According to the MGFÜ’s latest labor market overview, the situation in Baranya is expected to stabilize in the first half of 2025: employment is in the middle range, while unemployment is on a downward trend. However, as with the South Transdanubia region as a whole, there is still ample room to increase employment and further reduce the number of job seekers.
Employment: Baranya ranks in the middle
The county’s employment rate falls within the upper-middle range on the national map: it is not among the lowest-performing counties, but it lags behind the “leading group” in Budapest and the northwest (Győr–Moson–Sopron, Komárom-Esztergom). In Southern Transdanubia, Somogy and Zala have weaker indicators, while Tolna presents a mixed picture. Overall, Baranya’s position is stable, but it shows potential for catching up.
Unemployment: slight improvement
The unemployment rate in Baranya declined between 2019 and the first half of 2025 (a decrease of between 0.4 and 1.4 percentage points). This is a more favorable trend than in several neighboring regions: for example, Tolna County saw a significant deterioration, while Somogy County saw an increase of more than 3 percentage points.
What does this mean for the local economy?
The dual nature of the national trend is also evident in Baranya: while the central and northwestern counties face a tight labor market, there are still significant reserves of labor available in Southern Transdanubia. According to the report, the key to expanding employment in the region is:
- attracting investments from major employers and encouraging reinvestment,
- supporting the scaling up of the local SME sector and enhancing its competitiveness,
- the retraining and upskilling of the labor reserve, because those not in the workforce tend to have lower levels of education on average.
Priorities in Baranya – Proposed Areas of Focus
- Skills development and adult education: strengthening digital, technical, and production-related competencies to meet the growing demand for knowledge-based jobs. (A national trend, also relevant locally.)
- Industrial and service sector development: increasing the share of knowledge-intensive services (ICT, finance, R&D) alongside the manufacturing sector, as these are key growth sectors nationwide.
- Transportation and labor mobility measures: improving accessibility within metropolitan areas and micro-regions so that job vacancies and the labor reserve can “meet.” (This is justified by the dual nature of the region.)
Overview
As of early 2025, Baranya has a gradually improving unemployment rate and an employment rate in the middle of the pack. The next step forward could be achieved through the targeted mobilization of the region’s labor reserve, the promotion of large- and medium-scale corporate investments, and support for the growth and training of local SMEs.
For more information: https://www.mgfu.hu/hu/article/GEKonimic_1104
Source: MGFÜ – Labor Market Overview and Trends (November 4, 2025).
