EMCC European Monitoring Centre on Change

Hungary: ERM comparative analytical report on Recent Policy Developments related to those Not in Employment, Education and Training (NEET)

  • Observatory: EMCC
  • Topic:
  • Published on: 06 February 2012



About
Country:
Hungary
Author:
Dávid Simon;Ákos Csókay
Institution:

Disclaimer: This information is made available as a service to the public but has not been edited by the European Foundation for the Improvement of Living and Working Conditions. The content is the responsibility of the authors.

In Hungary the level of interest toward NEETs is quite high, but only in the cases of some special groups (young unemployed people with tertiary education, early school leavers). In contrast with this high interest, there are only very few measures of which the target group is the NEETs (or a sub-group). There are some problematic areas – especially the logistic barriers of employment – that lacks the effective measures. An integrated strategy should be written to improve the efficiency of measures and – what is more important – all existing measures effecting NEETs should be mapped and link to problem areas. New tools – advisably best practices from other countries – should be apply for those problem areas that identified as not covered with existing measures in the mapping process.

1. Introduction

1.1 What is the level of interest among the different stakeholders in your country (policy makers, the media, employers and trade unions) in the issue of NEETs? What are their reasons for having a high/ low level of interest in the topic? (Expected length 100 words)

Some sub-groups of NEETs are in the focus of interest of the stakeholders in Hungary. Main groups that are mentioned in connection with NEETs are the early school leavers (and in this context the unskilled young people as well) and entrants with tertiary education. Stakeholders connect this sub-group to the Roma minority and people living in disadvantaged areas. The main reason for the high level of interest in the problem of early school leavers and connected problems based on high level of early school leaving and unemployment in disadvantaged areas of Hungary and among Roma minority.

While policy makers and the media are highly interested in these two sub-groups' problem, employers' organizations and trade unions are almost not addressing this issue at all. The reason for low level of interest of the latter stakeholders is mainly the lack of connection with the problematic sub-group and the wide spread conviction that solving these problems is the task of the government and the state.

1.2 Using the following table, please identify which sub-groups of NEETs are of particular concern to the different stakeholders in your country. Please indicate the relative importance of each group to the different stakeholders; for each group please state whether they are felt to be of ‘significant concern’, ‘some concern’, or ‘no concern’ to the different stakeholders.


Table 1 – NEETs sub-groups
 

Public/media debate

e.g. the extent to which the issue is discussed within the news media

Mainstream Policy

e.g. the range of policy documents tackling the issue, the amount of investment committed to tackling the problem

Employers

e.g. the extent to which this issue is raised as a concern, e.g. through lobbying / pressure on the government, involvement in the design and/or implementation of relevant policies

Trade unions

e.g. the extent to which this issue is raised as a concern, e.g. through lobbying / pressure on the government, involvement in the design and/or implementation of relevant policies

Young people who are unemployed

Significant concern

Significant concern

Some concern

Some concern

Young people who are in ‘precarious’ or unsuitable employment (e.g. temporary contracts, forced self-employment, part-time work, or jobs which are not commensurate with their level of qualifications)

No concern

No concern

No concern

Some concern

Early school leavers – young people who have dropped out of education before obtaining an upper secondary level qualification

Some concern

Significant concern

No concern

No concern

Young people with qualifications which do not meet labour market needs

Some concern

Some concern

No concern

No concern

Teenage/ single parents

No concern

No concern

No concern

No concern

Migrants and minority groups

Significant concern

Significant concern

No concern

No concern

Young people with disabilities

Some concern

Significant concern

No concern

No concern

Young people from workless families

Some concern

Significant concern

No concern

No concern

Young people from disadvantaged areas

Some concern

Significant concern

No concern

No concern

Young people with tertiary education who have been unsuccessful in accessing the labour market

Some concern

Some concern

No concern

No concern

Other (please specify):

.

-

-

-

-

1.3 Are there any policy measures in your country targeted at those NEETs with tertiary education? If yes please describe these briefly (expected length 100 words).

The policy makers paid little attention to NEETs with tertiary education. A special job seekers' office works in the Central Hungarian Region (HU1) called Mediation Office of Entrants and Graduate Jobseekers. Apart from this office the last the governing coalition of the Hungarian Socialist Party (Magyar Szocilaista Párt, MSZP ) and the Alliance of Free Democrats (Szabad Demokraták Szövetsége, SZDSZ) introduced tax allowance for students that could enhance gaining practice in work (a lack of which is an important reason for unemployment among young people with tertiary education). This tax allowance was abolished by the current conservative FIDESZ-KDNP government.

2. NEET Policies and Measures

2.1 Measures to tackle early school leaving

Preventive Measures to tackle early school leaving


2.1.1 Please provide a short overview of your country’s approach to preventing early school leaving. Where does the focus of policies and measures to prevent early school leaving lie?

There are and were many different types of measures in Hungary for preventing early school leaving. There are two main areas in this field: legislation and support programmes.

Two main points of legislation should be mentioned here: the length of compulsory education and connection of state support to school attendance. The compulsory school attendance age was 16 years under the communist era and after the transition until 2003, when it was increased to 18 years. In April of 2011 the Ministry of Education introduced a conception of Education Act in which the compulsory school attendance age was planned to reduce again to 16 years – in a previously issued economic policy plan (Széll Kálmán Plan) the proposed compulsory school attendance year was 15. Parallel with latter the number of state supported students in higher education decreased by 5% in 2011, while the number of applicants to HE was 141 thousands. These two tendencies suggest that the government try to save money in the education sector. On the other hand the family support (a type of normative state support connected to the number of children) was parted into two distinct supports (in the summer of 2010): the condition for schooling support is bound to the school attendance of the children (see details bellow).

The state supported programmes have been changing over the time, continuously and implicit targeting Roma students and students living in disadvantaged areas (see details bellow).


2.1.2 Please complete the table below with a brief description of up to three policies/ measures to prevent early school leaving in your country. Where possible you should use only one word or Yes/No (e.g. how is the measure funded? answer: regional; is this measure a NEET specific measure? answer: Yes).


Table 2 - Early School Leaving: Preventive measures
Early School Leaving: Preventive measures
Name of measure

Description of the measure: aims and objectives

Scale of measure (i.e. national, regional or local)

Is the measure tripartite, bipartite or unilateral?

How is the measure funded (national state funding, European funding, private funding)?

Is this a NEET-specific measure, or is it a more general measure which also has an impact on NEETs?

Is the measure specifically targeted at young people from a disadvantaged background or a minority group?

Measure 1:

Binding state support to school attendance

Description of the measure: change in the legislation (August 2010), school attendance became a condition for normative state support of families with children of school age (over 50 hours of unjustified absenteeism the support is suspended)

Scale of measure: national

Tripartite, bipartite or unilateral: unilateral

How is the measure funded? Included in the state budget.

Is this a NEET-specific measure? Yes

Is the measure specifically targeted at young people from a disadvantaged background or a minority group? No (but most of early school leavers are living in disadvantaged areas and among Roma minority)

Measure 2:

Hátrányos Helyzetű Gyerekek Oktatási programja (H2O) (Education Programme for Disadvantaged Children)

Description of the measure: The main goal of the program spreading a group based teaching method (the methodology was worked out in Stanford University, US and adopted to the Hungarian situation and accredited in Hungary) for schools in settlements with high proportion of disadvantaged people. The program supports buying the necessary infrastructure and extra up-keep costs for 5 years (about 15 500 Euro in the first year and 7 750 Euro in the following years. This program got European Employee Volunteering Awards 2011.

Scale of measure: local (goal of the programme to spread the method among all of the schools in which students are disadvantaged)

Tripartite, bipartite or unilateral: bilateral (enterprises and schools, municipalities but no employers organization or trade unions were involved)

How is the measure funded? Private foundation.

Is this a NEET-specific measure? Yes.

Is the measure specifically targeted at young people from a disadvantaged background or a minority group? Yes.

Measure 3:

Tanoda programme

Description of the measure: after school helping programme for disadvantaged students mainly in the last 4 years elementary schools (age 10-14) and for students of secondary schools. The participating actors (mainly NGOs) have to provide rooms for learning, educators, programmes, etc. (see details bellow). The participating NGOs are independent from schools where students learn.

Scale of measure: national

Tripartite, bipartite or unilateral: bi- or tripartite (mainly NGOs and state, but in some cases municipalities take part in the programme, however trade unions are unlikely involved in it)

How is the measure funded? In the beginning of the programme it was state supported, later jointly funded by the state and EU fund.

Is this a NEET-specific measure? Yes.

Is the measure specifically targeted at young people from a disadvantaged background or a minority group? Yes.


2.1.3 Please provide a more detailed description of the preventive early school leaving measure which you think is the most effective measure in your country (this measure should be additional to those included in the table above). In addition to the questions raised in the table above, your description should include the details outlined below:


  • When was it introduced and why? How long will it run for?
  • Is it a mainstream or pilot project?
  • What is the scale of the initiative and how much funding has been allocated to it?
  • Who runs the initiative (is it a public, private or third sector initiative)?
  • What is the target group? How many young people benefit from it?
  • What activities are involved?
  • What are the success factors?
  • Is there any formal evidence of its success (both quantitative and qualitative)?

The Tanoda programme (it is hard to translate the word 'tanoda' which is an old work for school) was started in 2003 when the programme was included in the Education Act. The roots of Tanoda programme go back to the middle of 90s when first NGOs started with very similar programmes but without governmental recognition. Actually most of NGOs participating in Tanoda programme is supported by EU Fund. After the support form EU fund will be finished (in 2011) the future of the programme is questionable, the most likely that some of participating NGOs will be able to continue the programme. In the last funding period 60 applicants from all regions of Hungary got support in the frame of the Tanoda programme, the total amount for two years for the 60 applicants was about 4,5 Million Euro. The target group of the programme is the disadvantaged students (age 10-14 (18)), mainly Roma children (number of affected students about 1800-3600 children in the last two years). The programme supports personal mentoring, catch-up groups, organizing free time activities, identity preservation activities. There is an evaluation research about the programme from 2008-2009 (Németh, 2009), but unfortunately it doesn't contain any information about the success in the field of reducing early school leaving. The research concentrated mainly on the working conditions, problems and maintenance of the program. There was only one block of question that investigated the efficiency (by self evaluation). In this block the leader of Tanodas were asked about how their institutes help children in different kinds of aspects. The answers showed that Tanodas were most successful in developing skills such as communication, problem solving and creativity. On the other hand the self reported success was lower in those fields that are connected to longer perspectives (learning after secondary education, becoming independent after education, finding job after education).

Reintegration measures to tackle early school leaving


2.1.4 Please provide a short overview of your country’s approach to the reintegration of early school leavers. Where does the focus of policies and measures lie?

Before the transition to democracy the reintegration of early school leavers was done by so called workers' elementary school and secondary school (dolgozók általános iskolája és középiskolája) with more or less similar curricula as the normal schools. After the transition in the 90s the length and quality of requirements reduced while – in that period – the rate of school-age youth in these schools increased in the middle of the period. In the last decade the new tendency was the appearance of distance learning and blended learning (a combination of online and offline learning) the latter was supported by the state (see below).


2.1.5 Please complete the table below with a brief description of up to three policies/ measures to reintegrate early school leavers in your country. Where possible you should use only one word or Yes/No (e.g. how is the measure funded? answer: regional; is this measure a NEET specific measure? answer: Yes).


Table 2 - Early School Leaving: reintegration measures
Early School Leaving: Reintegration measures
Name of measure

Scale of measure (i.e. national, regional or local)

Is the measure tripartite, bipartite or unilateral?

How is the measure funded (national state funding, European funding, private funding)?

Is this a NEET-specific measure, or is it a more general measure which also has an impact on NEETs?

Is the measure specifically targeted at young people from a disadvantaged background or a minority group?

Measure 1:

Dobbantó program (Jump off Programme)

Description of the measure: prepare early school leavers for entrancing to vocational schools (the program concentrating on enabling school leavers entering again into education with learning and mentoring as well)

Scale of measure: national

Tripartite, bipartite or unilateral: bilateral (enterprises and schools but no employers organization or trade unions were involved)

How is the measure funded? State (through Public Foundation for Equal Opportunities of Persons with Disabilities – in spite of the target group of the programme is not persons with disabilities)

Is this a NEET-specific measure? Yes

Is the measure specifically targeted at young people from a disadvantaged background or a minority group? No

Measure 2:

Digitális Középsikola (Digital High school)

Description of the measure: the goal of the programme is to provide access to secondary education for those who are living far from secondary schools, and can not afford traveling to there. The form of education is blended learning, public internet access is provided for students.

Scale of measure: initially regional (pilot), now national

Tripartite, bipartite or unilateral: bilateral (state and municipalities but no employers organization or trade unions were involved)

How is the measure funded? State and European funding

Is this a NEET-specific measure? No (but most of participants are NEET)

Is the measure specifically targeted at young people from a disadvantaged background or a minority group? Yes


2.1.6 Please provide a more detailed description of the reintegration early school leaving measure which you think is the most effective measure in your country (this measure should be additional to those included in the table above). In addition to the questions raised in the table above, your description should include the details outlined below:


  • When was it introduced and why? How long will it run for?
  • Is it a mainstream or pilot project?
  • What is the scale of the initiative and how much funding has been allocated to it?
  • Who runs the initiative (is it a public, private or third sector initiative)?
  • What is the target group? How many young people benefit from it?
  • What activities are involved?
  • What are the success factors?
  • Is there any formal evidence of its success (both quantitative and qualitative)?

The Digital High School programme was started as pilot project in 2003 in the North-East part of Hungary (HU31-32) as in that part of the country the rate of Roma population and NEETs are among the highest in Hungary. The target group of the programme is the not school age people without final exam in secondary school. The pilot project was financed by the state (Ministry of Informatics and Telecommunication). After change in the Education Act the participants in the programme can get normative support from the state. In 2010 the programme was started country-wide, 15 new school joined to the programme, over 1000 students started to learn in the programme (in the pilot programme about 420 students participated and 129 finished successfully until 2009). The programme provides both online learning portal with regular online feedback and help and also usual classroom consultations. The learning places organized in a hierarchic way: one central school in which the students enrolled, classroom consultation places (in centre of micro regions where students live), internet access points with mentors (in almost every settlement where students live) to let students access both classroom consultation and online learning materials as easily as possible (more details about the national programme started in 2010: Apertus Közalapítvány, 2009). While complete analysis of the programme is not available, statistics of the pilot programme are available (e.g. Kovácsné, 2010)

2.2 Measures to facilitate access to employment

Facilitating the transition from school to work


2.2.1 Please provide an overview of your country’s approach to facilitating school to work transitions. Where does the focus of policies and measures to facilitate transitions lie?

In Hungary exists a network of state supported institutes for careers advice since 1970s, which was built up on Finnish example. This network exists and performs well in the last 40 years. The focus of system changed from helping only young entrants to helping reorientation of older people as well (Ritoók, 2010). Apart from this network, all higher education institutions have their own career centre helping their students finding job (see details bellow).


2.2.2 Please complete the table below with a brief description of up to three policies/ measures to facilitate school to work transitions in your country. Where possible you should use only one word or Yes/No (e.g. how is the measure funded? answer: regional; is this measure a NEET specific measure? answer: Yes).


Table 4 - Access to employment: Measures to facilitate school to work transitions
Access to employment: Measures to facilitate school to work transitions
Name of measure

Scale of measure (i.e. national, regional or local)

Is the measure tripartite, bipartite or unilateral?

How is the measure funded (national state funding, European funding, private funding)?

Is this a NEET-specific measure, or is it a more general measure which also has an impact on NEETs?

Is the measure specifically targeted at NEETs who already have a tertiary education?

Is the measure specifically targeted at young people from a disadvantaged background or a minority group?

Measure 1:

Tax allowance for university students working at university

Description of the measure: up to the double of the minimum wage higher education institutions or enterprises owned by these institutions don't have to pay any tax or contribution if it employed students (the possibility abolished in 2011). This measure helped students to gain experience in work.

Scale of measure: national

Tripartite, bipartite or unilateral: unilateral

How is the measure funded? State budget (high rate of students in higher education worked without paying taxes, in this way the missing tax revenue compared to the previous period is minimal)

Is this a NEET-specific measure? no (preventive measure)

Is the measure specifically targeted at young people from a disadvantaged background or a minority group? no

Measure 2:

Career centres at higher education institutions

Description of the measure: higher education institutions in the last years started to operate heir own carrier centre for helping their students finding job.

Scale of measure: local, national

Tripartite, bipartite or unilateral: unilateral

How is the measure funded? from the budget of higher education institutions

Is this a NEET-specific measure? no (preventive measure)

Is the measure specifically targeted at young people from a disadvantaged background or a minority group? no


2.2.3 Please provide a more detailed description of the school-to-work transition measure which you think is the most effective measure in your country (this measure should be additional to those included in the table above). In addition to the questions raised in the table above, your description should include the details outlined below:


  • When was it introduced and why? How long will it run for?
  • Is it a mainstream or pilot project?
  • What is the scale of the initiative and how much funding has been allocated to it?
  • Who runs the initiative (is it a public, private or third sector initiative)?
  • What is the target group? How many young people benefit from it?
  • What activities are involved?
  • What are the success factors?
  • Is there any formal evidence of its success (both quantitative and qualitative)?

As an example for career centre of higher education institutions the Career Centre of ELTE (the largest university in Hungary) shall be introduced here. The Career Centre of ELTE started in 2007, supported from university budget and EU fund (no data available about the budget of the centre). The target group of the centre is the 36 000 students of ELTE. It is hard to estimate the number of students benefit from the work of the centre as there are no available statistics about it, but newsletter of the centre as a basic service access all students of ELTE. The main activities of the Centre: there are three customer service (as the university has many building all around Budapest), offers carrier advice, keeps contact with large employers of the former students of the university and assess their labor demand, investigate the employment of former students of the university, feeds back to the university about the labour demand and employability of former students.

There are no evaluations available about the efficiency of the Carrier Centre of ELTE yet.

Measures to foster employability


2.2.4 Please provide an overview of your country’s approach to fostering employability among NEETs. Where does the focus of policies and measures lie?

There is a long lasting debate about the efficiency of the Hungarian education system on preparation for work. The general view is that after the transition the system of vocational training was ruined, and the fast increase in the number of students in higher education (without changes in the system of teaching until Bologna process started) worsened the quality in the tertiary education as well. On the third field, re-training and reorientation the state built up a system of support for unemployed people but many researchers debate the effectiveness of it (the main question is whether participants get the proper training that can enhance their chance for reintegrate into the labor-market or not). Due these debates many measures were initiated in this field: rearranging the system of vocational training, connect it to the business sector, starting the Bologna process, initiating internship in higher education institutes, etc. These measures all can be seen as preventive tools for young people not becoming NEET. On the other hand there are very few measures that directly target NEETs.


2.2.5 Please complete the table below with a brief description of up to three policies/ measures to foster employability of NEETs in your country. Where possible you should use only one word or Yes/No (e.g. how is the measure funded? answer: regional; is this measure a NEET specific measure? answer: Yes).


Table 5 - Access to employment: Measures to foster employability (to include apprenticeships)
Access to employment: Measures to foster employability (to include apprenticeships).
Name of measure

Scale of measure (i.e. national, regional or local)

Is the measure tripartite, bipartite or unilateral?

How is the measure funded (national state funding, European funding, private funding)?

Is this a NEET-specific measure, or is it a more general measure which also has an impact on NEETs?

Is the measure specifically targeted at NEETs who already have a tertiary education?

Is the measure specifically targeted at young people from a disadvantaged background or a minority group?

Measure 1:

Compulsory internship in higher education

Description of the measure: in the frame of reorganizing higher education due to the Bologna process, in the cases of many newly accredited BAs and MAs the internship became compulsory.

Scale of measure: national

Tripartite, bipartite or unilateral: bilateral (enterprises and schools, municipalities but employers organization or trade unions were unlikely involved)

How is the measure funded? universities, enterprises

Is this a NEET-specific measure? No (it is a preventive tool)

The measure targeted at NEETs who already have a tertiary education? No (but the target group is the students of higher education)

Is the measure specifically targeted at young people from a disadvantaged background or a minority group? No

Measure 2:

Internship at TISZKs (Regional Integrated Apprentice-ship Centres)

Description of the measure: vocational schools of similar professionals were organized to regional apprenticeship centres that are a close cooperation of these schools. It allowed organizing their internships more effectively.

Scale of measure: national

Tripartite, bipartite or unilateral: tripartite

How is the measure funded? State, enterprises

Is this a NEET-specific measure? No (as it is a preventive tool)

The measure targeted at NEETs who already have a tertiary education? No

Is the measure specifically targeted at young people from a disadvantaged background or a minority group? No

Measure 3:

Training support of unemploy-ed people

Description of the measure: The measure supports the approved training of NEETs (see details bellow)

Scale of measure: National

Tripartite, bipartite or unilateral: Unilateral

How is the measure funded? State

Is this a NEET-specific measure? No

The measure targeted at NEETs who already have a tertiary education? No

Is the measure specifically targeted at young people from a disadvantaged background or a minority group? No


2.2.6 Please provide a more detailed description of the measure which you think is the most effective measure in your country to foster the employability of NEETs (this measure should be additional to those included in the table above). In addition to the questions raised in the table above, your description should include the details outlined below:


  • When was it introduced and why? How long will it run for?
  • Is it a mainstream or pilot project?
  • What is the scale of the initiative and how much funding has been allocated to it?
  • Who runs the initiative (is it a public, private or third sector initiative)?
  • What is the target group? How many young people benefit from it?
  • What activities are involved?
  • What are the success factors?
  • Is there any formal evidence of its success (both quantitative and qualitative)?

The coherent legal framework of training support for unemployed people entered into force in 2001. Since that time this measure is continuous. The programme is supported from state budget, the MPA (Munkaerő-piaci Alap, Labor-market Fund), the connected service is given by NFSZ (Nemzeti Foglalkoztatási Szolgálat, National Employment Service). The support is available to job seeker, NEET without job seeking support, etc. The way of support: substitution of earning (minimum wage), financing costs connected to training (including costs of training, living and travel from residence to the place of training). The fellow of the NFSZ and the job seeker consult about the type of training. Only those training can be chosen which are provided by accredited schools or enterprises (the field of trainings is wide, containing both basic and higher level trainings) .

Removing practical and logistical barriers


2.2.7 Please provide an overview of your country’s approach to removing practical and logistical barriers for NEETs. Where does the focus of policies and measures lie?

The policy in Hungary is not concentrating to the field of removing practical barriers of unemployment. In the last few years the situation became even worse due to abolishment or reduction of some tax allowances (tax allowance for support of housing by employers, tax allowance for support of travel cost to the place of employment by the employer). On other fields such as provision of childcare the situation is constantly bad (some changes occurred when support possibility and legal frame for the so called family day care centres were introduced).


2.2.8 Please complete the table below with a brief description of up to three policies/ measures to remove practical and logistical barriers to employment for NEETs in your country. Where possible you should use only one word or Yes/No (e.g. how is the measure funded? answer: regional; is this measure a NEET specific measure? answer: Yes).


Table 6 - Access to employment: Measures to remove practical and logistical barriers
Access to employment: Measures to remove practical and logistical barriers
Name of measure

Scale of measure (i.e. national, regional or local)

Is the measure tripartite, bipartite or unilateral?

How is the measure funded (national state funding, European funding, private funding)?

Is this a NEET-specific measure, or is it a more general measure which also has an impact on NEETs?

Is the measure specifically targeted at NEETs who already have a tertiary education?

Is the measure specifically targeted at young people from a disadvantaged background or a minority group?

Measure 1:

Support for interurban transportation to the place of employment

Description of the measure: This measure is a reimbursement for employers of the support (of least 86% of) cost of travel of employees to the place of employment for maximum 1 year, in the cases of those employees who were unemployed at least for 6 month (in the cases of NEETs 3 months).

Scale of measure: National

Tripartite, bipartite or unilateral: Bipartite

How is the measure funded? State (MPA)

Is this a NEET-specific measure? No (but special eligibility criteria for NEETs)

The measure targeted at NEETs who already have a tertiary education? No

Is the measure specifically targeted at young people from a disadvantaged background or a minority group? No

Measure 2:

Support of family day care

Description of the measure: Since the end of 1990s the municipalities can support family day cares (for 20 weeks to max. 14 years old children) with lower level of standard (child care function only) than early childhood centres if they meet the eligibility criteria (in this way give a lower cost service).

Scale of measure: National

Tripartite, bipartite or unilateral: Bilateral (enterprises and schools, municipalities but employers organization or trade unions were unlikely involved)

How is the measure funded? State

Is this a NEET-specific measure? No

The measure targeted at NEETs who already have a tertiary education? No

Is the measure specifically targeted at young people from a disadvantaged background or a minority group? No

Employer incentives


2.2.9 Please provide an overview of your country’s approach to incentivising employers to recruit young people (who are NEET). Where does the focus of policies and measures to incentivise employers lie? Where possible you should use only one word or Yes/No (e.g. how is the measure funded? answer: regional; is this measure a NEET specific measure? answer: Yes).

There are many examples in Hungary for positive and negative incentives (example for the latter is contribution to rehabilitation that have to pay in cases of not employing any person with disabilities). Most of these incentives are not NEET specific (except for one of three measures listed bellow), but may enhance the employability of NEETs with more or less efficiency. Most of legal frame of these incentives are quite complicated that reduces the efficiency of these measures.


2.2.10 Please complete the table below with a brief description of up to three policies/ measures to incentivise employers in your country.


Table 7 - Access to employment: Employer incentives
Access to employment: Employer incentives
Name of measure

Scale of measure (i.e. national, regional or local)

Is the measure tripartite, bipartite or unilateral?

How is the measure funded (national state funding, European funding, private funding)?

Is this a NEET-specific measure, or is it a more general measure which also has an impact on NEETs?

Is the measure specifically targeted at NEETs who already have a tertiary education?

Is the measure specifically targeted at young people from a disadvantaged background or a minority group?

Measure 1:

Start card for entrants

Description of the measure: By this measure employer of entrants may reduce the contributions paid after employment of entrants for two years (if the entrant has BA or MA degree, for one year)

Scale of measure: national

Tripartite, bipartite or unilateral: Bilateral (enterprises and schools, municipalities but employers organization or trade unions were unlikely involved)

How is the measure funded? State

Is this a NEET-specific measure? No (it is a preventive measure that enhance employability of NEET)

The measure targeted at NEETs who already have a tertiary education? No (after entrants with tertiary education employer get allowance only for one year)

Is the measure specifically targeted at young people from a disadvantaged background or a minority group? No (but the better condition for lower educated entrants affects young people with disadvantaged background in higher proportion)

Measure 2:

Wage subsidy for expansion of employment

Description of the measure: In the frame of this measure employers can get wage subsidy (50%-75% of wage and its cost) in the case of employment unemployed person with disabilities (70% support) or with disadvantaged background (50% support). The length of support is 12 months (in the cases of person who previously was unemployed at least for 24 months, the length of support is 24 months)

Scale of measure: national

Tripartite, bipartite or unilateral: Bipartite

How is the measure funded? State funded

Is this a NEET-specific measure? No (but it is inherent that NEETs under the age of 25 are included into the understanding of “disadvantage” in the frame of this measure)

The measure targeted at NEETs who already have a tertiary education? No

Is the measure specifically targeted at young people from a disadvantaged background or a minority group? Yes (one of the target groups is people with disabilities)

Measure 3:

Contribution to rehabilitation (a penalty tax for not employing people with disabilities)

Description of the measure: Employer have to pay contribution to rehabilitation if the number or employees exceeds 20 and rate of employed people with disabilities less than 5%. The rate of contribution is 956 thousand Ft/missing person/year (about 3600 Euro).

Scale of measure: National

Tripartite, bipartite or unilateral: Bilateral (enterprises and schools, municipalities but employers organization or trade unions were unlikely involved)

How is the measure funded? As it is income for the state there are no need for funding.

Is this a NEET-specific measure? No

The measure targeted at NEETs who already have a tertiary education? No

Is the measure specifically targeted at young people from a disadvantaged background or a minority group? Yes (enhance employability of people with disabilities)


2.2.11 Please provide a more detailed description of the employer incentive which you think is the most effective measure in your country (this measure should be additional to those included in the table above). In addition to the questions raised in the table above, your description should include the details outlined below:


  • When was it introduced and why? How long will it run for?
  • Is it a mainstream or pilot project?
  • What is the scale of the initiative and how much funding has been allocated to it?
  • Who runs the initiative (is it a public, private or third sector initiative)?
  • What is the target group? How many young people benefit from it?
  • What activities are involved?
  • What are the success factors?
  • Is there any formal evidence of its success (both quantitative and qualitative)?

All entrants can get Start-card, which is valid for two years (in case of people with tertiary education (PTE) one year). The employer who employs a person with Start-card pays 10% social security contribution in the first year (in case of PTE in the first 9 months), and 20% in the second year (in case of PTE in the last 3 months) instead of the regular 27%.

The programme started in October 2005, and until February 2009 110 048 card was issued (Cseres-Scharle, 2009). Unfortunately evaluation of the programme is not available, only a plan for the evaluation (Cseres-Scharle, 2009).

3. Conclusion

In Hungary there is no strategy or concept for solving or at least treating the problem of NEETs. Some of the subgroups of NEETs are recognized with more concern (early school leaving, young unemployed people with tertiary education), while others not (young entrants with disabilities). More concern doesn't mean necessary more effective tools: while evaluation papers in general not available, it can be said that in the case of Roma young people both in media and by the government mentioned as a problematic group since the transition in the ’90s, but policy was never effective or even relevant – except Tanoda Programme in this case.

In general it can be said that Hungarian policy makers and other stakeholders very rarely look at NEETs as a definitive problem, most of measures address NEETs as a part of an other sub-group (e.g. unemployed in general, people with disabilities or people from disadvantaged regions of Hungary).

As there is a poor level of recognition of NEETs as a definite group, it can be said that EU level action has very little effect in Hungary.

Due the above mentioned attitude, it is needed to recognize NEETs (and sub-groups of NEET) in Hungary at first. After recognition an effective strategy and working plan should be written. But the most important is to map and link to problem areas the measures that are affecting NEETs. New tools – advisably best practices from other countries – should be apply for those problem areas that identified as not covered with existing measures in the mapping process.

Sources


Dávid Simon, Ákos Csókay, Solution4.org



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