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The Committee notes the Government’s reports for the periods ending June 2003 and June 2004. It also notes with interest the joint assessment by the European Commission and the Government of the employment policy priorities in February 2003 and the first National Action Plan for Employment, submitted to the European Commission in October 2004. In a context of sustained economic growth, the employment situation was characterized by a regular increase in activity rates and a fall in the unemployment rate, which was however still at the high level of 10.7 per cent in 2003 (compared with 12.1 per cent in 2002). The Committee notes that, despite the favourable trends, several characteristics of the employment situation remain a matter of concern, such as the rate of 18.5 per cent for youth unemployment (compared with 20.8 per cent in 2002), the high proportion of long-term unemployment (43.8 per cent of total unemployment), wide regional disparities and an unemployment rate which remains higher for persons who are not of Latvian origin. The Committee requests the Government to continue providing detailed information on the employment policy implemented in this context, particularly in relation to the following aspects.

1. General and sectoral economic policies. The Committee notes the series of measures carried out with the support of the European Union with a view to promoting more balanced regional development, particularly through fiscal incentives for new activities and assistance for the development of small and medium-sized enterprises. The Committee requests the Government to continue providing detailed information on the contribution made by these measures to the achievement of the employment objectives. It also requests the Government to indicate the impact on employment that is expected or observed as a result of measures relating to individual income tax and the minimum wage.

2. Labour market policy measures. The Committee notes the active labour market policy measures implemented by the State Employment Agency. It notes that in 2003 the measures taken in relation to the vocational training, recycling and skills enhancement of the unemployed made it possible for over half of the beneficiaries to find another job. Please continue to provide information that is as detailed as possible on the contribution of these measures to the effective and long-term integration of the persons concerned into employment. Please provide information on the results achieved by job subsidy measures for workers approaching retirement age and unemployed persons with disabilities. The Committee further requests the Government to indicate the manner in which the implementation of active labour market policy measures is coordinated with unemployment benefit.

3. Consultation of the representatives of the persons affected. The Committee notes that the National Action Plan for Employment was submitted to the National Tripartite Cooperation Council before being approved by the Government. It would be grateful if the Government would indicate the manner in which the consultation of the representatives of the persons affected is extended to include the formulation, implementation and evaluation of the various measures envisaged by the Plan.