The new (digital) revolution generates significant changes in the labor market. The result of the ‘skilled-biased technological change’ suggests the following expectations: the demand for unskilled workers will decrease and the demand for high educated labor force will significantly increase. The full automation of certain professions will result in a decrease in the number of work places. In the IEER research the possible effects of automation on the Hungarian labor market were studied with a primary focus on the effects on districts and counties.

The result of the June 23th United Kingdom referendum shocked the world. The sudden drop in the exchange rate of the British Pound on the following days supports this very clearly (see Figure 1, 23 to 30 June 2016). In the following brief analysis we describe potential effects of Brexit that may have an impact on Hungary in the medium term. In our work we summarize the conclusions of the Hungarian and international literature related to the UK’s withdrawal from the European Union. The most obvious result of the referendum so far is the financial and political uncertainty that is dominating Europe. Another effect may be a significant decline in the Hungarian Gross Domestic Product in 2016 and the next few years.

The results of the latest IEER SME Outlook business climate survey reveal less favourable economic conditions compared to the previous quarter: the Business Climate Index decreased from 31 to 27 points. Thus the upward trend since last October was broken. While enterprises regard their current situation more favourable compared to the previous quarter, they consider their future prospects more negatively than in April. It means that the SME sector predicts a turning point in the trends of domestic business climate.

The Uncertainty Index is at a current level of 36 points, which is almost the same as the value measured in the preceding quarter (it was 37 points in April 2016). The value of the Uncertainty Index indicates that the current trend is not uniform within the private sector, and that it will continue to be confined to one part of the economy and will not be felt by all small and medium sized companies.

The IEER analysis examines plans for further education of students from the nation’s best high schools. The results show that a vast majority of students want to continue their education, namely at national institutions of higher education, and only 7% of them would study abroad (as well). The available statistics also indicate that Hungarian students do not participate in large numbers in (long-term) foreign study, but in recent years their numbers show a growing trend.

In its ongoing analysis of Hungarian companies, the Institute for Economic and Enterprise Research (IEER) examined the practices relating to the use of fringe benefits among domestic enterprises. The analysis is based on the data of the April 2016 Business Climate survey of 1,771 domestic enterprises employing at least one person; they were questioned in relation to the non-wage benefits they provide. The results show that 55% of companies with a minimum of one employee provided at least one form of fringe benefits in 2016, the most popular non-wage benefits being considered were local travel allowances and the Erzsébet vouchers (food coupons, but sometimes used for non-food purchases). The use of fringe benefits is associated with a company's size, the economic sector it operates in, and its level of foreign ownership, as well as a firm’s business situation: the highest proportion of those that provide fringe benefits are typically medium and large sized companies, those that are foreign-owned, firms operating in the manufacturing sector, and those in a good business situation. For 83% of responding companies, the amount allocated to fringe benefits has not changed over the past year, while for 7% it declined compared to the previous year, and 11% reported that it increased. Those raising fringe benefits were characteristically those in a good business situation and those companies that lifted wages in 2015. Overall, domestic enterprises consider the role of fringe benefits as having a medium effect when making their company attractive to employees.

The results of the latest IEER SME Outlook business climate survey reveal more favourable economic conditions compared to the previous quarter: the Business Climate Index increased from 25 to 31 points, which is the highest value since the beginning of the research (January 2005). This value is far higher than the one in April 2015 (23 points). The Uncertainty Index is at a current level of 37 points, which is almost the same as the value measured in the preceding quarter (it was 38 points in April 2015). The value of the Uncertainty Index indicates that the current trend is not uniform within the private sector, and that it will continue to be confined to one part of the economy and will not be felt by all small and medium sized companies.

Regarding the new results of the IEER Business Climate Index (the survey is based on the answers of 3187 enterprises) further positive changes can be expected. The IEER Business Climate Index rose to +49 points in April 2016 from +45 points in October 2015. The value of the Uncertainty Index has not changed since the last survey (October 2015).

In the summer of 2015, EY and IEER conducted their fifth joint research on integrity and corruption at the Hungarian companies. The focus of the research was to investigate corporate measures against corrupt behavior and misuse of information or position, the penetration of corruption, and to have Hungarian corporate leaders’ opinion on corruption and their expected behavior about the subject. Our interviewers conducted personal interviews with owners and top management members of companies employing at least 50 people. The survey is based upon 305 interviews and can be considered representative concerning employment and ratio in the economic sectors. The research analyses the rule of law and the regulatory environment including the relationship with the government, the role of personal connections with state officials and the opinion of the managers on the recent governmental measures against corruption. In the second part of the paper we investigate the corporate governance and corporate rules against fraud and corruption such as ethical codes, ethics hotline, and handling of ethical misconduct. In the third part corruption risks are investigated considering corporate leaders’ perception of corruption and, with an experimental approach, their answers for hypothetical situations involving corruption are studied. Finally the research also examines the measures of risk management and the data security applied by companies.

The results of the latest IEER SME Outlook business climate survey reveal more favourable economic conditions compared to the previous quarter: the Business Climate Index increased from 20 to 25 points, which is the highest value since the beginning of the research (January 2005). This value is far higher than the one in January 2015 (16 points). The Uncertainty Index is at a current level of 37 points, which is almost the same as the value measured in the preceding quarter (it was 38 points in October 2015). The value of the Uncertainty Index indicates that the current trend is not uniform within the private sector, and that it will continue to be confined to one part of the economy and will not be felt by all small and medium sized companies.

The results of the latest quarterly business climate survey reveal considerably more favourable economic condition compared to the previous quarter: the IEER Quarterly Business Climate Index increased from 24 to 32 points, which is the highest value in the history of the indicator. It was only 19 points in the same period of the previous year. The Uncertainty Index is at a current level of 37 points, which is slightly lower than in the previous quarter (it was 38 points in October 2015). The value of the Uncertainty Index indicates that the current trend is not uniform within the private sector, and that it will continue to be confined to one part of the economy and will not be felt by all companies.