Local Economic Development in Hungary – Through the Example of a Disadvantaged Settlement

Abstract

In 2011, the public employment system in Hungary underwent a complete overhaul. This active employment policy tool is a unified public employment system designed to alleviate unemployment caused by the global economic crisis, but it had already been in place in Hungary for decades. Public employment has been criticised because it does not return the unemployed to the primary labour market, with most of them stuck in this temporary solution. The research presents the good practices of local economic development in a disadvantaged, low-population settlement (Szemere), which started with public employment. Local economic development initiatives of this kind are crucial in Hungary, as the settlement structure in Hungary is characterised by a large number of small villages, where job opportunities in the primary labour market are limited. The research is based on a qualitative case-study approach combined with field research conducted in Szemere settlement in Hungary. The study analyses the local development strategies, employment effects, and community impacts. UDC: 338.1:352(439); JEL: R23