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1. The Committee takes note of the Government's detailed report for the period ending June 1990 and the information provided in reply to its direct request. It notes that the downward trend in the employment situation referred to by the Government in its previous report continued during the period under consideration. The slow-down in economic growth was accommpanied by low growth in employment and a further increase in unemployment which affected 9.5 per cent of the active population in 1990. Despite a revival in economic growth at the end of the period, the employment situation remains worrying, particularly in view of the rapid increase in the active population and the present large-scale influx of new immigrants.

2. The Government indicates that its employment policy is aimed at achieving the high level of economic growth needed to expand employment through general economic policy measures, and at curbing the increase in unemployment in the short term through immediate measures in the labour market. In addition to measures to encourage private investment, the plan to stimulate economic growth includes measures to encourage greater flexibility in the labour market and wages, such as reducing the cost of labour by changing the legislation on the minimum wage, introducing more restrictive conditions for access to unemployment insurance benefits and lifting the state monopoly on employment services. Short-term action to curb unemployment includes stronger measures for the prevention of the illegal employment of foreign workers, the development of vocational training programmes, financial assistance to enterprises for the creation of jobs and the creation of temporary jobs in the public sector.

3. The Committee would be grateful if in its next report the Government would provide particulars of the implementation of the above measures and of how their impact - both past and future - on employment is evaluated. It also requests the Government to provide detailed information on the consequences of the recent large-scale influx of immigration for employment, the arrangements made to encourage the integration of the persons concerned into the labour market and any effects that this integration may have on the employment of other groups of the active population.

4. The Committee notes with interest the information concerning the consultation of the representatives of employers' and workers' organisations on employment policies. It notes that the Histadrut, which is associated with the discussions on employment policy at the highest level, is opposed to certain measures envisaged by the Government, and particularly the proposed changes in the system for fixing the minimum wage, and that the Government continues to seek an agreement on the matter. The Committee has no doubt that the Government will continue to provide information on the development of consultations with the representatives of the persons affected concerning employment policies.