20. LABOUR
Contents
Labour market participation (Economic activity, employment, unemployment)
Contents: information on economic activity, employment, unemployment by main demographic criteria and labour market attachment characteristics.
Scope: Population aged 15&ndah;74 living in private households in Hungary.
Definitions
- Employed persons are those who, in the week preceding the week of the survey (the so-called reference week), worked at least 1 hour for pay or profit or had a job but were temporarily absent from work (e.g. due to sickness, holidays, including maternity leave and long-term absence for childcare). Persons who are permanently absent for childcare purposes are considered to be employed only if they were working before claiming the benefit, received a cash benefit during the period of absence and are allowed to return to their previous job after receiving the benefit.
- Employment rate: the ratio of employed persons to the population of corresponding age.
- Unemployed persons: are those who have not worked in the reference week, do not have a job from which they were temporarily or (in the case of recipients of child care benefit) permanently absent, have been actively looking for work during the four weeks preceding the interview and could be in work within two weeks if they could find a suitable job. Those who found a job and start working there within 90 days are only considered to be unemployed if they could start work within two weeks, following the reference week.
- Unemployment rate: the ratio of unemployed persons to the economically active population of the corresponding age.
- Economically active persons: are those employed and unemployed persons who are present in the labour market.
- Activity rate: the ratio of economically active persons (employed and unemployed) to the population of corresponding age.
- Economically inactive persons: are those who cannot be classified either as employed or unemployed. This includes, for example, non-working students, pensioners, housewives, seasonal workers (out of season, if absent for more than three months) if they have not looked for work or could not start work within two weeks.
- Potential labour reserve: the unemployed, the underemployed and the inactive who want to work but are not actively looking for work or do not meet the availability criteria together make up the so-called potential labour reserve. The availability criterion is not met if someone cannot start work within two weeks, even if they find a suitable job.
- Passive unemployed: economically inactive persons who would like to work and could be in work within two weeks if they could find a suitable job, but who are not looking for work because they see no prospect of finding employment.
- Teleworker: an employee who works regularly or occasionally at a place other than his/her place of work (from 2023, at home), using IT and telecommunications equipment. This includes people working in the so-called home office. Teleworking is considered to be done regularly if the respondent has spent at least half of his/her working time teleworking in the previous four weeks. If the time spent teleworking is less than fifty percent of the time spent at work, but it has occurred in the previous four weeks, it is considered as 'occasional'.
Data production methodology
The source of the data is the Labour Force Survey (register number 1539) carried out by the HCSO and introduced in 1992. The survey provides information on the demographic, educational and labour market characteristics of persons living in private households. The aim of the data collection is to monitor employment and unemployment trends in line with international statistical recommendations, independently of the prevailing labour regulations and their changes, using International Labour Organisation (ILO) concepts.
The Hungarian Labour Force Survey classifies the surveyed population as employed, unemployed or inactive on the basis of their actual activity during a defined period (the week preceding the week of the survey, counting the week from Monday to Sunday), regardless of whether they receive any benefits or are engaged in any other activity (studying, retired, etc.).
The Labour Force Survey is based on a multi-stage stratified probability sample design. In case of larger, "self-representing" settlements the primary sampling units are dwellings. For smaller settlements, however, the first sampling stage is the selection of the settlement. The number of addresses selected for the sample was 24 thousand per quarter until 1997, and from 1998 onwards it has been around 36 thousand per quarter. The data collection is continuous and the quarterly sample is a composite of three independent monthly subsamples. Data grossing up is based on the population (living in private households) of the observed period, estimated in advance using a mathematical model. The number of each population group is calculated by multiplying the sample values of the different strata with the proper weight and summing them up.
The error calculation of the labour force survey sample is performed using the linear jackknife method. The look-up tables show sampling errors at 95% confidence-level regarding the year 2023.
Rounding of the data was made electronically – without any correction – therefore the sum of the part figures does not always equal to the rounded value of the total.
Due to the specificity of the survey (the quarterly sample consists of three, independent monthly sub-sample), detailed results are available with a quarterly or three-monthly moving average frequency.
The main aggregate monthly data on labour market participation (number of employed persons, number of unemployed persons, unemployment rate) are determined by model estimation using administrative data from the National Tax and Customs Office and the National Employment Service (NES). Data from the model estimation are reported in the publications. The three-month average of the data published as the results of the model estimation may differ from the three-month rolling data from the data collection.
The Labour Force Survey seasonally adjusted data are produced using the TRAMO/SEAT method with the JDemetra+ software. Working day, leap year and Easter effects are not included in the models.
Comparability over time
- Break in time series due to grossing up: Data from 2018 onwards are based on the 2022 Census. Grossing up for data between 2006–2017 was based on the 2011 Census, for data between 1998-2005 on the 2001 Census and between 1992-1997 was based on the 1990 Census. Due to the grossing up, there is a break in the time series in 2018, 2006 and 1998.
- Break in time series due to methodological change: As a result of the new EU rules that entered into force from January 2021, in addition to those who are working while receiving childcare allowance, those who were previously regarded as inactive or unemployed are also considered employed if they last worked before receiving childcare allowance, receive cash benefits during their absence and can return to their previous job after receiving the benefit. The time series have been revised back to 2009, so the data for the period 1992-2008 and for the period 2009 and beyond are not directly comparable.
- Break in time series due to ISCO-change: From 1st January 2011 data have been published only on the basis of ISCO-08. Until 2010, the classification of occupations was done on the basis of ISCO-93.
- Break in time series due to NACE-change: The economic activity of employers between 1998–2008 is classified according to NACE Rev.1., until 2008 is classified according to NACE Rev.2. For 2008, data are available for both nomenclatures.
- Break in time series due to changes in the measurement of telework: from January 2023, the way of asking about teleworking has changed, so data are of limited comparability with previous periods. From 2023, only those who have worked regularly or occasionally at home in the past 4 weeks are asked whether they teleworked.
- The survey was conducted by paper questionnaire until Q1 2012. From then on, there was a steady shift to mobile device (laptop) censuses, and from November 2012 onwards, the census will be conducted exclusively in this way.
- In 2020, due to the coronavirus pandemic the previously in person interviews have been largely replaced by telephone interviews, and the methodology prevalent from January 2021 made the introduction of a new EU harmonized model questionnaire necessary. Due to the change of the mode and tool (questionnaire) of interviewing, the non-sampling error is higher compared to the previous period.
Institutional labour data collection system
This domain covers statistics on earnings (monthly, quarterly, annual structural data on earnings), vacancies, labour costs and strikes. They have in common that they are based on employer-reported surveys and use the same conceptual framework.
Monthly earnings and employment statistics
Content: from 2019 onwards, average gross and net earnings, median earnings, earnings distribution, real earnings, headcount data by main characteristics of job, employee and employer.
Scope: enterprises registered and operating in Hungary: enterprises with employed persons, non-profit institutions and budgetary institutions in full; before 2019, enterprises with at least five employees, all budgetary institutions and non-profit institutions relevant for employment.
Definitions
- Employees: are members of staff who have a legally binding relationship with their employers based on a working contract, regulating that they work at least 60 hours per month for financial compensation.
- Statistical staff number of employees: is the total of all employees with the exception of those permanently on leave for defined purposes (e.g. maternity leave, child-care provisions, sick-leave longer than 1 month, unpaid leave etc.).
- Earnings: remuneration that is direct compensation for work performed under an employment relationship: the sum of the basic salary and other elements of earnings (wage supplement, additional salary, premium, bonus, 13th and additional monthly salary).
- Gross earnings: earnings including personal income tax, social security contributions (before July 2020: health insurance contributions, pension contributions and labour market contributions).
- Net earnings (excluding tax benefits): figure calculated from gross earnings at the general rates applicable to the employee, i.e. social security contributions (before July 2020: labour market contributions, health insurance contributions and pension contributions) and personal income tax deducted. The impact of tax reductions and exemptions from taxes and contributions are not taken into account in the calculation.
- Net earnings (including tax benefits): figure calculated by deducting from gross earnings the actual public charges borne by the employee, i.e. social security contributions (before July 2020: labour market contributions, health insurance contributions and pension contributions) and personal income tax contributions. The impact of tax reliefs and exemptions from taxes and contributions is taken into account in the calculation.
- Regular earnings: the difference between (total) earnings and the so-called non-regular elements of earnings (premiums, bonuses, 13th and additional monthly salary).
- Average earnings: the sum of earnings per basic headcount group divided by the average number of headcount for that group. Unless otherwise stated, the data reported are monthly (also for cumulative periods) and refer to full-time employees.
- Average earnings index: traditionally, the HCSO publishes the main average index as an indicator of the change in average earnings, which expresses the percentage change compared to the same period of the previous year. The average earnings change index thus reflects the combined effect of the shift in the employment rate between the two periods and the actual change in earnings.
- Real earnings index: the ratio of the net earnings index to the consumer price index. Unless otherwise stated, the data reported refer to full-time employees.
- Median earnings: are the middle value that divides a population into two equal groups, half having an income above that amount, and half having an income below that amount in a given staff group. Unless otherwise noted, the data reported are monthly (even in the case of cumulative periods) and refer to full-time employees. (The data are available in the monthly earnings statistics from 2019 onwards. Before 2019, the source of data is the NES Individual Wages and Earnings data collection.)
- Gross earnings in full time equivalent: is calculated by dividing the sum of earnings of full time and part time employees (including those working less than 60 hours/month) by the total of average staff number of employees. Earnings of part-time workers are converted into full-time equivalents on the basis of the weekly working hours recorded in the employment agreement in the monthly earnings statistics.
- Earnings gap between men and women: (Domestic method of calculation): the difference between the average monthly gross earnings of men and women divided by the average monthly gross earnings of men.
Data production methodology
From 2019 onwards, the data production is based on administrative data, the source of which is the '08 contribution return received from the National Tax and Customs Office and the registration data of the Hungarian State Treasury on budgetary organisations using the Centralised Payroll System. Data production is done by categorising and filtering administrative data according to statistical definitions.
Non-regular earnings data are produced by model-based estimation on a monthly basis (except for budgetary organisations using the Centralised Payroll System, for which the relevant information is provided by the Hungarian State Treasury).
Between 1999 and 2019, the source of the data was the direct data collection among the employers designated by the HCSO (Monthly Labour Report, before 2013 the Integrated Economic Statistics Data Collection) and the registers of the Hungarian State Treasury. The reporting population consisted of non-profit organisations relevant for employment, budgetary bodies not using the Centralised Payroll System and enterprises with at least 50 employees. Enterprises with 5-49 employees were observed by sampling. Data on budgetary organisations using the Centralised Payroll System were provided by the Hungarian State Treasury.
The regional breakdown of labour data (unless otherwise noted) is classified according to the employer's head office. Data by place of residence of employees are based on the employees' declared address available from other administrative sources, from 2019.
Comparability over time
- From 2019, the source of the data (administrative data replaced direct data collection) and the scope of the published data have changed (we have moved to reporting on the full range of employers), so data comparability is limited (data on enterprises with at least five employees, all public institutions and non-profit organisations relevant for employment are available in the Information database, in the Stadat archive for the period after 2019).
- In 2018, a methodological correction was made, resulting in a significant break in the value sum data (number of employees, earnings) published from January 2018 (marked with a line in the tables). The change does not fundamentally limit the comparability of the published specific indicators (e.g. average earnings). For the publication of the index indicators expressing the percentage change compared to the same period of the previous year, from January 2018 onwards we use an estimate that removes the impact of the methodological change outlined above, and therefore the published indices may differ from the values calculated from the previously published data.
Quarterly supplementary earnings data
Content: from 2019 onwards, gross earnings, hours worked, detailed regular/non-regular earnings data, number of workers on loan from a temporary employment agency by employer-defined characteristics. Before 2019, this information was available on a monthly basis.
Scope: enterprises with at least five employees, all budgetary institutions and non-profit organisations relevant for employment.
Definitions
- Labour income (employment-related income): includes other labour incomes in addition to the earnings elements. Other labour income is defined as benefits provided in addition to earnings to compensate for work. This includes cash and in-kind benefits, which are considered as labour income according to international recommendations. Examples include housing allowances, meal allowances, commuting allowances, reimbursement of the cost of a company car provided exclusively for private use, jubilee bonuses, non-cash prizes, etc. Labour income is the content of the wages and salaries indicator according to European statistical concepts.
- Hours actually worked: all hours actually worked, including overtime and all hours of absence from work which are accounted for, i.e. hours during which the employee was not at work due to lack of materials, energy, machinery breakdown, etc.
Methodology for data production
The source of the data is the direct data collection among employers designated by the HCSO (Quarterly Labour Report from 2019, Monthly Labour Report between 2013 and 2019, Monthly Integrated Economic Statistics between 1999 and 2012) and the registers of the Hungarian State Treasury. The reporting population includes all non-profit organisations relevant for employment, budgetary bodies not using the Centralised Payroll System and enterprises with at least 50 employees. Enterprises with 5-49 employees are observed by sampling. Data on budgetary organisations using the Centralised Payroll System were provided by the Hungarian State Treasury.
The regional breakdown of labour data is classified according to the employer's head office.
Comparability over time
- In 2018, a methodological correction was made, resulting in a significant break in the value sum data published from January 2018 (labour income, hours worked). The change does not fundamentally limit the comparability of published specific indicators (e.g. average labour income). For the publication of index indicators expressing the percentage change compared to the same period of the previous year, from January 2018 onwards an estimate is used to remove the impact of the methodological change outlined above, and therefore the published indices may differ from the values calculated from previously published data. Data are available on a quarterly basis from 2019 onwards and on a monthly basis before 2019. The methodology for data collection and production has not changed in other respects.
Annual structure of earnings data
The Individual Wages and Earnings Survey has been in existence since 1994, with the same content since 2002, and in addition to meeting the needs of domestic users, it also serves the data requirements of the Structure of Earnings Survey (SES), which is mandatory for Eurostat and harmonised at the European Union level.
Content: basic salary according to the employment agreement, other elements of earnings and their distribution, according to the job and the employer's specific characteristics.
Scope: enterprises employing at least five persons, all budgetary institutions and non-profit organisations relevant for employment.
Definitions
- Gross basic monthly wage: the basic wage (hourly wage, monthly wage) laid down in the contract of the employee in his/her grade in October of the reference year. In each budgetary promotion system, the basic wage is the basic salary or the sum of the basic salary and the compulsory salary increments and/or the compulsory salary supplement. In the case of performance pay, the basic salary may also be fixed for the performance of specific work.
- Gross shift, overtime and other allowances: wages and salaries for paid working time in October of the reference year to compensate for special working conditions, special qualifications, job requirements (specific working conditions) and abnormal working hours.
- Hourly earnings: the gross earnings excluding non-regular earnings components (bonus, premium, 13th and additional monthly payments) in October of the reference year divided by the number of hours paid.
- Paid hours worked: the sum of the number of hours worked and the number of hours of paid absence (holidays, public holidays and feast days).
- Earnings gap between men and women: (Eurostat calculation method): the difference between men's and women's hourly earnings in October of the reference year divided by men's hourly earnings in organisations with ten or more employees in branches B–S.
Data production methodology
The source of the data is the direct data collection among employers designated by the HCSO (register number from 2019: 1405) and the registers of the Hungarian State Treasury (register number: 1668). The reporting population includes non-profit organisations relevant for employment, budgetary bodies not using the Centralised Payroll System and all enterprises with at least 50 employees. Enterprises with 5-49 employees are observed by sampling. The data for budgetary organisations using the Centralised Payroll System are provided by the Hungarian State Treasury.
Comparability over time
- 1994–2002: data collection was carried out by the National Employment Service (NES) with a narrower data coverage than at present.
- 2002–2018: the data collection was carried out by the National Employment Service, harmonised with Eurostat's specifications for the Structure of Earnings Survey. Due to methodological changes, data are only comparable with the previous period to a limited extent.
- From 2019: the data collection is carried out by the HCSO, harmonised with Eurostat's specifications for the Structure of Earnings Survey. Due to the methodological changes affecting some indicators and processing, data are only comparable with previous years to a limited extent.
Job vacancy data
Content: number of vacancies, vacancy rate, number of vacancies filled by main occupational group (FEOR-08) and by employer's defined characteristics.
Scope: enterprises employing at least five persons, all budgetary institutions and non-profit organisations relevant for employment.
Definitions:
- Number of job vacancies: Job vacancy is defined as a newly created, unoccupied post or a post about to become vacant within 3 months for which the employer is taking active steps to fill in by an employee with a labour contract (e.g. advertisement, call for tender, contacting the National Employment Service or private recruitment offices, colleagues, friends, acquaintances, etc.). Posts to be filled by temping jobs, ad-hoc or business contracts, the internal transfer of existing employees, unpaid apprentices on compulsory training are not considered job vacancies. Posts of people in legal employment relationship with the employer but on long-term leave (maternity leave, military service, sick leave or unpaid leave longer than one month) are not considered job vacancies.
- Job vacancy rate: number of job vacancies as a percentage of all jobs (closing number of occupied jobs of persons employed+ job vacancies)
Methodology for data production
The source of the data is direct data collection among employers designated by the HCSO (Quarterly Labour Report from 2019). The reporting population is non-profit organisations relevant for employment, budgetary bodies not using the Centralised Payroll System and enterprises with 50 or more employees. Enterprises with 5–49 employees are observed by sampling. Data on budgetary organisations using the Centralised Payroll System were provided by the Hungarian State Treasury.
Comparability over time
- From 2019 onwards, the source for calculating the vacancy rate for the number of posts occupied by participants in the organisation's activities at the end of the day is the so-called contribution return received from the National Tax and Customs Administration, which limits the comparability of the vacancy rate with the previous year.
Labour cost data
Content: all costs related to the use of live labour, the broadest range of remuneration that directly or indirectly affects the employee, including labour income, social costs, training and other cost elements broken down by the main characteristics of the employer.
Scope: enterprises with at least five employees, all budgetary institutions and non-profit organisations relevant for employment.
Definitions:
- Labour costs: all costs related to the use of live labour, the broadest category of remuneration that directly or indirectly affects the employee, including labour income, social costs, training and other cost elements. Employment subsidies reduce labour costs, while employment-related taxes increase labour costs.
- Social costs: the sum of compulsory contributions paid by the employer (e.g. social contribution tax, rehabilitation contribution), contributions paid under collective agreements, sectoral agreements, individual employment contracts, payments (insurance premiums) and social benefits paid directly to the employee, and social contributions paid on behalf of the employee (sick leave pay, severance pay, pay for notice, social assistance, etc.).
- Other labour costs: training and other cost items not included in labour income and social costs, plus taxes on employment and minus subsidies on employment.
- The labour cost per person (hour worked) is the ratio between the sum of the labour cost related to the participants in the organisation's activities and the full-time converted so-called equivalent headcount (hours worked).
Data production methodology:
Quarterly labour cost indices show the change in labour costs per hour worked and its main components compared to the base year. The scope of coverage is enterprises with 5 or more employees, all budgetary organisations and non-profit organisations relevant for employment. The source of the data is the annual labour cost survey, monthly earnings and headcount statistics and the Quarterly Labour Force Survey.
Annual labour costs carried forward: the distribution of labour cost elements across sectors. The coverage of the elements is enterprises with 5 or more employees, all budgetary organisations and non-profit organisations relevant for employment. Source: Annual Labour Cost Survey, monthly earnings and employment statistics and Quarterly Labour Force Survey.
The source of the detailed annual labour cost data is the annual data collection (Labour Cost Survey /record number: 1117/) and the data transfer from the Hungarian State Treasury (record number: 2263/). The scope of coverage is enterprises with at least 50 employees, non-profit organisations and all budgetary institutions. In every 4th year (most recently for 2020), the selected reporting population is extended: all enterprises with 20 or more employees, enterprises with 5–19 employees selected in a representative manner, all budgetary organisations and selected non-profit organisations (significant from an employment point of view). The data of budgetary organisations using the Centralised Payroll System are received from the Hungarian State Treasury.
Comparability over time
- The underlying data of the labour cost index (labour income, sum of working hours) have been subject to a methodological correction in 2018, which has resulted in a break in the value sum data published from January 2018 onwards. The change does not fundamentally limit the comparability of the labour cost index.
Strike data
Includes details of strike events involving at least ten people. Strike statistics monitoring is linked to strike events. According to the ILO definition, a strike is defined as a work stoppage in several organisations over the same labour dispute and at different times, with a time between stoppages of no more than 2 months. The source of the data is the direct data collection carried out by the HCSO (registration number 1119).
Registered jobseekers, unemployment benefit
Registered jobseekers: persons who meet the conditions of entering into employment, are not full-time students or entitled to old-age pension, who do not receive rehabilitation annuity, are not in employment relationship except for odd jobs and neither perform any income producing activity, who co-operate with the national employment service in the interest of getting a job and who are registered there as jobseekers.
Registered career-starter jobseeker: a person who has not yet reached the age of 25, or 30 in the case of higher education graduates, who has the necessary conditions for employment, is registered as a jobseeker by the competent NES branch and has not acquired the right to jobseeker's allowance after completing his/her studies.
Jobseekers' allowance recipients: among registered jobseekers those who met their obligation to pay contribution prior to becoming jobseeker and thus, they are entitled to jobseekers' allowance under the conditions defined in the Employment Act (Act IV/1991). The amendment to the Act on 1 November 2005 also allows the entry of ex-entrepreneurs as of 1 January 2006. On 1 September 2011, the conditions of receiving jobseekers' allowance changed.
Recipients of jobseekers' assistance: among registered jobseekers those who
(a) exhausted their (at least 180 days long) entitlement for jobseekers' allowance,
(b) had minimum 200 days, maximum 364 days employment before their registration and
(c) who have max. 5 years till the retirement age and have exhausted their (at least 140 days long) entitlement for jobseekers' allowance. On 1 September 2011, the above mentioned types (a) and (b) of jobseekers' assistance ceased and the name and conditions of receiving type (c) changed.
Recipients of social benefits: registered jobseekers of active age in a disadvantageous situation on the labour market who are provided social benefits in cash to complete or substitute their income. From 1 January 2009 the beneficiaries of regular social assistance were classified into two groups: recipients of regular social assistance and recipients of availability support. From 1 January 2011 availability support gave place to wage replacement allowance, a new form of benefit. From 1 September 2011 the denomination "wage replacement allowance" changed to employment substitution support. (Act III of 1993 on Social Administration and Social Benefits.)
Number of unfilled vacancies: the number of registered vacancies at the National Employment Service at the end of the month.
Methodological source: monthly report "Labour market developments based on the main data of the National Employment Service" (NES, Budapest, 2011).
Source of data: National Employment Service.
Other definitions
Early school-leavers: early school leavers (drop-outs) are defined as 18–24 year olds with no more than primary education and who have not participated in any education or training (formal or non-formal) during the four weeks preceding the interview. The indicator represents the proportion of early school leavers in the corresponding age group (18–24 years) of the population (Source: Labour Force Survey).
Highest educational attainment: the highest level of education attained in regular school education attested by an official certificate or diploma. The levels of education presently used correspond to the levels of education defined in the current ISCED-11 international classification (Source: Labour Force Survey).
Teacher wage index: the ratio between the working time equivalent average gross monthly earnings of teachers in public education and people in occupations requiring the independent use of tertiary education (FEOR 2, graduates) (Source: Monthly statistics on earnings and staff numbers).
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