Regional Labour Market Polarisation in Hungary

This study investigates the spatial dimensions of labour market polarization in Hungary by examining the widening gap between developed agglomerations and lagging peripheral regions. It explores how educational inequality, technology-driven risks, and constrained mobility affect the spatial aspects of labour market polarization. It covers all 197 districts of Hungary on the LAU-1 level. Using cluster analysis and OLS regression models, we shall explore relationships between employment rates, educational attainment, automation exposure—as based on occupation-level data—and a composite mobility index. From the data, we detected distinct labour market zones, which are dynamic agglomerations, industrial transition zones, and peripheral lagging. The data confirms that the “triple trap” is clearly experienced by the peripheral regions, with lower educational attainment, high exposure to automation impacting nearly 50%, and mobility constraints keeping the workforce bound to local public works employment. These results provide evidence that labor market polarization is a self-reinforcing spatial process. It implies that successful policy interventions should be comprehensive, addressing the interrelated elements of transport infrastructure, skill development, and regional economic diversification in one stroke to break the vicious circle of immobility.