October 13th, 2009

MP targets state-run job centers with bill to boost for-profit “brokers”

Hungary’s state-run labour centres cannot effectively help the unemployed to jobs, the economic daily Napi Gazdasag said on Tuesday, referring to a bill submitted by liberal MP Janos Koka.

The bill seeks to involve for-profit job brokers and ensure incentives to those companies from the national labour market fund.

According to the plan, the brokers would get their benefits after their clients have taken up employment. If successful, the system could in the long run be entirely based on private labour centres, the paper said.

The labour market fund’s budget for 2009 is 332 billion forints (EUR 1.2bn), of which 142.6 billion forints is paid out as unemployment benefits.

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