The impact of the first wave of the COVID-19 pandemic on employment and firm revenues in Hungary

Relying on the Labour Force Survey and the monthly revenue statistics of the Hungarian Central Statistical Office, we assess the immediate economic impact of the first wave of the COVID-19 pandemic in the first two quarters of 2020. We first analyse the role of job loss, working time reduction, downtime, and telework in adjustment to the crisis. The findings reveal an even more serious setback and increase in inequality than in 2008–2009. School leavers, young workers and unskilled laborers were particularly severely affected. Graduates were less likely to lose their jobs, more likely to switch to telework, and their employers faced a smaller decrease in sales revenue. The revenues of foreign-owned exporters fell more than the average in March but recovered by June. The decline experienced by businesses in the Hungarian ownership was slower but more prolonged.