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Hungary

Hungary

3. Employment & Entrepreneurship

3.2 Administration and governance

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  1. Governance
  2. Cross-sectorial cooperation

Governance

 

Responsibility

Policy making in all fields related to employment is the responsibility of the Ministry of Finance (Pénzügyminisztérium) [between 2010 and 2018 Ministry for National Economy (Nemzetgazdasági Minisztérium)] and the Ministry for Innovation and Technology (Innovációs és Technológiai Minisztérium).

Employment policy belongs to the State Secretary of Employment Policy (Foglalkoztatáspolitikáért Felelős Államtitkárság) at the Ministry for Innovation and Technology. For entrepreneurship policy State Secretary for Economic Strategy and Regulation (Gazdaságstratégiáért és Szabályozásért Felelős Államtitkárság) at the Ministry for Innovation and Technology is responsible. At horizontal level, youth policy is coordinated by the Prime Minister's Office (Miniszterelnökség).

As set out in Hungary's Youth Guarantee Implementation Plan, labour market and social integration of youth are also the main goals of the Government, requiring the broad cooperation of Minister Responsible for Public Education (Ministry of Human Capacities), and Ministers Responsible for Training, Vocational and Adult Education Policy (Ministry for Innovation and Technology), as well as their background institutions.

The National Employment Service [(Nemzeti Foglalkoztatási Szolgálat (referred hereinafter to as PES)] comprises the 20 Labour Centres of County Government Offices and 170 branch offices (on LAU1/NUTS4 level) under the professional guidance of the Ministry for Innovation and Technology. Labour offices register young job-seekers and may involve them in active labour market programmes offering a wide range of employment policy measures (training, wage subsidy, mobility support, support for entrepreneurship, labour market services, etc.), tailored to the individual needs. The area of vocational training is administered by the National Office of Vocational Education and Training and Adult Learning (Nemzeti Szakképzési és Felnőttképzési Hivatal).

The role of the Board of the Children and Youth Fund

Currently, the main advisory body in the field of youth policy is the Board of the Children and Youth Fund (Gyermek és Ifjúsági Alapprogram Tanácsa). Previously this role belonged to the National Youth Expert Forum and to the Roundtable for Youth. (For more information see sub-chapter 1.4 Youth policy decision-making and 1.5 Cross-sectorial approach with other Ministries)

NGOs actively involved

Beside governmental actors, NGOs are also actively involved in improving the situation of young people. The National Youth Council (Nemzeti Ifjúsági Tanács) was founded in 2012 as an umbrella organisation, with the main task to represent the interests of smaller youth organizations and to influence and shape youth policy.

FIVOSZ – National Association of Young Entrepreneurs (FIVOSZ) is the most significant non-governmental organisation in the field of youth entrepreneurship, 'which is the community and officially acknowledged representative body of young Hungarian entrepreneurs and enterprising young people both in Hungary and in the EU.' Their activities ('Mi a FIVOSZ?') include mentorship, provision of different benefits (through market partners), and advice for its members who pay the annual fee.

Furthermore,

are responsible for informing and recruiting young people, assessing their skills, engaging them in the programme, providing training to the enterprise and assisting in the development of the business plan.

Youth Guarantee (Ifjúsági Garancia)

Introduced in January 2015, the Youth Guarantee [Ifjúsági Garancia (hereinafter referred to as YG)] has become the most significant framework of youth employment. The Youth Guarantee is a complex system aimed at reducing youth unemployment and improving the situation of young people in life through the combination of educational and employment measures. The most important feature of the Hungarian Youth Guarantee Programme is that the PES (the only entry point to and the leading player in the YG system) must make a specific offer to young people who are not in employment or education and are aged under 25 within a specific deadline (6 or 4 months) for employment, work experience or studies.

Until 2020, in total HUF 200 billion (about EUR 6 396 million) is available to finance the guarantee programme, funded primarily from the support granted to Hungary within the framework of the Youth Employment Initiative, partly from the European Social Fund and the related national budget resources. According to the plans, by using those resources, at least 180 000 young people can receive assistance in finding jobs or obtaining worthy market knowledge. The Ministry of Finance is responsible for the coordination of the applications.

In 2020, all EU countries have committed to the implementation of the so-called 'reinforced' Youth Guarantee. That means that the target group was broaden to 29 year-olds. The programme provides personalised assistance, services, traineeships, job opportunities, training, support for entrepreneurship and support for mobility and housing.

Cross-sectorial cooperation

 

The two most relevant governmental bodies dealing with youth employment are the Ministry of Finance and the Ministry of Human Capacities. The latter coordinates responsibilities addressed in the National Youth Strategy 2009-2024 (Nemzeti Ifjúsági Stratégia 2009-2024) and its action plans whereas the former is responsible for all actions relating to improving the employability of young people, including the coordination of the Youth Guarantee.

The most important field of cooperation between the two ministries is the Youth Guarantee. The Ministry of Finance coordinates the YG system and its main programmes, whereas the Elisabeth Youth Fund (Erzsébet Ifjúsági Alap) carries out supporting actions, such as outreach activities in the form of a promotional campaign. The YG's official website (Ifjúsági Garancia Program) is operated by the Ministry of Finance.