According to the latest data from the National Employment Service (NFSZ), the number of registered job seekers in Hungary remains outstandingly low. In the seventh month of the year, 227,341 individuals were registered as job seekers, which is 430,000 fewer than at the beginning of 2010, the Ministry of Economic Development (GFM) emphasised in a statement on Wednesday, 2 August.

State Secretary responsible for employment policy Sándor Czomba highlighted that this is the second-best data in the past three decades. Furthermore, the number of unemployed decreased by an additional 3,000 compared to July of the previous year, which is a significant achievement considering the current challenging economic situation caused by the sanctions policy.

Since 2010, the government has been working towards achieving full employment and building a labour-based economy. Compared to 2010, one million more people are now employed in Hungary, and the number of those employed is steadily approaching 4.8 million.

Czomba added that besides job retention programmes, the government also supports the creation of new jobs and considers it essential to identify and support SMEs that can become suppliers to large multinational companies. The Entrepreneur Start II programme, which started on 1 August, is designed to facilitate the setting up over a thousand new businesses. Since SMEs provide employment for two-thirds of the Hungarian workforce, the programme significantly contributes to job protection and employment expansion.

The Entrepreneur Start II Programme

The aim of the grant is to support the establishment of new individual and micro-enterprises and to prepare entrepreneurs through knowledge and skills development, as well as financial assistance for their initial business costs. The grant has a budget of 4.5 billion HUF.

Any individual between the ages of 18 and 64 who possesses an entrepreneurial mindset and has a marketable idea is eligible for the grant. Grantees are selected on the basis of successful completion of an entrepreneurial basic competency test and their entrepreneurial idea and attitude demonstrated during a personal interview. Eligibility criteria also include not having a majority stake in another business and not holding an executive officer position in another business.

In addition to essential knowledge for starting a business, the grantees will receive non-refundable support. Applicants can request up to 4.5 million forints to cover their initial expenses such as wage-related expenses during the 12-month support period, as well as procurement and services that contribute to enhancing the competitiveness of the business, in a two-thirds to one-third ratio.

Grantees are required to submit three progress reports during the 12 months of the support period. The beneficiaries of the programme also need to commit to actively participating in the operation of their startup for at least two years and to make use of the mentoring services provided by the OFA (Office of Economic Affairs) staff.

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Source: Hungarian Conservative/GFM/MTI