Strategic documents concerning current job market situation and documents dealing with Ageing Policy

Hungary’s European Union task is to raise employment to 75% (Central Office of Statistics, Budapest, 2014). Sadly, Hungarian employment rates are low even in a European scale, especially amongst women (55,1%).

The rate rose to 60,9% in the ages between 15-64 (Q1 2014). This originates mostly from communal works and migrants[1].

The number of jobs did not change much in the private sector lately.

The number of workers abroad only rose minimally in 2013 (by 2000) – all of them have a Hungarian address. According to unofficial sources nearly half million left Hungary because of job opportunities.

The number of unemployed was 370 thousand in 2014, the unemployment rate was 8,3%, which is an improvement over the past years. The unemployment rate of young adults is still high (21,4%).

Some Europe 2020 Strategy Hungary  offerings which are country specialized to help the improvement of the Hungarian economy. We highlight the labor-market issues: The employment rate in Hungary is low and the labor-market participation is one of the lowest in the EU. Most of the unemployed are young adults, women (especially mothers) and the elders. [2]

The labor-market, pension system and human resources all influence the elders’ leaving and re-integrating from and to the job-market. The employers – even at application – inspect very closely the age of the applicants. The elder job seekers have lower education and lack modern technical knowledge, and to train them may cost the employers significantly. The information technology widens the generation gap the most.

The Hungarian Parliament decided about the Digital National Improvement Program (1162/2014.(III.25) in march 2014. Within completion the country will possess advanced information technological infrastructure, improving the employment chances of the challenged – elders, young adults, women -. The city of Miskolc won 17000 notebooks in the Digital Community Miskolc competition in 2014. Those machines were given to the ones in need, the elders received a thousand. The members of the program received 20 hours of IT training.

According to the data of the Central Statistics Office (KSH) about the pension system of Hungary, the men retired at 60,4 while women at 58,4 in 2014. The age of retirement now is 62 which is rising to 65 years. 

In order to sustain the Hungarian society every women should give birth to 2.2 children, but this rate barely reaches 1,3 nowadays. The average age increases by 1,96 every 5 years.

The equality of the retirement age was set in during 1998-2009. Both genders have the same age limit of 62.

The „women 40 program” introduced in 2011 allows women who have worked 40 years to retire earlier. The average age of the retired between 2011 and 2013 is 57,6-57,9.

The pension increases are done with the consumer price indexes in mind since 2012.

The retirement age increase from 62 to 65 will end in in 2022. The chance to take pension before the age limit ceased in 1. January 2012. Both actions support the elders’ longer stay in the labor-market thus increasing the employment ratio. [3]

Laws in effect in Hungary, edicts and regulations about elder employment, employment regulations:

Motto: „…. The issues of aging are a challenge to the society as a whole,

and it is a test for all of society”

“The population of Hungary is decreasing, its age composition is changing, aging. The differentiation of the demographic and social situation presents new requirements and needs, to which reactions are needed in the political, economic and social level.”[4]

Hungary uses the age group system of the WHO as follows:

  • ages 60-74 are aging
  • ages 75-89 elders
  • ages 90 very old („eldest”)

People above 45 are called seniors because of the peculiar Hungarian labourforce-market situation.

The creation and completion of the Hungarian National Elder Strategy (2009) was preceded by years of research, workgroup activities and analysis.

II/4 of the Elder Charta says: “the discriminations based on age difference need to be erased in the fields of employment. Work-ability and production efficiency should play a part in employment and not the age of the worker.” [6]

II/5 of the Charta redefines clearly the elders’ employment. „The employment policy should support the elders’ employment through adult education, so that they can remain active members of society”. [7]

The Charta’s III/5 helped to reshape the elders’ views about the economy and society: The activity program should provide modern researches and professional courses about and for the elders. [8]

CXXV Law of Equality, 2003: „… the goal of this program is to prevent discrimination and promote equality in all of society” [9] The governments of settlements are to accept five-year long equality programs, which takes care of the elders activities in the given settlement and promotes active aging and employment (for example: Székesfehérvár: „combatting workforce segregation”, Budapest: helping the detrimental and disadvantageous in the work-market to increase the chances of employment)  – according to the 1st point (31%).

A hundred professionals in 14 workgroups prepared the National Elder Strategy of 2009. One of the 14 thematic groups was the employment workgroup (7)! The author of this document was leading the „Life Long Learning” group (2008-2009).

The Elder Strategy took the European Commission’s document published in march 2002 into account, which states that „the aging politics should consider a whole life-career and social-wide acceptance”. [10]

The Hungarian Elder Strategy (81/2009.(X.2.) Parliament Decree) was made in accordance with the Lisbon Strategy, Statement of Berlin and National Activity Plan of Madrid.

The National Elder Strategy defined long-term goals – up till 2034- which are to be fulfilled by short-term Activity Programs. 

The National Elder Strategy declared its priorities too: „Life-long improvement, striving to achieve happiness, preservation of autonomy and self-realization.” [11]

The National Elder Strategy’s I. Activity Plan (2010-2012) came to life based on the Government Decree of 1087/2010.(IV.9.) as a concrete definition of actual practice.

The I. Activity Plan highlighted the expansion of Life Long Learning, creating its possibilities for the aging population and for elders. The Plan’s 3/6 point says: „Expanding the boundaries of life long learning in order to reduce the information gap and to improve the elders’ knowledge about the internet, … to support the application of economy and society.” [12] 

The Fundamental Law of Hungary was accepted in 2011 states that Hungary provides basic rights to everybody, regardless of race, skin, gender, handicap, language, religion, political view, birth and other forms of discrimination. [13]

The Fundamental Law of Hungary’s XV. (5) states: „Hungary protects the families, children, women, handicapped and elders with special actions.” [14]

The Fundamental Law’s pension edicts:

  • For women the 40 years pension age limit was introduced in 2011. Number of affected: 134.979 people since 2011.
  • Workplace Protection Action_
  • The elders are an important workforce in Hungary. Ages 55 and above are eligible to an affix allowance (100.000 Ft). Number of employees aged 55 and above in 2013: 568 thousand people.
  • The Erzsébet program supports and improves the elders well-being by providing vacational and recreational activities to pensioners.

Hungarian projects, activities, support and applications about aging:

  • In Hungary the National Federation of Workers’ Councils in 2014 began a survey carried out to improve the position of older workers as part of a Swiss-Hungarian project is to increase the employment rate. The project is financed by Swiss contribution. The project will be completed in December 2016, results and conclusion are expected in the first quarter of 2017.
  • The Traditional and wild project: The project is co-financed in the Central Europe Programme by the European Union and Hungary (from 2011).

The project includes knowledge about wild plants, herbs and spices that can be gathered and the whereabouts of their gathering places and the identification of each species. This traditional knowledge had descended from generation to generation, but today this “folk knowledge” is starting to disappear almost entirely. The project involves disadvantaged groups, including the elderly. The project’s future is represented because Central Europe is the main exporter of Western European country processors.

  • The AAL (Active and Assisted Living) – Active and independent living program is a joint initiative of the participating states and the European Commission, whose main objective is the development of innovative information and communication (ICT) -based solutions to improve the quality of life of older people (2016).
  • Q-Ageing: Quality Ageing in an Urban environmentthe project was co-funded in the Central Europe Programme of the European Union and the Republic of Hungary. Implementers: City of Budapest XI. District, Local Government of Újbuda

Q-Ageing  (Quality Ageing in an Urban Environment) project aims to: find effective solutions to the problem of aging in two key areas: (1) improving the quality of public services, aligning it to the needs of the elderly; (2) bringing forth new needs, aligning it to the needs of the elderly.

Sub-objectives: (a) increasing the participation rate of the elderly population in the labor market and social works.

(b): Improving the quality of public services and strengthening its innovative attributes.

(c): The selection and presentation of good examples.

  • Under the project of Senior Capital, organized by IBM Hungary Ltd and Pannon-Work Co. (2013): “job search training support over the age of fifty. The training is free to employees 50 and above with secondary education and/or higher education.

In short about the programs: the typical forms of employment, 50+ employment discounts, basics of communication, practices of conflict management, self-management, CV writing, practical interview tips. The “60+” project currently operates in the Újbuda Senior Center.

  • Jabil Circuit Hungary Ltd: Equal opportunities at work is part of the corporate code of ethics. The company’s basic philosophy is openness, diversity (age, gender, etc.) and social responsibility The recruitment, training, courses always depend on the function of the job, and is not influenced by age, gender, nationality. Currently 15% of workers are older than 45. In the case of aging and older people, they are given mentors if needed- for example: the introduction of new technology.
  • ALCDA-Köfém LtdThe basic philosophy is the recognition and encouragement of diversity, complete suppression of discrimination at all levels of the enterprise. Part-time jobs were created, the telework applications were introduced. They do not examine the candidate’s race, ethnicity, religious affiliation or age – only the applicant’s qualifications and medical requirements.
  • Gábor Dénes College: Commitment to equal opportunity and diversity is an integral part of the institution.

When hiring new staff, collective knowledge transfer / knowledge provider / renewal competence development trainings are organized. The institution prefers the employment of disadvantaged people on the labor market. in especially the 50+ ages are amongst their target audiences. The 50 and above are offered an atypical employment (part-time work, flexible starts, teleworking). The senior employees’ mental and cognitive productivity is optimized! For the same performance, they receive the same salary! Programs are regularly organized for physical and mental health promotion.

Documents available in English – about aging:

  1.    2013. 04. 22.

http://www.euractiv.com/section/social-europe-jobs/news/eu-in-search-of-retirement-age-formula/

  1.    2013. 04. 01.

https://osha.europa.eu/en/tools-and-publications/publications/articles/promoting-active-ageing-in-the-workplace

  1.    2013. 04. 01.

http://www.eurofound.europa.eu/sites/default/files/ef_files/pubdocs/2005/137/en/1/ef05137en.pdf

[1] Summary of Labor-market 2014. 05. 05. KSH Budapest

[2] Europe 2020 Strategy Hungary Professional political offers 2014.
http://ec.europa.eu/europe2020/europe-2020-in-your-country/magyarorszag/index_hu.htm

http://ec.europa.eu/europe2020/europe-2020-in-your-country/magyarorszag/country-specific-recommendations/index_hu.htm

http://quality-mmt.hu/adat/fajlok/letoltesek/Rendezvenyek/2012rendezv/2012_11_06_08_xxi_magyar_minoseg_het/bemutatok/turoczy.pdf

[3] Social Report Hungary 2014. (ec.europa.eu/social)

[4] Introduction to National Elder Strategy, Budapest 2009.

[5] www.maltai.hu/data/nodes/948/file/1087_2010_i_cselekvesi_terv.doc

http://www.obme.hu/wp-content/uploads/2010/03/02_bevezetes_az_INSba.pdf

[6] National Charta Budapest 2001.

[7] National Charta Budapest 2001.

[8] National Charta Budapest 2001.

[9]CXXV. Law Budapest, 2003

[10] European Commission 2002. Brussels

[11] National Elder Strategy Budapest 2009.

[12] National Elder Strategy’s I. Activity Plan Budapest 2010.

[13] The Fundamental Law of Hungary 2011. Budapest (2011. april 25.)

[14] The Fundamental Law of Hungary 2011. Budapest (2011. april 25.)


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