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The Committee notes the Government’s detailed report corresponding to the period ending in May 2008 and the information provided in relation to its 2007 observation.

Articles 1 and 2 of the Convention. Implementation of an employment policy in the framework of a coordinated economic and social policy. The Committee notes the increase in the activity and employment rates since March 2005 and the resulting reduction in the level of unemployment. According to the data published by the ILO in the 2008 Panorama Laboral, the economic growth was also reflected in positive movements in the main employment indicators. Unemployment continued to fall, both at the national level and in urban areas. During the first 11 months of 2008, the national unemployment rate stood at 7.7 per cent, while the urban rate stood at 8 per cent (1.6 and 1.8 percentage points lower than the figures recorded during a similar period in 2007 respectively). These results were due to a significant increase in labour demand (the national employment rate increased by 1 percentage point to reach 57.6 per cent), which contributed to a slight reduction in labour supply. There was a greater reduction in unemployment among women than among men, but unemployment among women continues to be double of that among men and stands at 10.6 per cent compared to 5.8 per cent for men. The Government is proposing structural reforms such as the reform of the State, the reform of the tax system and the adoption of economic policies aimed at boosting the “productive Uruguay” programme by increasing sources of work and improving workers’ qualifications. In labour matters, the Government aims to promote entrepreneurship and business training, encourage the use of technological developments relating to innovation and quality, facilitate geographic decentralization, protect the environment and promote micro-, small and medium-sized enterprises. According to the Government, the financial balance, together with the benefits of international trade and the introduction of regulations and measures benefiting workers, such as the reintroduction of wage boards, have had an effect on working conditions and job creation.

In the context of the implementation of an active employment policy, the Government agreed with the ILO on a Decent Work Country Programme in February 2007. The objective of this Agenda is to facilitate the development of strategies and activities aimed at ensuring fundamental rights at work, in terms of both quantity and quality. One of the specific objectives of the Agenda is the creation of productive employment which includes high formal coverage, social protection and guarantees for the exercise of fundamental rights at work, with special consideration being given to gender equality, young persons and ethnic pluralism. The Committee requests the Government to continue providing information on how the measures taken under the Decent Work Country Programme have promoted the objective of full and productive employment under the Convention. Please also indicate whether the objectives of overcoming poverty, reducing social inequalities and ensuring sustainable development, as established under the Decent Work Agenda, have been achieved.

Workers in the informal economy. The Committee notes that, according to the National Institute of Statistics, informal employment, which is understood to mean employment not involving social security registration, stands at 33.4 per cent. The informal economy is a low-quality employment sector, which provides the Government and social partners with the challenge of devising and implementing policies and legal frameworks to facilitate the integration of these workers into the labour market in appropriate conditions. The Committee notes that the Government has adopted various approaches, including the Domestic Work Act which promotes the registration of workers, the Employment Objective Programme which grants benefits to companies registered under the social security system and the establishment of a committee on informal employment within the context of the National Commitment to Employment, Income and Responsibilities. The Committee requests the Government to continue providing information on the measures taken to gradually integrate persons working in the informal economy into the formal labour market. Please also provide information on the recommendations made by the Committee on informal employment relating to the integration of persons working in the informal economy into the labour market.

Cooperatives. The Committee notes with interest that in October 2008, Act No. 18407 on cooperatives was promulgated, which aims to regulate the establishment, organization and operation of cooperatives and the cooperative sector. The Act also creates the National Institute of Cooperatives (INACOOP) to promote the economic, social and cultural development of the cooperative sector and its integration into the country’s development. The Committee requests the Government to provide information on the progress being made by INACOOP to promote labour and social cooperatives, the objective of which is to achieve the social and labour market integration of the heads of households belonging to sectors in which basic needs are not being met, as well as young persons, persons with disabilities, ethnic minorities and any group in a situation of extreme social vulnerability.

Education policies and the supply of vocational training. The Committee notes the vocational training and labour market integration programmes implemented for young persons (PROJOVEN), rural workers, persons with disabilities (PROCLADIS), women (PROMUJER) and for the strengthening of micro- and small enterprises (FOPYMES), as well as the programme on the establishment of micro undertakings. It also notes the possibility available to companies of deducting their training expenditure from their business tax (IRAE) as a means of promoting ongoing training. The Committee requests the Government to continue providing information on training activities for active workers, the recently unemployed and the long-term unemployed.

Participation of the social partners in employment policies. The Committee notes that in 2007, agreement was reached on the terms of the Bill creating the National Institute of Employment and Vocational Training. According to the Government, the Bill marks substantive progress with regard to the institutional framework and tasks of this tripartite body, includes public funds equal to those contributed by employers and workers and establishes various levels of management at the sectoral level (sectoral employment committees) and at the territorial level (departmental and local employment committees), providing the departmental committees with infrastructure and financial support for their management. The Committee requests the Government to provide information in its next report on the progress made in strengthening the mechanisms which allow the development and implementation, in consultation with the social partners, of the employment policy measures required by the Convention.

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1. The Committee notes the Government’s report received in August 2006 and the observations made by the Inter-Union Assembly of Workers – National Convention of Workers (PIT–CNT), which were received in October 2006.

2. Articles 1 and 2 of the Convention. Application of employment policy in the framework of a coordinated social and economic policy. According to the data provided by the Government, the recovery of the Uruguayan economy made it possible to return, at the end of 2005, to the level of production that existed prior to the economic recession at the end of 1998. According to the information published by the Economic Commission for Latin America (ECLAC) in the Preliminary overview of the economies of Latin America and the Caribbean 2006, with GDP growth of 7.3 per cent in 2006, the country continued its growth path as a result of the increases in both exports and internal demand, a stable fiscal situation, a moderate external deficit and inflation of around 6 per cent. As a result of the increase in employment and real wages in 2005, urban poverty decreased by almost 1 per cent in very poor households, and 3 per cent in poor households. The labour market showed signs of recovery: job supply rose by 1.6 per cent, with a fall in the unemployment rate to 12.2 per cent. The Committee notes the policies implemented by the Government with a view to increasing the level of employment directly and promoting employment through macroeconomic stability and the encouragement of investment. The Government has also endeavoured to extend and diversify markets for exports with a view to promoting job creation. The National Employment Promotion Strategy is designed to increase employment levels, provide mediation between supply and demand, prevent unemployment and provide appropriate protection in the event of unemployment. The Committee requests the Government to provide specific information in its next report on the results achieved through the measures adopted for the creation of productive employment and the reduction of unemployment and underemployment. It also requests information on the results of the measures adopted by the National Directorate of Employment (DINAE) for the progressive integration of the informal economy into the formal labour market. The Committee recalls its interest in being provided with information on the manner in which the objectives of full employment are taken into account when formulating national economic policy and on the difficulties encountered in reducing poverty levels.

3. The Government indicates that Commission 2 of MERCOSUR Labour Subgroup 10 has addressed subjects related to employment, vocational training, labour migration and the Labour Market Observatory. It also supported a high-level group for employment. The PIT–CNT observes that the approach to labour matters adopted over the past four years has been characterized by inertia and has not been productive. The Committee once again expresses interest in being provided with information on the measures that have been adopted in the context of MERCOSUR to promote active policies for full employment and the progress achieved in adapting labour market measures to changes in international trade.

4. Education policies and the supply of vocational training. The Committee notes with interest the increase in the budget allocated for public expenditure on education. It recalls the importance of education and training policies as an integral part of economic strategies and for the promotion of employment opportunities in a context of a global economy that is in constant transformation. The Committee requests the Government to continue providing information on the measures that are being adopted by the Government to improve the employability of the labour force through training measures.

5. Article 3. Participation of the social partners in employment policies. The PNT–CNT has transmitted a proposal for the establishment of a national employment institute to coordinate the various state bodies related to employment and vocational training. According to the PIT–CNT, there is a dispersion between the bodies responsible for unemployment insurance, vocational training, employment programmes, placement and skills certification. The PIT–CNT further indicates that the local employment committees lack support and are not taken into account in the National Employment Promotion Strategy. The PIT–CNT adds that the convening of Wage Boards has not been put to good use in terms of employment and vocational training policies. The Committee would like to examine in the next report the manner in which the opinions expressed by the social partners in relation to the application of the Convention have been taken fully into account. In particular, the Committee requests the Government to ensure that the information contained in its next report covers the action taken in relation to the proposals made by the PIT–CNT to overcome the weaknesses that have to be resolved with a view to achieving, with the participation of the social partners, the objectives of full and productive employment set out in the Convention.

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1. The Committee notes the Government’s detailed report for the period ending in May 2004, which contains useful information relating both to the measures adopted and the 2003 observation.

2. Application of employment policy within the framework of a coordinated economic and social policy. The report indicates that it had been impossible to prevent the poverty level from rising to affect 20.5 per cent of households. Almost one-third of the population lives below the poverty line. Unemployment affects all groups of workers. The Government summarized the compensatory policy instruments that form a large part of the activities of the National Directorate of Employment (Vocational Training Programme, Productive Investment Programme and Productive Training Programme, as well as other specific programmes aimed at young people, women and rural workers). The report also mentions welfare measures (such as food-related welfare programmes and unemployment benefit). According to more recent information, in the last quarter of 2004, the unemployment rate stood at 12.1 per cent of the economically active population. In comparison to the unemployment rate registered in the same three months of 2003, a downward trend in the rate of unemployment was maintained. Furthermore, the trend in the rate of employment remained positive and employment increased by 1.5 percentage points (in terms of the Uruguayan urban total, just over 50 of every 100 people of 14 years of age or over were employed by the end of 2004).

3. The Committee asks the Government, in its next report, to indicate the impact of the programmes adopted, particularly using funds from the Occupational Retraining Fund, to incorporate unemployed persons into the labour market. In general, the Committee would like some information that would enable it to assess the way in which the promotion of employment is a central objective of all available macroeconomic policy mechanisms, especially of monetary, financial, budgetary, trade and development policies. The Committee reminds the Government that it is important from the outset to consider employment objectives "as a major goal" in the formulation of economic and social policy if these objectives are truly to be an integral part of the policies that are adopted (see paragraphs 487 and 490 of the General Survey of 2004 on promoting employment). The Committee requests that the Government, in its next report, include information on the way in which due account has been taken of the objectives of full employment when formulating new approaches to economic and social policy.

4. In reference to the 2003 observation, the Government indicates that it has made the defence of dignified and decent work, as advocated by the ILO, one of its main arguments for the reduction of the agricultural subsidies that the main developed countries pay its producers and that it is in favour of fair and balanced globalization. Please continue to include information on the measures taken within the MERCOSUR framework to promote active policies for full employment and on the progress made in adapting labour market measures to changes in international trade.

5. ILO technical assistance. The Committee notes with interest that, in November 2002, views were exchanged with specialists from the ILO subregional office in order to prepare the Direct Employment Programme and the Micro and Small Undertakings Programme. The Government also mentions ILO studies that have been used by the research division of the National Directorate of Employment (DINAE). Furthermore, a technical audit report on the beneficiaries of the Community Activities Programme (December 2003, prepared by an ILO consultant) is attached to the report. The Committee would be grateful if the Government, in its next report, could continue to provide information on the activities undertaken, as a result of ILO assistance, to improve the coordination of and strengthen the programmes aimed at creating productive employment in accordance with the Convention.

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1. Articles 1 and 2 of the Convention. The Committee has examined the Government’s detailed report for the period ending May 2002 and the observations made by the Inter-Union Assembly of Workers-National Convention of Workers (PIT-CNT) received in October of the same year. In its report, the Government includes an exhaustive analysis of the situation, level and trends of employment, unemployment and underemployment, which emphasizes that the labour market crisis is each year becoming less cyclical and more structural. The specific unemployment rates of private sector salaried employees, wage earners and craft workers, women and young persons, workers in the manufacturing industry, trade and services are always higher than the average. PIT-CNT emphasizes that unemployment rose to 16.7 per cent of the active population in 2002, the highest rate since 1968. In this respect, the data available from the MERCOSUR Labour Market Observatory (www.observatorio.net) indicate that, when comparing the beginning of 2002 with the beginning of 2003, Uruguay experienced an increase of 3.4 per cent in the unemployment rate (the unemployment rate rose from 14.4 per cent to 17.8 per cent of the active population) and that the employment and activity rates also fell. Taking into account the persistence of a particularly difficult regional situation, the Committee trusts that the Government will continue to promote policies and programmes intended to develop full and productive employment, and particularly to address the needs of the most vulnerable categories of workers (young persons entering the labour market, women, rural workers, unemployed persons without unemployment insurance coverage). Please also include information on the measures intended to meet the labour market needs of persons with disabilities.

2. The Government listed in its report the studies and investigations carried out by the Labour Market Observatory of the National Directorate of Employment  (DINAE). The Committee would be grateful if the Government would indicate in its next report the manner in which the surveys undertaken by the DINAE have been used for the adoption of employment policy measures. In this respect, the Committee recalls that, as prescribed by Article 2 of the Convention, the effect on employment of the measures taken to promote economic development and achieve other economic and social objectives is to be taken into consideration. Please also continue to provide information on how employment policies and programmes are kept under review within a coordinated framework of economic and social policy, in consultation with the social partners.

3. In reply to its previous comments, the Government states that, although it has not been possible to establish a national vocational training system, the private supply of training has been reinforced and extended as a result of the availability of the resources of the Labour Retraining Fund established as an explicit tool of the active employment policy. PIT-CNT indicates that vocational training is in itself insufficient for employment promotion. PIT-CNT expresses concern at the fact that contributions have not been made to the Retraining Fund and that only 15 per cent of workers covered by unemployment insurance receive vocational retraining. In its previous comments, the Committee referred to the instruments adopted by the Conference on the development of human resources and the creation of employment through small and medium-sized enterprises. The Committee would be grateful if the Government would continue providing information on any further efforts made to coordinate education and vocational training policies with employment opportunities.

4. The Committee notes with interest the information provided on the work of the MERCOSUR Labour Subgroup 10 in relation to employment policies and would be grateful if the Government would include in its next report information on the activities undertaken to coordinate employment policies and programmes, in a tripartite context, among MERCOSUR members.

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The Committee notes the Government’s detailed report received in September 2002. It further notes the comments of the Inter-Union Assembly of Workers - National Convention of Workers (PIT-CNT) on matters related to the application of the Convention, received in the Office on 14 October 2002. The comments by the PIT-CNT as well as the information communicated by the Government’s report will be examined together by the Committee at its next session.

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1. The Committee notes the Government’s report for the period ending May 2000 containing information on the various programmes carried out to promote employment, particularly for young persons, women, rural workers and the unemployed, and the additional information from the Continuous Household Survey, 1999. Since 1998, the Uruguayan economy has suffered a persistent recession which resulted, at the end of 2000, in urban unemployment slightly exceeding 14 per cent and the length of unemployment (30 weeks) exceeding the period covered by social security (24 weeks). Taking into account the regional context of recession, the Committee trusts that the Government will continue to adopt programmes intended to promote full and productive employment, and particularly to address the needs of the most vulnerable categories of workers (young persons entering the labour market, women, rural workers and unemployed persons not covered by unemployment insurance) and that its next report will include information on the cost of the programmes, their scope and the results achieved in terms of job creation.

2. Please include in the next report information on the manner in which an active policy designed to promote full, productive and freely chosen employment has been pursued and the links that have been established between employment policy objectives and other economic and social objectives (Article 1 of the Convention).

3. The Committee notes certain employment programmes place emphasis on training their beneficiaries (the programme of vocational training for rural workers and small producers, the CINCO programme for the integrated training and competitiveness of small and medium-sized enterprises, the programme of productivity training and the labour skills project). The Committee would be grateful if the Government would continue providing information on the results achieved by the above programmes and, in general, on the measures adopted to coordinate education and training policies with prospective employment opportunities. In this respect, the Committee refers once again to the instruments on human resources development and employment creation for small and medium-sized enterprises adopted by the Conference (Convention No. 142 and Recommendations Nos. 150 and 189).

4. The Government refers in its report to the programme of training for persons with disabilities, under which 541 trainees were registered in 1999. The Committee would be grateful if the Government would provide information on the measures intended to meet the needs of persons with disabilities, eventually taking into account the instruments on vocational rehabilitation and employment adopted by the Conference in 1983 (Convention No. 159 and Recommendation No. 168).

5. The Government states in its report that the National Directorate of Employment (DINAE) is participating in Subgroup 10 on Labour in MERCOSUR and the SISMEL (Labour Market Information System) project of the OAS, the principal objective of which is the development of a system of harmonized indicators of labour market trends in countries in the region. The Committee requests that the Government include further information in its next report on the manner in which it has been possible to make use of the labour market information which has been compiled and analysed in the context of MERCOSUR and SISMEL, and the manner in which such information has served as a basis for the adoption of employment policy measures (Article 2 of the Convention).

6. Parts V and VI of the report form. The Committee appreciates the information contained in the Government’s report on the participation of CINTERFOR, and other international and regional organizations, in the implementation of programmes related to employment policy. Please provide information in the next report on the results achieved in terms of employment and vocational training by the activities carried out in cooperation with the Office, as well as copies or extracts of reports and studies undertaken on the employment effects of economic and social policy measures.

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1. The Committee notes the Government's report for the period ending June 1998. It notes the adoption of Act No. 16783 of 16 September 1997 setting requirements and offering incentives to enterprises to recruit young persons under certain forms of contracts; and of Act No. 16906 of 7 January 1998 on investment. The Committee would be grateful if the Government would provide information on the impact on the labour market of the measures adopted under the above Acts. In particular, the Government is requested to indicate the manner in which the contracts concluded under Act No. 16783 have contributed to the young persons concerned finding lasting employment and remaining in the labour market.

2. The Committee notes that the unemployment rate rose from an average of 9 per cent in 1992 to over 11 per cent in 1996. The informal sector has grown in recent years and in 1993 represented 11 per cent of GNP. The Committee invites the Government to continue to provide the most detailed information available on the nature, extent and trends of employment, unemployment and underemployment, as requested in the report form under Article 1 of the Convention.

3. The Committee also notes that, in the context of the Labour Observatory of the National Directorate of Employment, several studies and investigations have been conducted to gather and analyse information on the real situation in important sectors of the national economy. The Committee would be grateful if the Government would indicate the extent to which it has been possible to use these studies to evaluate the effects on employment of economic and social policy measures. Please also specify the employment objectives set out in development plans and programmes and describe the manner in which it is ensured that their effects on employment are taken into consideration when adopting macroeconomic measures (Article 2).

4. The Committee notes the programmes implemented by the National Directorate of Employment (DNE) in collaboration with the National Employment Board (JNE) for various groups encountering problems related to employment and vocational training. The Committee notes that certain programmes are implemented with the support of the representative organizations of employers and workers. The Committee would be grateful if the Government would include an evaluation in its next report of the results achieved by these programmes in terms of the attainment of lasting employment and labour market integration.

5. Article 3. In reply to its previous comments concerning consultations with the representatives of the informal and rural sectors, the Government states that a training programme has been undertaken for rural workers with their support and participation. The Committee recalls that the consultations required by this Article concern employment policy measures. These consultations must have the objective of determining the experience and views of the representatives of employers' and workers' organizations and securing their full cooperation in formulating and enlisting support for such policies. The Committee notes the Government's statement on the important role of the National Employment Board in the formulation of active employment and vocational training policies and in the implementation of targeted programmes. The Committee trusts that the Government will indicate the subjects covered by the consultations held in the context of the above body and the manner in which account is taken of the views of the representatives of the rural and informal sectors in formulating employment policy, within the meaning of the Convention.

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1. The Committee notes the Government's detailed report for the period ending June 1996. The Government reports a slow-down in the rate of employment growth during the period and an unemployment rate of 11.8 per cent in 1995, which amounts to an increase of one percentage point in one year. Unemployment continues to affect women and young persons under 24 years of age in particular. The Government reports growth in self-employment, which accounts for nearly 20 per cent of total employment and could be related to growth in the informal sector. The Committee notes with interest the establishment of a body to monitor the labour market with the support of CINTERFOR and notes also the wider responsibilities of the National Directorate of Employment with regard to general oversight, research support, promotion, coordination, design, evaluation and administration of active employment and vocational training policies. It requests the Government to continue providing information on employment and unemployment and to describe the activities of the new Directorate, including the manner in which it contributes to the declaration and pursuit of a policy of full, productive and freely chosen employment, in the terms of Article 1 of the Convention.

2. With reference to its previous observation and recalling that under the terms of Article 2 of the Convention the measures to be adopted to promote employment must be "within the framework of a coordinated economic and social policy", the Committee once again requests the Government to indicate the manner in which the measures taken in fields such as fiscal and monetary policies, trade policy and investment policy contribute to the attainment of employment objectives (see the report form adopted by the Governing Body).

3. The Committee notes the Bill for the promotion of training and vocational integration of young persons, which was transmitted by the Government, and requests the Government to continue providing information on the measures which have been taken in order to improve the coordination of education and training policies with prospective employment opportunities.

4. Article 3. The Committee notes that the Government emphasizes the importance of the role played by the National Employment Council, which is tripartite, in the formulation of employment policies. With reference to its previous comments, the Committee would be grateful if the Government would indicate whether it envisages finding means of associating the representatives of persons working in the rural sector and the informal sector in consultations on employment policies with a view to taking into account their experience and views, securing their full cooperation in the formulation of these policies and enlisting support for them.

5. The Committee notes the information provided by the Government on the ILO technical cooperation and advisory activities from which it has benefited, particularly through the work of the ILO multidisciplinary team and CINTERFOR. It requests the Government to indicate in its next report the action taken as a result of these activities (Part V of the report form).

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With reference to its observation and previous comments, the Committee would be grateful if the Government would provide information on the following points in its report:

1. The Committee notes that the application of Act No. 15996 does not permit an evaluation of the extent to which the reduction in overtime as a result of the relative increase in the cost of labour has had an impact on recruitment. Please state whether any legislative or other measures have been adopted to make the labour market more flexible and indicate, to the extent possible, their impact in terms of the objective of the Convention.

2. The Government indicates that the employment strategy does not provide for different measures to be implemented for the various segments of the labour market and that no specific action has been taken with regard to categories of workers who have difficulty in finding lasting employment. In its observation, the Committee notes that certain categories of workers, such as women and young people, have difficulty in entering the labour market and finding lasting, productive and freely chosen employment. Paragraph 16 of the Employment Policy (Supplementary Provisions) Recommendation, 1984 (No. 169) lists a series of measures to meet the needs of all categories of people who frequently have difficulty in finding lasting employment. The Government may find it useful to provide indications in its next report of how it plans, within the framework of its own employment strategy, to solve the employment problems of the most affected categories of the population.

3. Please continue to provide information on the measures taken to coordinate education and vocational training policies with employment prospects, and on action taken as a result of ILO technical assistance in this area and in employment policy (Part V of the report form).

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The Committee notes that the Government's report has not been received. It must therefore repeat its previous observation which read as follows:

1. The Committee notes the Government's report for the period ending June 1992. The Government indicates that employment policy is considered as a result of the achievement of the objectives of the economic programme, employment promotion being closely linked to the success of economic measures implemented. With the implementation as of 1990 of the structural adjustment programme, the Government's policy has given priority to re-establishing the major macro-economic balances - the objective of monetary and budgetary policies was to reduce inflation and contain the budget deficit. Substantial results have been attained in these areas. However, despite product growth (7 per cent in 1992), overall employment grew only slightly and the unemployment rate fluctuated around 9 per cent (these data concern the urban labour market). The information supplied by the Regional Employment Programme for Latin America and the Caribbean (PREALC) shows that unemployment is still affecting one worker out of five, as it did at the end of the past decade, and that women and young people are the hardest hit by unemployment. The youth unemployment rate is triple the average and PREALC considers that it probably contributes to the emigration of skilled young people. The Government recognizes that "structural adjustment, which the Uruguayan economy inevitably has to undergo, has caused an involuntary and temporary increase in unemployment and underemployment, in both absolute and relative terms". As to the effects on wages and incomes, the Committee notes that, owing to a policy to abolish the indexation of prices and wages, real wages increased substantially in the private sector but fell in the public sector and that, in 1992, the minimum wage was equivalent to only 60 per cent of the 1980 real wage. 2. In its 1992 observation, the Committee referred to Part IX of the Employment Policy (Supplementary Provisions) Recommendation, 1984 (No. 169) and pointed out that it was necessary to share out fairly the social costs and benefits of structural adjustment. In view of the difficulties that the Government still seems to be experiencing in promoting the objectives of the Convention, particularly in "solving the unemployment and underemployment problem", the Committee trusts that it will take the necessary measures to determine and apply, "as an essential objective", an "active" employment policy, "within the framework of a coordinated economic and social policy" (Articles 1 and 2 of the Convention). The Committee would be grateful if in its next report the Government would supply relevant information on the measures taken in the different areas referred to in the report form, together with particulars of the situation, level and trends in employment, underemployment and unemployment in the country as a whole, including in respect of women and young people. It would also be grateful if the Government would describe the procedures adopted to ensure that their effects on employment are taken into consideration in the formulation and implementation of macroeconomic policies. 3. The Committee notes the information concerning the agreements concluded by the Wages Council which, in the Government's view, are an outstanding example of long-term tripartite agreements comprising pre-established criteria for wage adjustments in the context of stability of employment. The Committee would be grateful if, in its next report, the Government would provide information on consultations held on employment policy; such consultations must, under Article 3 of the Convention, aim to ensure that full account is taken, in both formulating and implementing employment policy, of the experience and opinion of the representatives of those affected (representatives of employers and workers organizations, and also representatives of other sectors of the active population such as the rural and informal sectors). 4. In a direct request the Committee asks for information on other issues concerning the application of the Convention (impact of the labour legislation on the labour market, special measures for the categories of workers most affected by unemployment and underemployment, coordination of education and training policies with employment policy, ILO technical cooperation).

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1. The Committee notes the Government's report for the period July 1992 to July 1995, which was received in September 1995. The Government provides a detailed report on the situation as regards employment, underemployment and unemployment in Montevideo and other urban areas, where the unemployment rate appears to have remained relatively stable (around 10 per cent, according to the data available for 1994-95). Precarious employment is reported to be over 15 per cent, while 20 per cent of active workers are engaged in micro-enterprises. The report also indicates that the rate of inflation in Uruguay is the highest of MERCOSUR (and the second highest on the American continent, with an annual rate of 44 per cent in 1994, which was lower than the 1992 rate of 59 per cent). Since March 1995, a new Government has been examining a significant reform of the State, which will also cover the reform of the social security system. The Government also states that an about turn is being made with respect to the previous administration, and that it has explicitly resolved to promote the development of the manufacturing industry for exports through the use of measures to improve its competitiveness and compensate for the negative impact of an outdated exchange policy over recent years. Among the incentives planned to improve the competitiveness of industry, it refers to a reduction in social security contributions, the reimbursement of indirect taxation for exports and a reduction in the financial costs of exports. The Committee notes the above and requests the Government to include information in its next report on the extent to which the employment objectives that have been set are achieved through the adoption of measures in fields such as fiscal and monetary policy, trade policy and investment policy. The Committee recalls that in its previous comments it referred to Part IX of the Employment Policy (Supplementary Provisions) Recommendation, 1985 (No. 169), to draw the Government's attention to the need for an equitable distribution of the social costs and benefits of structural adjustment. In this respect, it would be particularly valuable if the Government would supplement the information provided in the report with indications of the procedures adopted to guarantee that account is taken of their impact on employment when macroeconomic policies, such as those referred to by the Government, are formulated and applied.

2. The Committee notes with interest that Act No. 16320, dated 10 November 1992, established a National Directorate of Employment in the Ministry of Labour and Social Security, with explicit responsibility for formulating the national employment policy, proposing and implementing programmes of occupational and professional guidance, developing programmes of technical guidance and assistance for workers who wish to become small entrepreneurs, etc. A National Employment Board that is of tripartite composition will have the function of advising the National Directorate of Employment, designing retraining programmes for the workforce and administering the Occupational Retraining Fund. This Fund will support activities such as the provision of courses for the vocational retraining of workers and the provision of a one-off benefit to workers who follow retraining courses. With reference to its previous comments, the Committee appreciates the information in the Government's report that progress is being made with regard to consultations, which mainly focus on wages. The Committee welcomes this progress in the application of Article 3 of the Convention, which requires the consultation of the representatives of the persons affected by the employment policy measures to be taken with a view to promoting the objectives of full, productive and freely chosen employment. It would be particularly relevant, in a labour market such as the one described in the Government's report, for the consultations required by the Convention also to be held with representatives of workers in the informal sector and the rural sector, with a view to their eventual participation in the formal consultation machinery described in the report. The Committee would be grateful if the Government would provide information on the measures taken and the results achieved in the field of employment as a result of the action carried out by the National Directorate and Board of Employment, as well as by the Occupational Retraining Fund.

3. The Committee also notes with interest the numerous references made to the technical cooperation received by the Government from the ILO in the field of employment. In this respect, reference should be made to the priorities identified by the National Director of Employment to the multidisciplinary advisory team in the field of employment. The assistance of the ILO will be sought in the fields of occupational guidance for women, advice on the formulation of employment policies for extremely poor categories of the population, the implementation of strategies relating to employment in the informal sector, the formulation of strategies concerning migration for employment in the context of regional integration, and the establishment of technical expertise for the formulation and implementation of employment policies. Since these are aspects covered directly by the Convention, the Committee hopes that the assistance and advisory services required will be provided as soon as possible with a view to further promoting the application of its provisions. In this respect, the Committee requests the Government to describe fully in its next report the action undertaken, with an indication of any factors which may have prevented or delayed the action planned in the field of employment policy in cooperation with the ILO (part V of the report form).

4. The Committee also notes the assistance received by the Government from other bodies, such as CINTERFOR-ILO, for the training of persons receiving unemployment benefit; the Inter-American Development Bank, through a programme to reinforce social policy; and the German technical cooperation agency (GTZ) for the introduction of the dual training system. The Committee trusts that in these activities account is also taken of the instruments most directly related with Convention No. 122, such as the Human Resources Development Convention (No. 142) and Recommendation (No. 150), 1975, and the Employment Promotion and Protection against Unemployment Convention (No. 168) and Recommendation (No. 176), 1988. The Government may consider it useful to refer to the above instruments when including information in its next report on the results of the measures taken to coordinate its unemployment insurance scheme with its employment policy, as well as with regard to the close relationship existing between vocational guidance and training and the employment policy measures adopted.

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With reference to its observation and previous comments, the Committee would be grateful if the Government would provide information on the following points in its next report:

1. The Committee notes that the application of Act No. 15996 does not permit an evaluation of the extent to which the reduction in overtime as a result of the relative increase in the cost of labour has had an impact on recruitment. Please state whether any legislative or other measures have been adopted to make the labour market more flexible and indicate, to the extent possible, their impact in terms of the objective of the Convention.

2. The Government indicates that the employment strategy does not provide for different measures to be implemented for the various segments of the labour market and that no specific action has been taken with regard to categories of workers who have difficulty in finding lasting employment. In its observation, the Committee notes that certain categories of workers, such as women and young people, have difficulty in entering the labour market and finding lasting, productive and freely chosen employment. Paragraph 16 of the Employment Policy (Supplementary Provisions) Recommendation, 1984 (No. 169) lists a series of measures to meet the needs of all categories of people who frequently have difficulty in finding lasting employment. The Government may find it useful to provide indications in its next report of how it plans, within the framework of its own employment strategy, to solve the employment problems of the most affected categories of the population.

3. Please continue to provide information on the measures taken to coordinate education and vocational training policies with employment prospects, and on action taken as a result of ILO technical assistance in this area and in employment policy (Part V of the report form).

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1. The Committee notes the Government's report for the period ending June 1992. The Government indicates that employment policy is considered as a result of the achievement of the objectives of the economic programme, employment promotion being closely linked to the success of economic measures implemented. With the implementation as of 1990 of the structural adjustment programme, the Government's policy has given priority to re-establishing the major macro-economic balances - the objective of monetary and budgetary policies was to reduce inflation and contain the budget deficit. Substantial results have been attained in these areas. However, despite product growth (7 per cent in 1992), overall employment grew only slightly and the unemployment rate fluctuated around 9 per cent (these data concern the urban labour market). The information supplied by the Regional Employment Programme for Latin America and the Carribean (PREALC) shows that unemployment is still affecting one worker out of five, as it did at the end of the past decade, and that women and young people are the hardest hit by unemployment. The youth unemployment rate is triple the average and PREALC considers that it probably contributes to the emigration of skilled young people. The Government recognizes that "structural adjustment, which the Uruguayan economy inevitably has to undergo, has caused an involuntary and temporary increase in unemployment and underemployment, in both absolute and relative terms". As to the effects on wages and incomes, the Committee notes that, owing to a policy to abolish the indexation of prices and wages, real wages increased substantially in the private sector but fell in the public sector and that, in 1992, the minimum wage was equivalent to only 60 per cent of the 1980 real wage.

2. In its 1992 observation, the Committee referred to Part IX of the Employment Policy (Supplementary Provisions) Recommendation, 1984 (No. 169) and pointed out that it was necessary to share out fairly the social costs and benefits of structural adjustment. In view of the difficulties that the Government still seems to be experiencing in promoting the objectives of the Convention, particularly in "solving the unemployment and underemployment problem", the Committee trusts that it will take the necessary measures to determine and apply, "as an essential objective", an "active" employment policy, "within the framework of a coordinated economic and social policy" (Articles 1 and 2 of the Convention). The Committee would be grateful if in its next report the Government would supply relevant information on the measures taken in the different areas referred to in the report form, together with particulars of the situation, level and trends in employment, underemployment and unemployment in the country as a whole, including in respect of women and young people. It would also be grateful if the Government would describe the procedures adopted to ensure that their effects on employment are taken into consideration in the formulation and implementation of macro-economic policies.

3. The Committee notes the information concerning the agreements concluded by the Wages Council which, in the Government's view, are an outstanding example of long-term tripartite agreements comprising pre-established criteria for wage adjustments in the context of stability of employment. The Committee would be grateful if, in its next report, the Government would provide information on consultations held on employment policy; such consultations must, under Article 3 of the Convention, aim to ensure that full account is taken, in both formulating and implementing employment policy, of the experience and opinion of the representatives of those affected (representatives of employers and workers organizations, and also representatives of other sectors of the active population such as the rural and informal sectors).

4. In a direct request the Committee asks for information on other issues concerning the application of the Convention (impact of the labour legislation on the labour market, special measures for the categories of workers most affected by unemployment and underemployment, coordination of education and training policies with employment policy, ILO technical cooperation).

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The Committee refers to its observation and asks the Government to supply in its next report information on the following matters:

1. The Government mentions that, as a result of Act No. 15996 - and the regulations pursuant thereto - of 1988, concerning overtime in the private sector, the rates of overtime pay have been increased and new staff taken on. The Committee refers to its General Survey of 1984, Working Time, which deals with the relationship between the limitation of overtime and employment policy (see paragraphs 326-327). In this connection the Committee would be grateful if the Government would supply in its next report information on the impact achieved by such measures as regards the engagement of additional workers.

2. The Government mentions measures designed to expand the supply of female labour (e.g. the larger number of day nurseries and kindergartens). It also expresses its concern at the too slight shrinkage in the categories of workers close to "precariousness" (own-account workers, unpaid family members and odd-job men and women), which reflects rigidities in the labour market. The Committee would be grateful if the Government would state what measures have been adopted to meet the needs of all categories of workers who may encounter frequent difficulties in finding lasting employment, such as women, young workers, older workers, the long-term unemployed and workers affected by restructuring.

3. The Government refers to the activities of the Professional Training Council (COCAP) in favour of vocational training. Please include in the next report some information, if available, on the access to the labour market of persons who have benefited from the training provided by COCAP and new information on the measures proposed or taken to coordinate education and vocational training policies with prospective employment opportunities.

4. Part V of the report form. The Committee notes with interest the statement made by the Government in its report to the effect that Uruguay has benefited from the "very valuable collaboration" of PREALC in the formulation and implementation of employment policy. It would be grateful if the Government would indicate the action taken as a result of PREALC's assistance and its effects on the labour market.

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The Committee takes note of the Government's report, which contains a detailed reply to its direct request of 1990.

1. In its report, the Government states that its employment policy strategy has been centred on assisting in the pursuit of macroeconomic goals and balances. It states that the decision to resort to a programme of structural adjustment of the economy designed to create the conditions for its sustained growth has been the means of achieving an increase in employment in sectors of activity connected with the production of goods saleable in subregional and extracontinental trade. Priority has been given to jobs in the field of productive employment through incentives for the export of manufactures, the strengthening of state credits for small and medium-sized undertakings, and the support of private efforts for the training, administration and management of undertakings. The greatest problems confronting the Government in attaining the goal of full employment are said to be the high inflation rate, the competition confronting national products in international markets, difficulties in raising the level of investment, and the rise in the price of oil. The Government states that, as a result of the "lost decade of the 1980s", unemployment is of a "structural" nature.

2. The Committee thanks the Government for its analysis of the particular difficulties that have arisen in pursuing the objectives of the Convention. It trusts that the Government will continue its efforts to declare and pursue, "as a major goal", an active employment policy within the framework of a coordinated economic and social policy (Articles 1 and 2 of the Convention). In this connection the Committee also refers to Part IX of the Recommendation (No. 169) concerning Employment Policy (Supplementary Provisions), 1984, annexed to the report form for the Convention, and trusts that a fair distribution of the social costs and benefits of structural adjustment will be promoted; it asks the Government to be good enough to supply in its next report information concerning the measures designed to bring the supply of and demand for labour into harmony with the consequent structural changes. The Committee would like to continue receiving detailed information on the situation, level and trends of employment in the country and on the degree to which the employment objectives included in development plans and programmes have been attained.

3. The Government indicates that in the Higher Wage Council, over and above professions of good will, it appears that the employers are prepared to increase employment if that does not increase costs and that the workers are also prepared for employment to be expanded provided that the goals claiming real growth of wages are not scaled down. The Committee hopes that efforts will be stepped up to ensure that the persons (representatives of employers' and workers' organisations and of other sectors of the economically active population, such as those working in the rural sector and in the informal sector) concerned with the measures to be adopted are consulted with a view to taking their experience and views fully into account in formulating and executing employment policy (Article 3).

4. In a direct request, the Committee is requesting information on the relationship between the restriction of overtime and the employment policy, the measures adopted in favour of certain categories of workers, the relationship between employment policy and vocational training and the technical cooperation provided by the ILO in the field of the Convention.

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1. The Committee notes the Government's report for the period between July 1985 and June 1988. The Government indicates that the favourable level of economic activity has resulted in a decrease in the unemployment rate, which in the last quarter of 1987 was 9.7 per cent and in June-August 1988 between 7 and 8 per cent, thereby giving the lowest unemployment rate since 1982. Unemployment among women continues to be higher than among men, at least in Montevideo. Young persons under 25 years of age have been the group worst affected by unemployment, with an unemployment rate of 21.8 per cent in June-August 1988. The Committee once again notes the overall improvement in the labour market following the favourable economic development in the country. The Committee requests the Government to continue supplying detailed information in its next report on the situation, level and trends of employment in the country and to indicate the employment objectives set out in development plans and programmes and state the extent to which these objectives have been or are being attained (Article 1 of the Convention).2. The Committee refers to its 1987 direct request and asks the Government to describe in its next report the measures adopted to meet the employment needs of all, with particular reference to sectoral development policies in relation to an employment policy that is in accordance with the objectives of the Convention. Please describe the investment policy and the fiscal and monetary policies and specify the manner in which the general guide-lines and standards set out by the Superior Wage Council have taken into account employment objectives (please refer to the questions raised by the report form for Article 1).

3. The Committee notes with interest the employment surveys undertaken by the National Human Resources Directorate. It requests the Government to continue supplying statistical information on the size and distribution of the labour force and the extent to which these surveys have contributed as a basis for deciding on measures of employment policy (Article 2).

4. Please describe in the next report the measures that have been taken or are envisaged to co-ordinate education and training policies with prospective employment opportunities.

5. With reference to its previous comments, the Committee notes the texts governing the system of the supply and demand of labour in the loading and unloading of frozen meat for export, the employment service for the crews of fishing vessels and the extension in the interior of the country of the sheep-shearing employment service. The Committee also notes the conclusions referred to by the Government in its report of the national tripartite seminar on labour administration and precarious employment, organised together with the CIAT in October 1987. It notes, among these conclusions, "the express will of the representatives of employers' and workers' organisations and of the State to organise a tripartite working group to plan and organise activities relating to precarious employment". The Committee requests the Government to continue supplying information on the activities of the above tripartite working group in relation to employment policy.

6. In addition to the above, and with reference to its previous comments, the Committee would be grateful if the Government would indicate in its next report the progress achieved in the consultation of persons affected by employment policy measures (representatives of employers' and workers' organisations and representatives of other sectors of the economically active population such as those working in the rural sector and the informal sector) (Article 3).

7. The Committee notes with interest the creation of a "National Commission for Minors, Women and the Family", a "National Training and Rehabilitation Committee", and a "Co-ordinating Commission for Youth". It requests the Government to indicate in future reports the impact on the needs of particular categories of workers of employment measures taken by the above bodies and the measures adopted to respond to the needs of all categories of persons who frequently encounter difficulty in finding lasting employment (the Government may consider it useful to consult Part III of the Employment Policy (Supplementary Provisions) Recommendation, 1984 (No. 169), which is annexed to the report form for the Convention).