EMPLOYMENT POLICIES IN HUNGARY AND IN THE

EUROPEAN UNION

Borbély-Pecze Tibor Bors, Ph.D. 2013-14-1 Semester 2/3 (topics 5-6)

Main topics

Politics and policy, national and European policies: development of Employment Policy

Employment Policy and the relation of other human policies such as education, social &health policies

Who makes policy? Development of the European Labour Market and development of national and

international employment policies Case study: The Hungarian Labour Market Hungarian Labour Market Policy under the European

Employment Strategy: How does OMC model work in practice?

Changing role of the Public Employment Services in the changing labour market (views of the ILO, OECD and EC: PES 2020 strategy)

Development of the European Employment Strategy and previous development at the European policy field –Commission White Paper on Employment….(1993)

New concepts of the international organisations and the European Union on labour market policy: flexicurity, employability, adaptability, partnership approach, multilevel governance, etc.

Role of the structural funds at delivering European and national employment policy goals

Three key issues for the essays

Topic 1. Development of the European Employment Policy as a policy, milestones between 1993-2013

Topic 2. Designing & developing policy loops in the field of employment policy: concrete case study with a chosen ALMP

Topic 3. Europe 2020 – European Semester: Country-specific recommendations and applications in national employment policies

2/3

The European Labour Market, Case study: Hungary How do ALMPs work?

ALMPs

What are the Active Labour Market Policy (ALMP) Tools?

Active labour market policies (ALMPs) are those policies from the toolkits of policy-makers that combine transfer payments with either work or training activities. They comprise an array of measures from special support for the unemployed, in the form of help with job search, training and education, to subsidies for taking up jobs and job-creation activities such as community work programmes. (ILO, 2008)

History of ALMPs

ALMPs were conceptualized and implemented on a fairly large scale during the Great Depression in the 1930s; New Deal in the United States

The German experience with such schemes, initiated by the conservative governments during the Weimar Republic, but expanded and transformed into more compulsory schemes by the Nazi government, gave some aspects of ALMPs a lasting negative image.

1950s, most notably in Sweden, as part and parcel of the Swedish model of economic and societal change

1970s, and France followed suit after the first oil shock The European Employment Strategy (EES) of the

European Commission of 1997 made active policies an important policy tool.

former Eastern bloc, they have been used on a massive scale during the transition to market economies since the 1990s.

(ILO, 2008)

(ILO, 2008)

(ILO, 2008)

How to apply ALMP within national flexicurity systems? Denmark

EiE 2006 Chapter 2 p.9; EEO Autumn 2006 p2.

The Hungarian Labour Marketwithin the EU

Employment rate, 2012(Eurostat, 20-64)

Legend   Cases   30.9 - 54.0 7   54.0 - 61.7 7   61.7 - 66.4 7   66.4 - 72.2 7   72.2 - 79.1 5   Data not available 0

Eurostat: Europa 2020 Headline Targets

Eurostat: http://epp.eurostat.ec.europa.eu/cache/Euro_2020/E2020_EN_banner.html

The 5 targets for the EU in 20201. Employment

75% of the 20-64 year-olds to be employed2. R&D / innovation

3% of the EU's GDP (public and private combined) to be invested in R&D/innovation

3. Climate change / energy greenhouse gas emissions 20% (or even 30%, if the conditions are right) lower than 1990 20% of energy from renewables 20% increase in energy efficiency

4. Education Reducing school drop-out rates below 10% at least 40% of 30-34–year-olds completing third level education

5. Poverty / social exclusion at least 20 million fewer people in or at risk of poverty and social exclusion

National targets: http://ec.europa.eu/europe2020/pdf/targets_en.pdf

Greying workforce (UK)

http://www.capitalbay.com/uk/304257-greying-workforce-is-squeezing-younger-generation-out-of-jobs-after-over-50s-see-90-rise-in-employment.html

Demographical imbalances: weak supply side: Hungary

2010 2020 2030 2040 20508400

8600

8800

9000

9200

9400

9600

9800

10000

10200

10016.7

9839.7

9613.5

9294.5

8968.2

Population (projection 2050) in thousands

Changes of the Hungarian and EU-27 GDP (2001-2012)

2,11,3 1,5

2,5 2,1

3,3

3,2

0,3

-4,3

2,1

1,6-0,3

3,74,5

3,94,8

4,0 3,9

0,10,9

-6,8

1,3

1,6

-1,7

-8,0

-6,0

-4,0

-2,0

0,0

2,0

4,0

6,0

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

% A bruttó hazai termék volumenének változása az előző évhez képest

EU-27 Magyarország

Activity rates V4& EU27 (20-64)

Thank you for your attention!