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The Committee notes the information contained in the Government’s report received in November 2002.

1. In relation with its 2001 direct request, the Government states that in 2001 Israel’s economy suffered the worst recession it has known in a very long time. GDP fell by 0.6 per cent, per capita GDP dropped by 8.2 per cent, business-sector product went down by 1.9 per cent, and employment in that sector also fell. The poor economic conditions during the period 2000-02 contributed to a rise in unemployment, which went from 8.8 per cent in 2000 to an estimated 10.2 per cent at the end of 2001. The Government makes reference to the global economic downturn, the security situation in Israel and the crisis in capital markets throughout the world as aggravating factors that made it impossible to ameliorate the situation in the labour market. The Committee welcomes the detailed statistics furnished by the Government and trusts that in its next report the Government will continue to provide detailed information on full and part-time employment and disaggregated data by age and gender and other data on the situation, level and terms of employment and underemployment (please refer to the information requested in the report form under Articles 1 and 2 of the Convention).

2. The Committee also notes the Government’s statement concerning reforms of the Employment Service, including new courses of instruction for Employment Service staff, improved administrative techniques and increased contact with institutions that work with the Employment Service (inter alia, the National Insurance Institute and the Ministries of Trade and Industry and Absorption). These reforms have aided the Employment Service in dealing with the increase in unemployed jobseekers as a result of a weakened economy and the rise in unemployment. Other measures implemented include the "From Welfare to Work" experiment scheduled to begin in 2003 that envisages the participation of private employment agencies alongside the Employment Service. Please continue to report on the various programmes implemented and their impact on employment promotion. The Government might consider it useful to refer to the instruments on private employment agencies adopted by the Conference at its 85th Session (1997).

3. The Committee notes the information on the participation of the social partners in employment services and consultation with them in taking decisions liable to have an influence on employment and economic policy in the circumstances of November 2002. It requests the Government to update information on consultations with employers’ and workers’ organizations which have taken place on the subject of employment policies, as requested by Article 3 of the Convention, by giving examples of the opinions expressed and the manner in which they were taken into account.