How can unemployment rise when more and more people are working?

Despite an increase in employment, Hungary's unemployment rate rose to 4.6% in September, indicating a complex labor market situation. The number of employed individuals grew to 4.661 million, while the unemployed increased to 224,000. The employment rate for ages 15-74 rose slightly, yet the unemployment rate has been on the rise since mid-2022. Hungary's employment rate is among the highest in the EU, but the unemployment rate remains relatively low. Political reactions vary, with government officials highlighting positive trends while opposition figures express concern over economic conditions. The labor market faces challenges, including mismatches between job vacancies and available workers, complicating the employment landscape. Future employment indicators suggest a cautious outlook, with more companies planning layoffs than hiring.