Reform of the vocational education and training system

Government reforms of the Hungarian vocational education and training (VET) system in recent years have aimed primarily to strengthen the relationship between VET and economic needs. The structure and content of the National Qualifications Register listing all state-recognised vocational qualifications have been thoroughly transformed and modernised, and the involvement of the social partners in VET planning and provision has been increased.

Background

Following the political and economic changes in 1989, the Hungarian labour market underwent a major transformation, creating serious challenges for the system of vocational education and training (VET). The structure and content of VET was in many respects transformed in the 1990s, but its comprehensive reform and modernisation reflecting fast changing demands have long been demanded by business representatives and the social partners.

Employer organisations and economic and professional chambers have increasingly complained about the mismatch between VET output and labour market needs in both quantitative and qualitative terms. While in some training fields a surplus of VET graduates has emerged, in other sectors and vocations employers may find it extremely difficult to recruit workers. Surveys have found that, although the theoretical knowledge of VET graduates is not criticised much (HU0607029I), employers are dissatisfied with their level of professional and other skills and competences which are essential in today’s labour market.

The rate of vocational school students obtaining a National Qualifications Register (Országos Képzési Jegyzék, OKJ) vocational qualification at ISCED (International Standard Classification of Education) level 3 or 2 has almost halved since the beginning of the 1990s, indicating the falling prestige of blue-collar skilled workers’ training. The high number of drop-outs from vocational schools is regarded as being primarily due to the inadequacies of the content and methodology of VET for the changing vocational school population, which consists mostly of disadvantaged students.

Besides deficiencies in initial vocational education and training (IVET), Hungary is also lagging behind other countries in terms of participation in continuing vocational education and training (CVET) and lifelong learning, according to experts. Increasing participation in further training is regarded as crucial to ensuring economic competitiveness and the adaptability of workers and enterprises – particularly small and medium-sized enterprises (SMEs) – to the changing demands of a knowledge-based society, as well as to improving the activity and employment rates of the Hungarian population (HU0801019I).

A ‘Strategy for the Development of Vocational Education and Training 2005–2013’, addressing these challenges, was put in place following a long consultation process with all stakeholders involved in VET, including the social partners.

Major reform measures

The new OKJ, developed in 2004–2006, was adjusted to labour market demands and harmonised with the unified job classification system, thereby reducing the number of qualifications from 805 to 416. It introduces a VET system in which participants may receive a complete qualification on the completion of a pre-defined set of training modules within or outside the school system. Moreover, the register facilitates lifelong learning through the provision of opportunities for continuing training which may also award partial and ‘built-on’ specialised qualifications. The new modular structure seeks to enable mobility by defining the links between different vocational qualifications, and to ensure a flexible and quick reaction to changes in the labour market, thus adapting the content of qualifications accordingly.

The new qualification structure was based on a comprehensive analysis of the Hungarian employment structure. The National Institute of Vocational Education (Nemzeti Szakképzési Intézet, NSZI) prepared all methodological materials, and all project products were examined and reviewed by a consulting board. The board comprised representatives of government ministries and public authorities, economic chambers, employer organisations, trade unions, school providers, and professional institutes and associations.

VET in accordance with the renewed qualification structure was first introduced in September 2006 for certain occupational fields in the member schools of the 16 newly-established integrated regional vocational training centres. Such training will be launched for other OKJ qualifications following the publication of their outcome and examination requirements in ministerial decrees.

Increased role of social partners

In addition to the role played by the social partners in the OKJ modernisation project and their involvement in the continuous development of qualifications as defined by legal documents, the Hungarian Chamber of Commerce and Industry (Magyar Kereskedelmi és Iparkamara, MKIK) has been given special tasks in relation to qualification development in previous years. MKIK is responsible for continuously developing, in cooperation with national economic interest representative organisations, the outcome requirements of 27 OKJ qualifications pursued by the majority of vocational school students.

In order to better meet the demands of VET users also at local level, an amendment in 2006 to Act LXXVI of 1993 on Vocational Education and Training ordered the setting up of professional consultative bodies in larger vocational training schools and the regional integrated vocational training centres. These bodies, with the participation of the social partners, aim to advise training providers and school management on the range of training programmes offered and the content of the curricula for these courses, or on the use of development subsidies provided by an enterprise.

The professional consultative bodies will have the capacity to report skills needs at local level to ensure that these match the actual VET output. Furthermore, the regional development and training committees are required to prepare regional lists of vocational qualifications in short supply in the labour market every three years, beginning from September 2006. Training leading to such qualifications is being encouraged by financial incentives since September 2007, which can be offered both to students and to enterprises providing practical training based on an apprenticeship contract.

Eszter Bükki, Institute for Political Science, Hungarian Academy of Sciences