Economy, Labor

The collapse of Communism and resulting decline in industrial production displaced a significant percentage of Hungarian workers. In 1993 the unemployment rate stood at 13 percent; in 2000 it was 6.5 percent. Some 35 percent of the labor force is employed in industry; another 7 percent in farming, forestry, or fishing; and 59 percent in service industries.

In 1992 a labor code was enacted, which recognized the right of workers to associate freely and to organize and bargain collectively. With the exception of military personnel and the police, workers also have the right to go on strike. Following the introduction of this code, the number of strikes in Hungary increased dramatically; most were of short duration, however. The largest union federation is the National Confederation of Hungarian Trade Unions (formerly the Central Council of Hungarian Trade Unions, restructured in 1990), which claimed approximately 1 million members in 1993. A number of other union federations also exist.