Jobless rate falls to 4.9 pc in June-August

Budapest, September 27 (MTI) – Hungary’s rolling average three-month jobless rate fell to 4.9 percent in June-August, the Central Statistical Office (KSH) said on Tuesday.

The rate, which covers unemployment in the age group 15-74, was down from 5 percent in May-July and 6.7 percent in the same period a year earlier.

In absolute terms, there were 227,100 unemployed in Hungary in June-August, 900 fewer than in May-July and 76,700 fewer than one year earlier.

Analysts told MTI that the improvements on the labour market indicated a economic recovery but warned that increasing labour shortages would sooner or later become an obstacle to development.

Since 1992, never have there been as many people in work as there are now, Mihály Varga, the economy minister told a news conference, commenting on the latest employment data. Varga said the jobless rate would fall further as companies plan to expand capacity. Meanwhile, the low price of raw materials is helping economic growth and the kick-start to house building is improving the performance of the construction industry. Further, the utilisation of European Union funding is also intensifying, he added.

More and more employers see the labor market as a limiting factor on growth, Varga said, adding that solutions to this problem lie in evening out employment disparities within the country as well as reforms to vocational education and wage hikes.

Gergely Suppan of Takarékbank said the fast rate of increase in employment reflected the growing economy and the pace growth in the second half may quicken. In the next few months, given seasonal effects, the employment number could reach as high as 4.4 million while the jobless rate would further decline, he said. The average jobless rate this year is likely to come in at 5.3 percent from 6.8 percent last year. Next year, it could sink to below 5 percent, he added.