From the 2026 budget audit
70 billion forints of training that doesn't track what employers actually need.
The state funds courses providers are set up to deliver — not the skills employers would pay a premium for. Published evaluations find participants moved to real jobs because labour demand rose, not because the training equipped them.
70,000 millió Ft per year from the payroll levy — funding centrally designed courses whose content is not validated by any employer's wage offer.
What you see — and what you don't
The seen: trainees enrolled in accredited vocational courses, training providers on multi-year agreements. The unseen: the levy-payer whose contribution funds training content that, on the programme's own evidence, did not drive the labour-market transitions it claimed credit for.
Objection
"Skills training is an investment — if the state doesn't fund it, workers in lower-wage areas can't afford to retrain and get stuck."
Answer
The objection is for a training subsidy, not for this one. The problem here is who chooses the skill. A central administrator funds what they can credential; an employer hires what they need. A portable training voucher the worker takes to any provider keeps the choice of skill with the person who faces the actual wage offer. The four-year phase-out protects in-flight enrollments; what follows is demand-led, not supply-administered.
Share if you think the worker — not a county office — should decide which skill is worth retraining for.
The analyst's verdict
Vocational-Training Subsidies
Rationale
This line subsidises vocational training — courses, training providers, and training-linked employer support. The difficulty is structural: the Fund administrator cannot know which skills are scarce in which local labour market, because that information exists only in the wage offers of employers who would hire the skill.[^7] A central training budget allocates toward the courses providers are set up to deliver and the ones administrators can credential, not necessarily toward the skills an employer would pay a premium for. The programme's own labour-market evaluations found that participants who did move from public works to the open market did so because labour demand rose, not because the training equipped them with what the market wanted[^2] — direct evidence that the training content is not tracking the price signal. This does not mean vocational training has no value. It means the state's role should not be to run and fund the training programme centrally. The protected parties are training providers on multi-year agreements and the cohorts of trainees currently enrolled, whose courses must be allowed to finish. A four-year phase-out lets in-flight course commitments run their term while intake is wound down. The envelope is better redirected — where a subsidy is retained at all — to demand-side instruments: a training voucher the worker takes to a provider of their choice, or an employer-side credit for training the employer has identified as needed. Both keep the choice of skill with the party who faces the actual labour-market price, rather than with the administrator who does not. The classification reflects the mechanism — central allocation of a budget that cannot price its output — not the size of the line.
Transition mechanism
Four-year linear wind-down of central training-subsidy intake; in-flight course agreements honoured to completion; residual support, if retained, converted to a portable voucher held by the worker.
Affected groups
Training providers dependent on the central subsidy; trainees currently enrolled (protected to course completion). The county government offices that administer training allocations.
Sources
- Miert nem hatekony a kozfoglalkoztatas? · Budapest Institute / Munkaeropiaci Tukor (2022)
Free Society Institute
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