Labour market training programme to support employment

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Name of the instrument - Local language
Foglalkoztatást elősegítő képzés
Name of the instrument - English translation
Labour market training programme to support employment
Scheme ID
104
Country
Hungary
Reporting year
2020
Type of instrument
Grant for individuals
Sub-type of instrument
Cost-related support
Type of entry
Single instrument
Short description

The instrument provides support to disadvantaged target groups in the labour market to participate in training in order to improve their labour market situation. The training is funded by the National Employment Fund and can be accessed through the National Employment Service. Public co-funding share is not defined by law but in practice amounts to 60%-70% on average. In addition to the course fee, other costs related to the training (e.g. travel cost, wage substituting allowance etc.) if justified, may also be financed from the National Employment Fund to the individuals.

Level of operation
National
Name of a part of the country
Not applicable
Name of the region (for regional instruments)
Not applicable
Name of the sector (for sectoral instruments)
Not applicable
Relevance
Key instrument
Act IV of 1991 on the promotion of employment and unemployment benefits. Ministerial Decree 6/1996. (VII. 16.) issued by the Minister of Labour on financial support promoting employment and on tackling employment crisis situations from the Labour Market Fund
Objective(s) and target(s)
To support training of job-seekers and facilitate employment with the aim "to terminate, manage and dissolve labour tensions and mitigate their negative consequences" (Act IV of 1991); to help jobseekers to return to work, which has both economic (reduce unemployment) and also social purposes (reduce social exclusion).
Year of implementation
1991
Operation/management
Training support is financed from the National Employment Fund. Its income derives from compulsory contributions paid by employers and employees and budgetary support. The National Employment Service implements the support measure, as applicants need to apply for the support to the Employment Department of the local government office.
Eligible group(s)
The measure targets mainly the unemployed and other specific vulnerable groups such as young people not entitled to unemployment benefits, persons receiving social benefits, persons who receive childcare support or permanent support for caring for sick or disabled people, those who receive rehabilitation allowance and those who take part in community employment (public work) scheme.
Education and training eligible
Vocational and general competency development training programs that help employment, eg: - VET programmes (except for ISCED 5B advanced level VET) and foreign language training as part of these - general training preparing participants for entering VET - career orientation and job-search skills training - training preparing participants already having a vocational qualification for obtaining a state-recognised foreign language certificate - training awarding professional driving licenses and foreign language training
Source of financing and collection mechanism
Training support is financed from the National Employment Fund. Its income derives from compulsory contributions paid by employers and employees (e.g. vocational training, health insurance, labour market, social etc. contributions) and budgetary support.
Financing formula and allocation mechanisms
The share of public funding is not regulated; in practice, it is on average around 60-70%; about half of beneficiaries are required to pay 50%, with only a few less than 10%. It depends on the individual's personal social circumstances and the available budget of the employment service. The minimum and maximum amount individuals may receive is not defined (only the maximum amount of support per training programme defined by the type of programme (such as awarding a recognised qualification or not)) and kind of training (theory versus practice). The waiting period after receiving a grant (participating in a training programme) is (minimum) twice as long as the duration of the previous training (except for courses which build on each other (such as one preparing for entry into VET and a VET programme). One individual can, in theory, get more than one grant (participate in more than one training programme) observing the regulation regarding the waiting period. Allocation: Employment Service pays training provider directly, the money is transferred to licensed adult training institutions. Applicants are selected by the government offices by the weighting of various factors: social circumstances, labour market demand for the qualification/skills that could be gained by the training, age, educational attainment. Other costs related to the training (e.g. travel cost, wage substituting allowance etc.) can also be financed from the National Employment Fund.
Eligible costs
In addition to the course fee, other costs related to the training (eg. travel cost, wage substituting allowance etc.) if justified, may also be financed from the National Employment Fund to the individuals.
Volumes of funding
Not available
Beneficiaries/take up
2018: 28 957 persons 2017: 29 060 persons 2016: 23 467 persons The data do not include public works participants simultaneously involved in training (50 124 public works participants in 2015, 29 686 public works participants in 2016, 40 432 public works participants in 2017. These programmes are financed by the ESF).
Organisation responsible for monitoring/evaluation
National Employment Service, Ministry for Innovation and Technology, Ministry of Finance
Monitoring/evaluation reports available
Ministry of Finance (2019) Key figures of beneficiaries of active employment policy measures. National Employment Service https://nfsz.munka.hu/nfsz/document/1/3/3/7/doc_url/A_foglalkoztataspol…
Most relevant webpage - in English
http://en.munka.hu/
Most relevant webpage - local language
https://munka.hu/; https://nfsz.munka.hu/
Recent changes

There has been no significant change since 2016.

Recent changes in response to COVID-19

The Economy Protection Action Plan was issued by the Government in March 2020 to mitigate the negative effects of COVID-19. The budget provides funding for programs, developments, investments, as well as measures related to the promotion of employment through the Economic Protection Fund. An important part of the Economic Protection Fund is the Economic Protection Employment Fund established from the National Employment Fund. (Government Decree 92/2020, 7 April 2020). Until 2020 November some 969 214 Hungarians received labor market or training support, 112 103 registered job seekers benefited from cash benefits. The new job creation program, launched on October 15, focusing on jobseekers under the age of 25 and low-educated workers has helped 1 435 workers find work.

Sources
Ministry of Finance (2019). Key figures of beneficiaries of active employment policy measures. National Employment Service https://nfsz.munka.hu/nfsz/document/1/3/3/7/doc_url/A_foglalkoztataspol…
The Hungarian Labour Market 2019. Institute of Economics, Centre for Economic and Regional Studies, Budapest, 2020 https://www.mtakti.hu/wp-content/uploads/2020/07/LMYB2019_onefile.pdf3. Financing adult learning database https://www.cedefop.europa.eu/en/publications-and-resources/tools/finan…
Webpage of the National Employment Service https://nfsz.munka.hu/
Cedefop-Refernet (2019): Vocational education and training in Europe: Hungary. Cedefop ReferNet VET in Europe reports 2018. https://cumulus.cedefop.europa.eu/files/vetelib/2019/Vocational_Educati…
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