Agricultural public works programmes in Hungary

Abstract

Hungarian employment policy changed fundamentally at the beginning of this decade. In regard to employment policy, a clear shift is observable from the welfare to the workfare approach.

This policy change reassessed the roles and functions of Hungarian public works programs. Previously, these were only one among many other active labor market policy measures, but recently, they have gained a more determining role. While traditionally, these programs provided only temporary (or part-time) employment for the long-term unemployed, after the welfare-system reform, they became a rather universal, almost granted employment opportunity for every unemployed. From among them, this study especially focuses on those special agricultural work programs, which, in the most disadvantaged areas, have been initiated in order to generate employment and provide quality food.

Internationally, direct agricultural production linked to public works programs is rare, but not unprecedented. Two cases are well-known in Argentina and India where agricultural products were utilized either by social institutions (e.g. soup kitchens) or by the public workers themselves.

Compared to these, the Hungarian practice represents a conflicting approach. On the one hand, the government seeks to avoid market disruption, while, on the other, it expects from these agricultural public work projects to become economically viable. While the political objectives are clear, there is no common understanding on how to achieve them. The agricultural public works programs have become widely used in the most disadvantaged areas as they provide stable and low-skilled jobs for the unemployed, even if they offer wages far below the market average and the national minimum rate.

Based on comprehensive data about the programs’ first two years (2012 and 2013), it is visible that participants for the agricultural public works programs were recruited from the most disadvantaged, ‘hard to employ’ groups (mostly low skilled or un-skilled women, elders, and youth).

These agricultural public works programs had very limited impact on participants’ employment opportunities as only 9.9% of them had been able to find a job on the primary job market. The majority of the participants has likely became re-employed in other public works programs.