Observation (CEACR) - adopted 1995, published 83rd ILC session (1996)

1. The Committee notes the Government's report for the period ending June 1994, which was characterized by an improvement in the employment situation as of the second half of 1993. The more sustained level of economic growth made it possible to end the continued tendency reported over previous years for employment to contract. Total employment increased by 1.5 per cent in 1994 and, despite the simultaneous rise in the growth of the active population, the OECD standardized unemployment rate, which had reached 6 per cent in 1993, was reduced to 5.5 per cent. According to the OECD, the growth of employment should continue and should allow the country to return to an unemployment rate of below 5 per cent in 1995.

2. In reply to the request addressed to it by the Committee in its previous observation, the Government provides information on the long-term economic policy programme (1994-97), which was submitted to Parliament under the title the "Solidarity Alternative". The Committee notes with interest in this respect that the strategies decided upon are based in part on the recommendations of the Employment Commission, which includes the social partners. The strategy for increased growth, competitiveness and employment includes the improvement of the system of wage formation through a two-tier negotiation system aimed at taking into account more effectively the impact of wages on competitiveness, inflation and employment. The creation of employment is also the principal objective of the investment policy and the policy to promote small and medium-sized enterprises, as well as the budget policy, which aims to reduce the medium-term budget deficit in order to give economic policy the necessary margin of manoeuvre to promote employment. The Committee appreciates the careful and helpful replies to its previous comments and welcomes the constructive dialogue. It requests the Government to continue supplying information on the measures that are taken to promote full employment "in the framework of a coordinated economic and social policy" and in consultation with the representatives of the persons affected, in accordance with Articles 2 and 3 of the Convention.

3. The Committee notes that the strengthening of active labour market policies and education and training systems are also among the priorities of the Government's employment policy. The Government provides interesting information in its report on the evaluation of the programmes which have been implemented, illustrating that they have had a positive but limited effect on the employment prospects of beneficiaries. The Committee would be grateful if the Government would indicate the manner in which the various measures to intervene on the labour market are decided upon and kept under review dependent upon the results achieved. The Committee also notes the statement that the qualifying conditions for unemployment benefit have been made more restrictive in the case of partial unemployment. In this respect, it requests the Government to continue supplying information on any new measure that is taken to improve the coordination of the unemployment benefit scheme with the employment policy, taking into account the relevant provisions of the Employment Promotion and Protection against Unemployment Convention, 1988 (No. 168), and the Committee's comments on the application of that instrument.