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The Committee notes the detailed information contained in the Government's first report. The Government indicates that the unemployment rate for 1998 was 3.5 per cent and underemployment was 1.9 per cent, despite recent financial difficulties in the region.

Article 1 of the Convention. The Committee notes that the Government's overall policy is to create full, productive and freely chosen employment. Specific policies to achieve this end include: creating a favourable environment for investment, in part by simplifying the tax structure and lowering rates; improving banking supervision; facilitating industrial and trade activities; providing an adequate infrastructure; and encouraging technology transfers. The Government has established specific programmes for youth, older workers, single parents, new immigrants, and people with disabilities. To facilitate a balance between the types of labour supplied and demanded, the Employment Retraining Board works with the Labour Department to identify areas of training with high labour market demand. The Government has also commissioned a review of the Employment Retraining Service (ERS) in 1996. The three key recommendations from that study were: that the ERS should focus more on retraining workers above the age of 30 with only secondary education, and those employed workers needing basic skills; that the ERS should create integrated, job-intensive training courses to equip retrainees with basic skills; and that training should be provided to new arrivals. The Committee would appreciate being kept informed of the Government's progress in implementing these recommendations.

Article 2. The Government states that coordination of economic and social policy is ensured because the Executive and Legislative Councils decide on all policy and legislative issues for the territory. The Government Secretary is comprised of policy secretaries from all bureaux, including the Financial Secretary who is responsible for fiscal, economic and trade policies. It also created in 1998 a Task Force on Employment, led by the Financial Secretary, which undertook new initiatives such as establishing the Employment Information and Promotion Programme. The Committee notes this information and asks to be kept informed of how the Government ensures that the measures taken to promote economic development or other economic and social objectives receive due consideration, at both the planning and the implementation stages. It would also appreciate more information on how the principal measures of employment policy are decided on and kept under periodical review within the framework of a coordinated economic and social policy.