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1. The Committee has noted the Government's report for the period ending June 1988, which contains replies to its previous comments. The data supplied in the report show that the unemployment rate fell from 7.1 per cent in 1986 to 6.1 per cent in 1987, but increased steadily since the beginning of 1988 (up to 6.9 per cent in the third quarter of 1988). Concerning the situation in the development areas the Government indicates that although unemployment is still more severe, on the average, than in the country as a whole, it had not up to the third quarter of 1988 risen at a faster pace than in the whole economy.

2. The Committee notes the broad information supplied by the Government on its economic policy measures and objectives, including the preparation of a new plan for the national economy for the period 1988-92, for which no indication, however, is given concerning its employment objectives. The Government indicates that it considers lack of overall demand rather than structural problems as the major cause of unemployment, that it believes it will need to adjust the application of macro-economic policies with a view to stimulating investment. Concerning specifically employment conditions, the report points to the reactivation of the Committee of Directors General of Economic Ministries but recognises that this cannot be expected to have a large impact on the national unemployment rate. It refers briefly also to selective measures and combined efforts with the trade unions to prevent the worsening of the employment situation.

3. Referring to its previous comments, the Committee notes that the gradual improvement in the employment situation expected by the Government did not materialise. In addition, contrary to the previous report, the report for 1987-88 foresees that the employment situation is likely to continue to worsen in the near future, affecting in particular older workers, young workers and the population of development areas. The Committee notes that this trend toward worsening employment seems to be confirmed, at least from the data for the first quarter of 1989 quoted by the Histradrut in its bulletin "Labour in Israel" (July 1989).

4. The Committee trusts that the Government will indicate in its next report the employment objectives included in development plans and programmes and describe how they are related to other economic and social objectives. Please also describe the policies and measures taken with a view to ensuring that there is work for all who are available for and seeking work, with particular reference to overall and sectoral development policies (measures in such fields as investment policy, fiscal and monetary policy, prices and wages policy, measures for maintaining and creating employment in development areas), labour market policies (measures for the adjustment of labour to structural change and measures to meet the needs of particular workers such as young people, older workers and the workers of development areas), and educational and training policies (in particular measures to co-ordinate them with prospective employment opportunities). Please refer on these points to the questions formulated in the report form under Article 1 of the Convention.

5. Please describe the procedures adopted to ensure that the effects on employment of measures taken to promote economic development receive due consideration, at both the planning and the implementation stages (Article 2).

6. Finally, please supply supplementary information concerning efforts made and measures taken in co-operation with the trade unions (Article 3).