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The Committee notes the Government's report for the period from July 1992 to June 1994 and the reply to the comments made by the Committee in 1994.

1. The Government indicates that it has continued to maintain an active policy designed to promote productive and freely chosen employment, ensuring that continuing development and expansion of economic activity go along with the creation of new employment and, consequently, decrease unemployment rates. The rate of unemployment for the April-June 1993 quarter was 4.7 per cent (4.9 per cent for the same period in 1992). The Government states that it must be borne in mind that although unemployment has fallen and jobs risen, there are specific groups who are more seriously affected by unemployment and a lack of the type of jobs through which those unemployed can enter the market. The rate of unemployment for young people amounts to some 11 per cent and for women it is in the order of 6.6 per cent. These two categories of workers - according to the Government - generally obtain less well-paid jobs with less security. The Government has formulated an Equal Opportunities Plan for Women and a Work Training Programme for Young People.

2. The Government states it has formulated a development strategy based on growth with equality and that the application of macroeconomic policies is aimed at (inter alia) reducing inflation, inducing growth at a rate of 5.5 per cent, achieving increased employment in the order of 2.5 per cent per annum and improved labour productivity of 3 per cent. For its part, a more recent analysis by the ILO Regional Office for Latin America and the Caribbean (Avance panorama laboral 1995, Primer semestre - Panorama labour review 1995, First semester), indicates that fine-tuning policies to avoid economic growth prejudicing the success in controlling inflation achieved in Chile in 1994 led to a decrease in growth and higher unemployment. Nevertheless, in 1995, expected production growth increased by 6.5 per cent (as compared with 4.2 per cent recorded in 1994) and inflation in 12 months (June 1994 to July 1995) continued to drop - by 7.9 per cent (less than the previous year, which was about 8.9 per cent). It noted also that the performance of the labour market has been good: the unemployment rate dropped in the second quarter of 1995 (6.3 per cent, in 1994; 5.7 per cent in 1995) and the purchasing power of industrial and minimum wages rose.

3. For its part, the Government states that achieving full employment in itself is a very difficult goal to achieve. Nevertheless, the development and execution of policies and programmes derived from the development strategy have made it possible to obtain very low unemployment rates although some difficulties still exist in respect to job quality, levels of productive remuneration and the conditions in which workers in them operate. The Government proposes to strengthen fiscal and orientation activities on labour legislation, increasing job productivity by measures including further occupational training and professionalization of jobs which will result in higher pay. The Committee requests the Government to consider the value of referring to the instruments on human resources development (closely linked with those on employment policy) adopted by the Conference in 1975 (Convention No. 142 and Recommendation No. 150) as well as its General Survey of 1991. In its previous report, the Government mentioned a proposal to amend the Training and Employment Scheme Regulations in order to set up a system of formal consultation procedures in this area. The Committee repeats its interest in receiving information on any progress made in this respect.

4. The Committee, which for many years has been making comments on application of the Convention, appreciates the achievements which have been obtained in employment policy in the framework of a coordinated economic and social policy. It trusts that in its next report the Government will continue to supply the information required by the report form on the situation, level and trends in employment, unemployment and underemployment and the extent to which they affect special categories of underprivileged workers who have difficulty in finding lasting employment (women, young people, older workers, the long-term unemployed, workers affected by restructuring, such as those in the coal sector, indigenous peoples). Please indicate the degree to which the objectives have been achieved of increasing GDP and employment and labour productivity mentioned by the Government in its report. It asks the Government to describe in particular, in its next report, the procedures adopted to ensure that the chief measures for employment policy are revised regularly in the framework of a coordinated economic and social policy (Articles 1 and 2 of the Convention).

5. The Government states that the employment policy comprises three fundamental aspects: equity, social modernization and social consultation. In regard to social consultation, the Committee would be grateful if the Government would include in its next report indication of the effect on employment policy of consultations held so as to determine and take fully into account the experience and views of representatives of the persons affected, and of representatives of other sectors of the population such as those in the rural and the informal sector. The Committee would appreciate information on whether the support of employers and workers has been obtained in order to achieve employment and other economic and social objectives (Article 3).