Local Employment Development and Sustainable Labour Market in Northern Hungary Since the Regime Change

Abstract The peripheral regions of Hungary, such as the Northern Hungarian region and its settlements, are facing a variety of problems and challenges, and in addition to economic difficulties, demographic and labour market challenges also demand increased attention and solutions. Since the change of regime, the region has been facing economic and labour market difficulties. The current labour market faces a combination of labour shortages, automation and robotisation, rapidly changing conditions and high unemployment. In most peripheral regions, the availability of labour resources to meet the needs of the primary labour market is very limited and local labour markets are completely depleted. The unemployed lack skills and experience. The aim of the study is to provide an overview of labour market developments in the Northern Hungarian region since the change of regime and to describe successful local developments. Addressing the situation requires local, municipal-level solutions, which is a real challenge, as there is no single recipe. Local development can and should be built on a toolbox of local development, as solutions based on local resources, local ‘heroes’, local control and local ideas can be successful. The paper describes such successful local development.