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Is Unemployment the Only Answer to Labour Shortage in Hungary?

In: Employment Policies in the Soviet Union and Eastern Europe

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  • Michael Marrese

Abstract

Articles abound in the Hungarian press about two seemingly contradictory phenomena: serious macro-labour shortages and widespread, hidden underemployment within enterprises. The simultaneous occurrence of these two problems is the motivation behind the title of this chapter, which suggests that the threat of micro-unemployment may be needed to help solve macro-labour shortages. The issues which are explored in the chapter are the following: Who believes there has been labour shortage in Hungary? How can the labour shortage be measured? What have been the reasons for the labour shortage? To what extent have Hungarian government policies been successful in correcting the problem? Given that a substantial increase in labour productivity is the only way through which the general labour shortage could be eliminated, is the fear of unemployment a necessary catalyst in inducing greater labour productivity? Finally, is Hungarian employment policy moving in the right direction?

Suggested Citation

  • Michael Marrese, 1982. "Is Unemployment the Only Answer to Labour Shortage in Hungary?," Palgrave Macmillan Books, in: Jan Adam (ed.), Employment Policies in the Soviet Union and Eastern Europe, chapter 5, pages 96-119, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-349-05834-1_5
    DOI: 10.1007/978-1-349-05834-1_5
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