Direct Request (CEACR) - adopted 2016, published 106th ILC session (2017)

Employment Service Convention, 1948 (No. 88) - Hungary (Ratification: 1994)

The Committee notes the observations of the employers’ and workers’ organizations represented at the National ILO Council which were incorporated in the Government’s report.

Articles 1 and 3 of the Convention. Contribution of the employment service to employment promotion. The Government provides in its report detailed information on the structural changes to the Hungarian public administration and, within that, to the public employment service. The restructuring of the entire public administration system was a priority among the public policy plans of the Government. Moreover, the strategy to modernize the public employment service is part of the overall objective to create a new cost-effective system that responds to the needs of fast, up-to-date, customer friendly, single window administration. In addition to a description of changes to the organizational structure of the public employment service, the Government adds that a customer categorization system of jobseekers (jobseeker profiling) and a performance management system are being introduced to increase the effectiveness, targeting and coverage of active labour market programmes. The Committee notes in this regard that, pursuant to Government Decree No. 152/2014 (VI. 6.), the Office of the Minister of State has been designated as the national professional controlling body of the public employment organization. It also notes that an online job portal, known as the Virtual Labour Market, was introduced in 2013. The Committee notes from the report that the number of successful placements by the public employment service increased from 201,907 in 2010 to 659,509 in 2014, while the average number of registered jobseekers declined within the same period. In reply to the previous comments concerning the contribution of the employment service to addressing regional disparities and facilitating the integration of jobseekers in the labour market, the Government indicates that the significant territorial differences in the Hungarian labour market were somewhat reduced over the last few years, partly owing to the territorial concentration of public employment programmes, as most of those programmes are implemented in regions with disadvantaged labour markets. It adds that the distribution of funds and the targeted nature of activation tools are launched in disadvantaged regions in order to improve the opportunities of individuals to find employment. Nonetheless, given the few employment opportunities for participants in public employment programmes in these regions, it is important to support creation of jobs specifically destined for them, particularly in the social economy. The Committee notes in this regard that the best results of the efforts made in this respect have been obtained by the network of social cooperatives established on the basis of public employment. Since 2013, social cooperatives have been established in 106 disadvantaged cities and towns implementing public employment programmes, mainly for agricultural production and food processing. The Committee requests the Government to continue to provide information on the impact and effectiveness of the activities carried out by the employment service, in particular following the reorganization of the public employment service. The Committee also requests the Government to continue to provide information on the number of public employment offices established, the number of employment applications received, the number of vacancies notified and the number of persons placed in employment by these offices.

Articles 4 and 5. Cooperation with employers’ and workers’ representatives. In its previous comments, the Committee invited the Government to provide information on the active cooperation of employers’ and workers’ representatives in the organization and operation of the employment service. The Government indicates that the national interest reconciliation system was reformed in 2011. The National Economic and Social Council (NESC) and the Permanent Consultation Forum (PCF) were established in that same year. The employers’ organizations noted that the structure and operation of the NESC do not comply with the interest reconciliation requirements of the social partners and that the activities of the PCF are dedicated only to employment issues. The workers’ organizations remarked that the NESC is not suitable for performing the tasks required under the Convention. According to the workers’ organizations, the main issues include the fact that the Government does not take part in the activities of the NESC and the discussions held on three occasions a year are not aimed at labour market issues. They also add that the PCF is not an ideal institution for performing tasks defined in the Convention, as its participants only include organizations invited by the Government, but the national representative organizations of employers and workers are absent. In its reply to the observations of the social partners, the Government indicates that the NESC members can exercise their rights and discuss labour market issues within a greater scope of competence than previously held by former members of the National Interest Reconciliation Council (NIRC), the predecessor of the NESC. It adds that, at NESC meetings, the social partners have the opportunity to propose consultation on labour market issues, or to establish a special committee dedicated to that topic. The Committee requests the Government to provide further information on the consultations effectively held with employers’ and workers’ organizations concerning the organization and operation of the employment service and in the development of employment service policy.