Description

Timespan

Training for PW participants was first introduced in 2013.

Stage
Fully operational

Foundations

Policy area

Public works is one of the major types of active labour market policy measures.

Policy goal

The policy goal is to lead the unemployed back to the labour market, so that people get work rather than social benefits. Community work means the launching of employment programmes that connect work and practical training, in order to eliminate employment disadvantages, increase the job-seekers’ qualification level, improve their skills, and transmit practical experience. The programme's available in the well-organised public application system, and also facilitate the realisation of local, as well as regional and national objectives with well-considered, planned and checked value-creating employment.

Mismatch
Part of broader programme, yet with explicit focus

Training for Public Works (PW) participants is part of the PW programme and focuses particularly on upskilling those with no skills (beyond primary education). PW is the main instrument for reducing long term unemployment.

Aim of policy instrument

Also functions as a political tool to make the provision of subsidies to unemployed/poor people acceptable to voters.

Administrative level
National
Main responsible body

Ministry of Interior

Stakeholders

Public Employment Services - providing services for the unemployed
Private companies, Local governments, public institutions, civil society organisations - acting as employers of PW participants
National Roma Local Government and local governments including the Roma minority local governments
Training providers - providing trainings for PW participants

Funding

Community work program is financed by the central government budget, while complementary training programmes are financed by EU funds.
Pathways to the labour market: 230 billion HUF (€740 million)
Training for low-skilled and PW participants: 30 billion HUF (€96 million)
We learn again initiative: 20 billion HUF (€62 billion)

Intended beneficiaries

The intended beneficiaries are more than 200,000 people involved in public employment. The community work programme connected with the training may provide useful knowledge for the participants, which may facilitate their future employment and personal development, and thus increase the chance of finding a job in the labour market after completion of the community work programme.

Processes

Use of labour market intelligence

There are different types of training programmes that complement public works measures. The aim of such training programmes is to make transition to employment easier. The Ministry of Inner Affairs supports the choice of funded training types, based on: labour market conditions; jobs in high demand; on labour market forecasts; and on the recommendations coming from the industrial chambers.

Financial schemes

Participants receive a net amount of €160 per month, which is paid in weekly portions.

Frequency of updates

The list of jobs in high demand is updated on an annual basis.

Development

The fact that PWs are complemented by training programmes as of 2013, is already a result of an adjustment, because the large-scale PWs failed to reintegrate participants into the labour market (according to evaluations, less than 8% of the participants managed to find a job on the primary labour market). Within the framework of training measures, no major changes or adjustments have been carried out.

Barriers

Strictly speaking, there were no problems with the implementation. The measure was launched, participants took part in it, they finished the trainings, etc. However, there are important lessons from this initiative too:
1) The most important problem that occurred during the implementation was that the training curriculum was not set at a level that was commensurate with the participants' skills. The training curricula was of a too low level for the target group in many cases.
2) Another crucial problem is that thus far, there is no evaluation that would prove that public works complemented with trainings are effective. However, the combination of the two measures is still a relatively new feature of the Hungarian ALMP portfolio.
3) Due to the large prescribed number of participants, some PES offices were simply unable to fill the places in the programme and have serious challenges finding enough employers to join the programme.
4) There is some evidence that the combination of PW and trainings overburden participants, and therefore they do not have enough time to look for a job.

Success factors

Trainings as a complement to PW themselves are an improvement compared to PW without skills-enhancing measures, which were ineffective in supporting the participants to return to the labour market.

Monitoring

There are no publicly available reports with information on indicators.

Innovativeness
Slightly innovative

The initiative represents a significant improvement compared to the previous state, in which the public works programme proved to be ineffective in supporting the unemployed.

Sustainability

Evidence of effectiveness

On average 223,000 people participated in the programmes in 2016. There is no information about the employment outcome of these people after they left the programme. There were no unexpected benefits or costs.

Engagement of stakeholders

This measure is rather top-down. The ministry stipulates the number of spots in the PW programme each year. The PES has to comply with this target number. Therefore, they have to cooperate with employers in order to be able place the sufficient number of participants in the PW programme.

Transferability
Easily transferable

Public works should be limited in scope and time frame. If complemented by a training programme, it is important that the public works last only for a few hours each day so that participants have sufficient time for the training and for applying for jobs as well. Good quality training providers linked to the PES are essential to implement such measures.

Sustainability

As the PW is such a large-scale programme, the government is unlikely to eliminate it completely from its ALMP mix. Trainings are crucial as complementary measures, as they can ensure that the unemployed have some chance to find a job on the primary job market.

Description

Timespan

2006-2009

Stage
No longer operational

This was a temporary ALMP programme, designed to run for only a few years.

Foundations

Policy area

This is an ALMP programme aimed at upgrading the skills of lowly-educated individuals and adults with obsolete vocational degree wishing to participate in a training programme with a more modern training scope.

Policy goal

The policy goal was to improve the qualification level of the Hungarian adult population through training programmes designed to allow trainees to “take a step forward” relative to their previous levels of qualification and knowledge/skills.
The aim of the program was to bring into employment those people with low school qualifications, or no skills. The program is an example, where approximately 20,000 adults were assisted in completing primary schooling and acquiring a vocational qualification during the program free of charge. The labour centres used every means at their disposal to foster the successful implementation of the program. They took part in the identification of shortage vocations to specify the types of training to be delivered under the program, as well as in the compilation of the training list.

Mismatch
Explicitly designed to address skill mismatch

The main objective of this program was to improve the qualification level of the population. A shortage of vocations were identified by the labour centres, and those shortages specify the types of training to be delivered under the program.

Aim of policy instrument

To upskill adults with low school qualifications.

Administrative level
National
Main responsible body

Public Employment Services Hungary (AFSZ - Allami Foglalkoztatasi Szolgalat)

Stakeholders

Public Employment Services - the gatekeepers for the unemployed to the different service providers, and also provide mentoring services
Training Providers - providing training
Regional Development and Training Committees - specifying the list of vocations in high-demand

Funding

18,500 million HUF (€58 million) was the total budget of the programme, most of which was provided by the European Social Fund.

Intended beneficiaries

The One step ahead programmes offered general or vocational training to participants who had primary education or less, and in exceptional cases, vocation retraining to those with a vocation considered outdated.

Processes

Use of labour market intelligence

Adults with an obsolete vocational degree (defined as those vocations no longer listed by the National Qualifications Registry - OKJ) wishing to upgrade their skills are a core target group of the programme. All participants receive training that provides skills and knowledge relevant under the actual labour market conditions, considering PES vacancy information (in some counties, the so called "bértarifa" survey, which is an annual survey on labour demand by employers).

Financial schemes

Besides training, participants also received cash transfer (the amount of one-month minimum wage after every successful 150 hours of training) during programme participation.

Frequency of updates

The National Qualifications Registry and the Regional Development and Training Committee's list of qualifications in high demand are updated on an annual basis.

Development

There were no adjustments in the design or implementation of the programme.

Barriers

Selection by the PES counsellors and self-selection of the participants were likely to result in lower take-up of the most disadvantaged individuals (within the pool of eligible low skilled jobseekers). In addition, in high seasons of casual work, participants were less likely to take up and complete training programmes.

Success factors

Narrow targeting which ensures that the programme reaches the most disadvantaged individuals (within the total pool of jobseekers).
Factors that could further improve the success of the programme include:
1) Employing strict quality assurance measures and teachers/trainers specialized in adult education.
2) The use of educational materials created specifically for adult learners is crucial.
3) Sensitive scheduling of the trainings is of utmost importance as well. In high seasons of casual work, usually in the summer, potential participants may be less likely to enter and complete training programmes.
4) Resources should be allocated across regions, based on the number of uneducated jobseekers rather than the number of jobseekers, especially if the budget of such ALMPs is reduced in the next programming period.

Monitoring

The evaluation report by Adamecz et al (2013) used outcome indicators such as exit to employment/unemployment, or leaving the unemployment registry. They also assessed the take-up rate of the targeted participant group.

Innovativeness
Very innovative

Besides the training programs, psycho-social support was provided to participants. Mentors were also employed to provide assistance for adults, for example, by providing motivation, social care, psycho-social support, development of learning skills etc.

Sustainability

Evidence of effectiveness

The programme increased the probability that its uneducated participants found a job by 34– 40% points. 57-71% of the participants entered employment at least once during the programme period or within 6 months after completing the programme.
The budget of the programme in per capita terms was 796 thousand HUF per person in the programme. If we consider only those participants who found a job during the programme or within half a year afterwards, per capita costs amount to 1,263 thousand Forints per person This per capita budget would be enough to finance 14-15 months of public works per person, calculated at 2013 nominal prices. Based on the Roma population of the settlements from where there were no programme participants, about 16-17% of the Roma population (a key target group) was completely left out from the programme. As the data suggests, if a programme is bigger in size, it can reach not simply more people, but smaller settlements as well. This is important, because 16% of the Hungarian Roma population live in small villages with less than 1,000 inhabitants. This outcome also suggests that there was some creaming in the programme (i.e. PES staff was less likely to offer participation to the most disadvantaged jobseekers, within the eligible pool). There are no unexpected benefits or costs recorded in the evaluations of the programme.

Engagement of stakeholders

The continuous feedback between the PES staff, the mentors and the training providers would be of utmost importance to ensure the success of this and similar programmes. There is limited evidence on the frequency and way of knowledge sharing among the different actors in this programme.

Transferability
Easily transferable

This programme is easily transferable, however, the availability of i) external training providers, ii) high-quality trainers and training materials for adult learners and iii) skills and abilities of the PES staff to coach/mentor the unemployed are prerequisites to successful implementation.

Sustainability

This programme has been closed already.

Description

Timespan

2004 - present

Stage
Fully operational

Foundations

Policy area

The focus of the reform relies on the cooperation of vocational schools and the content and quality of vocational education.

Policy goal

The policy goals were the following: to reform the contents and structure of vocational training; to develop/introduce a modular training system; and to strengthen the links between education and training and the economy.
A new phase in the modernisation of the VET system began in Hungary in 2006, which concurrently meant renewal of content, methodology and structure. The key concepts of the new training structure are modularisation and competence-based training. Together with this, the content of vocational training has also been updated, and new professional and examination requirements have been developed. The Regional Integrated VET Centres (TISZK) were established from consortiums of 6 to 8 vocational schools in 2006. TISZKs provide a professional learning environment for theory and workshop-based practical classes of IVET. The training workshops are equipped with state-of-the-art technology. TISZKs constitute a network of multi-purpose and multi-functional institutions that meet the needs of youth VET, adult education and further education efficiently and economically; are able to respond to changes in labour market requirements; and stimulate real cooperation and planning among partners contributing to performing tasks.

Mismatch
Part of broad policy measure of which skill mismatch is only a minor part

The explicit goal of the reform was to modernise the vocational education system through addressing the problems of institutional fragmentation, outdated curricula and machinery. Though not explicitly formulated in the policy goals, implicitly the reform naturally addresses the skills mismatches. One of the evaluation reports points out the Regional Development and Training Committee (RFKB)'s inability to adequately create the list of vocations with excess labour market demand in the region. This list forms the basis of school's curricula, therefore the reform process shed light on problems closely related to skills mismatch.

Aim of policy instrument

To match the skills of young people in VET.

Administrative level
National
Main responsible body

National Institute for Vocational and Adult Training

Stakeholders

National Institute for Vocational and Adult Training - design of the measure and lead implementing organisation
Local governments/city or town councils - implementation
Labour Market Fund - funding
Employers’ representatives - design
Regional Development and Training Committees - specifying the list of vocations in high-demand
Schools, training providers, universities - implementation

Funding

The total cost of the TISZK reform approached 16.9 billion HUF (€54 million) over 2004-2008. Since 2008, a further 36.8 billion HUF (€118 million) was made available to participating institutions. The bulk share of the funding was covered from European sources. The budget came from the central budget, mostly from European cohesion funds, both through the Labour Market Fund (Munkaerőpiaci Alap - MPA).

Intended beneficiaries

Individuals receiving vocational training are expected to benefit from this measure through enhanced teaching quality and more effective school functioning.

Processes

Use of labour market intelligence

Courses offered in VET schools are in line with the recommendations of the Regional Development and Training Committees (RFKB), which create an up-to-date list of vocations with excess labour market demand in the regions. This is the mechanism that affects school curricula, based on actual labour market needs. RFKB committees are composed of 28 members. Half of them are delegated by the national employers' and employees' associations, and by the chamber of commerce. The other half of the members are delegated by authorities responsible for the financial management of schools, foundations supporting the development of public schools, public employment offices, higher education institutions, and by the ministry responsible for education.

Financial schemes

The formal beneficiaries of the funding – some of it from the central budget, mostly from European cohesion funds, both through the Labour Market Fund (Munkaerőpiaci Alap - MPA) – are schools themselves. Most of such funds are spent on keeping the schools up to date technologically. Disbursement of funds is, however, conditional not only upon the participation in a TISZK or other form of integration, but on a range of professional criteria as well. These include regular trainings provided to the teaching staff and keeping the courses offered in line with the recommendations of the Regional Development and Training Committee (RFKB, which creates an up-to-date list of vocations with excess labour market demand in the region.

Frequency of updates

The Regional Development and Training Committee (RFKB) creates an up-to-date list of vocations with excess labour market demand in the region on an annual basis.

Development

In the initial pilot phase between 2004 and 2006, no target indicators were set by the implementing institutions. Therefore, initial results of the project are difficult to assess. Target indicators became a core element of the institutions’ bid for funding. These indicators were often set unrealistically at the first phase, but they were renegotiated once the funding was obtained. The changes in 2006 only affect the contents, the indicators were only introduced in 2008.

Barriers

The most important barriers to successful implementation was the set of perverted financial incentives to set up TISZKs:
1) The true motivation of the participating schools: In the context of a falling number of children and attendance, school principals have to worry about their school becoming redundant in the system and their jobs scrapped. In such an environment, coupled with the chronically poor funding and the consequent amortization of school infrastructure, the prospect of millions of forints of state and EU funding, even in the case of smaller schools, created an irresistible imperative to take part in the TISZK reform. This is well reflected in the high number of participating schools, as well as in the special allowances made to institutions that were initially not planned to be involved, but found a way to persuade decision makers to loosen their criteria.
2) Distance between the cooperating schools: Access to EU funding was made conditional on a minimum of 1,500 students attending the participating schools. This caused no difficulties in cities, but in scarcely populated regions, the threshold forced schools very far from each other to formally cooperate. As these regions are typically the ones with the poorest infrastructure, cooperation between such schools remained rather theoretical than actually implemented.
No adjustments were made to tackle these problems.
The adequacy of this instrument is questioned by external evaluations. One of these reports claims that there are inefficiencies, such as the RFKB of Tatabánya (60 kms from Budapest), taking local labour demand only into account, while ignoring commuting prospects to the capital. Another claims that the Committees are effectively dysfunctional and only a fraction of employees are represented if regular meetings do take place at all. Finally, even if such meetings take place, employers have a strong incentive (to keep wages down and have a larger pool to select from in the long run) to overstate their labour demand, which puts an upward bias on estimates of labour demand.

Success factors

Based on the different evaluations, this reform was not very successful. Only a few adjustments were made (e.g. setting target indicators after 2008), which were not enough to make the whole reform's impact positive and sustainable.

Monitoring

As of the end of 2011, there were altogether 86 TISZK-s registered in the country, in which a total of 701 schools were participating. Between the years of 2008 and 2011, the cumulative number of students who received training in the TISZKs reached 343,017. Yet this figure cannot be directly compared to any initial aim, as no quantitative targets were set either during the planning or the implementation phases of the measure. The main indicator was the number of students receiving training.

Innovativeness
Slightly innovative

The measure is innovative in the sense that it attempts to redesign an old system of vocational schools with poor quality and performance in a reasonable way. The reform attempts to establish a more cost-effective and modern VET system from a rather fragmented network of schools with poor infrastructure and outdated curricula.

Sustainability

Evidence of effectiveness

A large-scale development has taken place in the infrastructure of the participating institutions – both in terms of modernisation of machinery and upgrading the knowledge of the teaching staff, which undoubtedly had a positive effect on the quality of the teaching taking place.
Stakeholders and external evaluations agree on the increased quality of education, in the context of the pilot programme. Perceptions of the later phase are more mixed. The teachers often cite that the programme helped students through the inclusion of soft skills into the curriculum, such as communication training or career orientation. Though not taught in all TISZK-s and often abandoned when the funding stopped, these had a very high marginal benefit as skills of this kind had been generally neglected in the Hungarian education system. Thus, based on one of the major objectives of the measure the implementation of the TISZK system can be deemed to be successful.
The impact on former students’ labour market experience could and should have been assessed based on follow up surveys of graduates. Collecting such data was indeed included in the programme. In fact, however, in a high number of cases, personal acquaintances of school principals or dummy organisations enjoying the support of local politicians or political parties in power were subcontracted to carry out such studies. Consequently, the reliability of these studies is low, especially since they were conducted for only a very few years, as no schools spent money on them from 2008 onwards. The instrument achieved, to some extent, the modernisation of the school curricula, machinery, and also addressed the institutional fragmentation of the VET system. However, many studies point out that the money spent on this initiative could have, to some extent, been better used, since the incentives of the reform encouraged even schools who were not part of the target group of the programme to participate. There is almost no evidence on the labour market outcome of students of the VET system prior to and after the reform, which also makes it difficult to assess whether or not the initiative has achieved its targets.
There was an unexpected cost that TISZK-s had practically no chance to meaningfully cooperate with the others, for instance because of the distance between their institutions. Even in cases where this would have been possible, school principals did everything they could to avoid the reduction of the size of their schools, to avoid laying off their colleagues. Such streamlining, however, would have been the very purpose of integration as through this only can costs be expected to shrink.

Engagement of stakeholders

Cooperation already started to develop between institutions that could and could not afford the modern technological content before the 2004 inauguration of the integration measure, mainly by the division of practical and theoretical parts of the courses among each other. During the 2004-2008 pilot period of the programme, such cooperation was institutionalized for the first time, and then from 2008 the whole of the state-run vocational training system in Hungary was transformed along this idea. This meant that by 2011 virtually all young people in vocational education study in a TISZK, i.e. the integration has affected the whole of this group with no further targeting within that.

Transferability
Not easily transferable

This reform is essentially a public administration reform, which reorganises the functioning of VET schools. It is a good example for countries where VET is organised in a similarly scattered way, as was the case in Hungary prior to 2004. However, lessons of this initiative (lack of output indicators, poor financial incentives, lack of adjustments in the design, etc) are important to taking into consideration.

Sustainability

The reform has been completed. TISZKs are in full operation now and they will continue to operate in the future as well.

Description

Timespan

Since 2016

Stage
Roll-out

Foundations

Policy area

The Special Public Works pilot programme aims at providing special workplaces for unemployed people with disabilities and those unable to find a job or a spot in the ordinary public works programme, due to social or mental reasons. Participants are employed by a local non-profit organisation, usually connected to a local municipality. Participants work part time (6 hours) and receive some financial compensation for their work. The aim of the programme is to help individuals with more complex mental and physical problems to get a place in the normal public works programme, or in the primary job market.

Policy goal

The programme aims at developing the skills of individuals with low levels of education and mild disabilities. The Special Public Works programme aims at providing special workplaces for unemployed with disabilities, and those unable to find a job or a spot in the ordinary public works programme, due to social or mental reasons (Government decree 1253/2016. VI. 6. Formulates this goal). Besides these sheltered transitional workplaces, participants also received individualised, complex help to improve their employability skills.

Mismatch
Part of broad policy measure of which skill mismatch is only a minor part

Special Public Works (SPW) aims at improving the skills of people with mild disabilities, who are generally thought of as unable to participate in the public works programme or in the primary labour market.

Aim of policy instrument

To provide sheltered workplaces for those who have no or very little work experience and who are generally not likely to receive a place in the normal public works programme.

Administrative level
Regional
Main responsible body

Ministry of Interior

Stakeholders

Public Employment Services - gatekeepers, mentors to the unemployed individuals
Local Governments - implementation
Local Governments' non-profit organisations - employers

Funding

215 million HUF (€700,000) are committed altogether to this programme. The Ministry for Human Capacities and the Ministry of National Economy finance the measure.

Intended beneficiaries

Those unable to find a job or a spot in the ordinary public works programme, due to social or mental health problems. Adults with very complex problems.

Processes

Use of labour market intelligence

This initiative aims at improving the basic employability skills of the very low-skilled participants. Therefore, no specific LMSI information is used by the programme management.

Financial schemes

These public employees are employed 6 hours per day for a maximum of 5 months, earning 27.000 HUF/month (circa €85).

Frequency of updates

Based on the available information, no key content or other instrument has been changed during the course of the two pilot programmes.

Development

A pilot programme was launched in July 2016 for a period of 5 months in 4 counties, with a participant number of 300. The programme was implemented by local governments or by their non-profit organisations. The second phase of the programme took place between April 2017 and August 2017 with 280 participants. This programme is in its initial phase. 2 pilot rounds have been conducted so far. Therefore, no crucial adjustments have been made by so far.

Barriers

No barriers have been identified thus far.

Success factors

The complex nature of the services is key to helping the unemployed with such complex problems. Participants not only received employment, but also mentoring support and other individualised services.

Monitoring

The preliminary assessments of the programme show that 10-15% of the people involved in the programme are able to participate in regular public works programme, while the rest are likely to stay in the special public works programme and need further support in order to improve their employment potential. Roughly 10% of the participants found a job in the primary labour market. Indicators monitored are the employment outcomes of those leaving the programme, surveyed at 6 months after exit.

Innovativeness
Slightly innovative

The programme's innovativeness lies in its element of cooperation among the different stakeholders and in the well-designed incentive system that ensures employers' buy-in into the programme.

Sustainability

Evidence of effectiveness

Up to October 2016, almost half of the 72 people leaving the program moved into some other public works program, and only 10 people (14%) found a job in the open labour market within 180 days. This is roughly the same outcome as the one observed in regular public works programmes. The outcomes of the instrument is somewhat below expectations (as it is not higher than the average outflow of regular public works), but it is difficult to judge, as there was no control group, and it is possible that participants had a lower probability of re-employment than the average PW participant (that is, in absence of the programme). There is no information on any targets set for this programme.

Engagement of stakeholders

Employers hiring people with disabilities are eligible for a subsidy of 100% of wages and social contributions, for a maximum of five months and working 30 hours a week. This instrument serves as an incentive for non-profit organisations to cooperate with local governments and the PES in providing workplaces for the target group.

Transferability
Easily transferable

The most important precondition for implementing this initiative is to have the adequate skills to support individuals with mental or physical health problems, who are able to participate in the labour market.

Sustainability

News indicate that this programme has come to a halt, after an initial pilot stage.

Description

Timespan

2014-2020

Stage
Fully operational

Foundations

Policy area

This instrument is an element of the YG scheme, which has proved very popular in Hungary. It offers a full or partial subsidy to employers to cover the wages and social contributions of newly hired young jobseeker for 3 months. In effect, it covers the probation period and ensures that youth with no work experience have a chance to prove their abilities. No subgroups (such as the low skilled or Roma) were defined within the target group, and there are no provisions to provide more services to disadvantaged youth, other than what is implied by the personalisation of PES services and measures.

Policy goal

The actions target all types of NEETs below the age of 25, including inactive and unemployed young people who are not in education or training and who need practical experience before they can enter the primary job market. By providing subsidies to employers hiring young people in need of help, young people gain experience, knowledge, upgrade their skills and are more likely to be able to find a job in the primary job market.

Mismatch
Explicitly designed to address skill mismatch

The instrument addresses skills mismatch by endowing young people with practical skills that can only be acquired in a work environment. VET education tends to be of rather low-quality, therefore practical experience is especially important for employers to hire young people with vocational degree.

Aim of policy instrument

To match the skills of young adults .

Administrative level
National
Main responsible body

Ministry of National Economy

Stakeholders

PES offices - implementation of the YG instruments
Ministry of National Economy - YG programme design
VET schools - YG is presented in school class
Employers - recruiting YG target group

Main implementing partners of the YG:
Ministry for National Economy
Ministry of Human Resources
National Employment Service (including the National Employment Office, the Labour Centres of County Government Offices and the branch offices)
Hungarian Institute for Educational Research and Development (OFI)
Educational Office (OH)
National Youth Council (NIT)
Hungarian Chamber of Commerce and Industry (MKIK)
Standing Committee of Representatives of the Private Sector and the Government (VKF)
Young Entrepreneurs Association Hungary (FIVOSZ)
Hungarian Foundation for Enterprise
National Office of Family and Social Policy (NCSSZI)
Klebelsberg Centre for Institution Maintenance (KLIK)
National Roma Self-government (ORÖ)
National Council of Vocational and Adult Education (NSZFT)

Funding

Total public financial allocated: operations approved for funding €127 million.

Intended beneficiaries

Young people not in education or employment aged 15 to 25, especially those registered as unemployed for 6 months, as well as young people in need of support to be able to enter the world of work/education. Expected benefits include shorter duration of unemployment, gaining experience, and higher wages.

Processes

Use of labour market intelligence

By applying wage subsidies in the programme, YG implicitly uses LMSI, as employers who see a potential in training young people and equipping them with skills that are relevant in their industry (and which therefore are likely to have a future too), are going to use the YG tool. When it comes to training measures, YG only supports training programmes if they are not directly related to low-demand professions.
The Youth Guarantee programme is implemented in two stages: in the first stage, only young people who have been registered with the Public Employment Services for at least 6 months can participate in the programme; eligibility is to be gradually extended to all young jobseekers below 25 by 2018. The provided services remain the same in the two stages; the only difference is the size of the target group.
An individual action plan for labour market integration is prepared for every participant, and each participant receives assistance from a trained youth mentor. Participants may apply for jobs on their own as well. In this case, they are advised to inform potential employers about the wage subsidies and to contact the local PES office. Those who are still in the age range of compulsory education and those who may return to education are guided to educational and training programmes, while those who might be integrated into the labour market are provided with differentiated support according to the level of their qualifications.

Financial schemes

YG covers 100% of the wage costs for 90 days (for gaining work experience)
YG covers 100% of the wage costs for 6 months for youth with higher than primary education, and it also covers 100% of the wage costs of a maximum of 150% of the minimum wage for 3 additional months.
YG covers 100% of the wage costs for 10 months for youth with low-educational attainment and it also covers 100% of the wage costs of a maximum of 150% of the minimum wage for 3 additional months.

Frequency of updates

On an annual basis.

Development

There is no information about major adjustments in the programme.

Barriers

According to the European Commission (2017):
1) Moving from partial implementation to full roll-out of YG scheme
2) Improve quality of offers
3) Increase outreach efforts to young NEETS (especially Roma)
4) Improve the YG monitoring system
5) Improve communication amongst implementing authorities

Success factors

1) Individualised services besides the wage subsidy.
2) Long-term wage subsidy, such that participants can acquire a substantial amount of knowledge.
3) Flexible wage subsidy frameworks.

Monitoring

1) The number of participants of the different target groups
2) The number in education/employment/training/unemployment following the intervention
3) The NEET rate
4) The employment rate of young people aged 15-24 (18.6%); youth unemployment rate 15-24 (28.1%)
5) Youth education attainment level 20-24

Innovativeness
Slightly innovative

1) Wide cooperation among different actors.
2) Targeting of the most disadvantaged.
3) Comprehensive support to young people by coupling labour market service and mentoring with dedicated wage subsidies and training.
4) Counsellor/coordinator network asked to strengthen the already existing local co-operation system between a variety of stakeholders.

Sustainability

Evidence of effectiveness

Youth unemployment and NEET rates have decreased reaching pre-crisis level in Hungary, relative to the adult population.
The YG scheme in Hungary was launched on 1 January 2015 and the results of monitoring show that, on average, across the year only 2.6% of all NEETS aged under 25 were covered. Of the small group leaving the scheme in 2015, as many as 94.2% took up an offer within 4 months of registration, though less than a third of these (30.4% of all leavers) were known to be in employment, education or training 6 months later. According to an assessment report, only 2.4% of the intended beneficiaries (NEETs) have been reached in 2014-15. There have been no unexpected benefits or costs.

Engagement of stakeholders

High-level ownership from different ministries, youth councils, associations, NGOs etc ensures that all stakeholders perceive the measure as something important. There is no official (and public) document describing the coordination among the different stakeholders, but there is a document for internal use describing the implementation of the YG, which also touches upon the coordination tasks. The document describes that youth counsellors working for the PES offices are responsible for i) reaching out to the target population and supporting them and ii) coordinating the tasks within the PES and with the local educational and social authorities, youth organisations and the employers in their work.

Transferability
Easily transferable

Wage subsidies are easily transferable to different contexts. In a context with a high degree of informality, wage subsidies can even serve as a tool to improve formality (given that subsidies are only payable to registered employees/employers), which is an additional positive impact besides supporting young unemployed people into employment.

Sustainability

Yes, as YG is part of a large-scale European youth strategy and because the programme produces promising results.