Increased investment bodes well for Hungarian employment
Investment in Hungary rose sharply in the first quarter of 2017, which is good news for the employment picture of the economy. Official data from Hungary’s Central Statistics Office (CSO) shows HUF1.03 billion business investment between January and March of 2017. That’s a 7% increase from the fourth quarter of 2016 and a substantial 34% rise from the first quarter of 2016.
The CSO data highlighted that investment increased across most industries in Hungary during the first quarter. However, the industry where the largest increase in investment was evident was real-estate and related activities – both residential and commercial projects – with investment there increasing 56%.
Positive Story for Many Industries
The CSO data also showed other areas of strong investment growth during the first three months of 2017. They included:
- A 48% increase in transportation and storage due to EU-funded road construction and improvement.
- There was a 46% increase in investment in the agriculture, forestry and fishing industry, driven by the purchase of new agricultural machinery.
- Industrial production saw a 32% increase in investment. This is significant as the sector accounts for one-third of Hungary’s economic output.
- Store upgrades and building renovations in the wholesale and retail trade, and repair of motor vehicles and motorcycles, lead to a 32% rise in investment, there.
The reason behind the wide-spread increase in investment was due to “a recovery in the capacity-increasing investments of enterprises and a higher impetus in the actual realization of started projects in the 2014–2020 EU budget cycle,” the CSO said in its press release.
With higher investment and the likely increased level of employment this will lead to, it might be time for some firms to begin planning ahead for their new staff. One of the ways they can do that is to consider how to create a team who trust each other and will work well together.
Investment Growth to Boost Employment
While the latest unemployment data from the CSO showed a slight rise in the unemployment rate to 4.5% in the first quarter of 2017 from 4.4% in the final quarter of 2016, the increase in investment suggests job creation could soon follow.
Where new machinery is purchased, the right people are required to operate it. Likewise, to ensure the investment in machinery and shops is worthwhile and reaps an increase in sales and production, a company needs enough people to serve the customers and operate the new technology.
Hungary’s unemployment rate across the whole of 2016 was 5.1%, a significant drop from 2015’s 6.8% and also much lower than the 2016 European Union (EU) average of 8.6%, according to data from Eurostat, the EU’s statistical database.
This highlights that Hungary is continuing to see a greater level of employment across the country. And, despite the minor rise in the first quarter of 2017, the unemployment rate has been falling steadily since the beginning of 2015.
Looking ahead, a continued good level of investment should lead to further job creation, which will benefit the economy, too. And, where there are more jobs, there are new teams of employees who need to get to know each other and understand more about the company they’re working for.
Team Building Can Boost Business
There are a variety of ways to encourage a team of employees to work together, form bonds and work hard for your business. By offering guidance, arranging team building sessions and days out of the office, you can create a team of employees who will support each other and also, who understand what the company they work for wants to achieve.
At a time when the level of employment in Hungary is expected to rise, it’s worth putting more time into supporting those new employees. And, if you as a company support your staff, then they will, in turn work hard for you and your business.
Source: Sally Writes – Guest author