Men and women in Hungary do not enjoy the same benefits in the workplace. The employment gap in favour of men and the gender pay gap persists, exacerbating gender inequality. To sustain social cohesion and bridge these gaps, Hungary must invest in its human capital.
The latest data reported by the Hungarian Central Statistical Office (KSH) for September shows a 75.2 per cent employment rate and a 4.5 per cent unemployment rate in a total population of 9.6 million.
The employment rate gap in favour of men, which peaked at 11 per cent in March 2021, has significantly decreased and now stands at 6.8 per cent. Meanwhile, the gender pay gap is 15.5 per cent, with the index scoring slower progress throughout the years.
The European Commission forecasts that economic growth will increase from 0.6 per cent in 2024 to 3.1 per cent in 2026. It also projects a slight decline in the unemployment rate due to the economy recovering and labour demand increasing.
Gaps explained
The gender employment gap in Hungary is driven by traditional gender roles, extended parental leave, limited childcare access, and inadequate flexible working options, according to the Organisation for Economic Cooperation and Development (OECD).
While reforms have improved some metrics, mothers with young children rarely return to work early, with only 12.3 per cent employed when their youngest child is aged 0-2, compared to an OECD average of 37.9 per cent.
Hungary offers one of the longest paid parental leave periods in the OECD, allowing mothers up to 160 weeks, but this reinforces traditional caregiving norms. Few fathers take parental leave.
The OECD notes that flexible working arrangements, including part-time work and teleworking, remain limited and unattractive due to low earnings and a lack of enforceable rights.
Importance of education
To narrow the gender employment gap, the OECD suggests Hungary fosters a more gender-balanced approach to caregiving, promotes fathers’ involvement in parental leave, and expands access to affordable, high-quality childcare and flexible work options.
The organisation argues that growth could be made more inclusive by reducing inequalities of opportunities between men and women and between income groups, linking these discrepancies to education quality.
It takes an average of seven generations for children in the lowest-income decile to reach an average income level. Low-income mobility is related to the education system, where students’ achievements are tightly linked to their socio-economic background.
Investing in human capital
A recent research report by the European Foundation for the Improvement of Living and Working Conditions (Eurofound) identifies human capital as the key to reducing economic disparities within the EU, enabling Member States with lower GDP per capita to catch up with wealthier ones.
Human capital has supported economic convergence in the EU, particularly benefiting central and eastern European Member States. However, disparities in how it is utilised make some countries excel in labour market absorption while others face challenges.
If Hungary wants to avoid losing valuable talent, it must adopt policies to attract and retain talent on the condition these policies are tailored to specific groups. The country should aim for brain circulation, where talent flows between regions.
The report mentions the cases of Italy and Belgium as examples of brain drain. Its economic cost emphasises the need for policies promoting talent circulation to offset losses.
Without proactive measures, excessive emigration of skilled individuals could weaken education systems and labour markets, slowing economic convergence. By prioritising human capital creation and circulation, Hungary can sustain its economic and social cohesion.
[Edited By Brian Maguire | Euractiv’s Advocacy Lab ]
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Publish date : 2024-12-04 19:56:00
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