In Hungary, the social and economic conditions have dramatically changed after the political and economical transition. The collapse of communism in 1989–90 forced Hungary, as well as other CEE countries, to reconstruct their political, economic and cultural identity. This process has become known as the ‘transition’ and Europeanisation or globalisation (Manning 2004). Within this transition the ability of adjustment to new conditions has become one of the most important factors – if not the most – in the process of diminishing risks and enhancing life chances. The theoretical and methodological elements of the social quality approach were established in the last two to three years. In this article we aim to outline the most important elements of social quality in the conditional factors socio-economic security, social inclusion, social cohesion as well as social empowerment in Hungary. Here, besides a short description of the national context we will emphasise only the key findings according to the four conditional factors. In the third part of the article we outline some aspects of the Hungarian employment policy.