espn thematic report on integrated support for the long-term unemployed hungary 2015

Fruzsina Albert

May ndash 2015

ESPN Thematic Report on integrated support for the

long-term unemployed

Hungary

2015

EUROPEAN COMMISSION

Directorate-General for Employment Social Affairs and Inclusion Directorate D mdash Europe 2020 Social Policies Unit D3 mdash Social Protection and Activation Systems

Contact Valdis ZAGORSKIS

E-mail ValdisZAGORSKISeceuropaeu

European Commission B-1049 Brussels

EUROPEAN COMMISSION

Directorate-General for Employment Social Affairs and Inclusion 2015

EUROPEAN SOCIAL POLICY NETWORK (ESPN)

ESPN Thematic Report on

integrated support for the long-term unemployed

Hungary

2015

Fruzsina Albert

The European Social Policy Network (ESPN) was established in July 2014 on the initiative of the

European Commission to provide high-quality and timely independent information advice analysis and expertise on social policy issues in the European Union and neighbouring countries The ESPN brings together into a single network the work that used to be carried out by the

European Network of Independent Experts on Social Inclusion the Network for the Analytical Support on the Socio-Economic Impact of Social Protection Reforms (ASISP) and the MISSOC (Mutual Information Systems on Social Protection) secretariat The ESPN is managed by LISER and APPLICA with the support of OSE - European Social Observatory

For more information on the ESPN see httpeceuropaeusocialmainjspcatId=1135amplangId=en

LEGAL NOTICE

This document has been prepared for the European Commission however it reflects the views only of the authors and the Commission cannot be held responsible for any use which may be made of the information contained therein

More information on the European Union is available on the Internet (httpwwweuropaeu)

copy European Union 2015 Reproduction is authorised provided the source is acknowledged

Europe Direct is a service to help you find answers

to your questions about the European Union

Freephone number ()

00 800 6 7 8 9 10 11

() The information given is free as are most calls (though some operators phone boxes or hotels may charge you)

Integrated support for the long-term unemployed Hungary

5

Contents SUMMARY 6

1 BENEFITS AND SERVICES SUPPORTING THE LONG-TERM UNEMPLOYED 6

11 Employment Replacement Subsidy 7

12 Public work 7

13 Services 9

14 Older job-seekers 9

2 COORDINATION BETWEEN SERVICES TOWARDS A ONE-STOP SHOP APPROACH 9

3 INDIVIDUALISED APPROACHES 11

4 OVERVIEW TABLE 13

REFERENCES 14

APPENDIX 15


6

Summary

The proportion of the long-term unemployed among all unemployed people in Hungary

has been growing and exceeded 35 in 2013 (Centre for Economic and Regional

Studies 2014) Even in March 2015 221 of registered job-seekers had been

looking for a job for longer than a year12 There is no specific provision for the long

term unemployed but they are a highlighted disadvantaged group of job-seekers and

one of the main objectives of the wide-scale public work projects is to end long-term

unemployment and re-activate people

People of active age who are capable of working may receive the Employment

Replacement Subsidy on condition that they register with the Public Employment

Service (PES) and fulfil a number of other criteria The amount of this provision HUF

22800 per month3 has not changed since 2013 and is so low that it is inadequate to

meet the basic social protection and poverty reduction needs The other option (or

rather duty) is to participate in public work schemes The wage for public workers is

lower than the minimum wage but higher than the Employment Replacement

Subsidy unemployed people often perceive it to be the only stable opportunity to earn

a bit more On the other hand studies have indicated its limited effectiveness as an

active labour market policy (ALMP) while its massive expansion has come about at

the expense of other more effective ALMPs

Apart from public work the other dominant labour market policy tool is the Job

Protection Action Plan (launched in January 2013) a contribution subsidy scheme that

targets specific groups at disadvantage on the labour market ndash among them the long-

term unemployed

There are a number of services which may be provided for the registered (but not

specifically long-term) unemployed

The only agency officially in charge of the long-term unemployed is the PES It may be

considered a one-shop stop approach as the district government offices (jaacuteraacutesi

kormaacutenyhivatal) arrange a broad range of services including for example

registration paying provisions involvement of people in complex programmes etc

Unfortunately there is no effective and formalised cooperation or coordination

between the employment and the social services authorities

There are no specific services solely for the long-term unemployed However there

may be specific localregional projects that target them financed overwhelmingly from

EU sources These complex programmes affect a very significant proportion of the

target population but there are localregional variations and the scope of the

programmes is also limited by the project parameters and by their

durationavailability which serves to decrease their effectiveness

ldquoCooperation agreementrdquo exists in Hungary and is a precondition of being registered

unemployed and getting social provisions and services This agreement between the

client and the PES may be quite formal and general just spelling out the regulations

regarding the frequency of visits to the PES and the intensity of job-search and

stipulating that an appropriate job offer must be accepted but they may also include

training active tools etc

The anticipated introduction of a profiling system in 2016 will hopefully enhance

efficiency

1 Benefits and services supporting the long-term unemployed

There is no specific provision for the long-term unemployed but they are a

highlighted disadvantaged group of job-seekers Assuming the unemployed person

concerned has an adequate employment record to claim job-seeking allowance (which

1 en_afsz_stat_monthly_report_201409pdf 2 httpnfszmunkahuengineaspxpage=full_afsz_stat_merop_2015 3 euro76 at an exchange rate of HUF 300 to euro1


7

pays out 60 of the labour market contribution base but is capped at 100 of the

effective minimum wage when the provision starts) after being in receipt of that for

the maximum three months (Hungary has the shortest duration of such provisions in

the EU) a registered unemployed person may receive cash provision in the form of the

employment replacement subsidy or salary for participation in the public works

scheme

11 Employment Replacement Subsidy

People of active age who are capable of work may claim the Employment Replacement

Subsidy (foglalkoztataacutest helyettesiacutető taacutemogataacutes FHT) the amount of which was cut in

2012 from 100 of the minimum pension to 804 Applicants are obliged to report to

the Public Employment Service (PES) for registration and to cooperate with the PES in

concluding a job-seeking agreement (see Section 3) Undertaking undeclared work

results in termination of the benefit Since 2010 only one person in a family has been

eligible for this benefit The amount of the Employment Replacement Subsidy has not

changed since 2012 it is HUF 22800 (euro76) a month ndash so low that it is inadequate to

cover basic social protection and poverty reduction needs For the sake of comparison

in 2015 the new gross minimum wage increased to HUF 105000 (euro350) and for

skilled workers to HUF 122000 (euro407) for public workers5 the monthly payment is

HUF 79155 (euro264)6 In 2014 the relative poverty level was set at net earnings of

HUF 78000 (euro260) a month (60 of median income) (Gaacutebos et al 2014) The

minimum monthly subsistence level calculated by the Central Statistical Office for

2013 was HUF 87510 (euro292) for a single-adult household (CSO 2013)

In March 2015 some 524 of job-seekers were without any benefits7 Since 2011

the Employment Replacement Subsidy has been payable only to individuals who can

certify that they have worked for at least 30 days in a year As well as paid labour

these 30 days of work that are required to meet the eligibility conditions may be

performed as public work seasonal work or other voluntary work for the public

benefit8 The tasks of administering the move between different unemployment

schemes transferring payments and sanctioning any refusal to cooperate are shared

between the job centres and the organisations that employ public workers Up to

2015 applicants had to satisfy other requirements of local governments that were

specified in local by-laws eg keeping the immediate residential environment in good

order Since March 2015 local governments are no longer allowed to set further

eligibility criteria because the system of social provisions has changed and the

Employment Replacement Subsidy is now paid by the level of district (jaacuteraacutes) an entity

smaller than a county The districts provide income compensation to be financed from

the central budget based on criteria that are set nationally

12 Public work

The other option available to the long-term unemployed (LTU) is to participate in

public work schemes In fact rather than ldquooptionrdquo it should be called ldquodutyrdquo for two

main reasons first unemployed people can thereby satisfy the criterion of working for

a minimum of 30 days to become eligible for the Employment Replacement Subsidy

4 At the end of 2014 the prime minister announced a planned further 25 decrease from March 2015 and the planned complete scrapping of this provision by 2018) which finally was not yet introduced in 2015 but is still planned See httpwwwvghukozeletpolitikaorban-kozeledunk-a-teljes-foglalkoztatottsaghoz-438113 5 To clarify the term public worker is used to refer to those unemployed people who are obliged to

undertake public work (koumlzfoglalkoztatott) and not to workers in the public sector (koumlzalkalmazott) 6 httpwwwafszhuengineaspxpage=allaskeresoknek_ellatasok_osszegei_es_kozterhei 7 httpnfszmunkahuengineaspxpage=full_afsz_stat_merop_2015 These people have probably either lost or not yet gained eligibility for the Employment Replacement Subsidy eg were dismissed from public work due to alcohol or behaviour problems did not cooperate as prescribed etc 8 It is a major change from previous practice that in the public work system beneficiaries are not just obliged to accept a job offered by the PES anyone who is capable of working has to perform some work in one form or another otherwise they lose eligibility


8

and secondly they can earn a bit more Participation in public work thus comprises

the work incentive element for basic social provisions (minimum income) for those of

active age and capable of work

Inability to meet the preconditions of the provision or violation of the rules while

participating in public work schemes ndash which in part due to the discretionary elements

of the system and the local power relations result in discriminatory practices often in

the case of the most disadvantaged ndash leads to exclusion from the system (quite a

harsh sanction given that this type of provision is a last resort)

The wage for public workers as introduced in 2012 is lower than the minimum wage

Thus although the government has been able to improve employment levels and the

low work intensity index among socially excluded groups recent data indicate that the

income derived from participation in public work is not sufficient to lift households out

of poverty (Gaacutebos et al 2014) And so rather than being an employment measure in

its present form public work is a (fairly expensive) welfare support aimed at easing

deep poverty Even if the public work salary is somewhat higher than the amount of

the Employment Replacement Subsidy only a minority of employers consider it an

appropriate tool to decrease poverty on the other hand public workers often perceive

it to be the only stable opportunity to earn a bit more (Koltai and Kulinyi 2013) Since

2011 the funds for active labour market programmes have also been reduced the

emphasis has shifted towards public employment and the funds for active tools

comprise aroundless than 20 of public employment expenditure (Bakoacute et al

2014) In 2015 more is going to be spent on public work schemes than on

unemployment benefits (HUF 270 billion vs HUF 237 billion)9

A recent study demonstrated that six months after participating in a public work

scheme only slightly more than 10 of the participants had found a job in the open

labour market (Bakoacute et al 2014) This figure has been decreasing since 2011 The

more often someone participates in public employment the harder it becomes to find

other employment opportunities (and in 2013 half of all public workers had been

public workers in 2011 as well) Thus it is not the case that public work leads people

back to the labour market on the contrary it reduces their chances Research by the

Hungarian Anti-Poverty Network shows that often public workers are prevented from

finding another job eg they are not allowed to go for a job interview to make phone

calls related to finding a job during working hours etc Some 75 of public workers

have not been offered training and if there is training it is often not well designed

(Hungarian Anti-Poverty Network 2014)

Approximately a fifth of current public workers do the same job as they previously did

as ldquoregularrdquo employees local governments dismissed them and then re-employed

them on lower salaries The proportion of those who find a job on the open labour

market is lowest among those employed by local governments while two-thirds of

public employment is organised by those local governments Public workers are very

vulnerable as the Labour Code does not regulate public work and they depend heavily

on the goodwill of local authorities

The prime minister plans to ldquoprovide work for everyonerdquo (most probably mainly within

the framework of the public work scheme) by 201810 Apart from this overwhelming

emphasis on activation (with questionable effectiveness) it is essential to ensure that

provisions are made available to all in need that there is a sufficient budget that

profiling is applied and that effective training programmes are in place

One anomaly to be resolved in connection with LTU and public work is that under

legal regulations the period of job-seeking is suspended for as long as someone is

performing public work ndash ie public workers are legally not regarded as job-seekers

and the time they spend doing public work does not qualify as time spent as

9 httpindexhugazdasag20141113szocialpolitika Figure 1 10 See httpwwworientpresshu134762 httpprivatbankarhumakroorban-alma-negy-ev-mulva-mindenkinek-lesz-munkaja-273951 httpwwwstophubelfoldorban-vizioja1272727 httpwwwvghukozeletpolitikaorban-kozeledunk-a-teljes-foglalkoztatottsaghoz-438113


9

registered unemployed cooperating with the PES Thus these people ndash who in reality

are long-term unemployed ndash cannot get a certificate from the PES to show that that

they are long-term job-seekers and while they are doing public work the PES cannot

offer them a job (as legally they are not job-seekers)11

Apart from public work the other main labour market policy tool is the Job Protection

Action Plan (launched in January 2013) a contribution subsidy scheme for special

groups farthest from the labour market those younger than 25 or older than 55

unskilled workers (FEOR 9) those who succeed in finding work after at least nine

months during which time they were registered job-seekers for at least six months

young people (under 25) who are starting out on their career and those returning

from childcare leave Under this scheme the long-term unemployed are also one of

the targeted at-risk groups So far 890000 people have taken part in this scheme

however the plan is open to current employees as well as new entrants to the labour

market and so its direct impact on job creation is not known

13 Services

There are a number of services that may be provided to registered (but not specifically

long-term) unemployed people training payment of travel costs and support for

renting a flat Up to March 2015 being registered unemployed was a precondition for

applying for housing support from local government however from 1 March 2015 this

subsidy was scrapped (together with some other social provisions) and was

transformed into so-called ldquosettlement supportrdquo (telepuumlleacutesi taacutemogataacutes) which is

regulated by local decree in all settlements with great variation in content12

14 Older job-seekers

There is a special provision ldquoJob-seeker Aid before Pensionrdquo (NYES) for those who are

less than five years from retirement age with certain conditions this aid amounts to

40 of the minimum wage (HUF 42000 in 2015) Also there are several programmes

ndash eg the contribution allowance for employers or ALMPs funded by the European

Social Fund (ESF) ndash where those over 55 years of age are a highlighted target group

2 Coordination between services towards a one-stop shop approach

The only agency officially in charge is the PES (since its restructuring in January 2015

a sub-division of the district government offices) It may be regarded as a one-shop

stop approach as the district government offices (jaacuteraacutesi kormaacutenyhivatal) arrange

registration payment of the Employment Replacement Subsidy13 the involvement of

people in complex programmes etc

There used to be formal cooperation on public work projects between municipalities

and the PES before 2011 at present they provide data etc if asked for but it is not

legally prescribed Very often too the family support services also cooperate with

PES but this cooperation is not on a formal footing and is not legally prescribed So

today there is no effective coordination between the employment and the social

services authorities An exchange of data does take place between the employment

and the social services authorities when those services that are working with the

same client request it but they have no common database for example It was

intended that there should be legally regulated formalised cooperation between the

PES and the family support services but ultimately nothing has come of it and such

cooperation is not even on the horizon

11 httpvshukozeletosszesa-kozmunka-nem-szamit-torvenymodositast-kezdemenyez-az-ombudsman-0320 12 httpindexhubelfold20150209szegenyseg_segely_segelyezes_onkormanyzat 13 This is a change introduced in March 2015 previously local governments paid the Employment Replacement Subsidy The wages of public workers are paid by their employers who may also be the municipalities


10

In a sense there is formalised cooperation from the clientrsquos side in order to be

eligible for certain social provisions a person must be registered with the PES

Between 2006 and 2009 those of active age without work had to cooperate with the

family support services but after 2009 this task was reallocated to the PES The job-

seekerrsquos cooperation with the PES is in fact very often only a formal ldquoauthority actrdquo

(hatoacutesaacutegi aktus) ndash a bureaucratic exercise an administrative check there are usually

no social workers psychologists etc involved The legal framework would permit their

involvement but the human resource capacity of the PES generally does not (see

Section 3) ldquoThe allocation of services to job-seekers takes place during client

interviews However the time available for such personal interviews is being reduced

and most employees confirm that it is the personal experience and character

judgement skills of the individual PES staff members that determine whether or not a

client receives the appropriate services The assessment confirms that labour market

services are a long way from being standardised and that provision differs across the

countryrdquo (NES 2014a)

The National Labour Office (Nemzeti Munkauumlgyi Hivatal) was abolished on 1 January

2015 Its tasks are now performed partly by the Ministry of National Economy (NGM)

and partly by the National Public Health and Medical Officer Service as under the

previous structure the National Labour Office ldquodid not act as a bridge between job-

seekers and employersrdquo The government expects the restructuring to enhance the

effectiveness of labour market processes and help to keep unemployment levels low14

Unemployment rates have decreased significantly over the past years to 76 in the

first months of 2015

There are no specific services solely for the long-term unemployed There may be

specific localregional projects overwhelmingly funded by EU sources These complex

programmes affect a very significant proportion of the target population however

there are localregional variations in them and their scope is also limited by the

project parameters and their durationavailability which serves to decrease their

effectiveness

A number of studies and materials were prepared within the framework of the SROP

131-121-2012-0001 ldquoThe development of the National Employment Service IIrdquo

Project on the service provision of PES15 One study found significant differences

across counties and branches on a number of points eg the average duration of the

first client interview (but always well below the optimal length) decreasing

effectiveness due to the increased volume of clients lack of human resources and

adequate hardware and software need for improvement and strengthening of

partnerships with employers (NES 2014b) Another study found that ldquothe

deteriorating situation of the labour organisationrsquos capacity the constraint steps of the

organisation of the officesrsquo work (services employer keeping contact were placed to

the end of the priority list) the extra exercises the administrative-regulatory

environment and the official character of work order undermined the reality of creating

the service organisationrdquo (NES 2013b7)

Overall ldquoThe situation analysis discovered that after the intense developmental

activities of the 90s and the first decade of the millennium a slow-down in the service

provision activities can be detected This is due partly to the reorganisation of the

public services after the introduction of the integrated governmental offices and partly

to the significant shift in employment policies towards public employment schemes

This resulted in capacities being redirected from labour market service provision

towards handling office routines andor organising public employment schemes Even

though the overall volume of service provision has not dropped most services are

strongly related to the primary task of job-brokerage such as providing labour market

information providing job-search consultancy and conducting interviews The volume

of service provision per local labour office also tends towards the same volume as the

14 httpwwwkormanyhuhunemzetgazdasagi-miniszteriumhirekatalakul-a-munkaugyi-szervezet 15 These materials can be found often with English summaries at httpnfszmunkahuengineaspxpage=showcontentampcontent=full_tamop_131_12_1ap_eredemeny


11

registered job-seekers which indicates that service provision is currently strongly

related to the interviews conducted Nonetheless specialised labour market services

such as psychological consultancy labour consultancy job-seeker training or

mentoring still exist within the PES hellip Whether the services are provided by PES

employees or external service providers varies widely across the country Some

counties have attempted to retain enough trained employees to cover most of the

labour market service tasks from within the organisation while others rely almost

totally on outsourcing There are only two services that are outsourced nationwide

the provision of labour market information and mentoring The selection of external

service providers happens on the basis of grants in the case of purely national funds

and through public procurement schemes in the case of EU projects hellip the former

provides more ample space for including professional rather than merely financial

perspectives in evaluations The quality of outsourced activities is continuously subject

to quality checks and hellip these arrangements work relatively well The biggest problem

reported with outsourced service provision is the discontinuity of tasks as significant

time can elapse between contracts and this poses serious problems both for internal

PES employees and external providers as well as for clients who may want to access

the services with the same providerrdquo (NES 2014a)

3 Individualised approaches

As can be seen from the previous sections there is huge variation in how much

individualised tailored support the long-term unemployed actually receive Active

labour market policies other than the public work scheme have not been

strengthened The introduction of the client profiling system at the Public Employment

Service has yet to take place

Some 121 of registered job-seekers in January 2015 were career starters Young

people are considered to be permanent job-seekers after six months People with at

most a primary level of education comprise almost half of registered job-seekers

Counties in Northern Hungary are overrepresented In regions with worse economic

and employment situations the proportion of those involved in public employment is

higher than in more prosperous regions and the proportion involved in other ALMPs is

lower (NES 2013a)

The mandatory 30 days of work required to be eligible for the employment

replacement subsidy could be regarded as a universal activation element but not an

individualised one Otherwise there are no universally available tailored activation or

social programmes for which the unemployed become eligible only after a given period

of unemployment (ie for the LTU) There have been such specific programmes for the

LTU within the framework of various ESF-funded projects but usually only with limited

regional scope and time span

ldquoCooperation agreementrdquo does exist in Hungary and is a precondition for being a

registered unemployed person and for accessing social provisions and services but it

is done with the PES (which from 1 January 2015 has belonged to the district16

government offices (jaacuteraacutesi kormaacutenyhivatal)) This agreement may be quite formal and

general just spelling out the regulations regarding the frequency of visits to the PES

and the intensity of job-search and stipulating that an appropriate job offer must be

accepted but it may also include active tools Job-seekers can participate in priority

programmes (kiemelt program) after 12 months as a distinct target group Depending

on the specific project they get involved in various practices are employed and there

are a number of cooperation agreements (conditions governing participation in

training programmes ndash how many sessions they can miss how much money they

have to pay back if they drop out etc ndash mentoring programmes various other

services) A specific agreement is also signed for public work There may be an

individual action plan as well but such plans are applied only in highlighted projects

16 an administrative unit smaller than the county (bdquojaacuteraacutesrdquo)


12

Within the framework of the TAacuteMOP (Social Renewal Operational Programme) 261

ldquoThe accreditation system of labour market servicesrdquo 48 labour market services were accredited and standardised17 This standardisation is absolutely essential if services

are to be properly defined and their minimum content identified and if indicators are

to be made comparable The planned introduction of the profiling system in 2016 will

aim to enhance efficiency

17 httpwwwtamop261hu


13

4 Overview table

Please put an X in the

column that best represents the situation in your country

Please summarise in a few words and in order of priority the 3 key

gaps that need to be addressed to improve effectiveness (if only one gap just complete one column)

Very good

Medium Weak Gap 1 Gap 2 Gap 3

Effectiveness

of benefits amp services

supporting the long-term unemployed

Income benefits

x Very low inadequate amount of the benefit

Easy to ldquofall outrdquo ndash a number of sanctions

Social services

x Overloaded services

Activation

services

x Trap to remain in

public work

Wide variety of

training and other support should be provided for public

workers

Public work should be

included in the period of registered employment

Effectiveness of coordination

between employment social assistance and social services

x No formal

cooperation and neither organisation has sufficient resources

Lack of common

database

Extent of individualised support

x Wide variation in the accessibility of

individualised support

Insufficient interviewing ndash lack of

recognition of the clientrsquos needs

Lack of administrative flexibility or discretion

in tailoring the support


14

References

National Employment Service (NES) (2014a) A kirendeltseacutegek aacuteltal nyuacutejtott

munkaerő-piaci szolgaacuteltataacutesok feluumllvizsgaacutelata javaslat a szolgaacuteltataacutesok

csoportosiacutetaacutesaacutera [Supervision of labour market services provided by PES proposal for

the grouping of services]

httpnfszmunkahuengineaspxpage=showcontentampcontent=full_tamop_131_12_

1ap_eredemeny

National Employment Service (NES) (2014b) A Nemzeti Foglalkoztataacutesi Szolgaacutelat

megleacutevő munkaerő-koumlzvetiacuteteacutesi rendszereacutenek kuumlloumlnboumlző gyakorlatainak felmeacutereacutese

[Survey of the current practices of the PES regarding the provision of labour market

services]


1ap_eredemeny

National Employment Service (NES) (2013a) Az aktiacutev foglalkozaacutespolitikai eszkoumlzoumlk

fontosabb leacutetszaacutemadatai 2013-ban [The most important data on participants in ALMPs

in 2013]

httpnfszmunkahuengineaspxpage=full_AFSZ_A_foglalkoztataspolitikai_eszkozo

k_mukod

National Employment Service (NES) (2013b) Az NFSZ aacuteltal a munkaacuteltatoacutek szaacutemaacutera

jelenleg nyuacutejtott szolgaacuteltataacutesai eacutes kapcsolattartaacutesi moacutedszerei hateacutekonysaacutegaacutenak

eredmeacutenyesseacutegeacutenek fogadtataacutesaacutenak valamint a munkaacuteltatoacutek munkaerő-piaci

szolgaacuteltataacutesi igeacutenyeinek felmeacutereacutese [Survey of the efficiency output and reception of

the current services of the PES for employers and their demands]

httpwwwafszhuengineaspxpage=printampcontent=full_tamop_131_12_1ap_erede

meny

Bakoacute Tamaacutes et al (2014) A munkaerőpiac peremeacuten leacutevők eacutes a koumlltseacutegveteacutes [Those

on the periphery of the labour market and the state budget]

httpwwwparlamenthudocuments126660133966MTA+KRTK+KTI+A+munkaer

C591piac+peremC3A9n+lC3A9vC591k+C3A9s+a+kC3B6lts

C3A9gvetC3A9s+javC3ADtottpdfba01c982-873e-416c-8b7f-

c6684fe55db8

Gaacutebos A Sziacutevoacutes P and Taacutetrai A (2014) Joumlvedelmi szegeacutenyseacuteg eacutes taacutersadalmi

kirekesztettseacuteg jellemzői Magyarorszaacutegon [The characteristics of income poverty and

social exclusion in Hungary] In Sziacutevoacutes P and Toacuteth I Gy (eds) Joacutel neacutezuumlnk ki ()

Haacuteztartaacutesok helyzete a vaacutelsaacuteg utaacuten TAacuteRKI Monitor report pp 44ndash72

httpwwwtarkihuhuresearchhmmonitor2014_teljespdf

Centre for Economic and Regional Studies (2014) The Hungarian Labour Market

2014 Hungarian Academy of Sciences amp National Employment Non-Profit Public

Company Ltd Budapest

Koltai L and Kulinyi M (2013) A koumlzfoglalkoztataacutest szervezők eacuterteacutekei [Values of

public work scheme organisers]

httpwwweselylaborhucomponentcontentarticlelayout=editampid=3

Central Statistical Office (CSO) (2013) Leacutetminimum 2013 [Minimum subsistence

level 2013] httpwwwkshhudocshunxftpidoszakiletminletmin13pdf

Hungarian Anti-Poverty Network (2014) A koumlzfoglalkoztataacutesi csapda [The public

work trap] httpwwweselylaborhutudastar-listafoglalkoztatas-fejlesztesitema-

magyar-szegenysegellenes-halozat-jelentese-a-kozfoglalkoztatottak-hatterer-l-

helyzeter-l-es-lehet-segeir-l


15

Appendix

Registered job-seekers entering

public work projects split by the length of time they spent registered

prior to that (2013ndash2014 yearly average)

2013 2014

1ndash3 months 4404 6260




gt 24 months 577 392

Total 10000 10000

Data kindly provided by the Ministry of Interior on 10 April 2015 Based on their information this table includes job-seekers entering public work projects depending on the length of time they spent in registration Because legal regulations mean that the period of job-seeking is suspended for as long as someone is in public work although the above table indicates a growth in the proportion of those with a short registration period most were re-involved in a public work project Thus in the main they can also be considered to be away from the labour market permanently

EUROPEAN COMMISSION

Directorate-General for Employment Social Affairs and Inclusion Directorate D mdash Europe 2020 Social Policies Unit D3 mdash Social Protection and Activation Systems

Contact Valdis ZAGORSKIS

E-mail ValdisZAGORSKISeceuropaeu

European Commission B-1049 Brussels

EUROPEAN COMMISSION





Hungary

2015

Fruzsina Albert





LEGAL NOTICE






Freephone number ()

00 800 6 7 8 9 10 11



5

Contents SUMMARY 6



12 Public work 7

13 Services 9




4 OVERVIEW TABLE 13

REFERENCES 14

APPENDIX 15


6

Summary






















term unemployed






















efficiency







7






scheme
































12 Public work








8






















































9















13 Services

































10





























effectiveness



























11































lower (NES 2013a)
























12








13

4 Overview table





Very good


Effectiveness



Income benefits



Social services


Activation

services

x Trap to remain in

public work

Wide variety of


workers





x No formal


Lack of common

database









14

References






1ap_eredemeny




services]


1ap_eredemeny



in 2013]


k_mukod







meny






c6684fe55db8



















15

Appendix




2013 2014






Total 10000 10000


EUROPEAN COMMISSION





Hungary

2015

Fruzsina Albert





LEGAL NOTICE






Freephone number ()

00 800 6 7 8 9 10 11



5

Contents SUMMARY 6



12 Public work 7

13 Services 9




4 OVERVIEW TABLE 13

REFERENCES 14

APPENDIX 15


6

Summary






















term unemployed






















efficiency







7






scheme
































12 Public work








8






















































9















13 Services

































10





























effectiveness



























11































lower (NES 2013a)
























12








13

4 Overview table





Very good


Effectiveness



Income benefits



Social services


Activation

services

x Trap to remain in

public work

Wide variety of


workers





x No formal


Lack of common

database









14

References






1ap_eredemeny




services]


1ap_eredemeny



in 2013]


k_mukod







meny






c6684fe55db8



















15

Appendix




2013 2014






Total 10000 10000






LEGAL NOTICE






Freephone number ()

00 800 6 7 8 9 10 11



5

Contents SUMMARY 6



12 Public work 7

13 Services 9




4 OVERVIEW TABLE 13

REFERENCES 14

APPENDIX 15


6

Summary






















term unemployed






















efficiency







7






scheme
































12 Public work








8






















































9















13 Services

































10





























effectiveness



























11































lower (NES 2013a)
























12








13

4 Overview table





Very good


Effectiveness



Income benefits



Social services


Activation

services

x Trap to remain in

public work

Wide variety of


workers





x No formal


Lack of common

database









14

References






1ap_eredemeny




services]


1ap_eredemeny



in 2013]


k_mukod







meny






c6684fe55db8



















15

Appendix




2013 2014






Total 10000 10000



5

Contents SUMMARY 6



12 Public work 7

13 Services 9




4 OVERVIEW TABLE 13

REFERENCES 14

APPENDIX 15


6

Summary






















term unemployed






















efficiency







7






scheme
































12 Public work








8






















































9















13 Services

































10





























effectiveness



























11































lower (NES 2013a)
























12








13

4 Overview table





Very good


Effectiveness



Income benefits



Social services


Activation

services

x Trap to remain in

public work

Wide variety of


workers





x No formal


Lack of common

database









14

References






1ap_eredemeny




services]


1ap_eredemeny



in 2013]


k_mukod







meny






c6684fe55db8



















15

Appendix




2013 2014






Total 10000 10000



6

Summary






















term unemployed






















efficiency







7






scheme
































12 Public work








8






















































9















13 Services

































10





























effectiveness



























11































lower (NES 2013a)
























12








13

4 Overview table





Very good


Effectiveness



Income benefits



Social services


Activation

services

x Trap to remain in

public work

Wide variety of


workers





x No formal


Lack of common

database









14

References






1ap_eredemeny




services]


1ap_eredemeny



in 2013]


k_mukod







meny






c6684fe55db8



















15

Appendix




2013 2014






Total 10000 10000



7






scheme
































12 Public work








8






















































9















13 Services

































10





























effectiveness



























11































lower (NES 2013a)
























12








13

4 Overview table





Very good


Effectiveness



Income benefits



Social services


Activation

services

x Trap to remain in

public work

Wide variety of


workers





x No formal


Lack of common

database









14

References






1ap_eredemeny




services]


1ap_eredemeny



in 2013]


k_mukod







meny






c6684fe55db8



















15

Appendix




2013 2014






Total 10000 10000



8






















































9















13 Services

































10





























effectiveness



























11































lower (NES 2013a)
























12








13

4 Overview table





Very good


Effectiveness



Income benefits



Social services


Activation

services

x Trap to remain in

public work

Wide variety of


workers





x No formal


Lack of common

database









14

References






1ap_eredemeny




services]


1ap_eredemeny



in 2013]


k_mukod







meny






c6684fe55db8



















15

Appendix




2013 2014






Total 10000 10000



9















13 Services

































10





























effectiveness



























11































lower (NES 2013a)
























12








13

4 Overview table





Very good


Effectiveness



Income benefits



Social services


Activation

services

x Trap to remain in

public work

Wide variety of


workers





x No formal


Lack of common

database









14

References






1ap_eredemeny




services]


1ap_eredemeny



in 2013]


k_mukod







meny






c6684fe55db8



















15

Appendix




2013 2014






Total 10000 10000



10





























effectiveness



























11































lower (NES 2013a)
























12








13

4 Overview table





Very good


Effectiveness



Income benefits



Social services


Activation

services

x Trap to remain in

public work

Wide variety of


workers





x No formal


Lack of common

database









14

References






1ap_eredemeny




services]


1ap_eredemeny



in 2013]


k_mukod







meny






c6684fe55db8



















15

Appendix




2013 2014






Total 10000 10000



11































lower (NES 2013a)
























12








13

4 Overview table





Very good


Effectiveness



Income benefits



Social services


Activation

services

x Trap to remain in

public work

Wide variety of


workers





x No formal


Lack of common

database









14

References






1ap_eredemeny




services]


1ap_eredemeny



in 2013]


k_mukod







meny






c6684fe55db8



















15

Appendix




2013 2014






Total 10000 10000



12








13

4 Overview table





Very good


Effectiveness



Income benefits



Social services


Activation

services

x Trap to remain in

public work

Wide variety of


workers





x No formal


Lack of common

database









14

References






1ap_eredemeny




services]


1ap_eredemeny



in 2013]


k_mukod







meny






c6684fe55db8



















15

Appendix




2013 2014






Total 10000 10000



13

4 Overview table





Very good


Effectiveness



Income benefits



Social services


Activation

services

x Trap to remain in

public work

Wide variety of


workers





x No formal


Lack of common

database









14

References






1ap_eredemeny




services]


1ap_eredemeny



in 2013]


k_mukod







meny






c6684fe55db8



















15

Appendix




2013 2014






Total 10000 10000



14

References






1ap_eredemeny




services]


1ap_eredemeny



in 2013]


k_mukod







meny






c6684fe55db8



















15

Appendix




2013 2014






Total 10000 10000



15

Appendix




2013 2014






Total 10000 10000


espn thematic report on integrated support for the long-term unemployed hungary 2015

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