Chapter 4
The Educational System and the Progression of Students

The structure of the school system and the progression of students in the education system essentially determine the individual opportunities for participation in lifelong learning. Students who drop out early or fail to acquire certain key competencies will be unable to make up for the loss. In Hungary, like in other developed societies, a longer basic education phase is followed by a fairly differentiated upper secondary education and training phase offering schooling to costumers with various needs. One of the most important developments of the nineties was that the secondary school-leaving exam had been taken on large scale and thus a rapid expansion of higher education was possible. At the same time, the differentiation of institutions and programmes is already noticeable in the lower cycles of education. This does not really broaden the available range of programmes, but rather increases the selectivity of the system. Generally speaking, the institutional programmes do not follow a modular structure; therefore low-achievers may drop out of the system without getting educational attainment or a professional qualification recognized by the labour market.

4.1. Development of the school structure

The change of Hungarian school structure was a spontaneous process in the 1990s, when the evolution of the system was decisively affected by the factors of decentralization and relative autonomy for decision at local level, and by demographic reasons. The nineties were mostly characterized by the efforts of institutions to stabilise the number of students despite decreasing birth rates, which brought about an expansion in the variety of programmes both vertically (new, longer than four-year secondary programmes) and horizontally (an increase in the number of mixed type secondary institutions). In the period under review, the basic features of the school structure remained unchanged. The 2003 Amendment to the Public Education Act seems to have ended the earlier debate on school structure. The Amendment reinforced the 8+4 year model as opposed to the 6+6 year structure, and adjusted educational cycles according to the former model. Accomplishing basic education is certified by a certificate issued at the end of the eighth year of general school. The certificate issued after the successful completion of the 10th grade entitles students to apply for the basic examination. Secondary education begins in the 9th grade. In vocational secondary education the 9th and 10th grades are devoted to the mastery of the basics of general knowledge, with the addition of practical skills and vocational orientation elements required for facilitating the progression to vocational education and training. On-the-job practical training conducted in the 9th and 10th grades was also abolished, as well as the option for lengthening education in general schools for more than eight years.

4.1.1. Vertical changes in the structure of the educational system

Six- and eight-grade general secondary schools

In 2001, the number of students below 14 years of age applying to 8-grade general secondary schools increased by 12% compared to the previous year, while the same rate for 6-grade schools increased by 7%. In spite of the rising number of applicants, the rate of students attending these school types fell from 31% in 2000 to 26% in 2002 in comparison to the total number of general secondary students. The rate of applications to 8 and 6-grade secondary schools was the highest among students coming from Budapest (31%), and the lowest from schools maintained by small-size settlements (18%).

Vertical changes in vocational training

In vocational training the most significant development of recent years was the change that prolonged general education up to 16 years of age as age of commencing vocational training. This forced vocational training schools to adopt a 2+2 year structure, and increase the duration of apprenticeship training from three to four years. Entering into vocational training may be initiated at several points in the course of education: (1) following the accomplishment of general school, (2) following the age of 16 or the completion of the 10th year, (3) following the last grade (grade 12) which is designed for the preparation of secondary school-leaving examination and the acquisition of secondary school-leaving certificate.

Table 4.1.
Main changes in the functional structure of secondary programmes in the past decade

Programme type	Grade
	9–10	11	12	13–14
1992
General secondary school	General education	General education	General education	–
Vocational secondary school	Vocational training	Vocational training	Vocational training	–
Apprenticeship training school	Vocational training	Vocational training	–	–
2002
General secondary school	General education	General education	General education	General education (only in bilingual language schools)
Vocational secondary school	General education	Pre-vocational education acc. to trade group	Pre-vocational education acc. to trade group	Vocational training
Vocational training school	General/pre-vocational education/vocational guidance	Vocational training	Vocational training

Source: Mártonfi, 2003

4.1.2. Horizontal changes in the education system

The expansion of secondary education was due to the growing social demand for secondary programmes and efforts to maintain the level of student numbers, rather than the result of planned policies. Given the fall of social and labour market demand for apprenticeship training, the number of students involved in apprenticeship training radically decreased. In the early nineties only one fourth of secondary school students attended general secondary schools, one third attended vocational secondary schools, and more than 40% were students at apprenticeship and vocational training schools. At the turn of the millennium 30% attended general secondary schools, 46% studied in vocational secondary schools, and only 24% were enrolled in vocational training.

Figure 4.1.
Change in number of secondary school students by type of institution, 1985/1986–2002/2003

Source: Educational Yearbook 2001/2002, OM, 2002; Data of Education 2002/2003, KSH, 2003
Note: Vocational training school includes apprenticeship training and other forms of short term vocational training.

4.2. Transition and options for correction

One of the indicators of the flexibility of the public education system is the option for continuation of education and choice of related programmes on the basis of particular needs. One of the student rights listed by the 1993 Public Education Act is the right to the continuation of studies without a need for supplementary exams or grade repeating even if there is no educational institution capable of providing education during the time of compulsory schooling in the permanent residential area of the student.

Transition between general schools in Hungary is easy; only in special cases (bilingual programme, sports class, etc.) do general schools refuse the application of new students. On the level of upper-secondary programmes, student mobility between schools is limited; however, due to the normative system of funding, schools are eager to increase their number of students, and therefore hesitate to give up on students merely due to the incompatibility of the educational programmes.

School dropouts are given a second chance by the school system of adult education. The objective of adult education is the improvement of the life perspectives of adult learners by providing an opportunity for correction, but in the 1990s it had additional functions as well, such as venting structural tension and preventing unemployment. Today, adult education institutions and training programmes generally perform their function on the level of secondary education. The 2-year intensive form of vocational secondary school for apprenticeship is a particularly popular programme.

4.3. Levels of public education

4.3.1. Pre-school education (ISCED 0)

Pre-school education is a part of public education. It caters children from the age of 3 until they are physically, mentally and emotionally prepared for schooling. From the age of 5, children are obliged to take part in school life preparation programme for four hours a day. The ratio of children attending pre-primary education is above 95% among 5-year-olds. Once the child has reached school maturity, he/she must be enrolled in general school, as early as the age of 6, or at the age of 8 at the latest.

There is a growing professional consensus in the recognition of pre-primary education as an opportunity to strengthen social cohesion and prepare children’s future school career. Therefore it is of significant importance to identify those unable to participate in the course of early childhood education and receive only one year of school life preparation training, which is hardly sufficient. Although since 2000, the average number of available places has exceeded the number of pupils, one fourth of the pre-school heads interviewed in a survey in 2001 reported that they were forced to reject applicants due to limited number of places. There is a sufficient number of places at national level, yet their distribution is uneven. This is proved by the fact that there is a prevalent shortage of places in small-size settlements, and that children of mothers with regular income and employment have access to such services more often than the children of unemployed parents. Therefore, pre-school institutions still represent labour market objectives rather than provide for better opportunities to achieve educational goals.

Table 4.2.
Key data on pre-school education 1990/1991 and 2001/2002

	1990/1991	1998/1999	1999/2000	2001/2002	Change 2001/2002 (1990=100%)
Rate of children attending pre-school as a percentage of the 3 to 5-year-old population	85.5	86.5	87.8	86.4	101.1
Number of pre-school institutions (places of provision)	4,718	4,701	4,643	4,633	98.2
Number of places (thousands)	385.0	369.5	366.2	353.8	91.9
Number of pre-school teachers	33,635	32,235	31,653	32,327	96.0
Number of children attending pre-school (thousands)	391.1	376.1	366.9	342.3	87.5
Children per one hundred places (number of)	102	101	100	97	95.1
Number of groups	16,161	15,784	15,479	15,502	96.6
Children per group (number of)	24.4	24.0	23.7	22.8	93.4
Children per teacher (number of)	11.6	10.9	11.6	10.6	91.4

Source: Statistical Pocketbook of Hungary 1998, KSH 1999; Statistical Yearbook of Hungary 2001, KSH, 2002

4.3.2. General school education (ISCED 1-2)

The number of general school students is continuously decreasing. Since 1998, the number of students per school and per teacher has decreased, which has lead to the intensification of efficiency problems in the system. Between the academic years of 1999/2000 and 2001/2002 the number of institutions offering basic education programmes fell by 7%. The ratio of schools with fewer than 100 pupils decreased, while that of larger schools slightly increased. At the same time, the average class size decreased in all sizes of schools in the period under review.

Figure 4.2.
Key trends in general school education (full-time classes, including special needs education) between 1997/1998 and 2002/2003* (1997/1998=100%))

Source: Statistical Guidelines, Primary education 1999/2000, OM, 2000; Educational Yearbook 2001/2002, OM, 2002; Data of Education 2002/2003, KSH, 2003
^* Preliminary data

Progression in general schools

In contrast to most European countries, in Hungary it was possible to retain students and require them to repeat a year in all grades until the latest Amendment to the Public Education Act (2003). According to the new law, from 2004, in the first three years of primary education, grade repeating will require the consent of the parents and the pupils’s performance will be assessed on the basis of written evaluation. According to statistical data, of grade repeating was the most frequent in the 1st, 5th and 6th grades, and the least likely in the 8th grades. In 2000, 95% of the 16-year-old population had completed their general school education by the end of the compulsory schooling age.

Further education after general school

In 2001, 91% of general school-leavers were admitted to the type of programme they had initially applied for. The inequalities between settlements, present in numerous aspects of the system, may also be experienced in the transition from general school to a further level of education. The smaller the settlement, the greater the likelihood for the students to continue their studies in a vocational training school. The number of available places in secondary education is greater than the demand, nevertheless almost 10% of students were rejected in the first round of application. This group of students, deciding to continue their studies in the least popular, vocational training schools, failed to receive entry even to these schools. These students usually complete general school at a later age, and secondary schools are often reluctant to accept their application. All this seems to support the view that in recent times the primary function of entrance exams is not to select suitable candidates, but rather to filter out those who are not appropriate for the programme in question.

Figure 4.3.
Percentage of applicants for various secondary schools by type of settlement maintaining the general school, 2001

Source: 2001 database of KIFIR (Information System on Secondary School Entrance Exams)

4.3.3. Secondary education (ISCED 3)

The increase of student numbers in secondary education came to a halt in the mid-nineties, but has risen again since the end of the decade. It seems that secondary vocational schools have reached the limits of their capacity, and, given the decline in student numbers, the extensive resources of expansion have been depleted. The involvement of a greater number of students in programmes providing secondary school-leaving certificate could only be achieved at a later age, or by improving the quality and effectiveness of general schools. The accelerating decline in the number of vocational training school students halted in 1998, and has slightly increased in the past three years.

Figure 4.4.
Changes in the number of students in secondary schools by the type of programme 1985/86–2001/2002 (1985=100%)

Source: Statistical Guidelines, Secondary education 1999/2000, OM, 2000; Educational Yearbook 2001/2002, OM, 2002; Data of Education 2002/2003, KSH, 2003 Data of Education 20,

Admission and progression

As a consequence of the transformation of the school structure in recent years, admission to secondary education is possible at several points: at the ages of 10, 12 and 14. The 1993 Public Education Act gave the right for school heads to decide on the admission of students. In parallel with the dramatic decline in the number of school-aged children, the competition for able students between schools has intensified. The group of institutions not having specialised educational programmes have also begun to introduce entrance examinations. Faced with this unacceptable situation, the Ministry ruled that entrance examination could only be organized in a specified group of schools as prescribed by the law. As far as the 2002/2003 academic year is concerned, the ministerial decree on admission procedures states that in the case of admission to a secondary school grade lower than the 9th year, schools may only introduce entrance examinations if the number of applicants in the previous three years was on the average at least 1.5 times more than the number of admissible students. Since the 1999/2000 academic year, the form of secondary school entrance examination used in these institutions is a centrally organized, standardized competency test.

Failure in a subject is relatively frequent among students studying in vocational secondary and vocational training schools, especially in the 9th and 10th grades. An average 80% of students, who failed in fewer than three subjects, passed the resits successfully, but 18% of 9th-grader vocational secondary and vocational training school students were forced to repeat a year in 2002. The high percentage of subject failure and students who were forced to repeat a year clearly indicates that there is a large group of students in vocational education and training with serious learning difficulties, lacking the basic reading and numerical literacy skills necessary for progression, even after the completion of general school education. What makes the problem even worse is that the continuation of studies does not necessarily mean that the students have overcome their previous difficulties, since the current vocational training programmes and the pedagogical work conducted in these institutions were not designed for such remedial educational goals.

4.3.4. Post-secondary vocational training (ISCED 4)

An increasing part of school-based vocational training takes place after the secondary school-leaving exam. The foundations for post-secondary vocational training were established by the so-called World Bank programme, launched in the nineties, which consisted of the development of modularised vocational training according to trade groups, completed by the developments made in the framework of the second World Bank programme, initiated in 1998. In 2001, one third of the relevant age group of students graduated from post-secondary vocational training.

Table 4.3.
Number of full-time students completing vocational training by programme type, between 1990 and 2001

	Secondary vocational and technical school	Vocational qualification not tied to having secondary school-leaving certificate**	Vocational qualification tied to having the school-leaving certificate***	Accredited, non-university higher vocational training qualification
1990	28,903	57,831	4,668	–
1997	42,913	46,868	10,126	–
1998	43,930	42,866	11,249	–
1999	41,936	38,992	11,255	–
2000*	40,000	N/A	N/A	554
2001	37,945	14,070	34,326	1081

Source: Educational Yearbook 2001/2002, OM, 2002
^* The public education data of 2000 are estimated by the Ministry of Education based on general trends, and a 98% survey.
^** Students completing the apprenticeship examination (excluding adult workers taking the exam) and completing vocational training (up to 1999). The data for 2001 refer to students qualified in OKJ-registered trades (National Training Register), in traditional occupations (vocational training) not tied to having secondary school-leaving certificate.
^*** Students qualified as technicians (up to 1999). Data for 2001: students qualified in OKJ-registered trades, tied to having secondary school-leaving certificate, by passing the vocational examination afterwards (accredited non-university higher vocational training is excluded).

Non-university higher vocational training (ISCED 5B)

The need for a workforce with professional skills and higher qualifications has increased on the labour market. The first courses in accredited school-based higher vocational training (called non-university higher vocational training since 2002) began in September 1998. The aim of this type of training – apart from serving the needs of the labour market – is to ensure the acquisition of credits recognized in higher education for students with ambitions to continue their studies in tertiary education. As the training is part of higher education, its introduction requires the approval of the Hungarian Accreditation Committee. Non-university higher vocational training programmes may be organized in two types of institutions: higher education institutions and vocational secondary schools. To date, 22 higher education institutions and 74 vocational secondary schools have accredited their higher vocational training programmes. The curriculum and programme requirements are identical in both types of institution. Every graduate student receives an OKJ-qualification. Since the completion of this type of higher vocational training entitles the students to continue their studies in higher education with credits recognized as a year-long study, secondary vocational schools are only allowed to implement the training if working in partnership with a college or university offering a compatible programme.

In recent years, the system of non-university higher vocational training began to dynamically grow. The total number of students attending both full-time and part-time adult education courses was 9,560 in the 2001/2002 academic year (with 8,545 full-time students), divided evenly between vocational secondary schools and higher education institutions. Two thirds of these students were below 20, which indicates the fact that these are mainly students enrolled in higher vocational training immediately following the secondary school-leaving exam, or following an initial failure at the college or university entrance exams. Due to the system of credits, many regard this form of training as the springboard for higher education, allowing them to get around entrance tests. Therefore the system only partially fulfils its function required by the labour market, since its undergraduates do not intend to enter the labour market but higher education.

Entering higher education (ISCED 5A)

Expansion in higher education was even greater than in secondary education. The number of students in higher education tripled from 1990 to 2002, while the number of students holding secondary school-leaving certificate increased only by one third. In the past decade, the number of students applying to higher education straight after the secondary school-leaving exam grew by 85%, and the number of those admitted – by 122%. The number of applicants to full-time higher education programmes has stagnated around 80 thousand since the mid-nineties. Between 2000 and 2001 the number of students accepted into state-financed places increased by 8.45%, while the number of students paying tuition fee for education – by 23.74%.

Figure 4.5.
Number of applicants for full-time education and admittance of students into higher education, 1990–2002 (thousands)

Source: Statistical Yearbook of Hungary 1990–2001, KSH, 2002; . Educational Yearbook 2001/2002, OM, 2002; Data of Education 2002/2003, KSH, 2003

4.4. Transition from school to work

In Hungary, the world of school and work are no longer separated concepts and the simultaneous presence of both is especially characteristic in the life of youth. In OECD countries four fifths of 15 to 19-year-olds are still in the school system. As a result of the rapid expansion of secondary education, the Hungarian figure of this age group is similar to the OECD average, however in the case of older age group figures are lower than the OECD average. There is a dramatically high ratio of inactivity in the group of 25 to 29-year-olds. One fifth of this age group is neither employed nor enrolled into educational institutions, which indicates that the integration of Hungarian youth into the labour market is difficult.

Table 4.4.
Distribution of youth by age group and labour market status in Hungary and in OECD countries, 2000 (%)

	Age group	Student	Outside the education system
			Employed	Unemployed	Inactive
Hungary	15–19	85.1	6.5	2.1	6.3
	20–24	34.8	45.0	5.5	14.7
	25–29	9.1	63.4	5.3	22.1
OECD-average	15–19	79.9	11.5	2.9	5.6
	20–24	37.2	46.5	6.9	9.4
	25–29	13.3	68.5	5.7	12.5

Source: Education at a Glance, 2002

Not only are young people moving back and forth between the formal system of education and working life, but the practice of acquiring two qualifications at the same educational level is also widespread. Ever since the act has guaranteed free-of-charge education for acquiring a second qualification, it has become a highly frequent trend among young people. The practice of supplementing the higher education degree with a professional qualification is also becoming popular, which means that graduates enter the labour market at a later date, but they have more favourable career options. According to a 2002 follow-up survey on success of vocational students on the labour market, conducted three years after the acquisition of the vocational certificate and based on the information obtained from the class heads, approximately half of the students were employed, one third of them were active students and the rest were either inactive or unemployed. Somewhat more than half of those employed worked in the field of their profession. Another survey examined the intentions of 9th-grade vocational training school students showed that nearly four fifths of them planned to take the secondary school-leaving examination. If we take into account the plans for the acquisition of a second profession, this means that those participating in such programmes regard labour market-oriented vocational training as a transitional stage.

According to a research group monitoring the output of higher education, in the current period of rapid expansion the increasing output is still smoothly absorbed by the labour market. There is no oversupply, and in fact, the relative income position of graduates has even improved compared to their older colleagues, which may be explained with their more up-to-date knowledge and the promising prospects they offer to their employers. In fact, the agriculture sector is the only field in which freshly graduated youth face unfavourable labour market conditions. The rate of unemployment in the agriculture sector, both among college and university graduates, is an outstandingly high rate of 14–17%, compared to the average rate of 6%.

4.5. Career guidance and counselling

In the age of lifelong learning it is essential to provide for accessible services for the assistance of individuals in the decisions concerning their career paths. In Hungary there is currently a great amount of available information for the hundreds of thousands of students, many professionals work in this field, still the access to information is incidental, and the organizational framework and the related system of information are underdeveloped. There are institutions specialized in certain age groups and functions, employing experienced professionals, but these services are provided according to diverse philosophies, methods and, in some cases, dissimilar interests. A comprehensive national strategy including the entire counselling system into a unified framework and ensuring the transparency of this system has not yet been elaborated. This task will require a closer co-operation between the Ministry of Education and the Ministry of Labour and Employment (FMM).

Of the former system of career guidance and counselling, the only remaining institution in the country is operating in Budapest, yet half of all county educational institutes employ career-counselling specialists. There is some form of career guidance and counselling present at each school level. In general schools, it is the career counselling specialist or the class-master who provides guidance to parents and students before applying to secondary school education. Their main advantage is that they know their students well, yet their professionalism is often questionable. There is a low number of in-service training programmes in this field, and the teachers are not required to individually get acquainted with the transformations taking place on the labour market and in society. A number of schools resort to out-of-school institutional assistance, which makes them vulnerable to the philosophy and quality of the services on offer. Career orientation in the 9th and 10th grades of vocational training should provide early assistance for students in choosing a trade group, and later on, a specific occupation. In reality, vocational training schools force their students to make a choice early on in their careers, even though their professional future would be in a more stable position if they were allowed to make that decision at a later date. In two-thirds of the cases, trade groups are chosen when students gain entry to the school (in the 9th grade) at the latest. In secondary vocational schools, subjects of pre-vocational education according to the trade groups provide an opportunity for creating and increasing professional motivation. In the 9th and 10th grades there is still some room for manoeuvre, which is more limited in the 11th and 12th grades of education.

In every county career counselling services are provided by the employment services sector. Training of career advisors has been provided since the mid-1990s. The career advisors of the Job Information Counselling Network (FIT) are employed in the county labour centre offices, but they operate as an independent organization. The counselling system of employment is a more widespread professional system than the services for educational counselling. More and more young people, particularly secondary school students, make use of these services. All of the above services are free of charge. Profit-oriented career counselling services have only appeared sporadically in the business sector.

4.6. Connections between education and the economy

The success and length of ‘transition’ is not independent of the mediating mechanisms between the system of education and the economy. Mediation between the two systems is realized through professional qualifications, the outcomes of schooling (abilities, skills and knowledge domains) and occupational classifications. The acknowledgment of the shift in demand, the development of intervention, and the implementation of suitable reform measures, as well as the more equitable distributions of educational outcomes may take at least one decade. Therefore, due to the dynamically changing nature of the labour market, there is a significant time lag and discrepancy between the two systems. It is clear that the concept of directly connecting the two systems has become outdated, therefore attempts have been made to rearrange the structure of qualifications and the training system so that it can react in a more flexible way to labour market demands. The introduction of trade group-based pre-vocational education, followed by a phase of specialization in a given profession leading to vocational examination was intended to ensure this kind of flexibility. In this model, training for specific jobs is the responsibility of the economy.

4.6.1. The National Training Register (OKJ)

In Hungary, the qualification requirements of education are regulated by the National Training Register and according to the various trade groups. Despite several modifications, there is still a high number of qualifications listed in the OKJ: there are currently 812 trades. The qualifications offered in the course of public education, organized on three separate levels, form the basis of the trade structure. A number of these are based on trade-groups and promise specialised well-founded paths in the course of further education. According to the pre-requisites of the OKJ, there is a prevailing number of qualifications requiring secondary school-leaving certificate. 58% of OKJ-registered qualifications require at least secondary school certificate. In comparison, there is a small number of qualifications requiring general school certificates or higher education degrees.

Figure 4.6.
Pre-requisites of OKJ-registered vocational programmes, 2002 (Total number of trades=812)

Source: Ministry of Education web site (http://www.om.hu/)

There is a growing part of vocational education provided outside the formal school system. The categorization of qualifications into (1) school-based vocational training qualifications, and (2) non school-based vocational training qualifications strongly divides the training sector between schools and companies with an interest in adult training. Conflicting interests present an obstacle for arranging the content of curricula and qualification requirements into modules and into a hierarchical structure. At the same time, this tendency changes the nature of vocational training by making a strong distinction between initial vocational education and training for young students and the programmes of adult training oriented towards a specific profession.

4.6.2. Role of the economy in vocational training

Practical training is one of the most critical issues in school-based vocational training. The ratio of on-the-job practical training experience in apprenticeship training continuously decreased until the late 1990s, when nearly two thirds of the practical training was school-based. The trend has since reversed, and there is now a balance between the two forms of practical training. The problem of on-the-job training is rendered more difficult by insufficient co-operation between the school and the entrepreneur providing the training, and by the related conflict of interests. The length of practical training has been significantly reduced due to changes in the regulations, which makes such programmes profitable for only a limited group of businesses in the economy, and it also influences their quality of output. The educational background and didactic skills of the trainers present further difficulties.

Apart from providing for practical training, the economy is involved in the system of education and training in numerous less apparent ways and various organizational forms. Business professionals also give courses or are invited as guest lecturers to schools. Vocational trainees visit workplaces on a regular basis. There is some private enterprise activity related to various trades or the workshop training programmes in a number of schools.

The engagement of the business sector in the development of the central curricula is an important element. Delegates of the chambers have to be included in the main examination board of the vocational exam. Defining training and examination requirements hardly ever happens without the participation of experts delegated from the organizations of employers. The presence of business professionals in the development of the education policy and in the related professional discourse is guaranteed. At the same time, the representative bodies of the economy are yet to articulate the medium-term needs and priorities that vocational training is expected to fulfil.

4.7. Adult learning

Adult learning is not a new phenomenon as such, but its nature is being heavily transformed. The most radical change is due to the different perspectives offered by the spreading concept of lifelong learning. Lifelong learning puts an end to the monopoly of schools as the only sources of teaching and makes the different training sectors equal. The proportion of adults in formal education, excluding higher education, has decreased in the past 20 years, which may be explained by the general expansion of secondary education and by the fact that 95% of students complete their general school education by the end of the compulsory schooling age. However, enrolment in non-school-based training and courses has begun to rapidly increase. This is partly due to the fact that the demand of the clients in the non-formal sector has a more significant impact on supply than school-based training.

According to statistical data on training fields of those enrolled there is a mismatch between the demands of adult learners and the places available. Adults are less motivated to obtain qualifications in technical, industrial and agricultural programmes. From 1996 to 2000, approximately 20% of adult learners were enrolled in such programmes. The number of those attending courses in commerce, services, economics, administration and computer technology was far above 50% in the same period. In recent years, the number of students without a secondary school-leaving certificate has decreased, and qualifications leading to the services sector professions, favoured by the labour market, are usually tied to possessing secondary school-leaving certificate.

Table 4.5.
Percentage of learners enrolled in non-school-based vocational training by different trade group programmes, 1996–2000

(Qualifications in the field of)	1996	1997	1998	1999	2000
Personal services, catering, commerce, tourism	16.4	18.1	20.1	23.0	22.5
Business administration and management	23.4	27.7	22.6	23.1	20.1
Manufacturing industries, crafts	16.7	15.0	15.6	13.5	17.0
Information technology	20.4	17.0	19.3	18.4	15.5
Health care services	7.0	6.9	5.4	4.0	3.1
Agriculture, forestry, farming, fishing	1.8	2.0	1.6	1.4	2.7
Technical studies	1.4	1.1	1.2	0.8	1.3
Other fields of study	12.9	12.2	14.2	15.8	17.8
Total	100.0	100.0	100.0	100.0	100.0

Source: Statistical data on non-school-based vocational training 1996–2000, FMM, 2002

There are only sporadic surveys on training programmes at workplaces. According to a KSH survey¹, 21.3% of employees participated in workplace training programmes. This percentage was somewhat higher among men and among employees of large companies. There were 37 contact hours per learner, corresponding to one week of working time. The time spent on training was independent of company size and totalled less than 1% of all wage costs. Taking into consideration the fact that a part of the training programmes may be financed from the compulsory vocational training contribution (an amount which is in principle a maximum of 0.5% of payroll), the willingness of employers to invest in their employees’ training can can be regarded as very low.

One objective of the EU is to involve 12.5% of the working age population (aged 25–64) in lifelong learning programmes by 2010. According to the findings of OECD SIALS (1999) survey in Hungary, 18% of the surveyed 25-64-year-old population took part in some sort of learning. The learning activity rate of adults with higher education degree was eight times higher than the rate of those with lower educational attainments. This is an ominous sign that the prevailing inequalities of public education are also present in adult learning. According to the findings of a 2002 public opinion poll on education, the willingness to study and the involvement in learning activities are closely related to the level of qualifications. Those questioned were more likely to participate – or planned to participate – in study programmes if they were highly qualified individuals. 80% of those without secondary school-leaving certificate were not involved in study programmes and did not plan to participate in such programmes.

Figure 4.7.
Participation rate in adult education and the ratio of those with tertiary educational degrees in comparison to those with lower level qualifications from 25 to 64 years of age, in various years

Source: Education at a Glance, 2002

One of the main reasons for making a comprehensive Adult Training Act was the involvement of a greater number of people in lifelong learning programmes. In Hungary the development plans for lifelong learning in Hungary are included in the National Development Plan (NFT), and the related measures and programmes are described in the Human Resources Development Operational Programme of the NFT.

4.8. Other subsystems of public education

4.8.1. Special needs education

In the academic year of 1998/1999, 0.5% of children in pre-school education and 3.9% of general school students were involved in special needs education. By the academic year 2001/2002, these rates changed, to 1.2% in pre-school education and 4.9% in general school education. The increasing rates of children enrolled in special needs education may partly be accounted for the changes in handling the data in 2001, and partly for the currently increasing awareness of the special needs of children with partial deficiencies such as dyslexia and dyscalculia. 68% of children in pre-school education participating in special needs education are involved in integrated education. This rate is significantly lower (17.8%) in general schools. As far as secondary education is concerned, the high rate of students enrolled in integrated education is due to the small capacity of special therapeutic teacher training. On the other hand, the network of schools engaged in special secondary education is separated from other educational institutions, leaving little room for integrated education.

Table 4.6.
Number and percentage of pupils participating in integrated education relative to the total number of students receiving special needs education, by programme type, 2001/2002

Number of children participating in integrated education and the percentage of this group in the total number of students receiving special needs education
Pre-school		General school		Secondary school		Special vocational training school
2,888	68.0%	8,275	17.8%	1,164	80.2%	361	5.7%

Source: Calculations by Erika Garami, based on the educational statistics database of the Ministry of Education

4.8.2. School education for national and ethnic minorities

As far as the education of national and ethnic minorities is concerned, the comparison of the data of the previous years is hindered by the fact that – since the academic year of 2001/2002 – the education of Roma children has been incorporated into the programmes of other ethnic minorities, which increases the number of such students by approximately 30%. Within the education programmes of all national and ethnic minorities, excluding the ‘other’ category, the number of children in pre-school education increased by 14%, while the number of general school students decreased by 16% and the number of secondary school students increased by 45% in the course of the academic years of 1999/2000 and 2001/2002. In secondary education, the increase in student numbers is primarily due to the popularity of German-language education. In the academic year of 2001/2002, the ratio of students included in the ‘other’ category, mostly comprised of students involved in Roma minority educational programmes, was 15% of all national and ethnic minority pre-school education children and 35% of all ethnic minority general school students. However, in secondary education this ratio was rather low, merely 7%.

4.8.3. Dormitories

The operation of dormitories is separated from the operation of schools. Firstly, the function of the dormitories is to provide accommodation for students generally coming from smaller settlements with no access to education at their place of residence, or whose home situation does not allow for regular attendance at school. Secondly, in the case of schools with particularly low student numbers (special training, arts education, etc.) dormitories provide an opportunity for these educational programmes for students residing in other parts of the country. The number of dormitories has recently stopped decreasing. Approximately 76,000–78,000 students are accommodated in dormitories. The student per teacher ratio has also stabilised, remaining at approximately 22.5.

In the period under review, the development of dormitories was a priority of educational policy. The Ministry completed the development plan for the enhancement of dormitories in 1999. Their operation has solidified, following the recognition of the educational role of dormitories in the Public Education Act. The National Core Programme for Dormitory Education was issued in 2001. The frame curriculum for the activities of dormitories provides ample room for programmes devised by the dormitory by identifying only 60% of such activities. This arrangement allows for increasing the range of residence hall activities according to local needs and preferences. The National Public Foundation of Dormitories was established in 2001. This Public Foundation provides resources for the professional development of dormitories, such as: additional support for gifted students, compensation of the disadavantaged, student unions, extracurricular activities and study circles, ICT-related activities, foreign language teaching, and overcoming the essential infrastructural deficiencies of operation. The per student capita grant for dormitories increased in real value and the percentage of state contribution required for operation increased to 94%, somewhat improving the bargaining position of these institutions in the process of budget planning. The further development of the network of dormitories is often blocked by the disinterest of the maintainer. Since residence halls do not provide local educational services, local governments are increasingly unwilling to finance institutions, which do not benefit their ‘own’ children. Other factors further limiting developments include the lack of autonomy of dormitories, and the hopelessly outdated physical and technological conditions. 54% of the dormitory buildings were not built for this purpose, and 91% are in need of repair and improvement, 20% of these require a complete renovation in order to function appropriately.

4.8.4. Sectors of the education system not maintained by local governments

Currently there are two groups of educational institutions in Hungary that are not maintained by local governments: denominational schools and private or foundational schools. These two groups of institutions have the same legal status, yet they are different in their establishment, their educational aims, operation, social roots and background as well as the support they receive from the state.

Private schools are autonomous in their day-to-day operation and have the legal status of an independent institution separate from the local educational system, yet the funding of their operation and their educational work is regulated by the state. The maintainers of private schools are free to decide on the organizational status of the school and the method of institutional control, and may develop their own educational programme and local curriculum. Private schools are also entitled to engage in local educational tasks by signing a public education agreement with the local or county government or, with the Minister of Education, in case the institution provides a regional or national function in the system of education.

Private schools are financed by the central budget and the school maintainer. In accordance with the principle of sector independence, the school maintainer receives the same amount of state contribution as the local governments. The local governments or the state may decide to provide additional support if the school – on the basis of a public education agreement – takes over responsibilities from the local government or the state. The legal entities of a church are entitled to receive the per student state support calculated on the basis of the number of students enrolled in the school maintained by the church. According to the provisions of the ‘Vatican treaty’² schools maintained by churches also receive additional support.

Non-governmental education is generally present in secondary and tertiary education. The two non-governmental sectors are distinctly separated on the level of secondary education. The majority of denominational schools are secondary grammar schools, while foundational schools generally provide vocational education programmes.

Table 4.7.
Distribution of students by school maintainer, 2002/2003 (%)

	Local govern- ment	County govern- ment	Central budgetary organ- ization	Total governmental (incl. local government)	Denomi- national	Founda- tional	Other	Total non-govern- mental	Total
Pre-school	92.03	1.67	2.18	95.88	1.86	1.92	0.34	4.12	100.00
General school	86.67	4.88	3.44	95.00	3.98	0.78	0.24	5.00	100.00
Vocational training school	54.64	33.04	2.66	90.33	2.24	5.88	1.55	9.67	100.00
Special vocational school	37.65	51.94	0.61	90.21	2.03	7.76	0.00	9.79	100.00
General secondary school	61.33	13.64	5.08	80.06	15.97	3.15	0.82	19.94	100.00
Secondary vocational school	48.99	33.68	3.99	86.65	1.85	8.17	3.32	13.35	100.00
Tertiary education	0.00	0.00	88.62	88.62	5.84	5.54	0.00	11.38	100.00

Source: Data of Education 2002/2003, KSH, 2003