Economist László Herczog said that unemployment in Hungary is currently at 7%-8% if the calculation is based on professional criteria, as opposed to the officially stated 4%-5%, flattered by adding individuals in work schemes to the number of people properly employed. Herczog also pointed out that weak vocational training and an overcentralized economy are both detrimental to the country’s competitiveness, daily Népszava reports.
Herczog, who works with the Finance Researcher Inc (Pénzügykutató Zrt.) said it is clear that employment has increased in Hungary. It has to be analysed though how permanent and sustainable the increase is. Realistically speaking, unemployment cannot really go below 4% for practical reasons, and the statistics look so bright only because they were “facelifted.” As many as 200,000 low-paid fostered workers are included in the figures, even though such work cannot be considered as real and permanent employment. The Central Statistical Office also includes the people who commute to work abroad in their figures, whose number was 116,000 last year. The lack of professionals in certain areas is also a relatively new phenomenon, due to the half million people who left Hungary to permanently live and work abroad.
The economist said he thinks that Hungary is heading in a very bad direction currently. Globalization is inevitable, therefore instead of fighting it, it would be more beneficial to adapt. That would require modern education, as well as laws that recognize real performance, instead of being based on favouritism. The practice of exclusion becoming more and more widespread in Hungary is also very detrimental to development. The government says they fight for Hungarians to be able to work abroad, but they do not want to receive anyone in Hungary. This will only lead to being excluded from the international job market, only to weaken the possibility for development even more.