Education and Training Monitor 2022

1. Key Indicators

Figure 1: Key indicators overview

Sources: Eurostat (UOE, LFS, COFOG); OECD (PISA). Further information can be found in Annex I and at Monitor Toolbox. Notes: The 2018 EU average on PISA reading performance does not include ES; the indicator used (ECE) refers to early-childhood education and care programmes which are considered by the International Standard Classification of Education (ISCED) to be ‘educational’ and therefore constitute the first level of education in education and training systems – ISCED level 0; the equity indicator shows the gap in the share of underachievement in reading, mathematics and science (combined) among 15-year-olds between the lowest and highest quarters of socio-economic status; b = break in time series, u = low reliability, : = not available, 09 = 2009, 13 = 2013, 18 = 2018, 20 = 2020.

Figure 2: Position in relation to strongest and weakest performers

2. A focus on teachers

The shortage of teachers is increasingly challenging. Research shows a positive link between teacher quality and student performance. However, most EU countries, including Hungary, face teacher shortages – particularly in high-demand subjects and hard-to-staff schools and areas – and difficulties in attracting new candidates to the profession (European Commission, 2022). Despite the economic uncertainty linked to the COVID-19 pandemic and unlike in other countries, Hungarian pre-primary and primary education teachers belonged to the occupation groups showing the steepest decline: between March 2020 and May 2021, their number fell by more than 3 500, or 3% (Kónya & Krekó, 2021). The teaching workforce is ageing: in 2020, 46% of teachers were aged 50 or older¹. There is also a shortage of support staff: on average, Hungary has 1 support person for 17 teachers, while the OECD average is 1 support person for 12 teachers. This increases the burden on teachers, who also need to deal with pupils with special educational needs, or psychological and socio-economic problems, among other things.

Low salaries and high workload are key factors in teacher shortages. Competitive salaries that are on a par with the remuneration paid to people with similar education levels working in comparable occupations strengthen the ability of school systems to attract and retain teachers (European Commission, 2022). Teacher salaries in Hungary are the lowest among the EU countries that are OECD members. They are equivalent to only 58-66% of the salaries of other tertiary graduates, depending on educational level. In December 2021, a government decree was published by which teachers would receive a 20% wage supplement from 2022. However, this supplement is not part of the basic salary, so it does not count towards pension rights. The measure was taken while teacher unions were holding strike talks with the government without being able to reach an agreement. Trade unions were requesting a more substantial pay rise and to reduce the weekly teaching hours to 22. In January 2022, they organised a 2-hour warning strike. This led to court cases as the unions and the government could not agree on what services should be maintained during strikes. The government issued a decree listing these, which according to the trade unions would make any further strikes in public education practically impossible.

Initial teacher education cannot meet the demand for teachers. Applications for initial teacher education ITE have dropped strongly over the past 3 years (Figure 2). The decline is particularly significant for preschool and primary education. Drop-out rates are high in initial teacher education and less than half of teacher graduates actually enter the profession. In primary education, the proportion of small schools (with fewer than 150 pupils) is particularly high (49.5%) (Lannert et al., 2021). Small schools need to maintain full teaching staff regardless of the number of children, resulting in an 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 (Varga, 2022).

The Klebelsberg scholarship programme aims to attract more candidates to initial teacher education. In 2013/2014, the scheme was launched for secondary education; it was later extended to cover special education and primary education. Beneficiaries commit themselves to teaching in a state school in one of three counties they indicate, for a time corresponding to the length of their studies. Since 2018, 1 292 young graduates have been recruited this way. In 2022, the scheme was extended to include schools run by churches and foundation-based universities. A number of higher education institutions, including church-run ones, are also offering scholarships and other support to attract applicants to initial teacher education programmes.

Initial teacher education has been restructured with lower training and output requirements. As of 2022/2023, initial teacher education for lower and upper secondary teachers will be a uniformly 5-year course. The scope ofthe course will be reduced, and to strengthen the practical aspects, placements will be provided from the beginning of the programme, instead of at the end. An optional 1-year master's course can qualify teachers for preparing pupils for the advanced-level upper secondary education leaving exam, a requirement for entry to any university. An integrated science teacher training programme will also be launched. The outcome standards and requirements have been revised to ensure that universities only prepare students in the spirit of the revised national core curriculum.

Figure 3: Number of initial teacher education applications between 2016 and 2022

3. Early childhood education and care

Participation in early childhood education and care (ECEC) corresponds to the EU average. From the age of 3, 92.8% of children participate in ECEC (EU average: 93.0%), 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 kindergarten (KSH, 2020). ECEC services are increasingly being taken over by churches and, to some extent, private providers. Over the past decade, the number of children attending kindergartens has fallen by 5%. Participation of children under the age of 3 is low: in 2019, only 16.9% attended childcare (EU average: 35.7%). This is partly linked to the availability of a family allowance for parents staying at home with their children until the age of 3, and partly to the scarcity of nursery places. In 2021, almost 53 000 nursery places were available for children below the age of 3. However, for almost 56 000 children (21%), no place could be provided in their own settlements (KSH, 2022).

The centralised decision on children’s school maturity may lead to learning disadvantages. A 2019 amendment to the Act on national public education changed the rules for enrolling children in primary school. Previously, children who were not mature enough for primary school could be allowed by the kindergarten head to stay in kindergarten for another year. Under the new regulations, parents must apply for such an extension 8 months before the start of the school year, after which the education authority must issue an expert decision. The commissioner for fundamental rights of Hungary considered the new process unlawful, arguing, among other things, that the application deadline is too early and the electronic application process discriminates against disadvantaged families (Ombudsman, 2021). The Parents' Voice community carried out a survey among parents who applied to the education authority to request an extra year of kindergarten for their children (Parents’ Voice, 2022). The outcomes of the survey indicate that although most applications (over 90%) are eventually accepted, the criteria used to assess applications differ from one county to another, leading to significant differences in the results. Another concern is that schooling immature children can lead to long lasting learning difficulties. Research shows that 23% of Hungarian 6-year-olds cannot distinguish all speech sounds yet, which largely increases the risk of developing dyslexia (Zajdó, 2017).

4. School education

The 2018 OECD Programme for International Student Assessment (PISA) survey showed that education outcomes are below the EU average. At the age of 15, mean levels of basic skills are significantly below the EU averages and have declined 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 strengthen pupils’ key competences. As of 2022, new features have been introduced into the national competence test: in addition to tests in reading, maths and foreign languages, students also take a science test.

Early school leaving has not improved over the past decade. In 2021, the rate of early leavers from education and training was 12.0% (against an improving EU average of 9.7% and the EU-level target of 9%). The rate is higher in the least developed districts and among Roma (62.7% v 9.9% among non-Roma) (MNTFS, 2022). Data on participation in education show that lowering the compulsory school age from 18 to 16 in 2012/2013 had a significant negative impact on school attendance (KRTK-KTI, 2021). While the reform aimed to facilitate the labour market entry of young people wishing to leave secondary school early, it did not improve the probability of their employment. Instead, the reform increased the probability of being neither in school nor in employment for 16-18-year old drop-outs.

Performance gaps appear early and are exacerbated by the selective school system. The 2015 and 2019 TIMSS² results show that performance gaps between pupils emerge early (by grade 4) and belong to the highest in Europe. The rate of disadvantaged pupils in secondary education is extremely unequal across school types. According to available data, this rate is very high in vocational training schools (szakképző iskola) (12.96%), lower in vocational secondary schools (technikum and szakgimnázium) (2.86%) and very low in general upper secondary schools (gimnázium) (1.35%) (OH, 2021). This concentration of disadvantaged pupils in certain schools and school types, and pressing teacher shortages make it difficult to retain pupils in education and give them the personalised support they would need. In addition, in many countries, including Hungary, it is often the least experienced and least skilled teachers who are teaching the students with greater needs, which exacerbates academic achievement gaps based on students’ socio-economic background. In vocational education and training, two alternative pathways have been launched to support students with learning difficulties, whose impact remains to be seen. Hungary also has the largest urban-rural gap in education outcomes, before accounting for socio-economic status, of all OECD countries (OECD, 2019). There is evidence that tracking policies, either between tracks (academic, vocational) or between schools, reduce education equity, and they have mixed effects on efficiency.

Public data on the number of Ukrainian pupils in Hungarian public education is scarce. By the end of August, over 2,4 million people have crossed in to Hungary directly from Ukraine or via third countries, but only 29 170 of them had applied for temporary protection (UNHCR, 2022). More than 107 000 people had been granted temporary residence. However, it is difficult for several reasons to determine how many Ukrainian citizens are in Hungary. Many of them have dual Ukrainian-Hungarian nationality, do not need to register and are therefore not recognised as refugees; others do not apply for a refugee status but travel onwards. Ukrainians up to age 16 who either have Hungarian citizenship or have applied for a refugee status, are subject to compulsory schooling. The state school of their place of residence is obliged to admit them to regular education in Hungarian. In September 2022, the total number of children from Ukraine attending education and training in public education institutions was 4,093: 749 in kindergartens and 3,344 in schools. They are spread over 1,247 kindergartens and schools. In addition to access to schooling, both Hungarian- and Ukrainian-speaking children can participate in a 5-hour-per-week remedial or language learning support session in the afternoons, in addition to basic educational services. Schools providing remedial courses receive a monthly subsidy of HUF 130 000 (EUR 319) per pupil. However, schools do not receive any additional professional support apart from free textbooks for learning Hungarian.

5. Vocational education and training and adult learning

Progress has been made in setting up a vocational education and training (VET) graduate tracking mechanism. The Vocational Graduate Tracking System has been developed on the e-KRETA web platform to obtain more information on the further learning and employment of VET graduates. It consists of three pillars: integrated databases, regular administrative data collection, and surveys.

Finding dual training places in companies is challenging for VET students. Nearly half of upper secondary pupils are enrolled in VET³ (49.7% in 2020 v 48.7% EU average). Less than 1% of small to medium-sized enterprises offer places for dual training. According to the 2019 VET 4.0 strategy, this is due to the high administrative burden related to apprenticeship contracts, a lack of qualified staff, and a lack of modern infrastructure. To address these challenges, sectoral training centres equipped with state of the art infrastructure are set up – using EU funding – which will be co-owned by vocational centres and small to medium-sized enterprises.

Professional final examination results at technical colleges may be considered for higher education admission. As from the 2021/2022 academic year, pupils participating in the 5-year VET programme at technical colleges can choose to have only the results of the final professional examination taken into account for the calculation of their higher education admission scores, and not their general upper secondary school leaving examination (matura) results. The general competence content of VET programmes is significantly lower than in general upper secondary education. Therefore, it is more difficult for technical college students to score well in the matura. The new VET-related admission criteria option aims to support technical college pupils’ progression to higher education in the same professional field. As part of the VET reform, digital competence standards were included in the training standards and outcome requirements of each VET qualification and they have been referenced to the levels of the DigComp framework.

Adult participation in learning, especially for digital skills, needs further support. Only 5.9% of adults participated in training in a four-week period prior to when they were asked in 2021, compared to the 10.8% EU average. Participation rates of low-skilled and unemployed adults are even lower. 49% of individuals have at least basic digital skills, compared to the EU average of 54% and the Digital Decade target of 80% by 2030 (DESI, 2022). To boost adult learning, various aspects of the 2019 vocational and adult learning reform are being rolled out. In 2022, a new adult training database was published, listing all adult courses and course providers. The database could gain from searchable, harmonised and comparable information on training outcomes.

The financing of adult learning has been changed. In 2021, the public employment services training system was replaced by a job-search incentive allowance. The new scheme offers a more limited financial coverage, which may negatively impact low-skilled workers and jobseekers, whose participation is already low. In May 2021, state-subsidised adult learning study loans were launched. This interest-free scheme has two components: a loan to cover the study fee and a loan to cover any expenses related to the training. In December 2021, the requirements of the first component were tightened while the second component was abolished due to misuse. Loans for shorter trainings and an exemption from repayment on completion for disadvantaged target groups could make the offer more attractive. Hungary is also examining the feasibility of setting up individual learning accounts. Preparations will start in autumn 2022 as part of a Technical Support Instrument project and piloting is planned to be carried out under the Economic Development and Innovation Programme for 2021-2027.

Figure 4: Number of applications/admissions to higher education in the general procedure between 2011/2012 and 2021/2022, in thousands

6. Higher education

The number of tertiary graduates cannot meet the growing demand for a highly skilled workforce. At 32.9%, Hungary has one of the lowest rates of the population aged 25-34 holding a tertiary degree (against an EU average of 41.2% and the EU-level target of 45%). The share of highly skilled women in this age group exceeds that of men by 12.2 percentage points, above the EU average. The employment rate of recent tertiary graduates (91.1%) exceeds the EU average (84.9%). 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 low tertiary attainment rate is partly linked to high drop-out rates, which are highest in IT, technical and science programmes. More than one third of bachelor’s studies are finished without a degree (OH, 2020). This is partly because an intermediate level foreign language exam used to be a requirement for the diploma (Józsa, 2020). In 2020 and 2021, this requirement was suspended due to the pandemic. As of 2022, higher education institutions may decide if they prescribe a foreign language exam for obtaining a diploma. This may increase graduation numbers.

The decline in applications can probably be linked to stricter admission criteria since 2020. In 2022/2023, some 99 192 people applied for higher education; 2 689 fewer than last year and 13 000 fewer than 3 years ago (Figure 4). The number of applicants fell by 45 000 between 2011 and 2013, when self-financing places were introduced⁴ and the entry scores for several popular programmes were raised. After this, the number stabilised at around 107 000 with minor fluctuations. In 2020, the number of applicants fell sharply due to stricter entry requirements: a higher passing score and the advanced-level matura. A deeper analysis of the data shows that the decline cannot be explained merely by demographic developments and concerns primarily the segments of higher education most affected by the stricter entry requirements (Vit & Holb, 2022). Application numbers fell more in countryside institutions than in the capital, and regional data show deepening territorial inequalities (Polónyi, 2020).

Few disadvantaged people make it to higher education. The share of socio-economically disadvantaged pupils passing the matura and applying for tertiary education is only 3% (Varga, 2021). The VET scholarship scheme offers the highest grants in the 3-year vocational secondary track, which does not lead to matura, thus offering a short-term advantage for a non-academic, narrow learning path. Disadvantaged pupils may benefit from the Arany János programme for gifted pupils and those eventually entering tertiary education from the Útravaló (Pathfinder) scholarship schemes and the Roma talent support colleges. The proportion of students with disabilities remains below 1% and disabled university students continue to face serious barriers to their studies (Petri & Markos, 2021). Although the situation of students with disabilities in higher education has generally improved over the past decade, accessibility to universities remains poor, which means that students with disabilities often have problems accessing seminars, the library or compulsory practical training sites. The lack of personal assistance is also a major barrier for disabled students. There is no service in the social security system to provide students with the personal assistance they need, whether it is getting dressed in the morning, getting to class or taking notes in class.

Scarcity of accommodation is another barrier to studies. In recent years, rents have doubled in Budapest and increased by at least 50% in other large university cities. Nationwide, there are 54 000 dormitory places, for almost 300 000 students. A survey shows that 69% of students share an accommodation with others and 23% have a dormitory place (Eurostudent, 2021). Meanwhile, the number of foreign students is increasing, the vast majority of whom are provided with places in halls of residence by the universities. The construction of the Chinese Fudan University campus in Budapest met with strong protests because it would take place on land earlier designated for the planned Student City with dormitories, whose 12 000 places would be relocated and reduced to a third.

Hungary invests heavily in attracting foreign students and in international cooperation. Legislative changes have been introduced to reduce barriers for Hungarian universities to participate in the European University Initiative and to facilitate cooperation in joint degree programme development. The Stipendium Hungaricum and more recently the Diaspora Scholarship schemes have been running for years at a considerable expense, providing scholarships for foreigners – mostly from outside Europe – and students of Hungarian origin to study in Hungary. HUF 33 billion (EUR 93 million) was earmarked for the Stipendium Hungaricum in 2020. The number of international students increased 2.4 times between 2010 and 2020, and reached 17.4% of all students in 2020/2021.

Most state universities have been transformed into trust funds. By 2022, all but six universities underwent a model change by which they came under the control of trust funds set up by the government. In October 2021, the government signed public task financing contracts with the trust funds, setting out the level of public support and the performance indicators expected from the universities in return. The grant contracts set out performance indicators per year for 6 years in advance, such as the drop-out rate, the length of the job search period after graduation, or the level of cooperation with businesses. Over the years, much of the funding will gradually become performance-based. Each trust fund also receives a yearly grant of HUF 400-600 million (EUR 0.98-1.47 million) to cover the operating costs of the boards of trustees. An important governance issue is that there are no rules either on the functioning of the boards of trustees or on the relationship between the government (which is responsible for running sectoral policies) and the boards of trustees (as the funders of universities). Thus the boards have all decision power in the universities’ key areas without being accountable for their own operation and decisions either to the government or the academic body of the university.

Annex I: Key indicators sources

Annex II: Structure of the education system