Hungary’s Labour Market Holds Up Well; Bad News for Inflation

2023. január 09.


The labour market has shown signs of weakening since the summer. But this deterioration is too slow to result in a strong and sudden anti-inflationary shock.

The Hungarian Central Statistical Office (HCSO) released the latest set of labour market data (wages and unemployment rate) in early January. Wage growth from October suggests that employers are adapting to the strong inflation environment, giving unscheduled, additional wage increases to keep labour in place. In parallel, unemployment statistics reflect that there are still more sectors facing labour shortages than sectors suffering from cost pressures.