Employment System in Hungary [antikvár]

PREFACEThe present study on Hungary's employment system was prepared in 1996 and completed in 1997. While it provides a broad and valid overview of its topic, it already needs certain updating because of new developments ín our rapidly changing world.GDP growth - after two years of succesful macro economic stabilisation - restarted: its rate was 4 % in 1997.The decline in employment arrived at a halt: its level was 58.6 % which is expected to increase in the context of forecasted economic growth in the coming years. Unemployment was stabilised at about 10.5 % (íf calculated on the basis of registered unemployed) and at 7.7 % (if calculated on the basis of the ELO methodology).A shift has begun in the priorities for employment policy: it has become increasingly oriented on the promotion of employment. In 1998 more than 40 % of the employment budget is being spent on active employment policy measures. New employment initiatives have been launched.After the drop in real earnings in 1995 and 1996, growth was achieved in 1997 at a rate of 4.9 %.In the past two years tripartite agreements, both in the sphere of business organisations and public services, gained increasing importance in the formulation of public policy and in the preparation of legislation - alsó paving the way for the reform of the pension system.Recent institutional changes include the setting up of the tripartite Board of the Labour Markét Fund, the establishment of the Labour Mediation and Arbitration Service as well as the reinforcement of labour inspection enabling it to fight more effectively - among other things - against illegal employment.A major focus of the current efforts of the Hungárián labour administration - as well as of tripartite cooperation between the government, unions and employers - is the preparation for Hungary's joining the European Union. The tasks involve legal harmonization, preparation for the5