Part-time employment during the crisis

Before the recent economic crisis, part-time employment was very low in Hungary. During the crisis, however, the most rapid increase in the number of part-time employees within the European Union was observed in Hungary. Part-time employment increased in a number of European Union countries for cyclical reasons: companies hoarded labour – usually with government assistance – by reducing the number of per capita hours worked instead of laying off workers. At the same time, part-time labour supply also increased during the economic downturn. Such cyclical impacts were also observed in Hungary. This article examines whether the changes in the number of part-time employees were really driven solely by cyclical reasons. What should follow from this assumption is that the per capita number of hours worked would increase in the course of economic recovery, while part-time employment would fall back to the earlier prevailing low levels and the total number of employees would not increase significantly. This assumption, however, is not supported by the available data. The increase in the number of part-time employees – particularly in the market services segment – seems to be more of a trend that may keep the number of part-time jobs higher during economic recovery than before the crisis.