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

The Committee notes the detailed information provided in the Government’s report received in September 2007, including replies to the matters raised in the 2005 direct request.

1. Articles 1, 2 and 3 of the Convention. Employment trends, active labour market policies and participation of the social partners in the formulation and application of policies. The Government indicates in its report that the unemployment rate was 2.1 per cent in 2005, down from 3.1 per cent in 2004, and that unemployment continued to decline in 2006. Government priorities for 2006 included measures targeting marginalized groups of workers such as younger persons, older persons and also young mothers. Cooperative schemes were also implemented with large enterprises targeting the long-term unemployed and persons with disabilities. One of the main objectives in 2006 was to reduce long-term unemployment and statistics show that this group of unemployed accounted for 1,500 persons in 2004 and fewer than 600 in 2006. The Government also indicates that youth unemployment fell considerably in 2005 and 2006, with 1,165 young unemployed persons in 2004 and 407 in 2006. As for persons with disabilities, 296 persons were registered as unemployed in 2005 and 272 in 2006. The Committee further notes that regional employment councils are appointed in each region in order to propose new labour market measures. The Government also decided to examine, in collaboration with the social partners, the situation of foreign workers in the country. The Committee would appreciate continuing to receive information on successes, problems encountered and lessons learned with regard to the application of the provisions of the Convention, especially with regard to vulnerable categories of workers.

2. Education and training policies. The Government indicates that the Labour Market Measures Act places emphasis on raising competencies of persons actively seeking employment through vocational training. The Government decided, in collaboration with the social partners, to mount a campaign to upgrade vocational training and retraining for unskilled workers and persons with lower education levels, and also to improve the position of foreign workers. The Committee notes that 4,064 jobseekers completed training programmes in 2004, down from 4,958 in 2003. It also notes that the Vocational Education Council has approved 42 projects in 2006 and that the budget was increased as compared to 2005. The Committee trusts that the Government will continue to provide information in its next report on the measures taken in the area of education and training policies and on their impact on prospective employment opportunities.

3. Business development. The Committee notes that the Government’s investment policy encourages entrepreneurial ventures through the Technological Development Fund and the New Business Venture Fund. The Minister of Commerce and Industry set out goals for 2004–07 which included the diversification of the business sector, the increased support of business development in rural areas and the improvement of the regulatory structure of the business sector. The Government indicates that effective assistance programmes are to be launched based on the needs of entrepreneurs in the rural areas. The Committee notes the measures taken to stimulate business growth in developed and underdeveloped regions and asks the Government to provide in its next report information on the effects of these measures on lasting and productive employment.