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Labour Market
Employment is a contract between two parties, one being the employer and the other being
the employee. The employee contributes to production, generally with the intention of
creating profits, and the employee works for payment paid by the employer. Employment also
exists in the public, nonprofit and household sectors.
The maintenance of full employment was a central policy aim of governments, but it has been
accepted that there is some level of unemployment, below which it is not possible to go
without the return of inflationary pressures.

Unemployment virtually unknown in post-war Hungary and other Eastern European countries
until 1990, has been threatening hundreds of thousands of people in the region.
Unemployment is very bad for those who have lost their jobs, and also for those whose jobs
are threatened. Its especially hard on young people to find a job. The unemployment rate of
young male is twice as high as the national average. But in a free economy unemployement is
unavoidable. Because few business activities remain unchanged month after month, there are
busy and slack seasons. (tourism, construction work). In these seasons some people who
arent satisfied with their jobs may look for another one and for some time remain
The natural rate of unemployment is said to be 3 to 5%.
The unemployment figures dont always give us a true picture of unemployment. As a result
of the disguised or hidden unemployment statistics usually underestimate the extent of
The unemployed is entitled to some form of unemployment compensation, and its cost is
borne by the employed.
Causes of Unemployment:
1. Frictional unemployment: Persons who are made redundant will need time to search
for and start a new job.
2. Seasonal unemployment: Fluctuation in demand for labour in certain industries will
be linked either to the seasonal nature of production
(agriculture) or to seasonal patterns of demand (childrens
toy at Christmas).
3. Technological unemployment:
- This may result from new technology causing a change in the pattern of demand.
- It may occur where an established industrial process is replaced by new
machinery, requiring less labour.
4. Cyclical or deficiency unemployment: Fluctuation of demand, caused by the pattern
of business cycle, may compound some of the
above effects to produce sudden increases in
5. Unemployment due to obstructions to the labour market: Monetarists believe that
this is the major cause of long term unemployment. They see the excessive
national bargaining power of trade unions as being especially important.

They believe that workers are then priced out of work by excessive
increases in real wages.
Government Responses to unemployment:
Governments may respond in a number of ways to an increasing or high level of
1. If it is believed that a deficiency in aggregate demand is the cause of unemployment, it
is possible to increase demand by use of a package of measures, fiscal and monetary. Thus the
government might lower taxation or increase public spending.
2. If it is believed that imperfections in the labour market are the cause of unemployment,
the government might seek to break the power of the union by legislation. The government
might reduce the real value of benefits in order to make jobs on low wages more attractive.
3. Where specific industries or regions are worst affected, it might use a policy of direct
subsidy and regional aid measures in order to maintain existing jobs in the short term while
encouraging the creation of new jobs.
Recruitment refers to the process of finding possible candidates for a job or function,
undertaken by recruiters. It may be undertaken by an employment agency or a member of
staff at the business or organization looking for recruits. Either way it may involve
advertising, commonly in the recruitment section of a newspaper or in a newspaper
dedicated to job adverts. Employment agencies will often advertise jobs in their windows.
Posts can also be advertised at a job centre if they are targeting the unemployed.
Suitability for a job is typically assessed by looking for skills, e.g. communication skills,
typing skills, computer skills. Evidence for skills required for a job may be provided in the
form of qualifications (educational or professional), experience in a job requiring the
relevant skills or the testimony of references. A candidate may also be assessed on the basis
of an interview.
Looking for a job
"Job hunting" is the act of looking for employment, possibly due to unemployment. It is also
known as job seeking. The immediate goal of job seeking is usually to obtain a job interview
with an employer which may lead to getting hired. The job hunter or seeker typically first
looks for job vacancies or employment opportunities.
Common methods of job hunting are:
using a job search engine
looking through the classifieds in newspapers
using an employment agency or recruiter
finding a job through a friend or an extended business network
When you apply for a job, first you write a letter of application and enclose curriculum vitae
with it. A CV gives facts about you that your prospective employer may want to know.
Unlike the usual Hungarian autobiography, which is a narrative type of writing, a CV is
concise (tmr) and highly organized. It is divided into sections.
1. In the Personal Data: your name, address, telephone and fax number, date of birth, and

2. Career Objective : you can briefly state what you want to do

3. Qualifications: You can list the schools you attended, and when you attended those
schools, what subjects you studied, and what degrees, certificates or diplomas you
4. Experience: you will list your employers, your post (pozci) the time you served there,
and what your job entailed.
5. References: these are names of respected people( your professors or employers) who
know you and who have good opinion of you
6. You may include other sections (Interests, Publications) depending on your situation.
Cover letter
A cover letter is a letter of introduction attached to, or accompanying another document
such as a rsum (szakmai nletrajz) or curriculum vitae. A successful cover letter results in
the (vgeredmnyben) rsum being scanned and moved to the "contact this applicant" pile
rather than the "thanks but no thanks" pile.
Its purpose: Think of the cover letter as the job seeker's introduction to the
employer/recruiter (toborz). It is also a marketing device.
The cover letter should highlight a few (no more than 5) specific points in the job seeker's
experience and skills that match, or exceed the requirements of the job. And, it should be
written to address the employer/recruiter concerns.
No: "Your job interests me."
Yes: "My experience in (whatever is needed) can help you with (whatever is needed)."