Hungary unemployment rate expected to peak around 11%

Hungary’s unemployment rate is likely to rise further in the coming months, peaking at around 11pc in Q1 or Q2, analysts told MTI on Wednesday, after fresh labour market data showed the rate rose to 10.5pc in September-November, a level not seen since 1994.

CIB Bank chief analyst Gyorgy Barta said the rising unemployment rate — from 10.4pc in August-October — came as no surprise, and it would probably rise further in October-December to 10.7pc. He put part of the increase in September-November down to a fall in the number of seasonal jobs.

Few jobs are likely to be created in 2010 and job preservation subsidies will run out, causing the unemployment rate to rise further, Mr Barta said.

Raiffeisen Bank’s Zoltan Torok said the unemployment rate would probably peak around 11pc in Q1 and remain at that level in Q2 and Q3, falling only in the last quarter of the year. He put the year-end rate for 2010 at 10.5pc.