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Employment Policy Convention, 1964 (No. 122) - Iceland (RATIFICATION: 1990)

The Committee notes the information contained in the Government’s thorough report for the period ending 31 December 1999, which responds to all of the points raised in the report form.

1. Articles 1 and 2 of the Convention. According to the OECD, Iceland’s GDP grew at an average rate of 4.75 per cent from 1995 to 1999 but it has begun to slow down and is projected to be about 1.5 per cent this year, due mainly to inflation and higher restrictions on fish catches.

2. The Government states in its report that general unemployment fell from 2.8 per cent in 1998 to 1.9 per cent in 1999 and the OECD indicates that unemployment further fell to 1.3 per cent in 2000. The very tight labour market has resulted in record immigration. Unemployment among women fell from 4 per cent in 1998 to 2.7 per cent in 1999. The Government has implemented several programmes to promote employment of women, including grants to start businesses. Rural development also is a high priority and the Government has implemented various measures to this end. The Committee would appreciate receiving further information on the impact of these programmes on employment.

3. Article 3. In reply to previous comments, the Government states that consultation takes place through the occupational sectoral councils, which have employers’ and workers’ representatives. Please continue to supply information on the nature of these consultations, as well as their outcomes with regard to employment policies.