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Employment Policy Convention, 1964 (No. 122) - Brazil (RATIFICATION: 1969)

1. The Committee took note of the Government's report for the period ending June 1996. The Government refers to the loss of more than 400,000 jobs in 1995 in all the formal activity sectors. It emphasizes that, although the reduction in employment is lower than that registered at the beginning of the decade, it seems to show that economic growth is not translated into the creation of jobs on the formal labour market. With reference to its previous observations, the Committee hopes that the Government will soon be able to provide more detailed information on the changes in the labour force, employment and unemployment, not only in the main metropolitan areas but also throughout the country.

2. The Government indicates that its economic policy is designed to ensure price stability which benefits the most disadvantaged categories of the population, and to promote the integration of the economy into world markets. In this respect, the Committee notes that the progress made in controlling inflation has been accompanied by lower growth and overvaluation of the national currency. In addition, it observes that the strategy of opening up the economy to world markets does not appear to have had the anticipated effect on employment in the modern sector. In this context, the Committee would be grateful if the Government would provide, in its next report, more detailed information on the manner in which the measures to be taken in the main areas of economic policy are kept under review on the basis of their perceived or anticipated effect on employment, in accordance with Articles 1 and 2 of the Convention. The Committee hopes that the next report will contain complete information on the way in which the measures taken in respect of monetary, budget and exchange rate policies, investment policy, industrial policy, commercial policy and prices, incomes and wages policies help to further the employment goals of the Convention.

3. The Committee notes the detailed description of the series of active labour market policy measures implemented as part of the Employment and Income Creation Programme (PROGER), which aim, through the allocation of preferential financing, vocational training and technical assistance, to preserve and promote employment in informal sector activities, while facilitating their integration into the modern sector. The Committee, which has been informed of the ILO's participation in assessing the effectiveness of these measures, requests the Government to provide details of the results of this assessment. Furthermore, with reference to the relevant provisions of the Employment Promotion and Protection against Unemployment Convention, 1988 (No. 168), the Committee notes the information on the measures taken, as part of the integrated programme of assistance for workers, to ensure better coordination between unemployment insurance and the training and labour exchange activities of the National Employment System (SINE). The Committee requests the Government to continue to provide information on the progress made in this respect and on any new measures designed to achieve better coordination between vocational training activities and employment prospects.

4. The Committee notes the information relating to the tripartite nature of the Advisory Board of the Assistance Fund for Workers (CODEFAT) and to the powers of the employment commissions established at state level. The Committee requests the Government to continue to provide information on the way in which employers' and workers' representatives are involved in preparing and applying employment policy measures at regional and local level. In addition, the Committee recalls that the consultations required under Article 3 of the Convention should be extended to all the aspects of economic and social policy affecting employment and that, given the share of such persons in the labour force, the consultations should also involve representatives of the people employed in the rural and informal sectors. The Committee invites the Government to specify, in its next report, the progress made in giving full effect to this important provision of the Convention.