1. Key indicators

2. Highlights

3. A focus on well-being in education and training

On international comparisons, Hungarian pupils’ life satisfaction is slightly above average; however, the frequency of bullying is also slightly higher. The school climate has a stronger effect on pupils’ average performance in grade 8 than in grade 4, in line with international data (OH, 2020). Less than half of pupils (45%) attend a primary school that teachers say is safe and disciplined, against the international average of 61%. There is a clear correlation between a disciplined and safe school climate and learning achievement. Based on the analysis of PISA 2018 data, on a scale of 1 to 10, the average value of the index measuring Hungarian pupils’ satisfaction with their lives (7.12) is slightly above the EU average (6.8). Compared to other EU countries, the percentage of pupils who reported being bullied at least a few times a month is 22.6%, also slightly above the EU average of 22.1% (OECD, 2019). At national level, school health promotion is defined by law (Governmental Decree 20/2012), with the aim of achieving children's full physical, mental and social well-being. Pupils’ well-being is not monitored, nor were there any specific support measures taken in the context of the pandemic.

More than half of Hungarian parents consider that their children’s mental health has been impacted by the pandemic. According to a representative survey conducted by UNICEF in May 2021, 54% of parents reported attention disorders, sleep problems, loneliness, restlessness or anxiety among their children (UNICEF, 2021). Around half of parents fear that the lockdowns and the pandemic situation will have a long-lasting adverse impact on their children: their emotional, social and motoric development has slowed down and they have accumulated learning deficits. Children in single-parent households suffered much more frequently from the adverse effects of the pandemic than those living with both parents, and children from lower-income families were also found to be more exposed to mental health risks.

The National Strategy for Crime Prevention (2013-2023) gives childcare and education staff an important role in protecting children, while legislative amendments put forward in 2020 aim to reduce violence at school. The Crime Prevention Strategy was adopted by the Hungarian Government in 2013 to define legislative, organisational, developmental, training, attitudinal and awareness-raising tasks for the following decade. The strategy emphasises the prominent role of teachers in preventing crime and protecting children, and one of its aims is to strengthen preparedness for crime prevention in initial teacher education. In July 2020, a law was adopted establishing special police forces to ensure security in educational institutions.

National programme assesses pupils’ fitness level. The National Unified Student Fitness Test (NETFIT®) was introduced in 2014/2015. Since then, physical education teachers need to assess pupils’ fitness in a uniform way at all schools. NETFIT® is a diagnostic and pedagogical assessment and feedback tool that distinguishes and measures four different fitness profiles: body composition and nutrition profile; aerobic fitness profile; musculoskeletal fitness profile; and flexibility profile. The 2021-2030 Public Education Strategy sets the target of reducing the share of pupils with the poorest fitness status from the current 28% to 15%.

The ‘Tanoda’ after-school programme aims to support disadvantaged pupils. ‘Tanodas’ are after-school child welfare services offered to pupils whose families and schools alone cannot provide adequate conditions for successful learning and achievement. The Tanoda programme supports pupils’ school performance and development through personalised support and non-formal and informal ways of learning. Through extracurricular activities, these after-schools contribute to the successful progress of pupils from different social, cultural and educational backgrounds in primary and secondary education. Their role is therefore particularly important for pupils who are disadvantaged, those with multiple disadvantages, including Roma, or those living in residential care. The first after-school houses were created in the 1990s as civil initiatives and were financed from the European Social Fund from 2004 onwards. As of 2019, Tanoda has been integrated into the Child Protection Law as a basic child welfare service, supported by a national grant system of HUF 2.4 billion a year (~EUR 6.9 million). This supports the financing of 183 after-school houses for around 5 000 disadvantaged pupils.

Higher education institutions are responsible for student welfare services. The Higher Education Act deals with social and welfare provision for students in general, prescribing the provision of adequate sports and accommodation infrastructure, the operation of student welfare and support services, the principles and means of support for students with disabilities, and the means of ensuring equal opportunities and equal access. Through higher education institutions, the State provides financial support to students for the operation of sports, cultural, housing and other social and welfare services, as well as cash grants. Most higher education institutions offer mental health and other support services to students, and many have peer support services, but the availability and quality of these services are not standardised.

4. Investing in education and training

Public expenditure is around the EU average. General government expenditure on education as a proportion of GDP corresponded to the EU average (4.7%) in 2019. Measured as a percentage of the total public budget, Hungary spent 10.3% on education in 2019, against an EU average of 10.0%. Education spending in real terms increased by 11% since 2010, but the distribution between sectors changed significantly. While financing for secondary and tertiary education increased (by 29.7% and 25.5%, respectively), it dropped by 12.6% for pre-primary education.

Financing for higher education declined in 2021. The amount earmarked for higher education decreased by 5% from HUF 624 billion (~EUR 1.73 billion) in 2020 to HUF 593 billion (~EUR 1.69 billion) in 2021, of which HUF 322 billion (~EUR 0.9 billion) has been allocated to operating expenses. In recent years, even with EU funds, support for higher education has decreased not only in nominal terms but also in terms of GDP and per student.

5. Modernising early childhood and school education

Participation in early childhood education and care (ECEC) corresponds to the EU average. From the age of 3, 92.9% of children participate in ECE (EU average: 92.8%), below the new EU-level target of 96% set for 2030. In 2016, Roma participation was at 91%, close to the national average and by far the highest among Member States in the region (FRA, 2016). However, regional coverage of kindergartens remains unbalanced: in 2020, 31% of settlements had no kindergartens (KSH, 2020). Participation of children under the age 3 is low: in 2019, only 16.9% attended childcare (EU average: 35.5%). This is partly linked to the availability of family allowance for a parent staying at home with their child until age three and partly to the scarcity of crèche places. In 2020, there were slightly more than 50 000 crèche places available for some 280 000 children below the age of 3. Some 76% of settlements had no crèches, and for almost 60 000 children no place could be provided in their own settlements (KSH, 2021a). Back in 2018, the prime minister announced that some 70 000 places in kindergarten would be created by 2022.

Decision on children’s school maturity remains with the central authority. A 2019 amendment to the Act on National Public Education changed the rule for enrolling children in primary school. Where previously kindergarten heads could allow a one-year extension of pre-school attendance instead of proceeding to primary school in case of immaturity, the new regulations request an application by parents 8 months before the start of the school year, followed by an expert decision issued by the Education Authority. The Commissioner for Fundamental Rights of Hungary considered the process to be unlawful, arguing, among other things, that the deadline is too early and the electronic application process discriminates against disadvantaged families. In March 2021, the Constitutional Court declared the regulation unconstitutional; following that, an amendment was adopted, also in March 2021. Parents may now attach the opinion of the pre-school teacher to the request for deferral, and the child protection authority can also initiate the deferral in the absence of a parental request. However, the amendment leaves the decision over the maturity of the child with the central authority.

In the face of increasing pre-school teacher shortages, the Government amended the employment conditions in kindergartens by a decree in August 2020. While, according to the previous requirement, a kindergarten teacher had to be present in each child group during the entire opening time of the facility, the new decree requires the presence of a kindergarten teacher only from 8 a.m. to 12 a.m. The previous requirement could only be met with two kindergarten teachers per group, while in the new context a kindergarten teacher will be replaced by nannies and/or assistants in the afternoon and before 8 a.m. These regulations reversed the decades-long practice and quality requirement of allowing only qualified kindergarten teachers to deal with children during their entire stay at kindergarten.

Educational outcomes are below the EU average in the latest survey of the OECD Programme for International Student Assessment (PISA 2018). At the age of 15, mean levels of basic skills are significantly below the EU averages and have decreased since 2009, with the sharpest decline in science. The share of low achievers is well above the EU average in all three areas tested: 25.6% in mathematics, 25.3% in reading and 24.1% in science, compared to 22.4%, 21.7% and 21.6% respectively at EU level. The revised National Core Curriculum of 2020 and its centrally developed framework curricula remain heavily content-oriented, leaving little room for teachers to develop pupils’ key competences.

In 2020, the early school leaving rate increased slightly. In 2020, the rate of early leavers from education and training increased to 12.1% (against an EU average of 9.9% and the EU-level target of 9%). The rate is higher in the least developed districts and among Roma (65.3%) (KSH, 2019). The concentration of disadvantaged pupils in certain schools and school types – especially vocational training schools – and pressing teacher shortages makes it difficult to retain pupils in school and give them the personalised support they would need. The distribution of pupils at risk of dropping out varies greatly by school type and region. In the three most affected counties, 10-15% of pupils are concerned (Fig. 3).

The school system is highly selective, leading to the early separation of pupils by socio-economic status. The rate of disadvantaged pupils in secondary education is extremely unequal by school type; according to available data, it is very high in vocational training schools (szakképző iskola) (12.96%), lower in vocational secondary schools (technikum és szakgimnázium) (2.86%) and very low in general upper secondary schools (gimnázium) (1.35%) (OH, 2021). Hungary also has the largest urban/rural gap in education outcomes, before accounting for socio-economic status, of all OECD countries (OECD, 2019). A 2020 July amendment of the Act on Public Education exempts the maintainer of the school from paying compensation to pupils in cases where the court found that they were barred from inclusive education. Instead, the school maintainer is now obliged to compensate them in the form of education and training services – whose quality and inclusiveness is, however, not specified in the law.

Restrictions linked to sexual education and homosexuality in the child protection law (Act LXXIX of 2021) raised controversy. In June 2021, the Parliament adopted a bill which prohibits sharing with minors any content that is pornographic, depicts sexuality as a goal in itself, and content that portrays or promotes homosexuality or sex reassignment in the realm of child protection. The law also includes a provision according to which schools may only involve external organisations or individuals that are registered by the Education Authority in educational activities on ‘sexual culture, sexual life, sexual orientation, sexual development, drug abuse, dangers of the internet and other physical and mental health development’. In July 2021, the European Commission launched an infringement procedure against Hungary for violations of fundamental rights of LGBTIQ people.

The shortage of teachers is increasingly challenging. Despite the economic uncertainty linked to the pandemic, the number of teachers in general education and vocational education and training dropped by almost 3 000 in one year, where the total number of full-time teachers was 164 438 in 2020/2021 (KSH, 2021b). The teaching workforce is ageing: in 2017, 41% of teachers were aged 50 or over. Initial teacher education cannot meet the demand for teachers: dropout rates are high and less than half of teacher graduates actually enter the profession. In primary education, the proportion of small schools (with less than 150 pupils) is particularly high (49.5%) (Lannert et al., 2021). Small schools need to maintain a full teaching staff regardless of the number of children, resulting in uneven distribution of teachers across the country. Teacher shortages are most significant in disadvantaged areas, for mathematics, science subjects and foreign languages, and in vocational education and training. Low salaries are one factor: these are equivalent to only 58%-66% of the salaries of other tertiary graduates (OECD, 2021). In addition, the number of teaching hours is the highest in Europe (European Commission, 2021a).

The distribution of special education teachers and other non-teaching support staff is uneven. Data from the 2019/2020 school year shows wide regional variations in the supply of special education teachers, conductors, developmental teachers and school psychologists (European Commission, 2021b). Wealthier regions tend to have better-equipped schools, with more professionals, while poorer regions suffer from the lack of human resources. This weakens the ability of the education system to counterbalance the impact of students’ family background and create equal opportunities for children with special educational needs (SEN). Although most pupils with SEN attend vocational training schools (szakképző iskola), the supply of specialists in these schools is especially scarce.

The Government is investing in the language skills of pupils and language teachers. A scheme of two-week summer language courses abroad for secondary school students was planned to be launched in 2020 but had to be cancelled because of the pandemic. Meanwhile, the Government announced it would spend HUF 1.5 billion (EUR 4.29 million) a year on improving foreign language teachers’ language skills through stays in the target language country. It also announced the further development of modern infrastructure for foreign language teaching; this would enable students to learn at least one foreign language at school at an appropriate level without having to take private lessons.

6. Modernising vocational education and training and adult learning

Participation in vocational education and training (VET) is increasing and graduates fare well on the labour market. As in most EU countries, the employment rate among recent VET graduates dropped in 2020, to 80.0% in Hungary, but this still exceeds the EU average (76.1%). This corresponds to the overall high share of employment among the population aged 25-55 (86.2%) (KSH, 2021c). There are however, territorial differences in the employment rate of recent VET graduates, hitting the North Great Plain most (68.9%). A regular graduate tracking system could be helpful to identify the extent to which training meets labour market needs.

Retaining students and preventing early school leaving in VET remains a challenge. As of 2020/21, two programmes have been piloted in nine VET institutions and two church organisations to help students complete lower secondary education. The renewed ‘Springboard’ (Dobbantó) is a basic competences development programme for learners who have been unable to complete lower secondary education by the age of 16. The ‘Workshop-based School’ programme (Műhelyiskolai program) is accessible to secondary school dropouts over 16 or those who have completed lower secondary education in the ‘Springboard’ programme. It leads to a school leaving certificate attesting completion of lower secondary and/or a partial vocational qualification (EQF2-3), giving direct access to the labour market (Cedefop, 2021).

Participation in adult learning is low and shrank further during the lockdowns. The share of adults participating in lifelong learning dropped to 5.1% in 2020. Recent reforms in vocational education and training and adult education are expected to make an impact on participation. The introduction of student loans in adult training is expected to increase participation. In 2021, a support programme for corporate training to be funded from ESF+ was launched to train more than 100 000 employees from an overall budget of HUF 70 billion (~EUR 200 million). Employers can apply for a grant to cover the training costs and contribution to the salaries of their employees during the training. In March 2021 the system of labour market trainings was restructured, replacing the previous scheme within the Public Employment System.

Policy developments in adult learning are increasingly focusing on needs related to the labour market and to employers’ productivity. Respondents to an adult education survey (CEDEFOP, 2020) consider personal development more important (67%) than improving skills to look for another job (53%) or to develop skills that can be used in any job (41%). However, the recent reform of active labour market support for training seems to have limited individuals’ guidance and access to needs-based training and favours supporting employers’ training needs instead.

7. Modernising higher education

The growing demand for a highly skilled workforce is not being met by a sufficient number of tertiary graduates. At 30.7%, Hungary has one of the lowest rates of the population aged 25-34 holding a tertiary degree (against an EU average of 40.5% and the EU-level target of 45%). The share of highly skilled women in this age group exceeds that of men by 11.1 percentage points, slightly above the EU average. The employment rate of recent tertiary graduates (88.1%) exceeds the EU average (83.7%). In the 2020/2021 academic year, a total of 204 819 students studied full-time in higher education, almost the same number as in the previous year; of all students, 28.8% study part-time. Around a third of full-time students pay a fee for their education; this proportion is higher among part-time students (European Commission, 2020). The share of international students is growing (35 635 students, or 17.4% of the total), while around 15 000 Hungarian students studied at higher education institutions abroad in 2019/2020; the main target countries are Austria, Germany and the UK (Engame Academy, 2021).

Graduate tracking data show good employment prospects for graduates but high dropout rates in higher education. The Education Authority has published the results of the 2020 Graduate Tracking System Administrative Databases Integration survey (DPR, 2021), which processed data on graduates and dropouts between the academic years 2011/12 and 2017/18; altogether, this covered 599 805 students and 765 567 courses. The data show that graduates from some Bachelor’s programmes earned on average nearly a third more, and graduates from single-tier Master’s programmes earned up to 38% more, than the national average salary. Moreover, they were able to find a job in less than 2-2.5 months (Fig. 4). Dropouts remain frequent: more than a third of Bachelor’s students do not graduate, with dropout rates being especially high in IT, engineering and science programmes. To help students complete their studies, those with poor results in their Bachelor’s programmes are allowed to transfer to short-cycle higher education vocational training from 1 January 2021.

The governance and financing of most universities have been handed over to trust funds. By 2021, the Government transferred the governance and financial management of all but six previously state-run higher education institutions to trust funds established for this purpose. While these trusts have received substantial assets from the State and will continue to receive funds from state budget for their operation every year, they operate as private entities. All important decisions are made by the board of trustees, whose members are appointed by the Government for their lifetime. This is different from the practice of other countries where, in the case of foundation-based universities, about half the membership of the trust funds are elected by and from the senate of the university; the members of the board are appointed by transparent criteria for a fixed term and the decision-making power of the board is limited to overall budgetary matters and strategic planning. In the Hungarian model, it is left to the discretion of the board as to whether they grant the right of consent to the senate and they can repeal this right at any time. The new law can only be changed by a two-thirds majority in Parliament. In April 2021, a law on trust funds was adopted, stipulating that ‘the senate needs to be granted the right of opinion or consent in the foundation document’ of the university. The Constitutional Court found in June 2021 that university autonomy is thereby guaranteed and the legislation does not violate the Fundamental Law. According to the Hungary chapter of the 2021 Rule of Law Report, some stakeholders have expressed concerns about the newly established private trusts receiving significant public funding, managed by board members close to the current government (European Commission, 2021c).

The Government signed a strategic agreement with China’s Fudan University. In April 2021, the Government signed a strategic agreement with China’s Fudan University, in which the Government undertakes to build a 520 000 m2 campus for the university on 26 hectares in Budapest. In June 2021, the Parliament adopted a law on creating the governing trust foundation of the Fudan Campus. The university will offer courses in economics, humanities, social sciences, natural sciences, engineering and medicine to 5 000-6 000 students.

8. References

Bagdy, B., Bagdy, E. (2017): Boldoságóra Kézikönyv 10-14 éveseknek [Happiness Class Handbook for 10-14-year-olds], Budapest: Mental Focus)

Cedefop (2020): Perceptions on adult learning and continuing vocational education and training in Europe. https://www.cedefop.europa.eu/files/3086_en.pdf

Cedefop (2021): Spotlight on VET – 2020 compilation: vocational education and training systems in Europe. Luxembourg: Publications Office. https://www.cedefop.europa.eu/en/publications-and-resources/publications/4189

DPR (2021): Education Authority: Diplomás Pályakövetési Rendszer 2020 – Adminisztratív Adatbázisok Egyesítése – Gyorsjelentés. https://www.diplomantul.hu/adminisztrativ-adatbazisok-egyesitese

Engame Academy (2021) Magyar egyetemisták külföldön [Hungarian students abroad] https://drive.google.com/file/d/1CekC-ohYkJTOnq9cLvo4vgYZ_9AEBGxy/view

EU Council (2020): Council Recommendation on the 2020 National Reform Programme of Hungary and delivering a Council opinion on the 2020 Convergence Programme of Hungary. https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A52020DC0517

European Commission (2020): National Student Fee and Support Systems in European Higher Education – 2020/21. Eurydice – Facts and Figures. https://op.europa.eu/en/publication-detail/-/publication/01ea3b55-5160-11eb-b59f-01aa75ed71a1/language-en/format-PDF/source-184435368

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Government (2021): [Government Decision No.) 100 of 2021 (27 February)] 100/2021. (II. 27.) Korm. Rendelet a foglalkoztatást elősegítő szolgáltatásokról és támogatásokról. https://net.jogtar.hu/jogszabaly?docid=A2100100.KOR

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KSH (2021b): Central Statistical Office: https://www.ksh.hu/stadat_files/okt/hu/okt0003.html

KSH (2021c): Central Statistical Office: Gyorstájékoztatók – Foglalkoztatottság. https://www.ksh.hu/gyorstajekoztatok#/hu/document/fog2105

Lannert et al. (2021): Analysis of human resource scarcity in public education. T-TUDOK, Budapest (manuscript)

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OECD (2021): Education at a Glance 2021, Table D3.2.: Teachers' and school heads' actual salaries relative to earnings of tertiary-educated workers (2020). https://www.oecd.org/education/education-at-a-glance/

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OH (2020): Oktatási Hivatal: TIMSS 2019 - Összefoglaló jelentés. Https://www.oktatas.hu/pub_bin/dload/kozoktatas/nemzetkozi_meresek/timss/TIMSS2019.pdf

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Varga (2019): Varga, Júlia (ed). A közoktatás indikátorrendszere 2019. https://www.mtakti.hu/wpcontent/uploads/2020/01/A_kozoktatas_indikatorrendszere_2019.pdf

Annex I: Key indicators sources

Annex II: Structure of the education system