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Mar 30, 2016

Number of private sector jobs on the rise

It has been one of the government’s priorities to support enterprises that are genuine driving forces in the national economy; Minister for National Economy Mihály Varga said, upon announcing a capacity expansion project by Ajkai Elektronikai Ltd and AE-Plasztik Ltd.

The two companies can boost their productivity and add to their labour force thanks to government grants of more than HUF 160 million, the minister pointed out. He stressed the fact that the number of people in employment has reached a record high since the regime change showed the economy’s robust performance. The number of people in employment has been above the 4 million mark for some two years, and there is a good change for this indicator to rise. Employment growth has been mainly the result of new private sector jobs, he added.

Economic growth has also been remarkable in this period, he noted, underpinned by growing exports as well as domestic demand, which has been driven by the 4.3 percent increase of wages in real terms.

The fiscal balance has been well secured and it cannot be endangered even by the delaying of the payment of EU funding. Last year, Hungary had to provide HUG 560bn from the state budget to compensate for payments delayed by Brussels.

Out of the total project cost of HUF 235 million at Ajkai Elektronikai Ltd, state grants provide HUF 82 million. AE Plasztik Ltd is to purchase seven new injection moulding machines for more than HUF 245 million, of which the state funds HUF 86 million. The two projects are expected to create 33 new jobs.