The Hungarian economy is projected to grow in line with the EU average. Whilst the economy is dominated mainly by micro-enterprises, it is primarily large enterprises – particularly foreign-owned ones – that drive economic growth. In 2012, the share of people working in industry was higher than the EU average, and lower for market services and non-market services. The shortage of skilled workers in certain sectors, occupations and regions has hampered economic development, and the government has set an objective to expand vocational training in order to improve skills supply in this regard.
Employment is projected to continue to grow over the period to 2025, but will likely remain below its pre-2008 financial crisis levels. Most employment growth will be in business and other services, with most job opportunities for professionals.
Forecasts predict that Hungary will experience an increase in demand for high- and low-skilled workers over the medium-term future, whilst demand for medium-skilled workers will decrease. Meanwhile, the share of Hungary’s labour force with high level qualifications is projected to increase, and the share of workers with medium, low or no qualifications to decrease.
Hungary’s working-age population (15-64) is projected to slightly decrease in the period to 2025, with labour market participation remaining stable. Looking to the longer-term future, Hungary’s old-age dependency ratio is expected to rise over the coming decades, rising above the EU average by 2060.