Abstract
This paper deals with the critical and—also in Hungary—extensively debated human resource issues of the economic transition towards a market economy. It attempts to summarize the key problems, as far as the rigidity of the educational system versus a rather flexible labour market, the almost complete lack of feedback between growing unemployment and the transformation of the school system. The paper also tries to highlight some proposed solutions which would conform with badly needed active labour market policy measures. Although these reforms are unlikely to have an impact before the medium term, their introduction is urgent.
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