Unemployment in Hungary- The effect of the economic crisis
One of the most serious problems in Hungary is the unemployment. People are trying to find solutions to beat the unemployment but yet those efforts were hopeless, and they are still fighting to create job possibilities for the unemployed people. The economic crisis which occurred all over Europe brought a big change on the whole world. Because of the actual economic crisis the people are getting to lose their existential safety and the subsequent upon this it can occur depression, retreat from the society and violence. The loss of our workplaces, the debts, and the bankruptcy of a company can attack the individual’s identity which causes a lurch of their whole identity. Because of this a psychical crisis can evolve. The men are suffering more of this depression than the women, because it is their task to supply the whole family, in contempt of the fact that this time more women can lose her job than man. It has a big affect on the financial section, and the labour market as well. We can say that this crisis has started in 2007.The unemployment has an affect not just the individuals but their family by an appreciable financial and psyche encumbrance. The rate of unemployment has increased and it is still increasing month by month. Fortunately most of the people can see the light in the end of the tunnel in the year 2010. It seems that we can get out from this chaos which soured our everyday life in this period.
II. The Review of the history of unemployment
In the socialist Hungary the rate of the employed people was complete, but it does not mean that everyone has a job more rather that everyone has a workplace. At that time it was compulsory to have a workplace if somebody could not prove, that person was punished by the state. Because of the world economy and the political procedures, at the end of the 1980’s an economic collapse has occurred in the socialist countries which carried their political system’s breakdown as well. Then the number of the so called “hidden unemployed” has increased, and the labour supply has decreased. The “hidden unemployment” means - straightly not presented in the work statistics. At the end of the 1980’s there was a change in the Hungarian system what we calls “the change of regime”, and we could experience its positive and negative impacts as well. This was the start of the problems in Hungary.
In the beginning of the 1990’s Hungary lost the 1/3 of its export market which caused the moderation of the production and it also cut down the labour market. Because of this the whole labour market was totally changed. After the change of regime between 1989 and 1992 the 30% of the workplaces has ceased, therefore almost 1 million people has lost their jobs. In Hungary the registrated unemployed people number has culminated in the February of 1993.According to authoritative datas the number of the unemployed people were 705032, which means the unemployed rate was 13, 6%.The growth in the unemployment was last until 1995 then from 1996 we could experience a continuous setback.
Fortunately from the end of the 1990’s a dynamic growth has eventuated – the Gross Domestic Product (GDP) risen at an annual rate at about 4% to 5,5%. The employed people’s number started to increase, therefore the number of workplaces increased and the unemployed people’s number with the unemployment rate are decreased. As the table shows from 2000 the number of unemployed people’s rate started to increase constantly. At first, this growth was restrained but by the time it came more and more dynamic. In 2000 Hungary was not really touched by the effects of the slow advance. Its economy was developed forcefully, the national incomes has risen by 5, 2%. It exceeded countless of developed countries’ number. The gross wages has increased by 13, 5% as...