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The employment rate in Hungary remains at a historic high, with 4.755 million people employed in the autumn months of last year, reports Magyar Nemzet.
This marks a substantial increase on both an annual and quarterly basis, indicating a robust employment situation in the Hungarian economy. However, the rise in activity has also led to an uptick in the unemployment rate to 4.3 percent. While not particularly high, this rate suggests that there are still reserves in the Hungarian labor market that are challenging to exploit.
This week, the Hungarian Central Statistical Office (KSH) will release two sets of data. On Tuesday, they will present the evolution of earnings for November last year, followed by the evolution of employment and unemployment for December 2023, on Friday. In October of last year, average gross and net wages rose by 14 percent year-on-year, mirroring the rate observed in September. November’s earnings data are not expected to differ significantly, given that earnings tend to change only slightly over the year.
Average real earnings rose by 3.7 percent in last October, but this could accelerate substantially in November as inflation slows.
The Hungarian National Bank’s housing price index could indicate minimal price increases, but the market might experience a boost due to the extra government support (CSOK) provided to newlyweds and families for buying a house. In the second quarter of 2023, national house prices rose by half a percent on a quarterly basis but already fell slightly on an annual basis, by 0.8 percent. The decline was more pronounced in municipalities, whereas rural towns and Budapest saw an increase.
A slower rise in house prices has been driven by a deterioration in income and reduced demand, due to a fall in lending resulting from the high-interest rate environment. Therefore, a decline in the third quarter would not be surprising.
Via Magyar Nemzet; Featured Image: Pixabay
