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1. Articles 1 and 2 of the Convention. The Committee has examined the Government’s detailed report for the period ending May 2002 and the observations made by the Inter-Union Assembly of Workers-National Convention of Workers (PIT-CNT) received in October of the same year. In its report, the Government includes an exhaustive analysis of the situation, level and trends of employment, unemployment and underemployment, which emphasizes that the labour market crisis is each year becoming less cyclical and more structural. The specific unemployment rates of private sector salaried employees, wage earners and craft workers, women and young persons, workers in the manufacturing industry, trade and services are always higher than the average. PIT-CNT emphasizes that unemployment rose to 16.7 per cent of the active population in 2002, the highest rate since 1968. In this respect, the data available from the MERCOSUR Labour Market Observatory (www.observatorio.net) indicate that, when comparing the beginning of 2002 with the beginning of 2003, Uruguay experienced an increase of 3.4 per cent in the unemployment rate (the unemployment rate rose from 14.4 per cent to 17.8 per cent of the active population) and that the employment and activity rates also fell. Taking into account the persistence of a particularly difficult regional situation, the Committee trusts that the Government will continue to promote policies and programmes intended to develop full and productive employment, and particularly to address the needs of the most vulnerable categories of workers (young persons entering the labour market, women, rural workers, unemployed persons without unemployment insurance coverage). Please also include information on the measures intended to meet the labour market needs of persons with disabilities.

2. The Government listed in its report the studies and investigations carried out by the Labour Market Observatory of the National Directorate of Employment  (DINAE). The Committee would be grateful if the Government would indicate in its next report the manner in which the surveys undertaken by the DINAE have been used for the adoption of employment policy measures. In this respect, the Committee recalls that, as prescribed by Article 2 of the Convention, the effect on employment of the measures taken to promote economic development and achieve other economic and social objectives is to be taken into consideration. Please also continue to provide information on how employment policies and programmes are kept under review within a coordinated framework of economic and social policy, in consultation with the social partners.

3. In reply to its previous comments, the Government states that, although it has not been possible to establish a national vocational training system, the private supply of training has been reinforced and extended as a result of the availability of the resources of the Labour Retraining Fund established as an explicit tool of the active employment policy. PIT-CNT indicates that vocational training is in itself insufficient for employment promotion. PIT-CNT expresses concern at the fact that contributions have not been made to the Retraining Fund and that only 15 per cent of workers covered by unemployment insurance receive vocational retraining. In its previous comments, the Committee referred to the instruments adopted by the Conference on the development of human resources and the creation of employment through small and medium-sized enterprises. The Committee would be grateful if the Government would continue providing information on any further efforts made to coordinate education and vocational training policies with employment opportunities.

4. The Committee notes with interest the information provided on the work of the MERCOSUR Labour Subgroup 10 in relation to employment policies and would be grateful if the Government would include in its next report information on the activities undertaken to coordinate employment policies and programmes, in a tripartite context, among MERCOSUR members.