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6. Unemployment in Baranya County

6.1. The Present State of Unemployment

The number of the registered unemployed and main features of vacant/registered jobs

6.2. The Structure of Free Manpower According to Age and Education

The age-structure of the population is basically favourable. The rate of the 15-39 age group is higher than the national average, while that of those over 60 is lower. Both the country's demographic data and the national tendencies indubitably indicate the ageing of the population. The rate of minors was 20 % in 1990, which decreased by 2 % to 1995. The proportion of young adults has increased.

The fact that the number of pensioners living in this county has increased by 11 % since 1990 can be explained by the ageing process and the increasing number of disability pensioners. The degree of population decrease is around the national average and is primarily characteristic of settlements with a small population. The economic activity of the population is high, the rate of active wage-earners was 49.5 % in 2001.

The most important data of the registered unemployed, April 2002

The distribution of unemployed first job seekers by labour office locations

6.3. The Reason and Mechanism of Unemployment

The heavy industry character of the county was based on mining, coal processing, electric power industry, gas production, and construction material industry. Between 1950-60 Baranya was considered one of the most industrialised counties in Hungary. In the middle of the 1970s, structural changes began in the economy. In the past two decades the number of people employed in agriculture has decreased considerably. Since 1980 the industry has declined, while the third sector has constantly developed. Mining gradually decreased while the importance of the processing industry has increased; today this is the dominant industry in the county.

Two thirds of the processing industry is based on enterprises, and its modernising power lies in that 86 % of the county's relatively low export potential is produced by this industry. The export capacity of the county is low, the rate of export in the industry (below 10 %) is the lowest in Hungary. Besides the low export figures the intensity of economic connections between Baranya county and Central Europe is not good. Export targeted on this region does not even meet half the South-Transdanubian average.

61.7 % of the land is cultivated. The average of cultivated lands is above the national average in certain areas of the county, which is due to the well-developed agricultural technology and farming.

The historic vineyards of the Mecsek and Villány regions count among the most important quality wine producing areas of the country.

The tourist trade is one of the most dynamically developing branches of the third sector. Tourism in Baranya county plays an important role because of the abundant natural, cultural and historical features. Pécs, Orfű and Harkány have most of the attractions. The Mecsek-Villány region is an important holiday resort.

In 2001,  the number of registered guests reached 275 000. The county has adequate accommodation capacity.

The Baranya County Job Centre handles unemployment through its local offices in bigger towns. These local centres attend to the clients (the unemployed), receive job offers, register unemployed people (being registered is the prerequisite of getting unemployment benefit), pass on job offers and organise 'job-clubs' (job-seekers club, training or retraining clubs). The county job centres also handle the Decentralised Employment Fund, which invite tenders for the employment of unemployed people.

An employer creating jobs for unemployed people can receive state subsidy reaching 50-100% of the wage of the new employed, for a maximum of 12 month period.

The rules of reducing personnel

An employer who has at least thirty employees wishing to reduce its staff within half a year by at least 25 % or by fifty members as compared to the average statistical staff number of the month preceding this decision, must inform the affected competent local job centre (centres) and the workers' council of the employer about this decision and its reasons. If there is no workers' council the proper corporate association operating at the employer must be notified. This must be done three months before the actual notice is handed out.

The employer must inform continuously, but no later than the due date of filling a position, the competent job centre about its demand of manpower and the termination of employment in accordance with the regulations of the National Employment Agency.

Besides the well-defined regulations, the employer must inform 30 days in advance the affected employees, and the competent job centres about any decisions concerning the reduction of personnel which involve at least ten people within 30 days. The employer must also announce not only the names of the employees to be made redundant, but their last positions, qualifications, average wages, and if demanded by the job centres all information that can facilitate the re-employment of the employee.

An employer may be exempted from the restrictions of notice if the employees to be made redundant were retrained to professions designated by the job centre.

The distribution of lay-off by the national economic sectors

6.4. The Social Effects of Unemployment Problems

In the past years the population of Baranya county went through significant changes in its social situation. More and more people have been affected by the process of impoverishment, and significant numbers of the population got close to poverty level. Especially the previously disadvantaged groups lag behind (large families with many children, pensioners with low pensions, Gypsy people, handicapped people, unskilled workers) because they have very few opportunities. The social problems are concentrated in specific areas and types of settlements. In the past years the number of people receiving benefits from the local governments has increased significantly in Baranya county. The gradual impoverishment of the population is well shown in the amount of debt that the inhabitants owe to public corporations.

Allowances

Unemployed people are entitled to receive unemployment benefit, pre-pension, first job seekers unemployment benefit, and compensation of expenses as provision.

Unemployment benefit

Unemployment benefit can be given to a person who is unemployed and is not entitled to old-age pension, disability pension or invalidity pension, who would like to get a job, but was not offered a suitable one by the competent job centre, and who is willing to cooperate with the job centre in order to find employment.

Cooperation with the job centre means that the given person reports at the job centre, gets himself registered, keeps regular contact with the centre. He considers the job offered to him and plays an active part in trying to find a job. He accepts the job that he has found or the one that has been offered to him by the job centre, or the possibility of training/retraining.

The amount of unemployment benefit

The amount of unemployment benefit must be calculated on the basis of the average wages in the four quarter years preceding his becoming unemployed.

If the unemployed person's average wage cannot be stated during the given period of time, then the amount of unemployment benefit must be calculated on the basis of the national average for his last position before his dismissal, or that of a similar position.

The amount of unemployment benefit is is 65 % of the benefit basis, or 90-180% (19 620 - 39 240 HUF) of the actual old-age pension (21 800 HUF in 2003).

The duration of receiving unemployment allowance depends on the number of actual working time within four years preceding dismissal (5 working days equal one allowance-day), and can reach a 270 (365) days maximum .

If the unemployed received redundancy money at the time of dismissal from his last position in accordance with the provisions, collective contract or work contract - in case he was made redundant after 10th January, 1992 by the employer or because the employer ceased to exist without legal successor - he is entitled to get unemployment benefit only after the elapse of as many months as the redundancy money was paid for. This period starting on the day of registration should be considered as if the unemployed person had received unemployment benefit.

One period during which the individual paid social charges will entitle him to unemployment benefit only once.

The refund of expenses

The job centre refunds the unemployed person (including first job seekers) for expenses which occur in connection with looking for a job (including travel expenses to and from the job centre), and reasonable expenses of using public transport.

Unemployment benefit of first job seekers

People are entitled to first job seeker's unemployment benefit, if they have obtained a degree or certificate in the following sorts of institutions no more than one and a half years earlier:

• secondary or higher education as a full time student
• evening or correspondent student in higher education
• in secondary school for workers

Also entitled are those who obtained first qualification in a training not given by the regular school system within a year and a half and are not entitled to unemployment benefit, want to get a job, but the job centre is not able to offer them a suitable one within three months, and they are willing to cooperate with the job centre in order to find employment.

A position is considered suitable if it corresponds to the qualification of the job seeker has or in case of secondary school graduates falls in line with the training offered by the job centre.