Observation (CEACR) - adoptée 1995, publiée 83ème session CIT (1996)

1. The Committee notes the Government's report for the period ending June 1994 and the useful documentation attached. It notes that, as a result of an economic growth rate that is without equal among the other European countries that are parties to the Convention, employment continued to grow over the reference period, to start with at a modest rate (0.5 per cent and 0.6 per cent in 1992 and 1993), then at a more sustained rate (2.6 per cent in 1994 and again 2.4 per cent in 1995, according to OECD estimates). Despite the simultaneous rise in the active population, unemployment fell as of 1993, with the OECD standardized unemployment rate falling to 14.8 per cent in 1994, from over 16 per cent in 1992. However, the Government states that the rapid growth of production has been accompanied by very high productivity increases which have tended to diminish its favourable impact on employment. The Committee notes that despite the trend for the unemployment rate to decline, which has continued in 1995, it remains at a very high level. Furthermore, although labour market policy programmes have contributed to a significant decline in the unemployment rate for young persons, the proportion of long-term unemployment has continued to rise and now represents around half of total unemployment.

2. The Committee notes that, in its programme for 1993-1997, the Government has set itself the priority objective of "putting the country back to work" by reinforcing incentives to work in the framework of a mixed economy which, with a dynamic role for both the private and public sectors, is the most effective means of promoting employment and raising living standards. This programme emphasizes that support for employment growth is dependent on maintaining control over public finances, since meeting the requirements of the 1992 Treaty on the European Union as regards the budget deficit is the overriding requirement. The Government also states that its active intervention is required to promote job opportunities, particularly in combating long-term unemployment, which has to be the priority of all the social partners. The Committee notes with interest in this respect that the organizations of employers and workers concluded with the Government a new Programme for Competitiveness and Work (1994-1996), which establishes strategies for incomes policy and budgetary and social policies according to their expected impact on employment and unemployment. It notes that the National Development Plan, 1994-1999, which was formulated in consultation with the organizations of employers and workers, establishes the principal objectives of government action to promote employment in the context of an integrated strategy for industrial development and the reinforcement of training. The Government also transmits the first report on the reform of the support enterprise system based on the recommendations of the Industrial Policy Review Group (Culliton report).

3. With reference to its previous observation, the Committee notes the reforms which have been undertaken to reinforce the training system, particularly by placing emphasis on the development of further training activities for workers in employment. The Committee would be grateful if the Government would also supply information in its next report on the training measures and the other active labour market policy measures implemented by the Government with a view to promoting the reintegration of unemployed persons. It also requests the Government to continue supplying information on any new measure that is taken or envisaged with a view to improving the coordination of education and training polices with employment prospects. In this respect, it draws attention to the complementarity of the provisions of Convention No. 122 with the Human Resources Development Convention, 1975 (No. 142).

4. In conclusion, it would appear that, despite the performance of the economy and the social consensus on the strategies and policies to be adopted for growth and on incomes and employment, it is nevertheless the case that the level of unemployment, and particularly of long-term unemployment, remains exceptionally high in comparison with other European countries. The Committee notes the affirmed will to increase the intensity of employment growth, and notes that the Economic and Social Research Institute has recently re-examined the question of "jobless growth", which it noted in its previous observation. The Committee invites the Government to pursue its efforts to analyse and overcome the difficulties encountered in achieving the objectives of full, productive and freely chosen employment, as set out in the Convention. The Committee hopes that future reports will contain information demonstrating the effectiveness of the policies and programmes pursued in this respect and will confirm the tendency which has been noted for an improvement in the employment situation.