Real wages, reflecting purchasing power, have risen by around 10% since December 2023.Continue reading
The unemployment rate reached a historic low of 224,914 jobseekers in November 2024, marking a decline of over 1,200 compared to the same period last year. This decrease highlights significant progress in Hungary’s labor market, with employment continuing to grow.
The country’s workforce has expanded by nearly one million people since 2010, reaching almost 4.7 million employed individuals.
A key part of this success is the government’s implementation of labor market activation programs. These include the Youth Guarantee Plus initiative, aimed at jobseekers under 30, and an EU-funded program targeting people over 30.
These efforts, which offer wage subsidies and allowances, have already helped approximately 23,000 jobseekers secure employment.
To further support economic growth, the government has introduced a historic wage agreement. The minimum wage will increase by 40% by 2027. Specifically, in 2025, it will rise by 9% to HUF 290,800 (EUR 801), followed by a 13% rise to HUF 328,600 (EUR 911) in 2026, and a 14% increase to HUF 374,600 (EUR 1,033) in 2027. Employers who pay minimum wage workers will receive support through a “sliding scale” social contribution tax structure to help mitigate the impact of these increases.
Hungary’s labor market is showing positive trends, with a historic drop in unemployment, expanding job opportunities, and growing wages. These policies reflect the government’s commitment to improving employment conditions and supporting workers and employers.
Via MTI; Featured Image: Pixabay