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1. The Committee notes the Government's report for the period ending June 1996 and the useful information that it contains in reply to its previous request. It notes that in line with the slow-down in the growth of economic activity total employment has been declining since the second half of 1995, particularly due to employment losses in the consumption goods industry and construction. According to OECD estimates, the standardized unemployment rate, which was 5.9 per cent in 1994 and 1995, should rise to 6.2 per cent in 1996. The Government reports an increase in unemployment among young persons, although it emphasizes that their situation on the labour market remains much better than in most other European countries.

2. The Committee notes the Government's March 1996 statement that the preservation of employment is one of its fundamental objectives. It notes that the policy of budgetary stabilization to ensure the convergence of economic policies within the European Union has been accompanied by an initiative for growth and employment, which includes infrastructure works and the establishment of new industrial centres and should contribute to the creation or maintenance of jobs during the period 1996-97. The Government also emphasizes that the increase in direct and indirect taxation is designed to guide savings towards productive investment and not to be a burden on employment. The Committee notes that the requested analysis of the expected consequences of integration into the European Union shows that it should have a long-term positive effect on the employment of skilled workers, to the detriment of unskilled workers, which justifies the emphasis placed on training measures to combat a two-tier labour market. It requests the Government to continue providing detailed information on the principal economic policies pursued and the manner in which they contribute to the attainment of the employment objectives set out in Article 1 of the Convention.

3. The Committee notes the statistics concerning the activities of the employment services. It notes that the data on active labour market policy measures show that the great majority of the available resources are devoted to training measures. Finally, the Committee has been informed of the recent adoption of the Labour Market Policy Act and the Structural Adjustment Act. No doubt the Government will provide detailed information in its next report on the changes made by these Acts in labour market policy and their effect on the attainment of the objectives of the Convention.