June unemployment rate lower than expected

29 Jul 2020

The Central Statistical Office (KSH) confirmed that Hungary’s average jobless rate ending in June was 0.5% point higher than the previous three-month period. 

The figures include unemployment among those aged between 15 and 74 and highlighted that there are 24,000 more people unemployed than in the previous month. 

Currently, there are 214,200 individuals in the mentioned age group that are without a job. 

A state secretary at the innovation and technology ministry affirmed that the government’s measures saved more than 260,000 jobs during the coronavirus pandemic.

However, Member of National Assembly Sándor Bodó stated that only 4.4 million people have jobs in Hungary – down by over 100,000. 

He went on to point out that 200,000 gained from job retentions subsidies, whilst the government helped to create 40,000 jobs. The government helped to offer 20,000 job opportunities in the research and development sector. 

Analysts are uncertain of which way the unemployment will wave as it may improve if the economy starts to recover in the second half of the year. The government’s subsidies are set to expire later this year, which can worsen the current state. 

ING Bank’s chief analyst, Péter Virovácz noted that unemployment levels could reach 7%, but mentioned that the unemployment rate for June is lower than forecast.