Economy & Policy

As the Hungarian economy grew, so did the Hungarian labor market

Hungary has the highest growth rate among large economies in Europe.

Minister of Innovation and Technology László Palkovics said that in the second year of the crisis, the Hungarian economy grew by 7.1% in 2021, the highest growth rate among large economies in Europe. 

This shows that the Hungarian economy was “in good shape before,” growing by almost 5 percent in 2019. Meanwhile, Hungarian employment grew at the fastest pace in the European Union during and after the epidemic, he added.

One million more people were working in June 2021 than 10 years ago, Palkovics said. He added that the employment rate is 73 percent, with 80 percent close to full employment. He said the investment rate in Hungary was 29 percent last year, 7 percentage points higher than the EU average.

The crisis has reorganized the labor market, with an increase in the number of people employed in research, technical development and computer programming, he said. The number of people working in innovation and research and development has doubled since 2010 to 60,000, Palkovics added, stressing that this is the biggest increase in this field in the European Union.

He pointed out that the length of motorways built in the country over the last 10 years is outstanding in Europe and will continue to grow. He added that the current phase of the HUF 3.6 trillion road development program will end in 2024. The next phase will start this year, running partly in parallel with the current one, and will be at least as large as the current one. He noted that HUF 6 trillion will be spent on railway development over the next six years, of which HUF 4 trillion will be spent on modernizing track and infrastructure and HUF 2 trillion on improving passenger transport.

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