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1. The Committee notes the Government's report. From the information available to the ILO and contained in OECD reports and studies, the Committee notes that, despite economic recovery, the contraction of total employment continued in 1994 (-1.7 per cent) and 1995 (-0.6 per cent), with the unemployment rate reaching 12 per cent by the end of the period. The characteristics of the distribution of unemployment which the Government considered to be a matter of concern in its previous report have become more accentuated. The gap between the unemployment rate in the north (6.4 per cent in July 1995) and the south (20.7 per cent) has widened, with almost one-third of active persons under 25 years of age being without employment and with long-term unemployment accounting for 63 per cent of the total.

2. The Committee has also noted the comments of the Association of Credit Enterprises (Assicredito), that the unemployment struggle calls for macroeconomic measures in favour of non-inflationary growth, together with structural measures to make the labour market more flexible in particular, as well as raise workers' skill levels.

3. The Government provides information in its report on the measures adopted recently to simplify placement and recruitment procedures, and on the implementation of various incentives for recruitment and the promotion of self-employment. The Committee notes that regional employment offices are requested to supply data on the numbers of persons recruited as a result of the incentives financed by the Employment Fund with a view to making an accurate evaluation of their effectiveness. With reference to the requests for information in the report form, the Committee would be grateful if the Government would indicate in its next report the results of this evaluation and provide information concerning the reform of the employment services envisaged by the Government.

4. The Government also states that the programme of socially useful work intended for the long-term unemployed has been extended in scope. The Committee requests the Government to provide any available information on the contribution of this programme to the reintegration of the persons concerned into employment and to the promotion of full, productive and freely chosen employment. With reference to its previous comments, it also requests the Government to continue supplying information on the use that is made of employment-training contracts. The Committee further requests the Government to transmit the text of any official statement affirming that the promotion of full, productive and freely chosen employment remains an essential objective, in accordance with Article 1 of the Convention. The Government could, as in the past, envisage providing information on the contribution that general economic policies have made or are expected to make to the achievement of employment objectives. The Committee would be grateful to receive information in the Government's next report on developments in the wages and incomes policy since the conclusion of the tripartite agreements in July 1993, as well as information on monetary, fiscal and exchange rate policies, as requested in the report form adopted by the Governing Body. It hopes to be able to note an improvement in the employment situation, which remains a matter of concern.