In the late 1980s, active earners made up a large percentage of the working-age population, and many Hungarians supplemented their income by working outside jobs, tilling household plots, or operating private businesses. Unfortunately, many enterprises used labor inefficiently, and the country suffered from underemployment and relatively low labor productivity. The government had enacted measures aimed at forcing enterprises to operate more efficiently. Regrettably, these measures threatened the elimination of many jobs and signaled a significant ideological departure from communism's commitment to full employment. Fear of unemployment influenced government decisions to allow the private sector to grow and to create jobs for laid-off workers. Despite the government's concern, observers expected overall unemployment to remain low by Western standards.

Data as of September 1989