Direct Request (CEACR) - adopted 2021, published 110th ILC session (2022)

Direct Request (CEACR) - adopted 2016, published 106th ILC session (2017)

Observation (CEACR) - adopted 2014, published 104th ILC session (2015)

Observation (CEACR) - adopted 2012, published 102nd ILC session (2013)

Observation (CEACR) - adopted 2010, published 100th ILC session (2011)

Articles 1, 2 and 3 of the Convention. Implementation of an active employment policy. The Committee notes the comprehensive information contained in the Government’s report for the period ending in May 2009, including detailed replies to the issues raised in the 2008 observation. The Government states that the German industry was going through an extremely difficult period. In the second half of 2008, there was a significant fall in GDP as a result of the global financial and economic crisis, leading to economic growth of only 1.3 per cent in 2008. In the first quarter of 2009, GDP fell by a further 6.7 per cent as compared to the same period in the previous year. The average figure for unemployment in 2008 was 7.8 per cent (old Länder, 6.4 per cent; new Länder, 13.5 per cent). In June 2009, 3,410,000 persons were unemployed in Germany. The Government provided information on the main labour market reform measures undertaken and the results achieved in terms of insertion into labour. The Committee notes that the Law on Modification of Labour Market Policy entered into force on 1 January 2009 and aims at integrating jobseekers and potential trainees more quickly into the labour market. The Government intends to strengthen preventive measures within an active labour market policy. A core element of this strategy is the introduction of the right for young people and adults who have left school without a qualification, to receive support and obtain a secondary education degree, which will improve their chances to enter the labour market and to acquire professional qualifications. The Committee requests the Government to provide information in its next report on policies and programmes promoting full employment and how these policies and programmes will translate into productive and lasting employment opportunities for the unemployed and other categories of vulnerable workers affected by the crisis. 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 mitigate the effects of the global crisis and to implement an active employment policy.

Long-term unemployment. The Government reports that the number of persons without work for more than 12 months in the years 2007 and 2008 continued to decline to 1.1 million persons, which is equivalent to 36.6 per cent of all unemployed. The rate of women among the long-term unemployed stood at 52.7 per cent in 2008, of which 64 per cent were registered in the new Länder. In both regions, women (39.5 per cent) were relatively more severely affected by long-term unemployment than men (33.5 per cent). As part of the measures to decrease this form of unemployment, the Government has extended the federal “50plus” programme, which is aimed at reintegrating older workers in employment, until the end of 2010. During the first phase of this programme, between October 2005 and December 2007, 79,670 older long-term unemployed persons could be activated, resulting in 22,562 integrations from within this group. The new measures adopted in 2008 enabled the activation of 73,800 older long-term unemployed, of which some 19,500 became employed or founded a company. The Committee further notes the employment subsidy programme “JobPerspective”, in which employers contribute, for a maximum period of 24 months, up to 75 per cent of the salary of persons with specific impediments for placement. In April 2009, approximately 32,000 persons were in the Job Perspective programme. The Government further states that the overall decrease of unemployment, and thus including long-term unemployment, that has been achieved until the effects of the worldwide economic crisis became apparent in October 2008, was not only an effect of the favourable economic environment. Rather, this development is also owed to the success of the legislative measures adopted in 2008 to modernize public employment services through which structural unemployment could be reduced and long-term unemployment prevented. The Committee asks the Government to continue providing information in its next report on the results achieved through measures taken to combat and prevent long-term unemployment.

Youth unemployment. The Committee notes that the median unemployment rate of persons below the age of 25 years has slightly declined from 10.8 per cent in 2006 to 8.5 per cent in 2007, reaching 7.1 per cent in 2008. In June 2009, the unemployment rate stood at 7.5 per cent, which is still below the overall unemployment rate of 8.1 per cent. The unemployment rates of persons below 25 years differ between the new and old Länder, amounting to 6.4 per cent for the old Länder and 12.1 per cent for the new Länder. To combat this development, the federal Government and the governments of the new Länder continue to support the “Apprenticeshipprogram East”, which focuses on additional apprenticeship positions. The Federal Ministry for Economics and Labour has extended until 2010 and further developed the National Education Pact, which includes several employment promotion measures and resulted in 86,500 new apprenticeship positions and 616,259 new apprenticeship contracts. The costs of all youth-related employment policy measures in 2008 amounted to 1.3 billion euros, benefiting 173,200 apprentices. The Committee asks the Government to continue providing detailed information in its next report on the efforts made to improve the employment situation of young persons, and the results achieved in terms of job creation and sustainable employment as a result of the programmes adopted.

Women. The Committee notes that the employment rate among women increased from 60.6 per cent in 2005 to 64 per cent in 2007 and reached 65.4 per cent in 2008, whereas the respective rates for men stood at 71.3, 74.7 and 75.9 per cent. Women seem to have been less affected by the economic crisis than men. While the men’s unemployment rate in May 2009 has increased by 13.4 percentage points as compared to the same month in the previous year, the women’s unemployment rate for that period has decreased by 3.1 percentage points. In the same month, the overall unemployment rate of women (7.9 per cent) was below that of men (8.5 per cent). The Government indicates that part-time work does not generally constitute precarious employment but can be an adequate means for securing and fostering workplaces, contributing to equal employment opportunities for men and women in all age groups. The Government is concerned about workers remaining in lowly remunerated employment and sees it as necessary to ensure especially women’s shift into employment that is subject to social security contributions. The Committee invites the Government to include in its next report information on how recently adopted measures have translated into lasting employment opportunities for women, in particular in the new Länder.

Observation (CEACR) - adopted 2008, published 98th ILC session (2009)

1. Articles 1 and 2 of the Convention. Implementation of an active employment policy. The Committee notes the detailed information contained in the Government’s report for the period ending in May 2007. It further notes the comments transmitted by the Confederation of German Trade Unions (DGB) in December 2007. The Government reports that the continuing economic growth in 2006 and the application of labour market measures resulted in a drop of the average unemployment rate, as compared to 2005, by eight percentage points to 10.8 per cent. Despite a persistently high rate of unemployment in the new Länder, in 2006 the number of unemployed persons fell by 124,038 as compared to 2005. Still, unemployment levels in the new Länder remained at 17.3 per cent, as compared to 9.1 per cent in the old Länder. The labour market measures applied comprised of continuing, yet decreased, funding initiatives related to vocational training, job creation and structural adjustment, along with self‑employment and integration incentives. In this regard, the Committee notes that the employment measures that were started as part of the Agenda 2010 through tax measures are continuing to facilitate the creation of new jobs, especially in small businesses and new enterprises. The DGB queries the overall link between policy measures and the downturn in unemployment and states that the reduction of unemployment was nearly entirely caused by the strong economic growth in 2006. The Committee asks the Government to provide in its next report information available on the impact of the various labour market reform measures undertaken on the employment situation and, more generally, on the pursuit of the objective of full, productive and freely chosen employment, as set out in the Convention.

2. Long-term unemployment. The Government reports that the number of persons without work for more than 12 months in the period under review rose from 1.5 million to 1.6 million, of which 49.6 per cent were women. In general, 40.1 per cent men and 43.6 per cent women have been unemployed for more than 12 months. One third of the long-term unemployed women were registered in the new Länder. In the new Länder, the absolute figure of women affected by long-term unemployment was 274,000 (45 per cent) as opposed to 253,000
(38 per cent) men. The Government reports that long-term unemployed were a particular target group for employment promotion. Accordingly, legislation was reformed in 2003 with a view to improving the hiring of workers over 50 years of age, through the possibility of limiting the duration of contracts without specific reasons. Furthermore, a new Act to improve employment opportunities of older people, in force since 1 May 2007, brought some provisions concerning the duration of an employment contract into line with European Community law. This led to a rise of part-time employment by 1.4 million (4.7 per cent of overall employment) to 7.9 million in 2005, which constituted a 24.5 per cent rise. The DGB noted that, by focusing on persons easier to reintegrate into the employment market, the benefit of the Government’s measures for long-term unemployed persons was only marginal and failed to effectively combat long-term unemployment. In addition, the DGB noted that the reforms had led to considerable negative repercussions for workers, evidenced, inter alia, in the fivefold increase of persons, who, despite being employed, face difficulties in sustaining their standard of living. The Committee asks the Government to provide information in its next report on the results achieved through measures taken to combat long-term unemployment, particularly for those who have only benefited from part-time jobs.

3. Youth unemployment. The Committee notes that the average unemployment rate for persons below 25 years stood at 7.9 per cent in May 2007, reflecting a decline of 25.9 percentage points as compared to the previous year. The unemployment rates of persons below 25 years still differs between new and old Länder, amounting to 6.4 per cent for the old Länder and 13.6 per cent for the new Länder. The Government has focused on specific employment promotion measures, for which €4 billion have been allocated. Almost 40 per cent of the recipients of these measures are located in the new Länder. Under the National Agreement on Training and Young Skilled Workers, adopted in 2004, the number of new training contracts increased from 550,200 in 2005 to 576,200 in 2006. The Government reports that the integration of young people into the labour market would continue to be a central area of its concern. It had therefore developed draft legislation under which provisions for qualifications and integration allowances were developed. While welcoming the Government’s efforts in combating long-term youth unemployment, the DGB remains concerned about the increase in precarious employment in this age group, which regularly led to unemployment in later working life. The Committee asks the Government to continue providing detailed information in its next report on the efforts made to improve the employment situation of young persons, and the results achieved in terms of job creation as a result of the programmes adopted, particularly in the new Länder.

4. Women. The Committee notes the Eurostat figures reported by the Government, showing that, in line with the overall development, the general unemployment rate among women declined from 13.4 per cent in 2005 to 12 per cent in 2006 and was on a par with the figure for men. Despite these achievements, the DGB noted that women were largely in precarious and insecure employment relationships and that the high employment participation rate was only achieved through the large number of “mini-jobs” which are exempt from social security contributions. The Committee asks the Government to continue providing detailed information in its next report on the efforts made to improve the employment situation of women, and the results achieved in terms of job creation as a result of the programmes adopted, particularly in the new Länder.

5. Article 3. Participation of the social partners in the preparation and formulation of policies. The DGB notes that, in general, trade unions are consulted formally and informally concerning legislative processes on employment policy. It maintains that the reorganization of the welfare system for the long-term unemployed has impaired the right of employment agencies to self‑regulation, thus depriving the social partners of any possibility to be consulted, let alone participate in the discussions. Bearing in mind the numerous initiatives taken to promote employment, the Committee asks the Government to provide in its next report information on the manner in which the representatives of the social partners were consulted when policies were prepared and formulated “with a view to taking fully into account their experience and views and securing their full cooperation in formulating and enlisting support for such policies”.

Observation (CEACR) - adopted 2006, published 96th ILC session (2007)

1. Implementation of an active employment policy. The Committee notes the information contained in the Government’s report for the period ending in May 2005. Despite encouraging economic growth, the Government indicates that the resulting effects have yet to be observed on the unemployment rate which averaged 10.5 per cent in 2004 – 2.3 per cent higher than in 2002. It reports that higher growth and employment are the most important policy objectives at the Länder level and that full employment is achievable through structural reforms. Among the labour market reforms already in place, the Committee notes that the Job-AQTIV law introduced a new orientation to employment legislation. Other legislative initiatives established new forms of part-time work, greater entrepreneurial support and extended the regulations for low-paid jobs (mini-jobs), which are exempt from tax and social security contributions. Furthermore, the unemployment benefits system and social security benefits system were merged to form a unified regime called “Basic Assistance for Jobseekers” providing all the help that jobseekers require to enter the world of work and to meet their basic needs. The Committee notes from the Government’s report that other legislative amendments are being prepared to facilitate the creation of new jobs, especially in small businesses and new enterprises. It also notes the Government’s funding initiatives related to vocational training, job creation and structural adjustment, along with self-employment and integration incentives. In the light of the above measures, the Committee asks the Government to provide information in its next report on the outcome of its labour market reforms and employment promotion programmes, as well as on the consultation held with representatives of the social partners in relation to the implementation of the measures adopted (Articles 1 and 3 of the Convention).

2. Regional employment inequalities. The Government reports that, despite a persistently high rate of unemployment in the new Länder in 2004, unemployment in this region fell by 24,000 between 2003 and 2004, as did the number of unemployed older workers over the age of 55 (down to 9.1 per cent). Nonetheless, unemployment levels in the new Länder remained more than twice as high as those in the old Länder (18.4 per cent versus 8.5 per cent). Among the measures taken to remedy this situation, the Government points to its renewed commitment in 2004 to the Training Programme for the East, which aims to reduce youth unemployment in the region. It also reports the extension of investment grants offering 600 million euros to strengthen the new Länder as a place for business and thereby improve local employment opportunities. Recalling its previous concerns in this regard, the Committee asks the Government to continue providing information on the progress achieved in reducing existing regional employment inequalities.

3. Specific categories of workers. Young people and women. The Committee notes that the Government, in consultation with business associations, signed the “National Pact for Vocational Training and Young Apprentice Development” in June 2004 setting out a three-year commitment to provide training opportunities for young people. Under this agreement, businesses pledge to make an average of 30,000 training places available per year, as well as 25,000 places for entry-level qualification courses. The Committee notes from the Government’s report that, by September 2004, the number of newly signed vocational training contracts rose by 22,600 over the previous year and that nearly twice the number of training places promised were created in 2004 (59,000). Additionally, under the new “Basic Assistance for Jobseekers” programme, young people receive comprehensive support for their integration into the labour market and the Government indicates that its reform agenda seeks to improve the advisory and placement services for unemployed young people through individual profiling and appropriate action programmes. With respect to women workers, the Committee notes the Eurostat figures reported by the Government showing that, despite increased employment levels, the unemployment rate among women rose from 9.5 per cent in 2002 to 10.1 per cent in 2004. It also notes that women spend, on average, more time in unemployment than men and are at greater risk than men of long-term unemployment. Nonetheless, the participation of women in active labour market policy initiatives exceeded the Government’s target levels for 2003 and 2004. The Committee asks the Government to continue providing detailed information in its next report on the efforts made to improve the employment situation of young people and women, and the results achieved in terms of job creation as a result of the programmes adopted, particularly in the new Länder.

Direct Request (CEACR) - adopted 2003, published 92nd ILC session (2004)

The Committee notes the information contained in the Government’s reports for the period ending May 2003.

1. Articles 1 and 2 of the Convention. Supplemented by the data published by the OECD, the report reveals that the labour market situation did not improve during the period in question. The increase in economic growth fell short of the Government’s expectations and the number of gainfully employed workers decreased by about 230,000 in 2002. The unemployment rate has continued to increase, going from an average 7.8 per cent in 2000 to 8.2 per cent in 2002. Unemployment in the old Länder rose considerably, increasing by 170,900 people, while in the new Länder (the Länder of the former German Democratic Republic) it showed a slight increase of 37,800 people. The Government also indicates that there exist significant differences in the development of the economy and of employment between the old Länder and the new Länder. Indeed, while almost all old Länder show a rate of unemployment below 10 per cent, new Länder have considerably higher rates. The lowest rates of unemployment, at below 5 per cent, can be observed in the southern regions, while the jobless persons in some parts of the new Länder and Berlin account for almost 20 per cent of the labour force. Additionally, there exists a considerable gap in employment between age groups in the new Länder with older workers having substantially higher rates of unemployment. The Committee would appreciate continuing to receive information on further developments in this respect and on the Government’s efforts to overcome this regional imbalance in order to provide full, productive and freely chosen employment to workers of all ages. Please also provide information on how employment objectives are integrated into overall macroeconomic policies.

2. The Government explains that youth unemployment has continued to rise according to the national definition, reaching a level of 497,400. Furthermore, youth unemployment continues to be particularly high in the new Länder with rates only half as high in the old Länder. To reduce the extent of unemployment among young persons the Government has established a focus of support for the new Länder with the implementation of an emergency action programme. In 2002, the Government allocated about 3.2 billion euros to assist 532,000 young persons under the age of 25 on the basis of the Employment Promotion Act and the guidelines for the emergency action programme. The Committee notes this information and trusts that the Government will continue to provide information on policies and programmes that address the special needs of young workers as well as data on the levels and trends in employment for this group.

3. The Government indicates that in February 2002 it established a two-stage plan aimed at creating more competition-oriented services for the job market. The German Federal Employment Service has been provided with management structures like those in private industry. Additionally, a government-appointed commission on "Modern services in the labour market" has made several legislative proposals, the first of which came into force on 1 January 2003. The basic conditions established by the new legislation concern, inter alia, personnel service agencies, the acceleration of placement by requiring workers to register early on, the revision of the organization of vocational training, the increase in competition for furnishing services to promote work, encouraging older workers into work by ensuring earnings, making it easier for the unemployed to secure temporary employment, tax assistance, do small jobs in private households, and facilitating entry into self-employment. The Committee has taken note of this information and wishes to remain informed on the application of these legislative reforms and on their impact on the labour market.

4. In this respect, the Committee hopes that the Government will also provide details in its next reports on Conventions Nos. 88 and 142 about how the Federal Employment Service contributes to the achievement of full employment and to the development of comprehensive and coordinated policies and programmes of vocational guidance and vocational training.

Direct Request (CEACR) - adopted 2001, published 90th ILC session (2002)

The Committee notes the information contained in the Government’s report for 1 June 1998 to 31 May 2000, as well as the detailed reply to its 1999 observation.

1. Article 1 of the Convention. The Government states that employment increased by an average of 0.3 per cent in 1999. Unemployment decreased from 11.1 per cent in 1998 to 10.5 per cent in 1999. In the Old Länder unemployment fell from 9.4 per cent to 8.8 per cent, and in the New Länder from 18.2 per cent to 17.6 per cent. Long-term unemployment decreased in 1999 by about 7 per cent. Youth unemployment declined in the Old Länder, but increased in the New Länder. For women, unemployment fell to 8.1 per cent in May 2000 in the Old Länder, but remains quite high at 19.8 per cent in the New Länder. The Government’s employment policy combines macroeconomic policies to promote growth with training and active labour market policies. The Government states that it spent DM7.8 billion in 1999 on employment creation measures and created 700 new posts in the job placement service, including special project teams for combating long-term unemployment. The Government set up an emergency programme to reduce youth unemployment. About 179,000 young people participated in the 1999 programme, and it was extended to 2000. Employment promotion legislation was reformed, and taxes and social security contributions were cut.

2. Article 2. The Committee notes the table contained in the Government’s report on instruments for employment promotion and their achievement rates. The Government explains that achievement is defined as the participant not registering as unemployed in the six months following the programme, but that this definition has certain limitations. Please continue to supply information on the outcome of the employment promotion policies and programmes, and ways of measuring their achievement.

3. Article 3. The Committee notes with interest that the Government has formed a tripartite alliance for labour, training, and competitiveness to discuss employment policy. Results achieved by the alliance so far include agreements on: employment-oriented and longer term wage policy; more flexible working hours policy; age-related part-time work; the need to investigate the impact on employment of a reduction in additional wage costs at the lower end of the wage scale; and a joint offensive to reduce the lack of skilled IT workers. The Committee would appreciate continuing to receive information on the results achieved by the alliance and how its views are taken into account in developing, implementing and evaluating employment policies and programmes.

Observation (CEACR) - adopted 1998, published 87th ILC session (1999)

1. The Committee notes the Government's report for the period ending May 1998 and the information that it contains on the matters raised in its previous observation. It notes that the period was marked by a substantial contraction of total employment, which declined by 1.2 per cent in 1996 and 1.3 per cent in 1997, and by a rise in the unemployment rate, which reached 11.6 per cent at the beginning of 1998. In the eastern Länder, the continuation of structural adjustment was accompanied by job losses which contributed to a rise in the unemployment rate to nearly 18 per cent. The Government considers that the continuing difficulties on the labour market are principally of a structural nature and states that it has undertaken to respond to them by implementing its programme of action for investment and employment, which is designed to encourage private economic initiative by a more conducive fiscal policy, deregulation and privatization, with a view to stimulating competition and improving the access of small and medium-sized enterprises to capital markets. In the eastern Länder, the Government and the social partners agreed in May 1997 on a "joint initiative" to moderate wage demands and promote investment. The Government regrets in this respect that the representatives of the trade unions ended their participation in the initiative in May 1998. The Committee notes the Government's confidence as to the expected effects on employment of measures principally designed to promote supply in a context in which internal demand remains low. It requests it to continue providing detailed information on the manner in which overall and sectoral economic policy measures to promote employment are decided on and kept under review in consultation with the representatives of employers and workers, in accordance with Articles 2 and 3 of the Convention.

2. The Committee notes that structural reforms have also been undertaken during the period in the functioning of the labour market to make the regulations applicable to dismissals more flexible, promote greater flexibility in working hours and introduce stricter conditions for entitlement to unemployment benefit. It requests the Government to provide any evaluation that is available of the impact of these various labour market reform measures on the employment situation and, more generally, on the pursuit of the objective of full, productive and freely chosen employment, as set out in the Convention.

3. The Government states that the reduction in the number of beneficiaries of job creation, training and retraining measures contributed to the contraction of employment in both the east and west of the country. The Committee notes in this respect the detailed description of the active labour market policy measures provided by the Government in its report on the application of Convention No. 88. It notes that, with the coming into force of the Act of 1997 reforming employment promotion and the new provisions of Book III of the Social Code, emphasis is now given to direct placement on the primary labour market through a new insertion contract for the long-term unemployed, subsidies for recruitment and training measures for reinsertion. The Committee requests the Government to provide detailed information in its next report on the number of beneficiaries of these various measures and on the results that they achieve in terms of the integration of the persons concerned into employment.

4. Article 3. The Government refers, in terms of the effect given to this Article, to the hearings of the representatives of organizations of employers and workers by the parliamentary Labour and Social Affairs Commission. With reference to its previous comments, the Committee recalls that the consultations required by this provision should cover all aspects of employment policy within the meaning of the Convention, both as regards its formulation and implementation. It requests the Government to describe in its next report the manner in which such consultations are ensured.

Observation (CEACR) - adopted 1996, published 85th ILC session (1997)

1. The Committee notes the Government's report for the period ending June 1996 which, in reply to its previous observation, contains a detailed description of developments in the employment situation and the policies implemented. It notes that the period was characterized by a slow-down in the rate of economic growth, a levelling-off of job creation in the Eastern part of the country and a rise in the unemployment rate, which was 10.4 per cent in April 1996 for the country as a whole and 16 per cent in East Germany. The Government describes in its report the action programme for investment and employment that it adopted in January 1996, which provides in particular for: measures to encourage the creation of small and medium-sized enterprises, a reduction in the costs associated with labour and the lifting of obstacles to competition; measures, particularly of a fiscal nature, to support the economic restructuring in East Germany, which remains the priority objective of its economic policy. The appreciation of the currency is also said to have contributed to the deterioration in the employment situation. In view of the developments in the situation referred to above, the Committee requests the Government to describe as much as possible the impact of all the relevant overall policies on the promotion of the objectives of the Convention.

2. The Committee notes that the Government has continued to make use on a broad scale of active labour market policy measures, particularly in the East of the country where, according to the Government, retraining and employment promotion measures have contributed to a reduction in the proportion of long-term unemployment and the maintenance of a low level of unemployment among young persons. The Committee requests the Government to continue supplying evaluations of the results obtained by the various measures taken under the Employment Promotion Act.

3. The Committee notes the information that the possibility of transforming fixed-term contracts into contracts without limit of time has resulted in stable employment in half of the cases arising. The Government refers to a Bill on the promotion of industrial employment to amend the provisions applicable to the conclusion and renewal of fixed-term contracts. Given the objectives of the Convention, the Committee requests the Government to indicate the effect that the implementation of these new measures has had or is expected to have on the level of employment and the lasting integration of the persons concerned into employment.

4. Article 3. The Committee notes the general information concerning consultation of the social partners. With reference to its previous comments, it would be grateful if the Government would provide more detailed information on the consultations that have been held concerning employment policies, the subjects covered, the opinions expressed and the manner in which they have been taken into account.

Observation (CEACR) - adopted 1995, published 82nd ILC session (1995)

1. The Committee notes the Government's full and detailed report for the period ending June 1994 containing valuable information on the matters that it raised in its previous observation. With reference to its previous comments, in which it hoped that the report would enable it to assess the manner in which the Convention is applied throughout the country, the Committee notes that, according to the Government, the difference in the development of the economy and of employment in the two parts of the country and the nature of the various measures required continue to justify a distinction between the former and new Länder for each of the points dealt with in the report.

2. The Government states that the reporting period coincided with a time of world recession which has had a negative impact on economic activity and employment. In this context, the continued growth of the active population combined with the ending of the stimulus produced by unification resulted in the Western part of the country experiencing a marked rise in the unemployment rate, which rose to above 8 per cent in June 1994, compared with 5.9 per cent in 1992. In the new Eastern Länder, the reduction in employment slowed down and almost came to a stop as a result of the strong recovery, with the unemployment rate stabilizing at around 15 per cent of the active population by the end of the period.

3. The Committee notes with interest the explanations provided by the Government on certain aspects of the economic policy pursued in recent years, particularly as regards the pursual of employment objectives and its conception of the "social market economy". The Government states that its policy consists mainly of giving free rein in so far as possible to market forces, combined with measures to attenuate social cost, particularly in relation to the high levels of unemployment in the new Länder. It considers that the decision to undertake monetary union was inevitable, despite the risk to employment of the brutal exposure of the poorly competitive economies of these Länder to the market. In the Government's opinion, experience has shown the soundness of this "shock therapy", accompanied by massive transfers of income and capital. The industrial restructuring which took place as a result of privatization has preserved many jobs and, since 1993, led to a significant economic recovery in the Eastern Länder, where labour productivity should rapidly reach the same level as in the Western part of the country. There may also have been a slight increase in employment, although the Government does not yet appear to be in a position to quantify it.

4. The Government provides substantial information on the active labour market measures which continued to be an essential component of its employment policy during the reporting period, particularly in the context of the accelerated transition to a market economy by the Eastern part of the country. The Government emphasizes that certain characteristics of the German labour market, such as the maintenance of the unemployment rate for young persons below the general level, in the East as well as the West, and the fact that it has been possible to contain long-term unemployment, are a direct result of the measures implemented, the scope of which was increased in proportion to the problems. The proportion of the budget allocated to the financing of active measures represented 29 per cent of total expenditure in 1993 in the Western part and 69 per cent in the new Länder. However, the Government considers that, in the new Länder, time will still be needed for the adaptation of the active population to new jobs, despite the unprecedented scope of the retraining measures adopted, combined with measures to reduce the supply of labour, including early retirement.

5. The Committee also notes the provisions of the Employment Promotion Act of 1994, which tend to encourage the development of part-time work. In this respect, the Government may consider it useful to refer to the relevant provisions of the instruments on part-time work adopted by the International Labour Conference in 1994. The Committee also notes that the provisions facilitating recruitment for a fixed period as a means of promoting employment have been extended by the above Act until the year 2000. With reference to its previous observation, the Committee would be grateful if the Government would indicate whether measures have been taken or are envisaged to promote the transformation of fixed-term contracts concluded under these provisions into contracts without limit of time. It recalls in this respect that it is the responsibility of States parties to the Convention to ensure that the employment promotion measures that they adopt are not diverted from their objective, which should be to promote the lasting integration of their beneficiaries into employment.

6. With the development of part-time work, the Government intends to promote, in more general terms, measures and initiatives designed to improve the distribution of the volume of work. This goal is a result of its analysis that the objective of full employment cannot be achieved in the foreseeable future, even with a reasonable level of economic growth. The Committee hopes that the Government will soon be in a position to report an improvement in the employment situation throughout the country and requests it to continue supplying detailed information on all the measures that are taken or envisaged "within the framework of a coordinated economic and social policy" with a view to promoting "as a major goal" full, productive and freely chosen employment, in accordance with Articles 1 and 2 of the Convention. It would also be grateful if the next report contained more detailed and substantial information on the application of Article 3, concerning the manner in which consultations are held with the social partners on employment policy in the former and new Länder.

Observation (CEACR) - adopted 1993, published 80th ILC session (1993)

1. With reference to its previous observation, the Committee notes the Government's report for the period ending June 1992. It notes that the contrasted development of production and employment in the two parts of the country, as well as the problems of compiling and comparing statistics, according to the Government, justify the submission of a report in two separate sections concerning respectively the former Western Länder and the new Eastern Länder. The Committee once again hopes that the Government's next report will enable it to assess the manner in which the Convention is applied throughout the country.

2. With regard to the Western part of the country, the Government states that it experienced in 1990 and 1991 a recovery in the growth of economic activity, particularly as a result of the demand from the new Länder following monetary union. The growth in employment made it possible not only to integrate into the labour market new arrivals from the Eastern part and from outside the country, but also to continue the decrease in the unemployment rate. According to the OECD, the standardized unemployment rate fell from 4.9 per cent in 1990 to 4.3 per cent in 1991. However, it rose once again to 4.7 per cent at the end of the reporting period due to the sustained high rate of growth of the active population in a context of lower economic growth. Among the favourable developments over the reporting period, the Government refers to the reduction of around 10 per cent in the unemployment rate of young persons, which remains considerably lower than the overall rate, as well as in long-term unemployment. The Government sees in these successes a confirmation of the effectiveness of the active employment policy measures which it has implemented and reinforced, particularly in the field of training. The Committee also notes that, according to the survey supplied by the Government in reply to its request, 60 per cent of the fixed-term contracts concluded up to 1988 under the Employment Promotion Act of 1985 had been converted into contracts without limit of time. The Committee requests the Government to continue to supply information on the application of the above Act and the procedures adopted to ensure the lasting vocational integration of the persons concerned.

3. In the second part of its report, the Government supplies interesting information concerning the employment trends and employment policy implemented in the new Länder. It emphasizes that the brutal confrontation of these Länder with the market and the international division of labour revealed the unsuitability and lack of competitiveness of their economy, as well as the low productivity resulting from outmoded technologies, which explains the fact that the transition to a market economy resulted in a rapid decline in production and a contraction of around one-third in total employment. The Government considers that it was possible to contain unemployment, which the OECD estimated at over 15 per cent in 1992, at around one-third of jobs being lost, particularly as a result of the intensive application of active labour market policy measures. It states that these measures, the scope of which is broader than at first envisaged, represent three-quarters of the total expenditure on employment and have the priority objectives of combating unemployment among young persons and women through training and reintegration programmes, as well as the establishment and strengthening of employment services, which have already provided guidance to nearly 40 per cent of the active population. The Government also states that employment policy measures are an integral part of its overall policy to restructure the economy. Training measures, by taking advantage of the temporary unemployment of workers to provide them with skills which are suited to the new market conditions, contribute to achieving a lasting solution to the problem of unemployment. The Committee requests the Government to continue supplying information in order to enable it to evaluate, taking into account the objectives of the Convention, the results achieved by the various employment policy measures. It hopes that it will soon be in a position to supply for the new Länder information on the employment situation and trends which is as precise and detailed as the information available for the Western Länder.

4. Although the Government indicates that labour market policies are the centre-piece of its strategy, it nevertheless recognizes that they cannot on their own resolve the problem of unemployment in the new Länder. It supplies information on the taxation measures which have been taken to promote investment for the creation of jobs, which the Committee notes with interest. It would be grateful if the Government would supply information in its next report on the contribution of other aspects of its general economic policy, in fields such as monetary and budgetary policy, the determination of prices and wages and privatization, to the achievement of the employment objectives set out in Article 1 of the Convention. The Committee notes, in the same way as the OECD, that the process of the transition to a market economy has been accelerated by various factors, including the monetary union undertaken in 1990, but with a high cost in terms of the number of jobs lost. The Committee would be grateful if the Government would indicate the measures which have been taken in order to ensure that these effects on employment are taken into consideration when determining and implementing policies and programmes to promote economic development or other economic and social objectives (Article 2). Finally, it requests the Government to include in its next report information on the manner in which the representatives of the persons affected by the measures to be taken are consulted concerning employment policies and cooperate in their implementation (Article 3). In making these requests, the Committee has not lost sight of the unique nature of this case.

Observation (CEACR) - adopted 1992, published 79th ILC session (1992)

1. The Committee takes note of the Government's report concerning the application of the Convention in the western Länder during the period ending June 1990. It also notes the communication of the German Trade Union Confederation (DGB) dated 10 July 1991, and the comments communicated on 12 December 1991 by the Government on the points raised.

2. The Committee notes that in conjunction with sustained growth in economic activity, employment growth exceeded the growth of the active population during the period under consideration, with the result that the unemployment rate dropped from 6.2 per cent in 1988 to 5.6 per cent in 1989 and 5.1 per cent in 1990, according to the OECD standardised rates. Unemployment among young people continued to decline but long-term unemployment still accounts for a large proportion of total unemployment. The OECD reports and surveys also show a considerable disparity in the situation and trends of employment between the western Länder and the new Länder. The Committee points out in this connection that the Government's next report should enable it to ascertain fully the manner in which the Convention is applied in the country as a whole.

3. The Committee notes that, according to the Government, the improvement in the employment situation reflects an effective economic policy geared to encouraging private sector investment and reorganising public finance. In its report, the Government describes the measures implemented as part of the overall tax reform that have reduced company and individual tax with a view to encouraging investment and demand, thereby creating the conditions for steady growth and job generation. The DGB considers that the economic performance is largely due to the favourable position of the trade balance and the balance of payments, which is a result of external factors such as the drop in oil prices or high external demand. The DGB also indicates that despite the reforms referred to by the Government, fiscal pressure has dropped only slightly and that following the accession of the new Länder, it has been decided that there will be new tax increases. The Committee would be grateful if the Government would continue to provide information on the way in which the objectives of its overall economic policy contribute to the promotion of employment.

4. The Government considers that active labour market policy measures have made a considerable contribution to reducing unemployment. In this connection, it refers to the increase in the number of participants in continuous training programmes and the implementation of special programmes to integrate into the labour market categories of persons experiencing particular difficulties such as, in particular, the long-term unemployed. In the view of the DGB, however, expenditure on job creation has been reduced whereas the objectives planned have not been fulfilled. The Committee notes that, according to the Government, the Federal Employment Institute still has the resources necessary for the performance of its functions and there is no plan to reduce them, as can be seen from the regular increase in its budget.

5. With reference to its previous comments, the Committee notes that following several studies concerning the effect on employment of the provisions of the Employment Promotion Act of 1985 relating to fixed-term contracts, these provisions have been extended by the Act of 22 December 1989 until 31 December 1995. According to the Government, the various studies show that fixed-term contracts have enabled new jobs to be created without affecting the employment conditions of the workers concerned and, in most cases, have led to permanent employment. The DGB, however, considers that this type of contract has been used by employers to extend trial periods and to facilitate smoother adjustment to fluctuations in production, rather than to create new jobs. The provisions of this Act, by favouring the trend towards thinning out the number of regular staff employed, without encouraging new recruitment, have only had the effect of increasing the precariousness of employment. In view of the disparities between the two assessments, the Committee would be grateful if in its next report, the Government would provide all relevant extracts of the surveys referred to and to state the measures adopted to ensure that the implementation of the provisions concerning fixed-term contracts has no unfavourable effects on the employment conditions of the workers concerned.

Observation (CEACR) - adopted 1989, published 76th ILC session (1989)

The Committee has noted the detailed report and the information provided in reply to its previous observation. The Government has referred to the positive effect of economic growth on employment and unemployment levels, and of vocational training and placement activities of the employment services in particular. Unemployment levels have thus declined among the young, while long-term unemployment has increased, especially, apparently, among older workers. It is stated that it is demographic factors (the birth rate, immigration) which have prevented unemployment from falling further. The report analyses employment and unemployment among various groups of the population, sectors and regions, and refers to the series of measures taken under the job promotion legislation; the results of studies of the effects of the legislation were expected shortly. The Government now states that trade unions and employers' organisations were involved at all stages of discussions on the 1985 Job Promotion Act. Trade unions are said to oppose the current easing of restrictions on fixed-term contracts, and, depending on the results of research in hand, it will later be decided whether to extend this system.

The Committee notes that, according to the Government, economic and financial policy has so far succeeded only in preventing an increase in unemployment. Unemployment overall remained at 8.9 per cent in 1987 (the standardised figure published by OECD is 6.2 per cent), with regional unemployment rates ranging from 5 to 12 per cent and an increasing concentration among certain groups. The Committee notes with interest that improvement of the employment market situation remains a major policy objective. It hopes the Government will continue to provide details of the employment policy measures taken in order to promote the aims of the Convention, and in particular that it will be able to indicate the results of its policies and measures in terms of numbers employed and unemployed. It trusts the Government will ensure consultation of employers' and workers' representatives and other persons affected as required by Article 3 of the Convention.