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The Committee takes note of the detailed information contained in the Government’s report for the period ending in May 2005.

1. Employment trends and labour market policies. The Government indicates that the country benefited from the good performance of the international economy in 2004 and that the number of people employed grew by 3 per cent, compared to 1.9 per cent in 2003. The unemployment rate fell to 4.4 per cent in 2004 from 4.6 per cent in 2003. Employment growth is expected to remain strong, forecast at 2.9 per cent, while unemployment, forecast at 4.2 per cent, is expected to remain low. The Government states that, in its second Implementation Report on the 2003-05 Broad Economic Policy Guidelines, the European Commission noted that Ireland’s ability to sustain relatively high growth rates and a low unemployment rate constituted evidence of the inherent flexibility of its economy.

2. As regards long-term unemployment, the Government recalls that it has been falling sharply and steadily for over a decade. Between 1993 and 2000, long-term unemployment fell by 84 per cent. In fact, the long-term unemployment rate dropped from 9 per cent in 1993 to 1.4 per cent in 2004. The Government explains that its current policy focus is now being put on increasing the skill levels of low-skilled employees and in-company training. Investment in training by employers and the development of programmes to facilitate both the unemployed and employees adapt their skills through further training and reskilling is critical to future employment growth. The Government also refers to various programmes such as the Task Force on Lifelong Learning, the Back to Work Allowance Scheme and the Back to Education Allowance Scheme. The Committee takes due note of this information and looks forward to receive from the Government in its next report an assessment of the impact of its active labour market measures. It would also appreciate receiving further information on how the measures taken to promote full and productive employment operate within a "framework of a coordinated economic and social policy". Please also include in the Government’s next report information on the achievements in terms of employment generation of the National Action Employment Programme (Articles 1 and 2 of the Convention).

3. The Government indicates that immigration of skilled labour from non-European Economic Area (EEA) countries has continued to grow substantially in recent years, as shown by the increase of work permits issued. In the light of the EU enlargement and the consequent increase in unemployment at EU level, changes have been made in the Work Permit Scheme which seek to ensure that persons in the domestic and EEA labour markets are given first opportunity to avail job vacancies. To this effect, the Government decided to allow full freedom of movement to nationals from the ten new Member States of the EU from 1 May 2004, and consequently to restrict non-EEA migration to highly-skilled/highly-paid employments. New legislation was published on 29 June 2005, which should be enacted at the end of 2005, and which will govern Ireland’s economic migration policy and systems. The Committee requests the Government to provide information on the impact of this new legislation on the issuance of work permits and on the integration of migrant workers in the Irish labour market.

4. Participation of the social partners. The Committee asks the Government to keep providing information on the consultations held with representatives of the persons affected, both at the stage of formulating employment policies and in relation to the implementation of the measures adopted under such policies, as required by Article 3 of the Convention.