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1. The Committee notes the Government's report for the period ending June 1996 and the information in reply to its previous comments. The Government describes developments in the economy and employment since the beginning of the implementation of the structural adjustment programme in 1990 and emphasizes that foreign debt, the budgetary deficit and the rapid growth of the economically active population are all obstacles to the achievement of the objective of full employment envisaged in Article 1 of the Convention. According to government estimates, the open unemployment rate was around 4.2 per cent in 1995 (6.6 per cent in urban areas), while 25 per cent of the economically active population (over 33 per cent in the rural sector) were affected by underemployment.

2. The Committee notes the information concerning the action programmes undertaken by the Honduran Social Investment Fund (FHIS) designed to improve the living conditions of underprivileged social groups by increasing their levels of employment and income. It notes that the support programme for the informal sector benefits from ILO technical cooperation. The Government also reports measures for the promotion of rural employment and new provisions adopted for the employment of workers with disabilities. The Committee notes that measures financed by the FHIS have led to the creation of 32,044 jobs lasting on average three or four months between 1990 and 1994, and it would be grateful if the Government would provide as much detailed information as possible on the contribution made by the various measures that it describes to the effective and lasting integration of the persons concerned into employment. The Committee requests the Government to continue describing the measures taken by the National Vocational Training Institute (INFOP) with a view to improving the coordination of education and training policies with prospective employment opportunities.

3. The Government states that, despite the policies pursued to address the employment problems, the objective of full employment remains unattainable due to the economic and structural problems experienced by the country. The Committee notes the emphasis placed by the Government on the reduction of public expenditure and the promotion of foreign investment through means such as the establishment of export processing zones. It would be grateful if the Government would: (i) provide detailed information on the incidence on employment of the measures adopted under Decree No. 135-94 to rationalize the administration and the public sector, with an indication of the accompanying measures that are envisaged to guarantee employment for the workers affected; (ii) provide information on the contribution of export processing zones to the creation of productive employment; and (iii) indicate the manner in which the employment policy takes into account "the mutual relationships between employment objectives and other economic and social objectives" (Article 1, paragraph 3, of the Convention) and is pursued "within the framework of a coordinated economic and social policy" (Article 2). The Government could, for example, envisage the adoption of mechanisms to ensure that the objectives and obligations of the Convention are duly taken into account in the design and implementation of the corresponding policies and programmes, as well as in any negotiations with the international financial institutions.

4. The Committee notes the indication that the adoption of legislation to promote employment gives rise to consultation with the organizations of employers and workers concerned. It recalls that, in accordance with Article 3 of the Convention, representatives of all the persons affected by the measures to be taken must be consulted concerning employment policies, both at the time of their formulation and for their implementation. With reference to its previous comments, it trusts that the Government will indicate in its next report the manner in which consultation (with the representatives of the persons affected) is assured in practice and that they include representatives of persons working in the rural sector and the informal sector.

5. The Committee notes that the report refers to ILO technical cooperation and advisory activities and requests the Government to indicate any action taken as a result of these activities (point V of the report form).