Evaluation of Labor Market Programs During Recession in the North Great Plain Region of Hungary

Evaluation of Labor Market Programs During Recession in the North Great Plain Region of Hungary

Andrea Szabo (Faculty of Applied Economics and Rural Development, University of Debrecen, Debrecen, Hajdú-Bihar, Hungary)
Copyright: © 2012 |Pages: 14
DOI: 10.4018/ijsem.2012100105
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The unemployment rate has set up new records worldwide nowadays, namely the downswing phase of the top index Kondratieff-wave has begun. Schools of economics have various approaches concerning the state’s role in recession, that is to say whether the governments could fight against the negative processes or not. The study focuses on the active labor market policies, whose real objective is to bring back the jobless to the labor market ad interim, but evaluations have proved it‘s ineffective. The author analyzed the “Pathway to work” Hungarian public work program, what kind of endogenous factors were there for successful employment in the framework of the program. In the study it will be proved that management and organization have a crucial role in appropriate workplace selection.
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1. Theoretical Aspects Of Almp

As mentioned above the U.S. subprime mortgage crisis of 2008 caused a financial crisis worldwide, which proved to be the downswing phase of the top index Kondratieff-wave described by the Russian Korotayev and Tsirel (2010). A concomitant phenomenon of all the recessions is the increase of the unemployment rate in countries presented Table 1 by the help of the Eurostat Database. Reviewing a range of special literature dealing with unemployment issues, it is obvious that this short-term indicator has had a significant role among economic indices besides the GDP since centuries (Berridge, 1923; Rappeport, 2010; ONS, 2010).

Table 1.
Unemployment rates of various phases
CountriesUnemployment rate %

Source: Eurostat Database, 2000, 2007, 2009; *estimated data

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