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Student Workforce: The Future – Here’s Why
Numerous industries face significant challenges due to the looming economic crisis. Nevertheless, the enthusiasm of the student workforce has not diminished. Based on analyses, factors such as inflation, income tax exemption for those under 25, as well as tuition and living expenses mean students continue to willingly take on work. Employing them represents a large, secure, and cost-effective labor force. We’ll explain why they are worth employing even during an economic recession.
The Surge of the Student Workforce – What Has Happened So Far
Students’ willingness to work was high before the tax exemption and the economic recession. However, due to these reasons, this year has seen an exceptionally high availability of student workers at cooperatives. Students mainly apply for jobs before the summer months and at the beginning of the school holidays. However, under ideal working conditions, they also function as loyal, long-term workforce after the start of the academic year.
The Power of Income Tax Exemption
The main reason is that compensation remains the most important factor for students when choosing a job. Those under 25 can work as student workers without paying personal income tax (thus they receive their gross salary as net), as this is the only tax deduction from their pay. Consequently, they prefer to approach Generation Y directly rather than through companies. In recent years, we have connected with about 50,000 students, and this year a similar number of students nationwide are expected to register with our school cooperative. Thus, by offering an ideal hourly wage (around 1500-1600 HUF according to surveys), a company can ensure a large, stable, and flexible workforce.
Long-Term Cooperation + Student Workforce = Secure Support
Due to favorable taxation and secure backing, an increasing number of students are joining the ranks of student work cooperatives. As we provide constant and friendly coordinators, schematic and quick administrative processes even in case of position changes, predictability and mutual trust develop between the cooperative and the student workforce. Fair wages, less burdened by tax, and a familiar, homely atmosphere will likely keep students at cooperatives even as the economic downturn slowly sets in, as they will continue to need stable employment.
In mediating student workforce, we not only provide a quick, transparent process for the employees but also for our partners, relieving them of numerous administrative burdens.
If you are interested in student workforce leasing, please contact us.
