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The labor market in Hungary, 2000-2025

Author

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  • Bálint Menyhért

Abstract

In the early 2000s, Hungary’s employment rate in the working-age population was below 60%. That is now a distant memory, as labor force participation is among the highest in the EU, unemployment is consistently low, and the purchasing power of wages keeps growing at a high rate. While undoubtedly a success story, it is also a cautionary tale of coerced activation, labor market segmentation, rising inequalities, declining social mobility, and strained employment relations.

Suggested Citation

  • Bálint Menyhért, 2025. "The labor market in Hungary, 2000-2025," IZA World of Labor, Institute of Labor Economics (IZA), pages 519-519, July.
    • Handle: RePEc:iza:izawol:journl:2025:n:519
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    Keywords

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    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor
    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • J8 - Labor and Demographic Economics - - Labor Standards
    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts

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