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

Employment Policy Convention, 1964 (No. 122) - Portugal (Ratification: 1981)

1. The Committee notes the Government's report for the period ending June 1994. In relation with the recession of the economy experienced by the country in 1993, the OECD standardized unemployment rate, which was 4.2 in 1992, rose rapidly during the period to reach 5.5 per cent in 1993 and 6.8 per cent in 1994. Despite the recovery of economic growth to a more sustained rate, the unemployment rate should remain stable in 1995, according to OECD estimates. The characteristics of the distribution of unemployment noted by the Committee in its previous observation have been consolidated, particularly with regard to young persons, who are affected by an unemployment rate that is twice as high as the overall rate, and as regards the proportion of long-term unemployment, which now accounts for over two-thirds of registered unemployment. The Committee requests the Government to continue supplying as detailed information as possible on the level and trends of the active population, employment, underemployment and unemployment.

2. The Government states that its employment policy is designed to achieve growth and the modernization of productive activity, as well as an improvement in the living conditions of the population, while at the same time remedying imbalances on the labour market by emphasizing the development of human resources. However, the Committee notes that, although the Government describes in detail in its report the various labour market measures adopted, it omits to provide the information required by the report form on the manner in which overall and sectoral economic policies contribute to the pursual of employment objectives. The Committee regrets in this respect that the Government has not provided the information requested previously on the objectives of the Regional Development Plan 1994-99, nor on the implementation of the convergence programme 1992-95. The Committee hopes that the next report will contain full information on the measures adopted in such fields as investment policy; fiscal and monetary policies; and prices, incomes and wages policies, with a view to promoting full, productive and freely chosen employment "as a major goal" and "within the framework of a coordinated economic and social policy", in accordance with the provisions of Articles 1 and 2 of the Convention. The Committee also recalls that in its previous observation it requested the Government to provide information on the implementation of the reform of the labour market and its impact on employment.

3. The Committee notes the adoption during the reference period of new measures to strengthen existing machinery for integration and vocational training for employment, including for persons with disabilities. It notes in particular that Decree No. 1324/93 establishes vocational training measures for workers threatened by unemployment, the possibility of including workers approaching retirement age in courses for the vocational integration of the unemployed, financial incentives for self-employment and the recruitment of the long-term unemployed aged over 45 years, as well as individualized attention for unemployed persons under 45 years of age with a view to preventing long-term unemployment. The Committee also notes the data contained in a recent economic survey by the OECD (June 1995), which emphasizes the beneficial effect on the unemployed of participation in vocational training programmes for employment. It requests the Government to supply any new evaluation that is available of the effectiveness of the various labour market policy programmes that have been implemented.

4. The Committee notes the establishment of an Employment and Vocational Training Observatory, which is tripartite in its composition, as is the administrative board of the Employment and Vocational Training Institute (IEFP). The Committee recalls in this respect that the consultations required under Article 3 of the Convention should cover all the aspects of economic policy which affect employment and should include, in addition to representatives of employers and workers, representatives of other sectors of the economically active population, such as those working in the rural sector. With reference to its previous observation, the Committee requests the Government to indicate whether the Economic and Social Council has examined matters related to the employment policy, in the meaning of the Convention.