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1. Labour market situation in the country

2. Main concepts

Labour market situation in the country

Changes caused by the political transition

The years of regime change in Hungary (1987–1990) had a profound impact on the characteristics of employment. Various uncertainties made the transition from education to the labour market more difficult. Career planning and achieving goals, as well as considering global processes, are very complex tasks.

Since the 1990s, changes in the education system and social and economic changes have significantly altered the conditions for starting an individual life. Nevertheless, the time spent in the education system has increased, leading to an inflation of qualifications that shifts the differences upwards.

According to the latest data dated 2025 of the Hungarian Central Statistical Office (HCSO), the number of unemployed is stagnating from 2023. Employment was around 75% in recent years, but it decreased in the sectors of primary labour market (primary labour market means the employees who do not work abroad or do not work in the Public Work Scheme). The number of those decreased who worked abroad. The numbers are affected by the stagnating economic environment and demographic trends - mainly decrease in the 25–64-year-old working age group.

Trends of youth employment and unemployment

The primary available data sources on youth employment and NEET (Not in Education, Employment, or Training) youth can be found in the general labour market data published by the HCSO. According to the HCSO data from the end of 2025, the rate of unemployed youth under the age of 25 has decreased compared to the same period last year.

Youth employment and unemployment trends do not differ significantly from regional trends: until the 2008 crisis, the youth unemployment rate was below the EU average and increased slightly until 2012. From 2012 onwards, it improved rapidly, approaching pre-crisis levels and falling below the EU average in 2014 (20.4% compared to EU average of 22.2%) reaching 16.7% in the third quarter of 2015.

The average share of NEET young people under 25 dropped to 11% in 2016, below pre-crisis levels and the EU average (11.5%). The NEET rate remained unchanged in 2019 (11%) but slightly increased in 2020 (11.7%) and decreased in the last years (it was 9.8% in 2023, still higher than the EU average of 9.2%). In 2024, it was about 10%. Data available for 2024 show that the unemployment rate of Hungarian young people under the age of 25 dropped since 2020 but it increased to 15.2% in 2024 and was above the EU average (14.9%).

The employment rate of young people

The employment rate of young people in Hungary has been historically very low compared to the EU figures; the employment rate of 15–29-year-olds increased above 40% in 2014 and reached 47.1% in 2019, which is a return to the pre-crisis level, in contrast to the lowest point of 34.8% in 2011.

According to the Eurostat data, the employment rate of 15–24-year-old young people was about 27% since 2020. It was below the EU average in each year. The rate of those employed part-time is very low in society as a whole, and it is not different for young people, either.

According to the latest HCSO data from 2025, the employment rate of 15–24-year-old young people was about 27% in the third quarter of 2025 which has not changed significantly compared to 2024.

The employment possibilities of young people

Since 2008, the employment possibilities of young people have changed notably. According to the secondary analysis of Eurostat data, the Oeconomus Economic Research Foundation (Oeconomus Gazdaságkutató Alapítvány) found that the proportion of those who work alongside their studies increased significantly between 2009 and 2016. This is important because young people who gain work experience during their higher education studies are less likely to become unemployed after they obtain their degree. In Hungary, the government policy also ensures that young people have the opportunity to gain work experience during their higher education studies through the mandatory internship included in the Act CCIV of 2011 on National Higher Education (2011. évi CCIV. törvény a nemzeti felsőoktatásról).

In recent years, the Hungarian government has introduced several measures to support young people's labour market entry, including wage subsidies, the personal income tax exemption for workers under the age of 25, and targeted employment programmes. These measures have contributed to improving employment opportunities for young people and encouraging earlier labour market participation (for more information on these programmes, see 3.6).

Youth entrepreneurship

According to the Global Entrepreneurship Monitor study in 2025, young people under 25 may feel insecure about starting a business. The data from 2023 indicated no significant difference in the fear of failure among age groups (it was 37.6% among 18–24-year-olds and about 41% in other age groups). In 2025, 18–24-year-olds had a similar rate in this topic, but for the other age groups, the rate was slightly higher (42-45%). In 2023, they believed as much as the other age groups that they had the appropriate knowledge and skills for starting a new business, but in 2025, there was a significant difference (24.7% for 18–24-year-olds and about 40% for 35–54-year-olds).

The current trend of more and more young people working in start-ups and the growing visibility offer the opportunity for attitudes and motivation to change in the long term. According to the most recent youth research from 2020, 19% of 15–29-year-olds consider becoming an entrepreneur in a few years.

Main concepts

The term 'youth' may refer to various age groups, depending on the context and the data examined. The National Youth Strategy 2009–2024 (NYS) analysed the 15–29 age group based on the youth research but in its indicators, it refers to the activity rate of the 15–34 age group. The HCSO in its recent analysis from 2025 refers to the 15–24-year-olds. The National Employment Service (Nemzeti Foglalkoztatási Szolgálat) publishes data on the below 25-year-olds.

Recently, there has been a significant focus on the age group of 15–24, mainly due to the promotion of the Youth Guarantee Programme, which has popularised the acronym NEET. Given the inherent nature of entrepreneurship, which typically demands more experience, the primary audience of the largest non-state organisation, the National Association of Young Entrepreneurs (FIVOSZ) is the 18–40-year-olds.

The indicators related to employment (and independent existence) of youth in the National Youth Strategy 2009–2024 were related to the activity rate of 15–34-year-olds; the number of registered unemployed career starters; the ratio of employees within the group of youth who are not students or pensioners and the period between the date of school leaving and the first day of employment in youth groups with different qualifications. It also mentioned the ratio of 15–29-year-olds living in households independent of their parents to those who aspire to live independently and the ratio of young entrepreneurs to all young people who are not students or pensioners.  As of 2025, the new comprehensive national youth strategy is under discussion, and youth-related policy objectives continue to be addressed through sector-specific programmes and broader employment, education, and social policy measures.