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Employment Policy Convention, 1964 (No. 122) - North Macedonia (RATIFICATION: 1991)

Other comments on C122

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The Committee takes note of the supplementary information provided by the Government in light of the decision adopted by the Governing Body at its 338th session (June 2020). The Committee examines the application of the Convention on the basis of the supplementary information received from the Government this year, as well as on the basis of the information at its disposal in 2019.

COVID-19 pandemic. Socioeconomic impacts. Response and recovery measures. The Committee notes the serious social and economic impact of the COVID-19 pandemic at the national and local levels as well as the measures taken by the Government to mitigate it. In this context, the Committee notes from the ILO monitor on country policy responses, the set of measures adopted by the Government to support enterprises, jobs and incomes, such as providing unemployment benefits for citizens who have lost their jobs due to the crisis (amounting to 50 per cent of the employee's average salary, and up to 80 per cent of the average salary in the country), financial support to the private sector (USD260 per employee for April and May, or alternative, subsidizing 50 per cent of the mandatory social contributions) and loans to micro, small and medium size enterprises (MSMEs) through the Development Bank of North Macedonia. The Committee recalls the comprehensive guidance provided by international labour standards. In this regard, the Committee wishes to draw the Government’s attention to the Employment and Decent Work for Peace and Resilience Recommendation, 2017 (No. 205), which provides guidelines for developing and implementing effective, consensus-based and inclusive responses to the profound socio-economic impacts of the pandemic. The Committee invites the Government to provide updated information in its next report on the impact of the global COVID-19 pandemic and the measures taken to address it in the context of the implementation of the programs and measures aimed at ensuring the objectives of the Convention.

Articles 1 and 3 of the Convention. Implementation of an active employment policy. Consultation with the social partners. The Committee notes with interest the range of measures undertaken by the Government with a view to attaining the objectives of the Convention. In this regard, the Committee notes the adoption in March 2019 of the Decent Work Country Programme for North Macedonia 2019–22 (DWCP). The DWCP was prepared in consultation with the social partners with the aim of addressing, among other issues, insufficient employment opportunities, inadequate earnings and unproductive work, lack of stability and security at work, and unequal opportunities and treatment in employment. The Committee further notes the launch in August 2017 of the Employment and Social Reform Programme 2020 (ESPR 2020), following consultations with a large number of relevant stakeholders, including the social partners. The impact of the measures taken under the ESPR is regularly monitored and evaluated in order to adapt them to the specific needs of the different target groups identified. In this regard, the ESPR 2022 was adopted in December 2019 following approval by the tripartite Economic Social Council (ESC). It revises the ESPR 2020 and extends the duration of the Programme until 2022. The Government indicates that the ESPR programme was adopted within the framework of a joint initiative between the European Commission and the Government as a candidate country for EU membership. Its objectives include, inter alia, promoting economic development and job creation; tackling unemployment among persons in vulnerable situations (young persons, the long-term unemployed, persons with disabilities and economically inactive persons), reducing the size of the informal economy and the extend of informal employment, strengthening the public employment service, and promoting social dialogue and collective bargaining. Furthermore, the Government refers in the ESPR 2020 to the implementation of the National Employment Strategy of the Republic of North Macedonia 2016–20, which sets out the main mid-term challenges in the labour market and sets strategic goals and objectives to be attained during this period. The Strategy’s principal goal is to promote employment, job quality and productivity, and places a special focus on groups in vulnerable situations. In this framework, annual Operational Plans for Active Employment Programs and Measures are adopted and implemented by the Employment Agency of the Republic of North Macedonia (EARM) in collaboration with the relevant institutions from the labour market. The Government indicates that the Operational Plan includes employment programs, measures and services that seek to ensure direct employment and increase the employability of the unemployed. The Committee also notes the statistical information provided by the Government concerning the number of participants in the different active employment measures between 2018 and 2019. The Committee notes from the ESPR 2022 that motivational training is regularly organized for unemployed people, with preference given to young persons, those with lower skills and the long-term unemployed. In addition, specific active labour market measures tailored to the needs of these groups are supported, also through assistance from the EU. The ESPR 2022 notes, however, that North Macedonia is not spending much on active labour market programmes for the unemployed, compared to other EU countries, noting that in 2017 the expenditure on labour market programmes represented only 0.16 per cent of the Gross Domestic Product (GDP). With regard to employment trends, the Committee notes that, according to ILOSTAT, in 2019, before the outbreak of the COVID-19 pandemic, the overall labour force participation rate stood at 55.5 per cent, the employment rate was 45.9 per cent, and the unemployment rate was 17.3 per cent. The Committee requests the Government to continue to provide up-to-date, detailed information on the results of the measures implemented in the framework of the Decent Work Country Programme for North Macedonia 2019–22, the Employment and Social Reform Programme 2022, the National Employment Strategy of the Republic of North Macedonia 2016–20, and the Operational Plans for Active Employment Programs and Measures. In particular, the Committee requests the Government to provide information on the manner and extent to which the measures implemented have enabled the beneficiaries to obtain full, productive and sustainable employment. It also requests the Government to provide updated statistical information on trends in the labour market, especially in relation to the economically active population, employment and unemployment, disaggregated by sex and age. The Committee further requests the Government to continue to provide detailed information on the manner in which it has ensured that the social partners participate in the design, implementation and evaluation of the employment policies.

Education and training. The Committee notes that the ESPR includes the attainment of objectives related to education and training, particularly for the target groups identified in the ESPR, including ensuring fully inclusive education and equal access to education for all, implementing the National Qualification Framework (NQF) for lifelong learning, strengthening the employability of the workforce and building learning pathways in the context of lifelong learning. In respect of lifelong learning, the ESPR provides for measures to further develop vocational education and training as well as adult education; to promote various forms of lifelong learning and strengthen entrepreneurial culture; and to ensure active consultation and the inclusion of local governments and social partners within these processes. Moreover, according to the ESPR 2020, a Comprehensive Education Strategy and Action Plan for the period up to 2020 was developed through a consultative process involving the participation of a large number of relevant stakeholders. The Strategy establishes the priorities and pathways of action toward ensuring a comprehensive and inclusive education with modern and up-to-date programs that will enable future generations to acquire knowledge, skills and competences that are competitive and adapted to the actual needs of the labour market. The ESPR 2022 also envisages the establishment of a Skills Observatory, which is intended to map and update graduates’ competencies and labour market needs, but notes that while progress has been made in establishing sectoral qualifications councils as well as the qualifications register, the Skills Observatory has not yet been established. The Committee requests the Government to provide information on the impact of the measures taken in the area of education and training, including those adopted in the framework of the Comprehensive Education Strategy and its Action Plan, and on their relation to prospective employment opportunities. It also requests the Government to provide information on progress made in the establishment and functioning of the Skills Observatory.

The informal economy. The Committee observes that, according to the cited 2018 European Commission staff working document, employment in the informal economy is declining, but remains high. The report indicates that, according to the National Statistical Office, some 18 per cent of total employment in 2016 was located in the informal economy. Informal work is distributed unevenly among population groups, with a particularly high proportion of young workers, women and long-term unemployed persons. The ESPR 2022 refers to the Strategy on Formalization of the Informal Economy 2018-2022, whose objective is to create a comprehensive and consistent system to efficiently reduce the number of informally employed, unregistered business entities and informal activities. The ESPR 2022 states that tackling the informal economy remains a priority for North Macedonia for long-term improvement of the labour market. It provides for, among other measures, the promotion of processes and mechanisms for measurement, monitoring and detection of the informal economy and providing incentives and support for formalization of informal economic activities. It sets the target of reducing the share of the informal employment to 15.9 per cent by 2022. The Committee requests the Government to continue to provide detailed up-to-date information on the nature and impact of measures taken to integrate informal economy workers into the formal labour market, particularly young workers, women and the long-term unemployed.

Women. In reply to the Committee’s previous comments, the Government indicates that the annual Operational Plans for Active Employment Programs and Measures ensure the equal participation of men and women in these activities. The Government reports that the participation of women in these activities increased to 53.82 per cent between 2015 and 2017. However, the Committee observes that, according to ILOSTAT, in 2019 the labour participation rate of women stood at 44.9 per cent, their employment rate was 36.7 per cent, and their unemployment rate was 18.4 per cent. In addition, the Committee notes that, in its concluding observations of 14 November 2018, the Committee on the Elimination of Discrimination against Women (CEDAW) expressed its concern about the significant gender pay gap in the country, noting its prevalence in sectors such as the garment industry, where women make up 81 per cent of workers, the low rate of participation of women in the labour market, and the overrepresentation of women in unpaid care work as well as in the informal economy (document CEDAW/C/MKD/CO/6, paragraph 35, subparagraphs (a) and (b)). Against this background, the Committee notes that the ESPR 2022 contemplates a set of measures to promote the integration of women in the labour market and reduce the gender gap, such as the implementation of the Strategy for Development of Women‘s Entrepreneurship in the Republic of North Macedonia (2019-23), which aims to create an enabling business climate and providing support for the development of women’s entrepreneurial potential. The Committee requests the Government to provide updated detailed information on the nature and impact of measures adopted or envisaged to promote the participation of women in the labour market, including statistical data disaggregated by sex and age.

Young persons. The Committee observes that, according to ILOSTAT, the overall youth labour force participation rate in 2017 was 32.8 per cent (41.7 per cent among young men and 23.4 per cent among young women). The overall unemployment rate was 46.7 per cent (45.8 per cent for young men compared to 48.6 per cent for young women), while the share of youth not in employment, education or training (NEET) was 24.9 per cent (23.9 per cent for men and 25.9 per cent for women). The Committee notes from the 2017 European Commission report on “Youth policies in the Former Yugoslav Republic of Macedonia”, that the low economic participation rates of youth are due to: (i) shrinking employment opportunities and difficulties associated with the school-to-work transition; (ii) the unwillingness of employers to bear the costs of on-the-job training for youth lacking job experience, as the pool of experienced jobseekers is large; and (iii) skills mismatches between the needs of employers and the skills young persons obtain through the education system. The Government refers in the ESPR 2020 to the implementation of the Action Plan on Youth Employment 2016–20, whose objective is to promote more and better jobs for young men and women by improving skills matching; promoting job creation led by the private sector and facilitating the transition of young people into the world of work. The Government also notes that over qualification among young people has become a major barrier preventing young people from finding suitable job positions in North Macedonia. As a result, a number of young people have to leave the country to realize their professional ambitions. The Committee welcomes the information provided by the Government concerning the implementation of employment measures for young persons in the framework of the annual Operational Plans for Active Employment Programs and Measures, and their impact. According to the ESPR 2022, in 2018, young people up to the age of 29 years made up 65 per cent of the participants in active labour market employment programmes and measures, up from 36 per cent in 2017. Finally, the Committee refers to its 2020 comments on the application of the Human Resources Development Convention, 1975 (No. 142), in which it notes the implementation of the Youth Guarantee, which is aimed at ensuring that all young people under the age of 25 years receive a quality offer of employment, continued education, apprenticeship or traineeship within a period of four months of becoming unemployed or leaving formal education. The Committee requests the Government to continue to provide updated information on the measures envisaged or taken with a view to assisting young persons in finding, advancing and retaining lasting employment, particularly with regard to increasing employment opportunities for young people, and on the impact of these measures, including disaggregated statistical data by sex.

Persons with disabilities. The Committee notes that, according to the ESPR 2020, the measures and programs included in the annual active labour market programs seek to promote the access of persons with disabilities to the labour market and increase their employability. In particular, the ESPR 2020 provides for the establishment of a centre for rehabilitation and work qualification within the institute of rehabilitation of children and youth (Skopje) and measures to promote the access of persons with disabilities to all levels of education. According to the ESPR 2022, there has been progress in terms of employment of persons with disabilities, mostly through the Programme for self-employment of persons with disabilities. The ESPR 2022 sets a target of improving or maintaining 60 per cent of registered employment of persons with disabilities in the open labour market, as compared with the proportion of sheltered employment. Nevertheless, the Committee notes that, in its concluding observations of 29 October 2018, the Committee on the Rights of Persons with Disabilities (CRPD) expressed concerns with regard to: (a) discrimination against and inequalities in employment and working conditions for persons with disabilities, particularly women, notably in several provisions of the Law on Civil Servants; (b) the fact that the Law on Labour Relations does not specifically require employers to provide reasonable accommodation to persons with disabilities; (c) the fact that persons with disabilities and public and private employers are not fully aware of the rights of and opportunities for employment in the open labour market (document CRPD/C/MKD/CO/1, paragraph 45). The Committee requests the Government to provide detailed and updated information on the measures taken or envisaged to promote employment opportunities for persons with disabilities, especially women, in the open labour market, including measures to raise public awareness of the rights and capacities of persons with disabilities, and on the impact of these measures.

Older workers. In reply to the Committee’s previous comments, the Government reports that it is implementing measures to promote the participation of persons aged 50 to 64 years in the labour market. It adds that older workers represent 8 per cent of the participants in active employment measures and programs, and 24 per cent of the participants in the project “Macedonia Employs 1 and 2”. The Committee requests the Government to provide detailed updated information on the nature and the impact of the different measures taken to facilitate the integration of older workers into the labour market.

The Roma minority. The Committee notes that, according to the ESPR 2022, the employment rate among the Roma minority is 23 per cent (almost twice lower than the national average) and the unemployment rate is as high as 67 per cent. The employment rate for Roma women is 8 per cent. In addition, the Roma community faces a high rate of informal employment (on average 25 per cent are working informally). In this context, the ESPR 2020 provides for the implementation of measures to improve employment opportunities and reduce unemployment for persons belonging to the Roma community. These objectives are to be reached through increasing the participation of Roma in different active employment programs and measures, raising their education level as well as their participation and inclusion at all levels of education. The Committee notes that the ESPR 2022 extends the implementation of the abovementioned measures. It sets a target for 2022 of the successful inclusion of at least 325 Roma in active employment measures, reaching 10,000 Roma with services; and reducing the rate of registered unemployed in the Roma community to 8.7 per cent. The Committee requests the Government to continue to provide updated and detailed information on the nature and impact of measures taken to increase full, productive and freely chosen employment of members of the Roma community, including statistical data, disaggregated by age and sex.

Small and medium-sized enterprises (SMEs). In its previous comments, the Committee requested the Government to provide information on the impact of the Programme for Self-Employment and other measures taken to support the establishment of SMEs in terms of employment generation. The Government reports that, in 2019 1,309 persons participated in the Programme for Self-Employment. The Committee notes that the ESPR provides for adoption of measures to support and improve competitiveness and entrepreneurship in the SMEs sector. In addition, the Government refers to the adoption of measures to support SMEs in the framework of the Strategy for Development of SMEs 2018-23 and its accompanying Action Plan, such as establishing a coordination body for monitoring the implementation of the Strategy and initiating the drafting of a new law on SMEs. The Committee requests the Government to provide updated detailed information on the impact of the Strategy for Development of Small and Medium-size Enterprises and its accompanying Action Plan. In particular, it requests the Government to provide statistical information on the number and type of enterprises established and the number of jobs created by such enterprises. The Committee also requests the Government to provide information on the status of the draft law on SMEs, and to provide a copy once it is adopted.