The case examines the labour market in the central and eastern border between Hungary and Slovakia, consisting of the regional entities Banskobystrický kraj (SK)- Nógrád vármegye (HU) and Košický kraj (SK) - Borsod-Abaúj-Zemplén vármegye (HU).

The region has experienced increasing labour market integration, particularly following Slovakia’s entry into the Schengen zone. The whole cross-border regions faces similar challenges such as persistent unemployment, a relatively weak economy, a concentrated distribution of large companies and weak functional role of their regional sub-centres.

The identified main drivers of cross-border commuting in Slovakia are higher wages and the stability of the euro, while in Hungary the main drivers are better benefits (more affordable housing options), the working atmosphere and the Hungarian working language. Most of the cross-border commuters are Slovak citizens living in Hungary and commuting back to work in Slovakia. Cross-border cooperation relations have developed significantly over the past decades, but there are still significant gaps. The number of long-term, sustainable cooperation projects is low and project-based cooperation remains the most prevalent. The level of cooperation between the national and regional institutions of the two countries is low, and they are therefore not adequate to successfully coordinate labour market processes in the border region. 

Among the cross-border institutions, the EGTCs are the most important, but their territorial coverage and functional role vary from region to region, and they only deal with labour market and employment issues in a tangential way. In the case of the central border region, the presence of market actors (employment agencies and temporary work agencies) can be observed, but they are not closely linked to public institutions. In addition, the activities of NGOs and non-profit organisations (training programmes, advocacy, information provision) also strengthen labour market links in the border regions. Still, a lack of comprehensive policy strategies and bilateral economic development programmes remains. 

The full-fledged case study report will be publicly available upon the official closure of the project, early 2025. In the meantime, should you have any comments or questions, please do not hesitate to contact us.