Eszter Barakonyi[1]: Opportunities of local employment in the most disadvantaged districts of Baranya county (JURA, 2017/1., 199-206. o.)

1. The significance of local employment

The basis of local employment is the development of local economy (social economic development) which is a process that aims to improve the economic situation of a community (individuals directly connected in a social and economic sense) by mobilizing economic, human and environmental resources, as well as the cooperation of local actors, strengthening its position on the labour market as a result. According to a different synthesizing approach, it is a conscious intervention into economic processes in the interest of sustainable local development. The defining characteristic of this economy is the viability of business ventures and the quality of networking cooperation. In order to organize the circumstances of local economy, the following may be applied: support for small ventures, cooperation between ventures, strengthening the local consumers' understanding of conscious consumption, aiding direct local connections between consumers and producers in the area, as well as the community events aimed at environmental awareness. It is a definite goal for the fruits of the economic activity to be utilized locally, either as goods or services to be purchased, or as employment and income. The aim is to aid the local market by means of stimulating business ventures and economic activity for the benefit of the community. The goal is then not just to improve economy and labour market values, but to maintain a definite communal and social outlook, more importantly to improve the quality of life for the local population, and their social security, rather than maximizing profits at any cost. (Czene Ritz 2010.)

The foudnation of local, mainly non-market employment were introduced by labour centers within the framework of the US DOL LED Quick Response Program between 1996 and 2000. During this program, 27 projects were started with the involvement of 400 councils and over 200 civilian organizations.[1] The main conclusions of this series of projects were as follows:

- Local communities have to cooperate and rely on their own available resources, they have to evaluate the local situation, to assess their strengths and weaknesses, and what opportunities and facilities can be used

- Information organized in this way can be used by local actors to design a strategy to launch projects in order to improve the local situation.

- Projects are not grand and epic ideas that realize from one moment to the next, but changes that are executed in small steps that result in the improvement of the general opinion about the local settlements, the refreshment of the communal spirit, the continuation of the communal momentum, and new tasks deemed necessary by the community are handled.

- In time these results bear fruit, the local subregion and settlements become more attractive to external investors. By improving the environment for local investments, continuing initiatives create better possibilities for existing and new ventures as well. (Heidkamp, Rátvai 1998)

Many community initiatives developed based on the above model and methodology still exist today. In order to remedy the issue of persistent small-settlement unemployment, the Labour Center (which was regional in scope at the time) launched a complex labour-market program named Fateful - Fate Changing [Sorsfordító - Sorsformáló]. The program started in Tolna county but was later extended to Somogy and Baranya county as well, including around 30 settlements altogether. The unemployed involved in this program, over 200 individuals were provided training and jobs chiefly in the production of fruits and vegetables. Employment was provided by councils, cooperatives, and private businesspeople. This program was analyzed at length as a case study by the Economical Institute of the Hungarian Academy of Sciences (Németh 2011) which became a secondary basis of the study conducted in 2012 and concluded in 2013.

The recession in 2008 not only affected the main production sectors but rural Hungary as well, including a large portion of Transdanubia. The recession highlighted needs that may serve the de-

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velopment of local, less market-dependent employment. Studying the social and economic situation Transdanubia showed a unique duality. The economic situation of central and western Transdanubia are significantly more advanced than the southern region. As for employment relations, the southern region has a higher rate of unemployment, around 13-16%, which is higher than the 12,8% national average of 2012, meanwhile the other two regions the rate of unemployment is significantly lower (8-10%) despite the repercussions of the recession. (Source: AFSZ)

The basis for local employment is partnership; the European Union considers quality as a priority and a key component of its vision is the creation and development of the culture of "Succeeding together". Partnerships, team-building, and new forms of cooperation appear as a winning method. In order to realize this, connecting with many partners is often a necessity in aiding the development of local employment, to ensure they cooperate as winners with their diverse resources and abilities. The explicit and contractual basis of these partnerships may be trust, which is supported by the greatest level of information supply and exchange. (Szellő 2013)

2. The main statements of the 2012 study relating to Baranya county

At the beginning of research, the sub-region was defined as a unique structure of the region, based on the database of the National Economic Ministry and the National Employment Service, which coincided with 311/2007. (XI. 17.), on the classification of beneficiary regions. This declared the following subregions of Baranya county as relevant: Komló (H), Mohács (H), Pécsvárad (H), Sásd (LHH), Sellye (LHH), Siklós (H), Szentlőrinc (H), and Szigetvár (LHH).[2] The subject matter and area required a complex approach, which resulted in a nuanced methodology aimed at complex relations. The main methodology included a primary (empiricism), and a secondary (existing research, documentation, and data analysis) quality. The empiric research included 138 out of 273 councils in eight subregions which (50.5%) counts as a good rate. The main findings were the following:

- According to the 2011 census data, the decrease in population compared to the 2001 census in Baranya county amounted to 4,8%. The main cause in 75% of this can be attributed to natural reduction; however the remaining part is due to migration. The negative balance of domestic migration equals 3.5 individuals for every 1000 inhabitants. This migration not only affects the most disadvantaged sub-regions (Sellye, Siklós) but includes the central part of the county as well.

- Around two thirds of the studied councils struggle with issues stemming from underdeveloped infrastructure, lack of funds, and high unemployment. The many tasks assigned to local councils is mostly solved, however the efficiency and quality of projects responding necessities of the communities' everyday life could be improved.

- The last decade brought a narrowing of the labour market in Baranya county. The effects of the recession further deteriorated employment markers, public employment was brought to the forefront. Unemployment is particularly high in the vicinity of the river Dráva, along the border, and in the regions of Sellye and Siklós. In all eight sub-regions of Baranya, the number of people belonging to risk groups associated with labour market disadvantages are very high. Among these groups, the number of those people with persistent difficulties finding employment and those with a low level of education are particularly high.

- The focus of local and sub-regional employment development reflects general (creating employment, training, developing ventures) as well as unique sub-regional issues, such as bringing certain branches to the front (spa tourism, wine tourism, agriculture etc.) in terms of increasing employment. The explicit statement of handling those disadvantaged on the labour market has been made nearly everywhere. For the majority of sub-regions, improving the labour-market situation and providing employment for the Roma people is highlighted.

- It is a general issue that aside from the relatively high number of individual business-people and modest number of small business owners - not including public employment - the social cooperatives and non-profit employers providing values as alternative employers are practically completely absent.

- The critically low number of market employers and the even lower number of social cooperatives, in relation to touristic possibilities as breaking points, these exist, albeit modestly and with significant spread with

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respect to sub-regions and settlement categories, regardless, they are available in every second or third settlement.

- Among individual forms of support and labour market programs, the ones to be utilized in disadvantaged sub-regions (H, LHH) are the ones which have a persistent effect, and offer a prolonged improvement to the locals in terms of increasing employment options, as opposed to passive benefits and short term solutions. Since the sub-regions involved have a varying situation, resource allocation has to be made with respect to the needs and resources of the individual subregions on a case by case basis.

- The basic task of any sub-regional employment policy is to create a socio-cultural climate that promotes business ventures. International studies as well as sub-regional surveys point to business ventures requiring a level of acceptance and recognition in order to operate efficiently and with sufficient professional trust towards one another in the labor market. Naturally, it is also required for it to be worth it to start a venture in a given settlement. In every intermediary sub-region, there is a need to set up a basis of information. This basis could serve as a distributor of information concerning employment possibilities, as well as a source of quality assurance for employers where employees can stay informed but employers can also reach a sort of qualification. As a result, the venture with the higher degree of qualification can reach greater prestige which could be honored in its functions as a business and as a provider of employment as well. (Szellő 2013)

3. Demography, economy, unemployment from 2013 onward

Districts were formed on January 1, 2013.[3] and in 2014 earlier beneficiary areas were re-examined. The relevant government regulation stated that out of the 10 districts of Baranya county, seven were considered disadvantaged or severely disadvantaged (Hegyhát, Mohács, Pécsvárad, Sellye, Siklós, Szentlőrinc, Szigetvár).[4] The district of Sellye requires complex, while the district of Szigetvár requires comprehensive developments, according to markers. During the classification of districts based on territorial development, the markers for social and demographic state, living and housing situation, local economy and labour market, as well as infrastructure and ecology were considered (four marker groups) in complex evaluation.[5] Since the seven districts are defining in the social and economic life of Baranya county, several county markers will also need to be evaluated.

3.1 The economic and employment markers of Baranya county

During the last decade, the economic employment possibilities of Baranya county have been reduced and its labour market has narrowed. The effect of the recession further damaged employment possibilities. Currently the labour market movements and the migration processes aimed at employment are not favourable for social and economic renewal. Replacing the migrating workforce has not been resolved. The volume index of industrial production in Baranya county was 100.5% for 2015, which is 6.4 percentile points behind the regional average and 8.0% behind the national marker. The value of construction production based in the county seat has reached 95 028 million Forints for Q4 of 2015, while the volumen-index reached 113.6% (regional: 101.3%), national 106.0%). The performance value of investments for 2014 was 124 571 million forints. The GDP per individual was 2087 and 64.0% which is the 15[th] place in the country list. (Source: KSH) As per the residential labour survey of the Central Statistics Institute [KSH] in Q4 2013, 54,8% of those aged 15-74, 163.3 thousand people were present on the labour market. Among these people, those employed marked 151 thousand people, with 12.5 unemployed. At business ventures seated in Baranya county with over 4 employees, at the government agencies disregarding the number of employees , and the studied nonprofit organizations, on average about 80 500 people were employed. In Q4 2015 he amount of the populace that was employed counted 151 thousand individuals. The average number of those unemployed was 13.6 thousand people. The rate of employment for those aged 15-74 marked 53.5% which was 3.1 percentile points behind the national average (56.6%.).

3.2 Demographic markers and the status of the economically active populace in the seven districts.[6]

The decrease in population, the aging tendency and the stagnation of the economically active[7] and the working age population[8] can be observed in the studied districts as well. The balance between

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Table 1. Population ratio in each of the seven districts 2013-2015.

Source: Baranya Megyei Kormányhivatal

active aged population and those retired shifts towards the negative, which results in the working age group further shrinking, threatening the availability of workforce. Due to this the aging of society poses a formidable obstacle in terms of health services, economic growth, as well as in terms of financing social well-being systems.

From the above table (Table 1.) it is clear to see that the decrease in resident population has continued between 2013 and 2015 by 1.8%, which obviously impacted the decrease of economically active and working age groups as well. It is worth noting that the drastic lagging of the reproduction of population, the increased aging as well as migration pose a problem not just with respect to the survival of these districts but has serious consequences with respect to the "reload" of working age population, and its exhaustion, which may further decrease the level of employment.

3.3 Characteristics of unemployment

The environment of the labour market is influenced by many factors on the local, the county, and the district level as well. It is significant due to social definitions what the size of the available population is on the labour market. What ideals and social strategies influence people, well-being and quality of life, how far social security is realized, if social and professional mobility exists. Aside from disadvantages due to infrastructural and demographic reasons, it is also significant to mark the number and ratio of those belonging to particular risk groups. Population is severely segregated with respect to labour market chances. One defining characteristic is level of education. Those with higher education have long since had the best possibilities on the labour market (Nemeskéri, Szellő 2015). Aside from this, it is also significant to note the transformation of the labour market, the mobility granted by globalization can already be felt, but the segmented nature of local labour markets can also be detected.

Similarly to other parts of the country, "non-

Table 2. A few indicators of the ratio of unemployment in the seven districts 2013-2015

Source: Baranya Megyei Kormányhivatal

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structured labour market" exists mostly in case of industrial work for unskilled and utility labourers with work that requires little to no professional knowledge. This labour market is characterized by the least institutionalized relationship between employer and employee (seasonal and by-work, black/illegal work). Table 2 shows that the seven districts studied are characterized by structured unemployment as well. The registered job-seekers show as potential workforce. Their possibilities and the reduction in their numbers due to the narrowing of the local labour market was provided by public employment. However it is clear that there is a significant number of those belonging to risk groups. 48-47% of registered job-seekers have no higher education. The ratio of those aged 50 and older is 26-27%, while those under 25 of age mark 17-18%. This also relates to the training and educational difficulties of these areas, and the ever-increasing number of those that leave the school system early. (Barakonyi 2016)

4. The situation and characteristics of local employment

Local employment creates jobs in local projects outside of the mainstream of the labour market in a way that benefits smaller communities by fulfilling functions useful to these communities. It aims to provide possibilities for those disadvantaged on the labour market by offering support for preparation. Its scope is not limited to the non-profit sector, but includes a part of the for-profit sector so long as it acts in the interest of the community. It activates hidden necessities, and attempts to reconcile the greater efficiency of providing services with the greater solidarity in local economy. At the same time however, local economic development does not only include an economic policy projected to the local level, but the stimulation of the local "market", the encouragement and broadening of local commercial connections on a local scale, by the methodology of the local development. The local economic development is suitable for making the economy and economic resources more dynamic in regions where the general tools of economic stimulation are not applicable. (Szellő 2013)

4.1 Social economy

As per one known definition, social economy is made up of business ventures whose primary aim is to fulfill the needs and tend to the employment issues of the local community as opposed to maximizing profits for investments made. The specifics of these businesses - aside from what has already been mentioned - include voluntary and open membership, democratic supervision by the members or their elected representatives, the harmony of individual and common interests, the respect and protection of ideals of responsibility. As such the social economy is an important environment and transmitter for social cohesion: it provides employment opportunities for disadvantaged groups of the labour market, who can thus provide socially useful activity and services at a low cost for those living in poor financial situations, and their beneficiaries. These services enable the blooming of new local markets as well, in a small measure (Frey 2007). Social economy is primarily aimed at dismantling unemployment; it is aimed at creating employment in an institutionalized and organized framework, it is a market oriented activity to produce, trade, and provide services, and a communal venture. Its basic values are volunteering, cooperation, solidarity and responsibility, a social commitment opposed by prohibition to sharing profits.

4.2 Public employment

The level of development for a region in terms of economy and infrastructure influences the prospects of those living there primarily and for a long period of time, when it comes to their income and labour market situation. Geographical differences can be traced in the number of unemployed and those receiving benefits. Due to this, the government intends to provide job opportunities to those in the active age persistently without income, socially in need, and receiving benefits by way of active employment policy tools, such as public employment. Tools of active employment policy can be useful for the individual and society as a whole too, however due to the limited resources available these only provide temporary alternatives for employment. The aim of a renewing, transforming public employment is to improve the employment and options for employment for those who are disadvantaged on the labour market, such as people with a low level of education, persistently without jobs, and those with a changed ability to work.[9] With the payment system balanced in-between benefits and minimum wage, the employment-seeking activity is stimulated, and this aids the entry or re-entry to the primary labour market, the private sector. The concept also takes note to specify the nature of public employment as a temporary measure.

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Table 3.

Changes in the average monthly number of participants in public employment in the seven districts 2013-2015

Source: kozfoglalkoztatas.bm.hu

In the surveyed area, after the study concluded in 2012, the number and ratio of those employed in public employment increased significantly (Table 3). At the same time, due to cyclical employment and the shroter/longer forms of employment, discrepancies may also form. According to the results, all forms of employment showed growth, especially significant is the growth of those employed in longer term employment.

It is important for reasons of livelihood that those not able to find work in the public sector be granted as many opportunities for public employment as possible, since benefits replacing work income - which only one person per household are eligible for - do not constitute enough income for a livelihood. Several qualitative studies have supported that unfulfilled needs pile up over longer stretches of time, and have an adverse effect on the individual's employment chances. On the other hand it has also been observed that longer and more frequent public employment also reduces these chances. These two effects provide a unique catch, which is very difficult to escape. In addition, Source: kozfoglalkoztatas.bm.hu public employment does not support sufficiently the return to the primary labour market for those involved. This poses a risk of those employed in public employment may become stuck in the system.[10] At the same time, public employment has barriers both macroeconomic and financial. The state and the councils cannot become employers of masses of employees, since this will increase government deficit, the reduction of productivity, the "laziness" of employees and the distortion of local economy with the displacement of permanent employment options for a given location. (G. Fekete, Lipták 2014)

4.3 District start-job pilot program

The goal of start-job pilot programs is to create activities that combine market production, value creation, and communal work. The programs have roots in agricultural work mainly, serving as a kind of bridge to social economy. Main activities: agricultural projects (plant production, animal stock raising, traditional preservation); drainage of

Table 4. average monthly number of employees in a 'start-job' pilot program in Baranya county 2013-2015

Source: kozfoglalkoztatas.bm.hu

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excess water, tending to agricultural dirt roads, biological and renewable sources of energy; public road maintenance, dismantling illegal landfills, winter-, and other value creating public employment.

In Baranya county (Table 4) and the seven studied districts the agricultural kind of job-start program is dominant due to the qualities of the area, however the winter-, and value creating employment has fallen back.

4.4 Social cooperatives

The financial and economic recession of 2008, and the shock to the European welfare model pushed the social and solidarity-inclined economy towards multi-level economy and labour market. In order for social and solidarity-inclined economy to be able to become a real economical and political power, it is necessary for classic ventures and government regulation agencies to cooperate in creating new and innovative forms of ventures and forms of function - in accordance with new, reforming socio-economic needs and requirements. It is advantageous for a community to form a social cooperative when the goal is to create a self-sustaining economic organization that fills a market gap, in order to maintain sovereignty in all aspects (economical, cultural, educational, realizing democratic functions).[11] In the region of southern Transdanubia nine social cooperatives were functioning in 2012 (1 advisory, 1 service, 1 varied, and 7 agricultural cooperatives). In 2013 a new tender was submitted, the so-called TÁMOP-2.4.3. Project, which supported social cooperatives that fulfilled requirements both the requirements of social economy, as well as the principles of cooperatives. The new form of social cooperatives were formed in the most disadvantaged districts in the last three years. Differences in geographical structure clearly manifested in agricultural activities connected to natural properties (Tésits, Alpek, Kun 2015).

In Baranya county, 2014 the ratio of social cooperatives per 1000 job-seekers is 2.5, which marks at least 50 cooperatives (G. Fekete, Lipták 2014). The majority of these cooperatives, around 70% can be found operating in the seven districts discussed.

5. Conclusions and suggestions

The development of social economy (social cooperatives) needs to be separated from the system of public employment. In this it should provide a connection in order to provide a sort of jumping point for those engaged in public employment towards the public sector, but not to serve as part of public employment. In order to aid self-sustenance for the local inhabitants struggling with their daily livelihood it may prove a possibility for the poor people to join an economical community that performs production activities by way of support, where they can earn their necessary income in cooperation with their community.

Unfortunately in the past years no breakthrough was achieved by any employment policy measure, so the conclusions of earlier studies remain relevant. We would like to highlight one study conducted in 2011, which studied self-sustaining, efficient and value-creating possibilities for public employment in districts (ADITUS 2011). The basis for their study was two currently operating models, with special focus on the following:

- The group of direct models which are built on public employment support, extending to supplementary bounds, while the employer's and organizational tasks were fulfilled by local councils.

- Mixed models where the public employment was not only aimed at benefits but included reaching market market price income and secondary effects as well.

According to their position, the second model is the one that may be developed to reach towards the dimension of social economy.

- Mixed models are defined by management. This means that the control and organization of public employment is not a council responsibility[12]

- It presupposes the creation of workplaces, the establishment of business ventures and entrepreneurial statuses, as well as the creation of completable, valuable, and efficient indicators.[13] It ensures sustainable functioning, development, takes part in leading back to the primary labour market, aids the process to become entrepreneurs, and the development of communal infrastructural and public service development.

Studies performed by researchers explored the establishment of a so-called village company, which is sustainable, inclusive, and mobilizing; it is able to create a marketable product or service; it utilizes existing resources, is able to absorb, it creates employment and aids in labour reintegration, it develops the environment and functions as a social cooperative the protects natural values.

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The development of social economy may be aided by the program called GINOP-5.1.3.-16 Developing Ventures with Social Goals, which provides an alternative for broadening employment options with the development of social economy. In summary, it is a basic necessity to strengthen the economy on all levels, to create jobs during this development, and for employment to be broadened with innovations from the sector of small-, and middle level business ventures and distributed with help from districts.

There needs to be an establishment of complex economy-developing and employment-aiding system, which includes the rearrangement of relations in local economy (stimulating ventures, new ventures, entrepreneurial community organization, marketing); the cooperation of local economic actors, economic autonomy, local resources, tools, and interests (community utility, local development, dedication, provincialism).

Felhasznált irodalom

ADITUS Tanácsadó Zrt: Kistelepülések önfenntartó, hatékony és értékteremtő közfoglalkoztatása (zárótanulmány) 2011

Barakonyi E.: Pályakezdő fiatalok munkaerő-piaci esélyei a Dél-Dunántúli régióban 2025-ig, kutatási összefoglaló. In: Zádori Iván (szerk.): ALTERNATÍV MUNKAERŐPIAC: FEJEZETEK MUNKATUDOMÁNYI, MUNKAERŐ-PIACI KUTATÁSOKBÓL 2008-2015. 399 p. Pécs: PTE Kultúratudományi, Pedagógusképző és Vidékfejlesztési Kar 2016

Czene Zs., Ritz J. (szerk. 2010): Területfejlesztési füzetek (2) Helyi gazdaságfejlesztés. Ötletadó megoldások, jó gyakorlatok. VÁTI, Budapest

Frey M. (szerk. 2007): Szociális gazdaság kézikönyv. Országos Foglalkoztatási Közalapítvány, Budapest

G. Fekete É., Lipták K.: Közfoglalkoztatásból szociális szövetkezet? In. Lukovics Miklós - Zuti Bence (szerk. 2014): A területi fejlődés dilemmái. SZTE Gazdaságtudományi Kar, Szeged, 123-142. o.

Heidkamp M.T., Rátvai M. (1998): Együttműködés és helyi kezdeményezés a kistérségi gazdaságfejlesztésben. Joint initiatives of the USAID, USDOL and the Hungarian Ministry of Social and Family Affairs, Budapest

Nemeskéri Zs. - Szellő J: A munkaerő-piaci környezet alakulása, különös tekintettel, a fiatal diplomások helyzetére. PTE Diplomás Pályakövető Rendszer tanulmánykötet 2015. Pécsi Tudományegyetem 21-41. p.

Németh N. (szerk. 2011) A helyi kezdeményezésű gazdaságfejlesztési programok vizsgálata, esettanulmányok MTA Közgazdaságtudományi Intézet, Budapest

Szellő J. (szerk. 2013): Lokális, közösségi foglalkoztatás jellemzői és gyakorlata a Dunántúl déli részén. Zárótanulmány, PTE, Pécs

Tésits R., Alpek B. L., Kun A.: Az új típusú szociális szövetkezetek területileg eltérő foglalkoztatási szerepe. Területi Statisztika, 2015, 55(3): 254-272. ■

NOTES

[1] Local employment development, LED includes measures to stimulate locallabour markets. During LED, actors from the governmental and private sector characteristically involve several concerned parties in partner agreements in order to develop initiatives on a locally planned and realized scale. Partners may include (regional, county, or council) officials, agencies (state labour services and local development agencies), local employers, trade chambers, social partners, non-profit organizations, and non-state organizations as well.

[2] H: disadvantaged sub-region, LHH: most disadvantaged sub-region

[3] XCIII. of 2012. about district creation, and related laws

[4] Government regulation 290/2014. (XI. 26.) and amendment thereof: 106/2015. (IV. 23.) Korm. rendelet a kedvezményezett járások besorolásáról szóló 290/2014. (XI. 26.) Korm. rend.

[5] Districts to be developed: Beneficiary districts with the lowest complex rates, where 15% of the nation's cumulative inhabitants reside. Beneficiary districts: Districts with lower complex rates than the average of all districts. Districts to be developed with complex program: Beneficiary districts with the lowest complex rates where 10% of the nation's cumulative inhabitants reside.

[6] Based on the situation in 2013.12.20, and 2015.12.20.

[7] Economically active population consists of those aged 1564 who are also employed (active income, receiving child support benefits, working with pension) and the unemployed.

[8] Population aged 15-74

[9] Labour market equality means that access to employment, vocational training, and individual jobs must be available to everyone equally without discrimination. For disadvantaged social groups special emphasis needs to be made for improving individual employment situations, to broaden educational and training options, as well as creating an intermediate labour market, where the experience necessary for the open labour market can be gained.

[10] 2016. Nation Report - Hungary, which includes a detailed study of preventing and correcting macroeconomic imbalances. Council Service Document, Brussels, 2016.2.26. SWD(2016) 85 final

[11] In 2012, 259 social cooperatives were actively functioning in Hungary, employing around 2000 members and 1000 employees in varied - often atypical - employment forms.

[12] A significant suggestion of the professional interviews conducted as part of the study was to strip employer rights from councils. On the one hand, this is due to the lack of management view, on the other to prevent potential subjective elements.

[13] By European metrics, the basic requirement for indicators to be established is for them to be intelligent markers (SMART -Specific, Measurable, Achievable, Realistic, Time-based)