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The Committee takes note of the detailed and comprehensive information provided by the Government in its report received in September 2006, including the information provided in response to the 2004 direct request.

1. Employment trends and active labour market measures. The Government reports that the Latvian National Reform Programme for 2005–08 identifies stimulating knowledge and innovation, fostering employment, and improving education and skills amongst its main economic policy directions, setting a national target employment rate of 67 per cent for 2010. The employment level of the population was 61.8 per cent in 2003, rising to 63.4 per cent in 2005. In 2003, the economic activity rate of the population in the 15–64 age group was 69.2 per cent, whereas in 2004 and 2005, it was 69.6 per cent and 69.5 per cent, respectively. From 2001 to 2005, the gross domestic product demonstrated an annual increase of 1.8 per cent, reaching 10.2 per cent in 2005. The Committee welcomes these results and asks that the Government continue providing information on the effect its general and sectoral economic policies have had in achieving its employment objectives.

2. The Committee notes the significant disparities in employment and unemployment levels amongst regions. In 2004, when the national unemployment level stood at 6.2 per cent, the unemployment level in the Latgale region was 12.2 per cent, whereas in the Riga region, the level of unemployment was 3.8 per cent. The Government also reports that the unemployment level in the Kurzeme, Zemgale and Vidzeme regions were slightly higher than the national average. In this connection, the Committee notes the measures taken to encourage regional development and diversity of employment opportunities in rural areas and small towns, such as the income tax incentives for businesses operating in specially assisted regions, as set forth in the Laws “On Enterprise Income Tax” and “On Personal Income Tax”. The Government also reports that it elaborated a set of principles of regional policy, upon which it was developing a Monitoring and Evaluation System for Regional Development (RAUNS) which seeks to ensure monitoring and evaluation of the regional policy in order to promote balanced and sustainable development of the country’s territories. The Committee asks the Government to provide further information on the measures pursued to promote equal territorial development and higher employment levels, and the results thereof. Please also provide information on the functioning and effectiveness of the tools developed to monitor the implementation of the principles underpinning the regional policy.

3. Youth employment. The Government reports that the unemployment level of young people aged 15–24 years is higher than that of other age groups. In 2004 and 2005, respectively, 37.3 per cent and 37.4 per cent of the total number of young people were economically active. The Committee notes that the unemployment ratio of young people was 18.5 per cent in 2003 and 12.9 per cent in 2005. The Government reports that this indicates a need to undertake further measures aimed at more efficient integration of youth into the labour market. In this regard, the Committee notes that, in 2005, 9,264 young persons were involved in the State Employment Agency’s competitive enhancement measure for the “Acquisition of working skills during summer holidays by persons studying in general secondary education or vocational secondary education establishments”. The Committee welcomes receiving information on the implementation of such, and other measures, designed to improve the accessibility of the labour market for young persons.

4. Older workers and other specific categories of vulnerable workers. The Committee notes that in 2004, 52.3 per cent of persons between 55 and 64 years of age were economically active, whereas in 2005 the proportion of economically active persons in this age group was 54.2 per cent. The employment level of older people (age group 55–64) is steadily growing. In 2004, the employment level of older persons increased by 3.9 percentage points from 44.1 per cent to 48 per cent, increasing by a subsequent 1.8 percentage points in 2005 to 49.8 per cent. The Committee asks the Government to continue providing information on measures taken to continue the trend of increased economic activity of the older population, and any such measures designed to encourage and support employment levels of other particular categories of workers, including women and workers with disabilities.

5. Education and training policies. The Government reports that while, for the most part, jobseekers have a relatively high level of education, i.e. in 2005, 67.6 per cent of jobseekers had secondary education or secondary vocational education, and 10.7 per cent had higher education, many workers lack information and communication technology skills, communication skills, foreign language skills and knowledge in business basics in accordance with the requirements of the modern labour market. The Committee notes that in 2005, 7.6 per cent of the population aged 25–64 were involved in education and training activities, whereas in 2004 the rate stood at 9.1 per cent. The number of unemployed persons involved in the active employment measures of the State Employment Agency (SEA) increased considerably and, in 2005, 10,435 unemployed persons were involved in vocational training, retraining and qualification improvement activities organized by the SEA, while 152,950 unemployed persons were involved in competitiveness enhancement measures. The Committee notes that a national programme on “Development and implementation of the lifelong learning strategy” was elaborated, aimed at developing a single concept approach to lifelong learning, determining the preferable lines of development and defining objectives and tasks for lifelong learning up until 2010, and determining the distribution of responsibilities for its implementation. The national programme has the following objectives: (a) the implementation of a balanced and modern education system and education policy in line with the labour market requirements; (b) provision of lifelong learning according to the interests of the population, its capacities and plans for regional economic development; and (c) ensuring the capacity of the education system to implement the Lifelong Learning Strategy in the long term. The Committee requests that the Government continue to provide, in its next report on Conventions Nos 142 and 122, which are due in 2008, information on the measures taken in the area of education and training policies and on their relation with prospective employment opportunities.

6. Article 3. Participation of the social partners in the formulation and application of policies. The Committee notes with interest that the development of the National Lisbon Programme of Latvia pursuing the European Union initiative was coordinated by the Supervisory Board of the Lisbon Strategy which also consulted the Saeima and representatives of the Latvian Employers’ Confederation and the Free Trade Union Confederation of Latvia. The Government also reports that a strategic line of activity of the SEA was the development of closer and more efficient cooperation with its partners – employers and local authorities, so as to efficiently promote employment and reduce unemployment in the regions. The Committee requests that the Government continue to provide information on the consultations held on the matters covered by the Convention with the representatives of employers’ and workers’ organizations including details of their contribution to the implementation of an active employment policy. It similarly welcomes being kept apprised of the manner in which the SEA effects consultations and closer cooperation with the social partners, and the results of such consultations.