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1. The Committee notes the Government's report for the period ending June 1992 and the enclosed observations of the Federal Chamber of Workers and Salaried Employees. It notes that despite fairly rapid economic growth, growth in employment during the reporting period, although sustained, was insufficient to absorb the rapidly increasing active population (the result of massive immigration, inter alia) and to prevent an increase in the unemployment rate which rose from 5.4 per cent in 1990 to 5.8 per cent in 1991 and 1992. While the share of the under 25 age group in total unemployment declined, there was an increase in the proportion of workers unemployed for over a year and unemployed older workers or workers regarded as difficult to place. Furthermore, the Federal Chamber of Workers and Salaried Employees notes that there was a rapid increase, particularly as regards women, in precarious or poorly protected employment. Although the labour market situation still compares favourably to that of other industrialized European countries, the data provided confirm the OECD's forecast in its latest economic survey (April 1993) of an upward trend in structural unemployment.

2. The Government continues to refer to the objective of full employment laid down in the Labour Market Promotion Act, and indicates that it has increased the funds earmarked for active labour market policy measures to cope with growing unemployment. In this connection, the Committee notes the detailed information on the programmes to promote the employment of the most vulnerable population groups, appended to the report. It notes with particular interest the considerable increase in the number of beneficiaries of the "Aktion 8000" programme to create jobs for the long-term unemployed. It also notes that the Government has undertaken to reform the public employment service to provide more effective assistance for the categories that have the most difficulties in finding jobs. It would be grateful if in its next report, the Government would provide information on the nature and progress of these reforms.

3. In answer to the Committee's previous comment on the conditions for suspending unemployment entitlements or special emergency aid, the Government states that it considers that the provisions to prevent unwarranted claims of such benefits are not applied in such a way as to contravene Article 1, paragraph 2(a) and (c), of the Convention and must be assessed in the context of a policy to create employment opportunites for all jobseekers. It also points out that very few persons are affected. However, in the opinion of the Federal Chamber of Workers and Salaried Employees, the practice of certain employment services with regard to suspension of benefits has become more restrictive and is therefore contrary to the objectives of this provision of the Convention. The Committee notes this divergence of opinion and would be grateful if the Government would provide information on trends in the number of jobseekers affected by suspensions of entitlements.