Looming unemployment crisis in Hungary
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With the drastically increased utility costs, it is feared that dismissals will be a common sight in the near future. The unemployment rate can jump to around 4-4.5 percent. This is shocking, but not unexpected. It was obvious that businesses would need to close and the employees will therefore lose their jobs. The problem is that this will have ripple effects on the economy, further worsening the crisis.
There is a cost of living crisis going on which have two main contributors: inflation and energy price hikes. More money spent on living means less money to spend on anything else. While families save money by not spending money, they also withdraw from the economy. The service sector was hit the hardest. Businesses have to pay increased utility costs, but at the same time leisure activities are the ones where people can cut their spending. This essentially means increased costs with less profit.
Effects
With less profit, the risk grows especially for small and medium enterprises. This means that creditors will have less incentive to invest in such businesses. This means fewer loans for riskier business models. Large enterprises and multinational businesses have better chances of surviving the current recession. The market will shrink, businesses will close and unemployment will grow. Many leisure facilities will have to increase their prices to manage the financing of their increased utility costs. However, this will deter further customers from taking in their services. In other sectors too, the reduced demand will cause trouble.
It’s okay… FIDEZ has a solution. Just buy more brooms and send people out street sweeping. Worthless work has been the answer and the reason Hungary has low unemployment… and now that the gov spent their “seed corn” winning an election?
Fides got themselves into such a DESPISED position on Education, that just comes back to their total lack of responsibility to make INVESTMENTS into Education in Hungary.
Education the MESS it currently and going forward is in, the demonstrations rightfully from Educators that we are witnessing, the on-going line from the Fidesz led Government under Victor Orban, “pushing” blame on – no European Union funding as reason(s) why EDUCATION – the wages of Educators in Hungary are as they are – Appalling.
Is it a wait & see game again to 2025 – Government talk of the 13th of October 2022 in DNH, the European Union again used why 2025 date line, before ANY real Educators salary levels could be bought in line to acceptable Renumeration standards,
Fidesz – the Victor Orban Government have clearly been NEGLECTFUL – an attitude of irresponsibility to Education in Hungary, in their time in office over the past decade.
Educators – have continued to be ABUSED by this Fidesz Government led attitude.
Into this NEGLECTFUL attitude by Fidesz – look at the overall conditions of just say Public Schools and “other” places of learning, that are in cases falling down around us, that INVESTMENT has not been made.
“New Brooms Sweep Clean” – and we NEED them, in the Corridors of Power in Hungary.
Education – Opens Windows of Opportunities.
“When the YOKE is Broken,
the Burden is REMOVED.”
Sip