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The Committee notes the information contained in the Government's report for the period ending October 1998. The Government states that the rapid growth of unemployment, from 1.5 per cent in 1991 to around 13 per cent in 1997, is due to rapid conversion of the arms industry and other related industries, and to the decrease in employment in agriculture and construction. Consequently, the Government did not obtain its goal of reducing unemployment to under 10 per cent, and long-term unemployment has increased. However, there have also been increases in employment in the private sector, particularly in finance and insurance, and among workers aged 45-49 and 20-24. Youth unemployment, however, remains around 30 per cent of total unemployment as the youth labour force participation rate continues to rise.

The Committee notes that the Government has targeted small and medium enterprises (SMEs) as a source of new jobs and has enacted legislation more favourable to SMEs and made loans available. It has also adopted Act No. 254/1998 on increasing public works. The Committee would appreciate receiving further information on the participation rates and outcomes of these programmes, particularly as they affect the long-term unemployed and youth. It would also appreciate details on spending for active labour market policies, and trends in the number of participants in the various programmes, if available. It also requests further information on the employment objectives of the Government's privatization policy. The Committee also notes that Act No. 387/1996 on employment includes provisions for promoting employment of persons with disabilities. With reference to its comments made under the Discrimination (Employment and Occupation) Convention, 1958 (No. 111), the Committee notes that no mention is made of measures taken to assist various minority groups which have been particularly affected by the increase in unemployment. The Committee asks the Government to describe measures taken to meet the needs of these workers, as requested in the report form under Article 1 of the Convention.

The Committee notes that Act No. 387, as amended, provides for the participation of social partners through regional and district levels of the National Labour Office and the tripartite Governing Committees of the regional and district labour offices. The Committee requests information on whether representatives of other sectors of the economically active population are also consulted, as specified in the report form under Article 3. It also asks for more details on whether the district and regional offices are consulted in the review, within the framework of a coordinated economic and social policy, of the employment policies and programmes, as required in Article 3, in conjunction with Article 2.