by underlining the importance of employers’ participation in these programs,
emphasizing the benefits of mentoring young job seekers by workers before retirement.
Via Világgazdaság; Featured Image: Pixabay
