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1. The Committee notes the Government's report for the period ending June 1994 and its annexes. From the data published by the OECD, it notes that there has been a slight recovery in employment figures (the OECD refers to a "recovery without employment") and a drop in the unemployment rate at the end of the period when it amounted to 10.4 per cent, having reached 11.3 per cent in 1992. The Government stresses that the unemployment rate is still higher than before the recession and remains among the highest in the seven major industrialized countries. In addition, it notes that there is a rapid and continuing increase in part-time employment (involuntary for 40 per cent of women workers) as compared with full-time employment and an unprecedented drop in the rate of activity since the beginning of the decade.

2. The Government confirms that employment is its highest priority, as outlined in the February 1994 budget. Creation of employment is sought through policies which foster economic growth and provide opportunities to acquire the skills needed to meet the challenges of the rapidly changing labour market. According to the Government, a policy of steady reduction in the fiscal deficit, primarily focused on controlling expenditures, would set the climate within which private sector-based economic growth and job creation can take place. The Committee, which notes that the other major objective of controlling inflation seems largely achieved, hopes that this priority in the immediate term to rebalancing public finances will have the expected effects on employment. It also notes that the federal Government and the provinces are engaged in a vast reform of the income security and unemployment insurance system to ensure that it contributes more effectively to the return to employment of its beneficiaries. The Committee requests the Government, in this respect, to supply detailed information on the measures taken or envisaged in order to better coordinate the unemployment protection system with the active employment policy.

3. Furthermore, the Committee notes the indications regarding the labour market policy programmes which are being implemented specifically with a view to promoting the adaptation of the skills of workers in employment and of the unemployed as well as the integration of young people into the labour market. It has noted with interest the evaluation reports for various programmes which the Government indicates should be profoundly modified in the framework of the current reform of the social security system. The Committee would be grateful if the Government would continue to supply any available assessments on the effectiveness of training and integration measures.

4. With reference to its previous comments and the discussion at the Conference Committee in 1992, the Committee hopes to be able to note when it examines the next report further progress in achieving the objectives set out in Article 1 of the Convention at both federal and provincial level.