CMNT_TITLE

1. The Committee took note of the Government's report for the period ending June 1996. It notes that, according to the most recent OECD data, the upward trend in the employment situation already visible at the end of the previous period has been clearly confirmed. With the marked expansion of economic activity, total employment growth reached 3.5 per cent in 1994, 4.4 per cent in 1995 and 4 per cent in 1996. Despite the continued growth of the active population, the unemployment rate was brought down to 11.3 per cent in 1996 as compared to 14.2 per cent in 1994. The Government nevertheless considers that the unemployment rate is still unacceptably high and that in particular there is a high incidence of long-term unemployment which accounts for about 60 per cent of total unemployment and affects more particularly low-skilled workers and workers over the age of 45.

2. The Government states that its policy to achieve full employment in the future is still based on the Programme for Competitiveness and Work and the National Development Plan 1994-99, both agreed with the social partners. The Committee notes however that, for the most part, the information in the report covers only active labour market, social protection and training measures. It would be grateful if the Government would also supply information, as it has done in the past, on the components of general economic policy which most affect employment. In this connection, the Committee notes that the significant decline in unemployment was achieved while inflation and budget deficit were kept under control. It asks the Government to describe in its next report how measures taken in areas such as monetary, budget, exchange rate and incomes policies contribute to the pursuit of the employment objectives of the Convention.

3. The Committee notes the description of the active labour market policy measures which aim in particular to make work more attractive through income tax and social insurance adjustments, and to promote the reintegration of the long-term unemployed through public employment programmes, the Back-to-Work Allowance Scheme and the Employers' Social Insurance Exemption Scheme. The Committee refers to its previous request and asks the Government in its next report to provide any available evaluations of the effectiveness of each of the numerous programmes pursued in terms of the effective and lasting integration in employment of the beneficiaries. More generally, it hopes that the measures taken as part of general economic policy and labour market policy will contribute to further confirming the trend towards lower unemployment.