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1. The Committee notes the Government's report for the period ending June 1994 and the information supplied in reply to its previous request. The detailed data in the report show that the rapid growth in the economy at the end of the period has allowed an expansion in employment of Israelis in the public and private sectors greater than the increase in the labour force and a steep decline in the unemployment rate which, after culminating at 11.2 per cent in 1992, amounted to 7.8 per cent in 1994. The Government stresses in particular the positive effects of employment expansion on the reduction of unemployment among women, young people and, in particular, new immigrants who in view of their increased rate of employment, are enjoying rapid integration into the labour market. With reference to its previous comments, the Committee notes that it has been possible to reduce the unemployment rate from its 1989 level, although the working population has increased meanwhile by some 25 per cent.

2. The Committee has also taken note of the analyses of the Bank of Israel which indicates in its annual report for 1994 that this rapid growth in work and employment, attributed essentially to expansionist budgetary and monetary policies, has been accompanied by stagnation in productivity, increased inflation and growth in the balance of payments deficit. In this context, the Committee would be grateful if the Government would specify in its next report the measures implemented or envisaged "within the framework of a coordinated economic and social policy" and bearing in mind "the mutual relationships between employment objectives and other economic and social objectives" in order to pursue as a major goal the promotion of full, productive and freely chosen employment in accordance with Articles 1 and 2 of the Convention.

3. The Government, which sees increased employment as an effect of investment and economic activity, states that the wage subsidies established in 1991 have been abolished. Nonetheless, other programmes to promote employment have been implemented since 1992. One of them, specially designed for new immigrants, aged 45 and over, provides financial assistance to employers participating in their integration. New immigrants are also among the main beneficiaries of the adult on-the-job training and temporary public works projects. The Committee would be grateful if the Government would continue to supply information on these various programmes, along with any available assessment of the results attained, both in terms of lasting integration in employment of those concerned and in relation to their possible effects on employment of other groups of the working population.

4. The Committee notes with interest the indications on the effect given to Article 3 of the Convention by participation of the social partners in employment services management and consultation with them in taking decisions liable to have an influence on employment, especially in regard to setting the minimum wage and the unemployment compensation policy. It requests the Government to continue to supply information on consultations with organizations of employers and workers which have taken place on the subject of employment policies by giving examples of the opinions expressed and the manner in which they were taken into account.