CMNT_TITLE

The Committee notes the detailed information provided in the Government’s report for the period ending in June 2006, the legislative documents received, including replies to the matters raised in previous comments.

1. Articles 1 and 2 of the Convention. Employment trends and active labour policies. The Government report indicates that, in 2005, GDP increased at a rate of 4.1 per cent which is within its annual average for the period between 1995 and 2004. Inflation was measured at 2.5 per cent in 2005 as compared to 2.3 per cent in 2004. According to the Labour Force Survey, the unemployment rate reached 5.4 per cent in 2005, a slight increase from 5.2 per cent measured in 2004. Employment was measured at 68.7 per cent at the second quarter of 2005 which is above the European Union average. The Government states the existence of almost full employment conditions although the report indicates unemployment of young people reaching 12.7 per cent for the second quarter of 2005. The maintenance of full employment conditions is attributed to the increase in employment in the service sector. Labour productivity improved by 2.1 per cent in 2005 as compared to 1.9 per cent measured in 2004. The report indicates that the Cypriot economy is expected to register further improvements in 2006. The Government’s targets for 2010, in regards to the European Employment Strategy, are to increase the overall employment rate to 71 per cent, to increase the employment rate of women to 63 per cent and to increase the employment rate of older workers to 53 per cent. The Government plans to increase the employment rate of older workers by extending the retirement age of workers in the public sector and of civil servants to 63 years and also by encouraging self-employment. Measures to increase female employment will be addressed by encouraging women’s entrepreneurship, by aiding the balancing of family and professional life for women with young children and by promoting flexible forms of employment. The Committee notes the Government’s goals with interest and asks the Government to indicate in its next report information on further developments in order to achieve these goals, in particular, to receive policy and programme evaluations when they become available. The Committee would also appreciate receiving information on the impact of any policy measures addressing youth employment.

2. Education and training policies. The Government indicates that, under the Strategic Plan of the Human Resource Development Authority of Cyprus (HRDA), more stringent requirements and criteria for approval, monitoring and subsidization of training programmes were implemented. Schemes were implemented to promote the training and employment of young school leavers, the unemployed and the economically inactive women, as well as the provision of consultative, guidance and training services to micro-enterprises (employing
1–4 persons). The Committee requests that the Government continue to provide in its next report information on the measures taken in the area of education and training policies and on their relation to prospective employment opportunities. 

3. Article 3. Participation of the social partners. The Committee notes the information concerning the Labour Advisory Board as to its functions, and as to its members, representatives of both workers and employers. The report also describes other forums in which the Government consults with social partners concerning employment policy such as district labour advisory committees, gender equality committees and a council discussing matters in regards to persons with disabilities. The Government also indicates that they have created the Employment Technical Committee in March 2006 which is formed of members of the Government as well as representatives of employers and workers. This committee’s main responsibilities are to monitor progress of employment policies, to suggest new measures and to submit progress reports. The Committee notes with interest the creation of the Employment Technical Committee and asks the Government to report on the progress achieved for the implementation of the Convention by the new committee. It trusts that the Government will continue to provide information on the consultations held on the matters covered by the Convention with the social partners including details of their contribution to the implementation of an active employment policy.