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

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The Government has communicated the following information:

The Ministry of Labour, through the Secretariat of Employment and Wages and the National Employment Scheme (SINE) linked to it, has been developing a policy of acting as an intermediary for labour resources in application of Act No. 4923 of 26 December 1965; this has produced positive results, such as appropriate assistance being provided to unemployed workers by means of unemployment insurance and financial aid.

The data required for the implementation of employment policy are obtained from the General Registry of Employed and Unemployed Persons, which is established on the basis of information provided by enterprises each year. Using this registry, the Ministry of Labour administers the process of admission to employment and distribution of employed persons, which permits it to adopt measures to combat unemployment. The data obtained permit the level of employment to be determined, along with its monthly fluctuations, the level of monthly variation in employment, the level of unemployment, etc., as can be verified in the documents which have been communicated. For example, in the period 1985-1987, more than 2.6 million workers were registered with SINE offices, 820,000 of whom actually obtained employment through that scheme.

In addition, the Minister of Labour is making an effort to extend the formal links involving employment by means of campaigns to provide workers with employment cards. During the years 1985, 1986 and 1987, 19 million employment cards were issued. In 1985 and 1986, 1.8 million jobs, a significant figure, were created; this represented an average increase along the lines of 5 per cent per year.

In 1987, the development of the economy showed signs of stagnation, with a negative impact on the level of employment. The average level of unemployment in 1987 - 3.8 per cent - was lower than for the period 1984, 1985 and 1986, when it was 7.45 per cent, 5.60 per cent and 3.85 per cent respectively.

The intermediary function developed by the SINE, is implemented by means of two forms of assistance. The first is directed towards the organised sector of the labour market, and the second towards handling the performance of services linked to the non-organised (informal) sector.

The procedure for the formal sector involves maintaining a registry of candidates who are subjected to a pre-selection process, classified and later referred for jobs offered by enterprises or vocational training institutions.

Alongside performing this function for the formal sector, the scheme also responds to the needs of labour resources in relation to informal activities, chiefly for independent workers who provide services, with an emphasis on home work, as stipulated in new decrees adopted by the National Constituent Assembly.

Some of the offices performing the function of intermediaries also engage in activities involving assistance and support for workers, activities which run from employment guidance in relation to legislation and the labour market, to the despatch of employment cards and certificates of unemployment.

The actions undertaken through SINE to promote employment basically address the implementation of programmes aimed at providing job opportunities and guaranteeing greater degrees of occupational activity and higher wages to populations linked to the non-organised sector of the economy.

The operational units of SINE are acting to support the founding of co-operatives of small producers and self-employed workers, and the development of jobs for the accomplishment of work involving infrastructure in the community interest, micro-communities of production, and product marketing mechanisms which are administered by small producers and community enterprises. In this field the following works have been accomplished in the past few years: a programme to meet the needs of low-income populations in the areas of vocational training and employment; a special project for medium-sized cities (PECPM/BIRD); a programme for the development of the metropolitan regions of the North-east; a programme of co-operatives for mobile rural workers (COTRAVAN) and the social priorities programme (PPS).

The Government has communicated additional information on the "Development of Wages and Earnings in the Urban Sector" as well as labour statistics for 1987-88 relative to the movement of labour resources in various sectors.

In addition taking into account the fact that for two years no report had been sent, the Workers' members suggested that the present Convention should not be treated but that there should be an indication in the report that the Committee of Experts could examine it and that the present Committee could discuss the case next year. The Employers' members supported this suggestion. It was so decided.

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The Committee notes the observations of the Trade Union of Pernambuco Doctors (SIMEPE) and the Federal Council of Medicine (CFM) of 21 January 2015, as well as the Government’s response thereto, dated 5 November 2015. In addition, the Committee notes the observations of the Single Confederation of Workers (CUT) of 1 September 2017, as well as the observations of the National Association of Labour Court Judges (ANAMATRA) received on 1 June 2018. The Committee requests the Government to provide its comments in respect of the observations made by the CUT and ANAMATRA.

Legislative developments. In its observations, the CUT alleges that the Labour Reforms (Reforma Trabalhista) introduced by Law No. 13467 of 13 July 2017, which modified the Consolidated Labour Law of 1943, substantially alter Brazilian employment policy. The CUT observes that, from the workers’ perspective, the Labour Reforms will have extremely negative impacts on the creation of decent jobs and thus directly contravene the objectives of the Convention. In particular, the CUT recalls that Article 1 of the Convention requires the national employment policy to be designed with the objective of promoting full, productive and freely chosen employment. It adds that the jobs to be created through the vehicle of public policies should be productive and freely chosen, and workers should not be subjected to socio-economic conditions that force them to accept any kind of job in order to survive. In this context, the CUT points to section 442-B of Law No. 13467, which establishes the category of the “autonomous exclusive” who may work exclusively and continuously for an employer, yet not be considered an employee as defined under the Consolidated Labour Law. The CUT alleges that section 442-B destroys the very notion of employment, employer and employee, directly affecting employment policy. Moreover, the CUT alleges that the Labour Reforms were adopted in contravention of Article 3 of the Convention, as they were approved without any consultation with the workers’ organizations or the persons affected. While noting that the Government has not yet provided its comments in response to the observations of the CUT and ANAMATRA, the Committee nevertheless requests the Government to provide detailed information on the manner in which Law No. 13467 – particularly section 442-B – has been applied, and to communicate copies of any judicial decisions concerning the application of the provisions of this Law.

Article 1 of the Convention. Implementation of an active employment policy in the framework of a coordinated social and economic policy. Employment trends. In its previous comments, the Committee requested the Government to continue providing detailed information on the policies implemented and the measures adopted to achieve the objectives of the Convention, as well as information on the impact of the Programme to Accelerate Growth (PAC) and the Better Brazil plan (Brasil Maior) plan in promoting productive employment. The Government reports that its strategy to create jobs and generate income is centred on stimulating innovation and productive activity through the provision of credit, which it considers to be a sustainable means of integrating persons into the productive economy. It adds that the objective of its Programme for Employment Creation and Income Generation (FAT-PROGER) is to stimulate income generation through providing lines of credit at subsidized rates, with the aim of promoting increased production, thus increasing demand for labour. The Government indicates that FAT-PROGER makes long-term investments in small businesses, cooperatives and productive associations and is present in 3,600 municipalities. The Government indicates that, in 2016, FAT-PROGER granted 5 billion Brazilian reals (BRL) in credit lines for businesses. The Government also highlights the INOVACRED Programme, which forms part of the Brasil Maior plan, with the aim of supporting economic growth by investing in innovation. From 2014 to 2017, INOVACRED made BRL533 million available to companies for this purpose. In addition, the National Programme for Guided Productive Microcredit (PNMPO) extends microcredit to small entrepreneurs through a network of specialized institutions that also provide technical guidance necessary for the sustained development of these undertakings. In 2016, the PNMPO made BRL11.18 billion available to 3.7 million beneficiaries. The Government notes that women make up 60 per cent of PNMPO clients, and that 90 per cent of all clients are own-account operators. The Committee also notes the rise in unemployment which, according to data published by the Economic Commission for Latin American and the Caribbean (ECLAC), rose to 13.7 per cent in the first quarter of 2017, falling in the third quarter to 12.4 per cent. The Committee requests the Government to provide updated detailed information, including statistical data disaggregated by sex and age on trends in urban and rural areas and in the different regions, on employment, unemployment and visible underemployment. It further requests the Government to continue to provide comprehensive information on measures taken or envisaged to achieve the objectives of the Convention, as well as on the impact of such measures.

Education and vocational training. Groups vulnerable to decent work deficits. In its previous comments, the Committee requested the Government to continue to provide information on measures adopted to increase the labour market participation of specific groups, such as young persons, older workers, female jobseekers, migrant workers, ethnic minorities and persons with disabilities. The Government reports that the National Skills Plan (PNQ) was restructured in April 2017 and is now known as the Brazilian Programme for Social and Professional Skills (Qualifica Brasil). Its objective is to promote qualification and professional certification in the framework of the unemployment insurance programme within the National Employment Service (SINE). Qualifica Brasil places priority on specific groups, including the unemployed, those working in jobs affected by technological changes, young persons and others. It offers qualification courses, including distance learning and free courses at participating institutions, and professional certification recognizing acquired knowledge, competencies and professional experience. The Committee notes the Government’s indication that, according to the Brazilian Statistical and Geographical Institute (IBGE), more than 40 million people – almost half of young persons between 15 and 29 – are interested in professional courses, but only 2.2 per cent have the means to do so. With respect to youth employment, the Government indicates that the programme Projovem Trabalhador – Juventude Cidadã of the Ministry of Labour and Employment is being restructured. The programme, which seeks to prepare young persons aged between 18 and 29 years for the labour market, benefited 1,331,948 young people between 2008 and 2013. The Government also refers to the Pronatec programme created in 2011 to extend technical and professional education courses, indicating that in the second half of 2017, the Ministries of Labour and Education will launch a study analysing the placement of qualified young persons in the labour market. In addition, the Government refers to the Brazilian apprenticeship programme, which aims to promote the professional qualification and integration of young persons aged 14–24 into the labour market. According to the data published by the Ministry of Labour, from 2005 to 2017, 3,051,942 young persons participated in the apprenticeship programme. The Committee reiterates its request that the Government provide information on the measures adopted to increase the labour market participation of groups vulnerable to decent work deficits, such as young persons, older workers, women jobseekers, migrant workers, ethnic minorities and persons with disabilities.

The More Doctors (Mais Médicos) Programme. In their observations, the SIMEPE and CFM allege non-observance of a number of ILO Conventions, including Convention No. 122, in relation to the More Doctors (Mais Médicos) Programme. They indicate that in creating the programme, the Government engaged the services of Cuban doctors working for the Cuban Ministry of Health as cheap labour, paying them less than Brazilian doctors, under conditions in which they were not able to freely choose their employment. Moreover, the SIMEPE and CFM allege that the Cuban doctors were being sent to Brazil as medical exchange students, to perfect their skills, and were restricted from practising medicine, whereas in reality they worked providing healthcare services in rural areas for the State Health Service (SUS). In its 2015 response, the Government indicates that the project was established to address the shortage of doctors in the country, particularly in rural areas, and selects both Brazilian and non-Brazilian medical graduates to provide primary care services in underserved areas. The Government indicates that the project is an international medical exchange programme rather than an employment relationship sensu stricto, referring to Law No. 12.871/2013, which created the programme, section 17 of which provides that “the activities carried out in the More Doctors Programme do not create any relationship”. The Government adds that the activities carried out are not for economic gain, but that the participating doctors receive scholarships and other allowances for their travel and installation expenses and that, after the first year, it was able to attract participants from more than 40 different nationalities, in addition to Cuban doctors employed by the Cuban Ministry of Health. The Government indicates that the programme combined a set of incentives – educational, monetary, regulatory and clinical support – to attract doctors to the most underserved areas. The Committee requests the Government to provide information on the current status of the More Doctors Programme, including statistical information disaggregated by nationality, on the number of participants, as well as information on the conditions afforded by the programme, including the amounts received in the form of remuneration, allowances, etc.

Article 3. Consultations with the social partners. Noting the CUT’s observations concerning the adoption of the Labour Reforms, the Committee requests the Government to provide updated information on consultations held with the social partners and affected persons with respect to the development and implementation of employment policy and active labour market measures, including for groups vulnerable to decent work deficits.

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Articles 1 and 2 of the Convention. Implementation of an active employment policy in the framework of a coordinated economic and social policy. The Government emphasizes in its report that the coordination of policies in different areas resulted in the development of a productive environment focused on the generation of jobs, which was translated into social inclusion through work, the growth of the middle class in Brazil, consumption, credit and supply, together with the redistribution of income and poverty reduction. The Committee also notes that in 2011 the Programme to Accelerate Growth (PAC) entered its second phase, based on the same strategic thinking, with greater resources and alliances with states and municipal authorities for the implementation of structural works to improve the quality of life in cities. Also in 2011, the Government launched the plan “Brasil Maior”, which is the federal Government’s industrial, technological and external trade policy. The challenge of the plan is to maintain inclusive economic growth in an adverse economic context and to generate a structural change in the integration of the country into the global economy. The plan focuses on the innovation and intensification of industrial production, focusing on sustained improvements in labour productivity. The Government maintains that, when aggregate demand falls, employment generation suffers. Sales forecasts for enterprises, taking the recent past as a reference, determine the level of employment related to each enterprise. According to the Government, consumption determines the level of employment, as recruitment is undertaken based on the operation of the market. According to the data published by the Economic Commission for Latin American and the Caribbean (ECLAC), the labour market continued its favourable trend and in 2013 the annual average unemployment rate was 5.4 per cent, the lowest level since 2002. ECLAC also emphasized the creation of 1.1 million new jobs in the formal economy. Moreover, the reduction in the unemployment rate continued during the first four months of 2014, with 5 per cent of the active population being unemployed (compared with 5.6 per cent during the same period in 2013). The Committee invites the Government to continue providing detailed information on the policies implemented and the measures adopted to achieve the objectives of the Convention. The Committee also invites the Government to continue providing information on the impact of the Programme to Accelerate Growth and the “Brasil Maior” plan in promoting productive employment. Please also provide information on the measures adopted to increase the labour market participation of socially vulnerable groups, such as young persons, older workers, women jobseekers, migrant workers, ethnic minorities and persons with disabilities, including how the unemployment rate for these groups is compared to that of the national unemployment rate.

Education and vocational training policies. Youth employment. The Committee notes the information provided by the Government in its 2013 report on the Human Resources Development Convention, 1975 (No. 142), on the launching of the National Programme for Access to Technical Education and Employment (PRONATEC/Act No. 12513 of 2011) with a view to extending the supply of vocational and technological education courses. The Government indicates that as a result of the approval of PRONATEC changes have been made in the National Skills Plan (PNQ). The Government emphasizes that improving the skills of workers is a critical factor in the development of the country and has a direct impact on productivity and the income of workers. During the period 2004–12, there was an increase in the number of higher skilled workers, as the number of workers with fewer than eight years of education fell. The Government also refers to the programme “Projovem Trabalhador – Juventude Cidadã” of the Ministry of Labour and Employment, launched in 2008, which seeks to prepare young persons aged between 18 and 29 years for the labour market. The Committee requests the Government to continue providing information on the impact of PRONATEC, PNQ and the programme “Projovem Trabalhador – Juventude Cidadã”, and other initiatives adopted to offer workers the opportunity to receive the necessary training so that they can find suitable jobs and use their skills and endowments in such jobs. The Committee once again invites the Government to provide information on the consultations held with the social partners in the context of education and training policies and on their relation to employment opportunities.

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Articles 1 and 2 of the Convention. Implementation of an active employment policy in the framework of a coordinated economic and social policy. The Committee notes the Government’s report received in November 2011 in reply to its 2009 observation. The report prepared by the Secretariat for Public Employment Policies (SPPE) contains brief information on the labour market, a review of the activities of the Public Employment, Labour and Income System (SPETR) and of the activities of the Job and Income Generation Programme (PROGER). The Committee notes the significant reduction of informal work and the increase of 6.5 per cent in the number of registered employees in major urban centres. Although the acceleration of economic growth fell off in 2011, it is hoped that economic growth will increase once again in 2012 (the growth rate fell from 7.5 per cent in 2010 to 2.9 per cent in 2011, and a growth rate of 3.5 per cent is forecast for 2012). The Government emphasizes that the positive dynamic of macro-economic indicators resulted in the unemployment rate being reduced from 7.5 per cent in May 2010 to 6.4 per cent in May 2011. According to the data published by the Economic Commission for Latin America and the Caribbean (ECLAC) and the ILO, over 2 million jobs were created in 2011. The Committee observes that the unemployment rate of women fell from 8.8 per cent in 2010 to 7.7 per cent in 2011, and that the youth unemployment rate fell from 16.7 per cent in 2010 to 15 per cent in 2011. The Committee invites the Government to provide information in its next report on the policies and programmes adopted to promote full employment. The Committee would like to examine a report containing indications on the manner in which the policies and programmes implemented have resulted in productive and long-term job opportunities for young persons and women, and the manner in which the social partners collaborated in their implementation. Please also provide information on the efforts made to continue the integration into the formal economy of unregistered workers. The Committee invites the Government to provide up-to-date information on the situation and trends in the labour market, disaggregated by state, sector, age, sex and skills, particularly with regard to socially vulnerable groups, such as young persons, women jobseekers, ethnic minorities and persons with disabilities (Articles 1(2) and 2(a) of the Convention).

Support for small and micro-enterprises and for cooperatives. The Committee notes the efforts made by the Government through the distribution of significant resources to democratize productive credit through the PROGER programme. In 2010, approximately 8,036 million reales were distributed (equivalent to around US$4,450 million) for entrepreneurial activities in 3,477 municipal areas. In February 2011, further measures were adopted to promote small enterprises in the formal economy and self-employed workers. The Government also provides information on the positive impact in terms of job creation of the loans made available to micro- and small enterprises in the context of the urban PROGER programme between 2000 and June 2009. The Committee invites the Government to continue to provide information on the activities of the PROGER programme and their impact in promoting productive employment. Please also indicate whether a new legal framework for cooperatives has been developed with a view to promoting job creation.

Contribution of the employment services. The Government refers in its report to the Employment Service Convention, 1948 (No. 88), and indicates that the Public Employment Labour and Income System (SPETR) includes a series of public policies seeking to be more effective in placing workers in productive activities with the objective of achieving social inclusion through employment, labour and income. According to the Government, the public system developed in a fragmented manner and its consolidation is an important challenge for the Ministry’s programme. The Committee invites the Government to describe in its next report the progress achieved in ensuring that the public employment services contribute fully to the achievement of the objectives of the Convention.

Article 2(a). Collection and use of employment data. The Government recalls that two principal registers are kept of the functioning of the labour market: the General Register of Employed and Unemployed Persons (CAGED) and the Annual Social Information Report (RAIS). Moreover, a monthly survey on employment and unemployment is carried out (PED). The Committee invites the Government to specify in its next report the manner in which the information compiled contributes to the adoption and review of the policies and programmes implemented to promote full employment.

Educational and vocational training policies. In its previous observation, the Committee noted that the Social and Vocational Training Programme (QSP) had been the channel through which vocational training was provided to 664,850 workers between 2003 and 2007 to provide them with the necessary qualifications for employment. In 2008, a total of 39 training programmes were carried out for specific economic sectors. Furthermore, focusing on the construction sector, the Government promoted initiatives for vocational training and the placement of beneficiaries of the Bolsa Família programme. The Committee requests the Government to provide information in its next report on the impact of the QSP and other initiatives adopted to offer workers the opportunity to receive the necessary training to enable them to find appropriate employment and to use their training and skills in such jobs. The Committee also invites the Government to provide information on the consultations held with the social partners in the context of education and training policies and on their relation to employment opportunities.

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Articles 1 and 2 of the Convention. Implementation of an active employment policy in the framework of a coordinated economic and social policy. The Committee notes the Government’s report on the Convention received in January 2009 as well as the detailed replies to the questionnaire for the General Survey on employment (2010). The Government explained in its report that the positive dynamic macroeconomic indicators have led to a decline in the unemployment rate (which fell from 9.5 per cent in July 2007 to 8.1 per cent in July 2008). The Government also indicated that the main characteristic of the cycle of growth was the marked formalization of the labour market. According to Panorama Laboral 2008, the evolution of the labour market in 2008 was one of the most favourable in recent years. The trend of reduced unemployment and informal employment continued. The average registered unemployment rate in the six metropolitan regions was 8 per cent in the period January to November 2008, 1.5 percentage points lower than that of the same period in 2007. In November 2008, there were early signs of a slowdown, with a loss of 40,800 jobs – the first negative result for the month of November in six years. The Committee also notes that unemployment has affected women more than men (in 2007, the rate was 10.8 per cent among women and 6.1 per cent among men). Young people have also suffered higher unemployment rates then the rest of the population (youth unemployment was 15.4 per cent in 2007, whereas the average rate of unemployment across the population was 8.2 per cent). The Committee also notes that, according to the Institute of Applied Economic Research (IPEA), the number of poor families in Brazil fell from 35 per cent to 24.1 per cent between 2002 and 2008 in six major cities of the country, which has entailed that 4 million people ceased to be considered poor. The Government adopted counter-cyclical measures and maintained its infrastructure projects under the Growth Acceleration Plan, entailing investments of US$300 billion in 2009. Programmes to build houses for the poorest families are promoted, as well as an expansion of beneficiaries of the Bolsa Familia programme that provides financial assistance to 11.1 million families in the country. The Committee invites the Government to provide an evaluation in its next report of the impact of the various active labour measures undertaken, including the views of the social partners, on the current employment situation.

Workers in the informal economy. Support to small-sized and micro-enterprises and to cooperatives. The Committee notes that the Job and Income Generation Programme (PROGER) continues to distribute funds to sectors which typically have little or no access to the financial system, such as micro- and small enterprises, cooperatives and workers’ associations, liberal professionals, farming families and informal sector productive initiatives. PROGER also provides support to enterprises in sectors which are prioritized in Government development policies, developing infrastructure, promoting export activities and encouraging technological innovation. According to the statistics provided, between 2000 and 2008, over 16.3 million contracts were signed under PROGER. The Committee requests the Government to continue to provide information regarding the impact of the activities promoted by PROGER in terms of employment generation. The Committee also notes that, according to the Government, even in light of the global crisis, micro- and small enterprises continue to generate jobs and the sector represents the bigger part of the formal enterprises in the country. The Committee asks the Government to keep it informed regarding the measures implemented to promote the development of technical and managerial skills among the workers in the sector. The Committee also notes that currently the National Congress is implementing a new project to upgrade the existing regulations on cooperatives. The Committee asks the Government to continue to provide information on the development of a new legal framework favourable to cooperatives and of its expected impact on the creation of employment.

Contribution of the employment services. In respect of the matters raised in its 2008 observation, the Committee notes that the Government deems it necessary to achieve greater integration of the 340 centres in the Public Employment, Labour and Income System (SPETR) and between the various activities of the system and a more adequate distribution of the resources made available to the SPETR. The Committee requests the Government to provide information, in its next report, on the advances made to ensure that the public employment services are contributing to the achievement of the objectives of the Convention.

Article 2(a). Collection and use of employment data. The Committee notes that the Labour Market Observatory is a tool for research and planning whose objective is to produce and disseminate information, analyse and make action-oriented proposals for advising administrators of public policies and subsidies. The Committee asks the Government to indicate how the information and statistics on the employment situation and trends submitted by the Labour Market Observatory have contributed to the adoption and review of the employment policies.

Educational and vocational training policies. The Committee notes the information provided on the Social and Vocational Training Programme (QSP), which is a comprehensive vocational education programme that has made a significant contribution in terms of helping people participate in the world of work, thereby helping to achieve the objectives set out in the National Training Plan (PNQ). From 2003 to 2007, the PNQ provided vocational training to meet the requirements of 664,850 workers in the country. In 2008, 39 training plans for specific economic sectors were under way. A joint initiative by the Ministry of Social Development and the Ministry of Labour and Employment, directed at the construction sector, will promote a national training and vocational placement initiative for the beneficiaries of the Bolsa Familia programme. The Committee invites the Government to include information in its next report on the impact the QSP and other initiatives have had on providing workers with the opportunity to acquire the necessary training to find suitable employment and to use their training and skills in such employment.

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1. Implementation of an active employment policy in the framework of a coordinated economic and social policy. The Committee notes the Government’s brief report received in December 2007 containing indications relating to Articles 1 and 2 of the Convention. The Committee notes that in January 2007, the Government launched the Growth Acceleration Programme (PAC) to raise investment in infrastructure, increase credit, and improve the long-term investment climate and fiscal policies, with a view to providing a consistent macroeconomic basis and sustainability to all the measures adopted through the Programme. According to data published by the ILO in Labour Overview 2007, GDP growth, which was 5.3 per cent, accelerated in 2007 by 1.6 per cent in relation to the previous year (3.7 per cent), which is associated with the high level of private investment and the public investment in infrastructure promoted by the Government through the PAC. Labour market indicators also followed an upward trend. The urban unemployment rate fell from 10.2 per cent in 2006 to 9.9 per cent in 2007, with a 0.3 per cent rise in the employment rate. These positive results were also reflected in the rise in formal employment, with the proportion of private employees registered between 2006 and 2007 (average for the first nine months) increasing from 61.8 to 63.2 per cent. According to data published by the General Register of Employees and the Unemployed (CAGED) of the Ministry of Labour and Employment of Brazil, 1.6 million jobs were created between January and September 2007, which is one of the best results for the period since 1985. The branches in which most jobs were created were: agriculture and forestry (13.7 per cent), construction (12.8 per cent) and manufacturing (7.4 per cent). The Committee once again asks the Government to provide information in its next report on the experience of the social partners with regard to the application of the Convention, particularly where representatives of the rural sector and the informal economy have been included in consultations. With reference to its previous comments on the measures included in the National Decent Work Agenda, the Committee would like to be able to examine detailed information on the measures adopted to reduce the unemployment rate and the average duration of unemployment. In particular, the Committee asks for information on the measures that have been implemented to promote local development, strengthen micro- and small enterprises and cooperatives, and social economy initiatives with a view to continuing the creation of productive employment.

2. The Committee notes that there are over 340 centres in the Public Employment, Labour and Income System (SPETR). The Government is aware that, in view of the expansion of the SPETR network over the past ten years, it is necessary to achieve greater integration of the services provided in the various centres in different areas in relation to employment placement, social skills, vocational qualifications and unemployment insurance. The Committee requests information on the progress achieved in attaining greater integration between the various activities of the system and a more adequate distribution of the resources made available to the SPETR.

3. Article 2(a). Compilation and use of employment data. The Committee notes the progress achieved in the decentralization of the systematic compilation of labour market information through the creation of the Commission for the Management of the Employment and Unemployment Survey which, among other functions, supervises the implementation of the Employment and Unemployment Survey in the various regions of the country, ensuring its uniformity and methodological consistency. The Committee would appreciate receiving information on the progress achieved in compiling labour market information and trends. It requests the Government to specify the manner in which the available statistics on the employment situation and trends have contributed to the adoption and review of employment policy.

4. With reference to its previous comments, the Committee notes the progress of the Job and Income Generation Programme (PROGER) as a series of special credit facilities to finance initiatives for the start-up of, or investment in, individual businesses, both in urban and rural areas, including associative, export and conservation enterprises, productive investments in tourism, etc. The Committee would appreciate receiving information on the impact of PROGER on the most vulnerable categories of workers, such as the poor, women, young persons, the African and mixed-race population and those living in areas with high unemployment rates.

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The Committee notes that the Government’s report has not been received. It must therefore repeat its 2006 observation which read as follows:

1. Articles 1, 2 and 3 of the Convention. Application of employment policy in the framework of a coordinated economic and social policy. The Committee notes the Government’s detailed report received in September 2005. During the period under consideration, the Brazilian economy recorded growth of 4.9 per cent of its gross domestic product with a significant expansion of employment, resulting in an increase of 1.5 million new jobs in the formal labour market, particularly in the manufacturing industry. The average unemployment rate fell to 11.5 per cent in 2004 (the Committee noted an urban unemployment rate of 12.4 per cent in 2003). The indicators in 2005 also remained positive, with the generation of 558,000 new jobs and an unemployment rate of 10.8 per cent up to April. The Government confirms its long-term strategy based on social inclusion and income redistribution with the growth of production and employment. The initiatives taken by the Ministry of Labour and Employment are aimed at the generation of employment, work and income, with social dialogue being pursued in the National Employment Forum and other tripartite bodies. Among the programmes undertaken by the National Employment System, which were referred to in previous comments, the Government refers in its report to the National Programme for the Promotion of First Jobs (PNEPE) which is intended to contribute to the generation of decent work opportunities for young persons by mobilizing the Government and society for the joint development of a national policy on decent work for young persons. The Committee understands that the expected results of the National Decent Work Agenda include the strengthening of the public employment system, work and income as a means of integrating active and passive labour market policies (unemployment insurance, vocational guidance, employment placement, vocational skills and qualifications, the compilation and management of labour market information and the promotion of entrepreneurship). With reference to its general remarks of 2005, the Committee welcomes the fact that economic growth has been translated into better results in practice in the labour market. The Committee notes with interest that the objectives of full productive employment and decent work, set forth in the Government’s report, constitute fundamental objectives of government policy. The Committee encourages the Government to continue providing information in its next report on the manner in which the objective of full employment has been taken into account in the formulation of economic and social policy. The Committee would also be grateful to continue receiving information on the experience of the social partners with regard to the application of the Convention, particularly where representatives of the rural sector and the informal economy have been included in consultations.

2. In its previous comments, the Committee recalled its interest in being informed of the results of the measures adopted and the mechanisms established to analyse information on and evaluate the progress achieved by the employment policy measures adopted. In this respect, the Committee hopes that the Government will provide information in its next report on the operation throughout the country of the Job and Income Generation Programme (PROGER), and particularly its impact on the most vulnerable groups, such as the poor, women, young persons, the African and mixed race population and those living in areas with high unemployment rates.

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1. Application of employment policy in the framework of a coordinated economic and social policy. The Committee notes the Government’s detailed report received in September 2005. During the period under consideration, the Brazilian economy recorded growth of 4.9 per cent of its gross domestic product with a significant expansion of employment, resulting in an increase of 1.5 million new jobs in the formal labour market, particularly in the manufacturing industry. The average unemployment rate fell to 11.5 per cent in 2004 (the Committee noted an urban unemployment rate of 12.4 per cent in 2003). The indicators in 2005 also remained positive, with the generation of 558,000 new jobs and an unemployment rate of 10.8 per cent up to April. The Government confirms its long-term strategy based on social inclusion and income redistribution with the growth of production and employment. The initiatives taken by the Ministry of Labour and Employment are aimed at the generation of employment, work and income, with social dialogue being pursued in the National Employment Forum and other tripartite bodies. Among the programmes undertaken by the National Employment System, which were referred to in previous comments, the Government refers in its report to the National Programme for the Promotion of First Jobs (PNEPE) which is intended to contribute to the generation of decent work opportunities for young persons by mobilizing the Government and society for the joint development of a national policy on decent work for young persons. The Committee understands that the expected results of the National Decent Work Agenda include the strengthening of the public employment system, work and income as a means of integrating active and passive labour market policies (unemployment insurance, vocational guidance, employment placement, vocational skills and qualifications, the compilation and management of labour market information and the promotion of entrepreneurship). With reference to its general remarks of 2005, the Committee welcomes the fact that economic growth has been translated into better results in practice in the labour market. The Committee notes with interest that the objectives of full productive employment and decent work, set forth in the Government’s report, constitute fundamental objectives of government policy. The Committee encourages the Government to continue providing information in its next report on the manner in which the objective of full employment has been taken into account in the formulation of economic and social policy. The Committee would also be grateful to continue receiving information on the experience of the social partners with regard to the application of the Convention, particularly where representatives of the rural sector and the informal economy have been included in consultations (Articles 1, 2 and 3 of the Convention).

2. In its previous comments, the Committee recalled its interest in being informed of the results of the measures adopted and the mechanisms established to analyse information on and evaluate the progress achieved by the employment policy measures adopted. In this respect, the Committee hopes that the Government will provide information in its next report on the operation throughout the country of the Job and Income Generation Programme (PROGER), and particularly its impact on the most vulnerable groups, such as the poor, women, young persons, the African and mixed race population and those living in areas with high unemployment rates.

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1. Application of the employment policy within the framework of a coordinated economic and social  policy. The Committee notes the detailed information provided by the Government in the reports received in 2002 and 2003. In 2003, the urban unemployment rate reached 12.4 per cent (13.1 per cent in the first quarter of 2004). The youth unemployment rate rose more than that of adults (Labour Overview 2003 indicates that, in 2003, the unemployment rate for young persons aged 15 to 17 years grew by 3.3 per cent and that of young persons aged 18 to 24 years by 1.7 per cent, in a context in which the overall unemployment rate rose by 0.4 per cent). The Government emphasizes that, when compared with the periods 1998-2002 and 1992-97, the labour market participation of persons aged between 25 and 39 years increased over the latter period and that young persons are delaying their entry into the labour market. Taking into account the greater demand for skilled labour, more young persons prefer to prolong their education (both in the formal system and in vocational training courses). The participation rate of women increased, while that of men fell.

2. The Government provides information on the activities undertaken by the National Employment Offices (SINE), which contributed to the placement in 2002 of around 900,000 workers in collaboration with the representative organizations of employers and workers and private entities. A description is also provided of the activities of the Job and Income Generation Programme (PROGER urban and PROGER rural) for the promotion of employment and incomes through special credits for small and micro-enterprises, cooperatives and production units in the informal economy; the Programme for the Expansion of Employment and Improvement of the Quality of Workers’ Lives (PROEMPREGO), to create new jobs for the low-income population; and PROTRABALHO, to finance structural projects in strategic sectors. Projects for the creation of jobs are financed through the Popular Productive Credit Programme (PCPP), the Studies and Projects Financing Unit (FINEP) and the Programme for the Strengthening of Family Agriculture (PRONAF). Furthermore, with a view to promoting economic development with growth, including social development, the concept of the economy of solidarity has been introduced.

3. The Committee express its appreciation of the initiatives and important programmes undertaken by the Government to promote employment creation. The Committee recalls that the objective of full, productive and freely chosen employment needs to be integrated as a priority, within the framework of a coordinated strategy, in all economic and social policies. The Committee would be grateful to be provided with fuller information on the manner in which the Government has ensured that employment promotion is a central objective for all the available macroeconomic policy measures, and particularly monetary, financial, fiscal, trade and development policies. The Committee considers that it is essential from the outset for employment objectives to be included "as a major goal" in the formulation of economic and social policy if these objectives are truly to be an integral part of the policies that are adopted (paragraphs 487 and 490 of the General Survey of 2004 on promoting employment). In this respect, the Committee encourages the Government to provide information in its next report on the manner in which the objectives of full employment were taken into account when formulating economic and social policy.

4. In its previous comments, the Committee referred to the activities of PROGER, particularly in Ceará, and would be grateful if the Government would provide information on the evaluations carried out of the various programmes implemented, and particularly their impact on the most vulnerable categories of the population, such as the poor, women, young persons, the African and mixed race population and those living in areas with high unemployment rates.

5. Participation of the social partners in the formulation and application of policies. With regard to the consultation required by Article 3 of the Convention, the Government refers once again to the Deliberative Council of the Worker Protection Fund (FAT). The Committee would be grateful if the Government would provide information on the manner in which social dialogue contributes to the adoption and implementation of employment policies and reiterates its interest in receiving information on the impact of the decentralized approach adopted by the FAT and the measures taken to ensure the effectiveness of the consultations held in the various employment commissions of the FAT. Please also continue to provide information on the measures adopted to hold consultations with the representatives of the informal economy on the measures intended to improve their prospects of obtaining decent work.

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1. The Committee notes the information contained in the Government’s detailed report. The informal economy continues to expand, and now accounts for approximately 50 per cent of employment, compared with 44.5 per cent for employment in the formal economy. The Government’s main measures addressing the needs of the informal sector include incentives to bring businesses into the formal economy, improving basic and secondary education and vocational training, and reforming labour market institutions.  Please continue to supply information on measures taken to consult the representatives of the informal sector on means to improve their prospects for obtaining decent work.

2. The Committee notes that the Job and Income Generation Programme (PROGER) provides credit to SMEs, cooperatives, micro-enterprises and informal economy workers. It operates in both urban and rural areas, but the bulk of lending is in rural communities. The Committee also notes that the ILO and Ministry of Labour published jointly an analysis of PROGER and an evaluation of PROGER was carried out in the State of Ceará. These studies revealed several problems, including a high rate of default on lending, which suggests a need for counselling and outreach to complement lending services. Please provide further information on measures taken in light of the findings of these studies.

3. The Committee notes programmes established in the Multiannual Investment Plan (PPA) 2000-2003. The Vocational Training Plan for Workers aims to train 20 million people over the four-year period. The National Worker Qualification Plan aims to strengthen training capacity and mitigate lay-offs due to changes in technology by emphasizing a broader training and grounding in technology. Preferential treatment is given to the poor, illiterate, women, youth, Afro-Brazilians, people with disabilities, indigenous people, and people residing in areas with high unemployment. It is monitored by PLANFOR which is a tripartite body. Please continue to supply information on the impact of the PPA on employment promotion.

4. The Government states that the Worker Protection Fund (FAT) is the backbone for consolidating government employment policies. It is administered by the Deliberative Council of FAT (CODEFAT), which is tripartite, and includes representatives of civil society. The state and municipal Employment Commissions, which distribute the funds, are also tripartite. Please continue to supply information on the impact on employment promotion of the decentralized approach of FAT and on measures taken to ensure a minimum level of effectiveness of the various Employment Commissions.

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1. The Committee notes the comprehensive and detailed report supplied by the Government in reply to its 1998 observation. The Government indicates that the unemployment rate jumped from approximately 5.4 per cent (1996 and 1997) to almost 7.5 per cent (1998 and 1999). The expansion of some 4.5 per cent in the GNP (PIB) in 2000 and a decrease in inflation helped to decrease unemployment slightly (7.1 per cent in 2000, 4.6 per cent in Sao Paulo and 3.3 per cent in Rio de Janeiro). The Government states that its objectives concerning macroeconomic policies are to control inflation, promote sustainable growth and continuously improve living conditions. The process of opening up the economy has had positive effects on the accumulation of capital, reflected in improved efficiency and productivity of labour and a reduction in the long term of the external restrictions placed on economic growth through enhanced competitiveness of the national economy. The Government has taken steps to integrate public employment and income policies through the Employment Action Management Information System (SIGAE). The Committee would appreciate receiving indications on how the structural reforms undertaken and the consequences of regional financial crises have affected the labour market. Please also continue to supply information on how macroeconomic and monetary policies take into account the employment policy objectives of Articles 1 and 2 of the Convention.

2. The Government states in its report that there had been an overall decrease in the effectiveness of the unemployment insurance placement system, due partly to an increase in the number of registered unemployed. Only 40 per cent of vacancies get filled, indicating a high mismatch and limited availability of appropriate training. However, the Government has undertaken an innovative project to establish employment service agencies in partnership with worker and employer representative bodies. The pilot was launched in 1998, with agencies established in several trade unions. This programme resulted in an increase in 1999 in placements made by the National Employment Offices (SINE). The Committee notes this information with interest. It would appreciate continuing to receive information on the outcome of this programme and any plans to expand it, as well as information on any plans to expand the number of SINE offices.

3. In a direct request, the Committee raises other issues concerning the application of the Convention on the informal economy, the achievements of some programmes implemented by the Government and the consultations in the Worker Protection Fund (FAT).

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1. The Committee notes the Government's report for the period ending June 1998, and the attached documents on the operation and evaluation of the programme for the generation of employment and incomes (PROGER), the Fund for the Protection of Workers and other measures adopted by the Government relating to the labour market. The Government reports new job losses in the formal sector (335,646 jobs in 1997). The Government states that, despite the reduction in the level of employment, there was an increase in the real incomes of workers and a decrease in social conflict. The labour market in Brazil is undergoing major transformation, with movement in the labour force from the industrial sector towards the services sector, and from the formal to informal sectors. The integration of the Brazilian economy in international markets with resulting effects on economic stability is giving rise to far-reaching changes in the labour market. In this context, the Ministry of Labour is adopting measures to promote employment and protect the unemployed by developing new employment opportunities. In view of the importance of the structural reforms undertaken in recent years, and the consequences that financial crises can have on the labour market, the Committee would once again be grateful if the Government would provide information in its next report on the manner in which the measures adopted in the principal areas of economic policy are kept under review with regard to their impact on employment, in accordance with Articles 1 and 2 of the Convention. The Committee trusts that the Government will include in its next report full information on the manner in which the measures taken in particular in such fields as fiscal, monetary and exchange rate policy, investment policy, industrial policy, trade policy and prices, incomes and wages policies, contribute to the attainment in practice of the employment objectives of the Convention (see the report form for Article 1).

2. According to the data forwarded by the Office's multidisciplinary advisory team, the informal sector grew from 52 per cent of the total economy in 1990 to 59.3 per cent in 1996. The number of workers without workbooks (sem carteria assinada), and therefore without appropriate legal protection, also increased. The Committee would be grateful if the Government would indicate the measures which are being adopted to increase employment opportunities and improve conditions of work in the informal sector and facilitate its progressive integration into the national economy. The Government may consider it appropriate to refer in its next report to the relevant provisions of the Employment Policy (Supplementary Provisions) Recommendation, 1984 (No. 169), and the Job Creation in Small and Medium-sized Enterprises Recommendation, 1998 (No. 189), which may provide guidance for its action. In this respect, it would be useful to be provided with detailed information on the situation, level and trends of employment, unemployment and underemployment, not only in the principal industrial regions, but also in the north, north-east and the rest of the country.

3. The Committee would be grateful if the Government would include information in its next report on action taken as a result of the assistance received from the Office with a view to promoting full, productive and freely chosen employment and strengthening the institutions responsible for intervening in the labour market and for coordinating vocational training activities with prospective employment opportunities (Part V of the report form).

4. The Committee takes due note of the new information transmitted by the Government on the activities of the Advisory Board of the Assistance Fund for Workers (CODEFAT) and the employment commissions established at the state level. The Committee recalls once again that the consultations required by Article 3 of the Convention should cover all aspects of economic and social policy which have an impact on employment. In view of the characteristics of the economically active population in Brazil, the consultations required by this provision of the Convention should also involve representatives of persons who work in the rural sector and the informal sector. The Committee once again requests the Government to give effect to this important provision of the Convention, both with regard to the formal sector and the informal sector of the labour market.

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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.

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1. The Committee notes the Government's report for the period 1993-94, received in October 1994. The Government describes the situation of the labour market, referring to macroeconomic aspects, employment and salaries. It also refers to the active measures envisaged or adopted in particular within the National Employment System (SINE) and to the various methods used to obtain data concerning employment. In 1993, inflation reached 2,489 per cent which did not prevent the GDP from increasing by 4.96 per cent. In 1994, the GDP growth was maintained but inflation fell substantially and was between 25 and 30 per cent per annum for 1994-95. The Government indicates that despite the increase in the GDP (in 1993) the labour market did not give signs of a clear and real recovery. In accordance with the data of the General Survey of Employed and Unemployed (Act No. 4923/65), generation of employment reached a relatively insignificant figure. The Government puts forward two hypotheses to explain what it calls a discrepancy between economic growth and job generation: the first is that new technologies were incorporated in the industrial process - which would entail growth without employment similar to that in some European countries. In the Government's view, this hypothesis should be rejected since economic recession and uncertainty have undoubtedly inhibited substantial investment in new technologies by enterprises. The second hypothesis would explain the lack of job creation by the attitude of enterprises in the face of economic uncertainty; they have preferred to achieve increased production by resorting to overtime without incurring new investment or the adoption of new technologies.

2. The Committee also notes the indications given by the Multidisciplinary Technical Team of the Office which has examined in general the effect of trade liberalization on the labour market in Brazil. Its technical analysis suggests that in the face of international competition Brazilian firms have reacted by abolishing jobs in order to reduce costs, producing a loss of quality jobs yet still achieving relative increases in productivity. This can be deduced from the drop in the number of employees with carteira assinada (those who have a permanent work contract and enjoy social security cover) and the relative increase in workers without carteira assinada and in other insecure employment, and having lost their jobs and exhausted their rights to unemployment benefits.

3. The Committee observes that the data available (which are referred to by the Government in its report) are restricted to the large metropolitan areas of the country (Belo Horizonte, Porto Alegre, Recife, Río de Janeiro, Sao Paulo) and do not include information allowing examination of the situation, level and trends in employment, unemployment and underemployment in the whole of Brazil, nor the extent to which particular categories of workers (such as women, young people, indigenous people) are affected. The Committee is bound to note that as an essential stage in adopting measures on employment policy, statistical and other types of other information must be gathered and analysed as well as that on the size and distribution of the labour force, the nature and extent of unemployment and trends in that matter (first question on the report form for Article 2 of the Convention).

4. The Committee notes the information on the objectives and application of active employment policies designed to promote employment through small businesses and micro-businesses, cooperatives and informal sector activities. It notes that there are plans to carry out restructuring of the National Employment System (SINE) which would allow interaction between the programme for employment security and the activities of the manpower agencies and occupational guidance services. In this context, the Committee notes with interest that ratification has been registered of Convention No. 168 concerning Employment Promotion and Protection Against Unemployment, 1988, for which the first report will be examined at its next meeting. The Committee would be grateful if the Government would continue to supply indications allowing it to assess the impact of the measures adopted, for example in the SINE framework, designed to harmonize labour supply and demand with the structural changes resulting from changes in international trade and the introduction of new technologies.

5. The Committee considers it appropriate to repeat its understanding of the pressures which continue to affect the Government's options in economic policy. It stresses once again its interest in being able to examine a report from the Government containing information on the way in which active measures are adopted to alleviate the adverse effects on employment of the economic policy measures affecting broad sectors and underprivileged regions of the population and the country. It would be very grateful if the Government would indicate in its next report the links which have been established between the aims of the economic policy and the objectives of an active policy designed to promote the objectives of full, productive and freely chosen employment within the meaning of the Convention. The information, along with that required in the report form for the Convention (second question on Article 2), would enable the Committee to appreciate better the efforts made and the results achieved by the Government towards attaining effective application of the Convention.

6. The Committee notes that the Government's report contains no information on the consultations required under Article 3 of the Convention. In a context such as the one described, the Committee points out that consultations with representatives of the persons affected are of great importance with a view to taking fully into account their experience and views and securing their full cooperation in formulating and executing an active employment policy within the meaning of the Convention. Consultations should be held with the representatives of the persons affected and, in particular, representatives of employers' and workers' organizations. The Committee again recalls that in view of their share in the active population it would be highly appropriate for representatives of workers in the rural sector and the informal sector to be involved in consultations on employment policy. The Committee trusts that in its next report the Government will supply information on the effect given to this fundamental provision of the Convention.

7. The Committee notes the observations made by the Unique Workers' Central (CUT) of Paraná on the dismissal about 4,000 Brazilian and Paraguayan workers by the Itaipú Binational Body. For its part, the Government sent a communication on the evolution of the labour force involved in the construction of the Itaipú hydroelectric dam, Brazil-Paraguay Binational Body. The data sent shows a gradual reduction in the number of workers employed by the Binational Company. It is recognized that unemployment is a general macroeconomic problem which cannot be solved by the Binational Body. The Committee would be grateful if the Government would supply in its next report more details on the financial advantages and conditions for social integration offered by the incentives programme for those who agree to leave their jobs (demissao voluntaria incentivada, which the Government mentions in its communications). The Government might also refer to Convention No. 158 of 1982 concerning termination of employment of which ratification was registered in January 1995.

8. Please indicate also in the next report, the action taken as a consequence of the assistance or counselling received from the Multidisciplinary Technical Team or other ILO services to promote activities connected with employment policy (Part V of the report form).

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1. The Committee took note of the Government's report. With reference to its previous observation, it notes that, following the failure of the stabilization programme adopted in March 1990, the Government's main priorities are still curbing inflation, public sector adjustment and opening up to the international market, in a context of constraint caused by the external debt. The Government stresses the inequitable consequences of inflation and considers that policies to end it, despite the short-term sacrifices they require, are essential for the establishment of monetary stability and expansion in the longer term of production and employment. It admits, however, that the restrictive monetary policy and reduction in public expenditure since 1991 have given rise to a labour market situation in the period under consideration which is very far removed from the objective of full employment.

2. The Committee notes that the employment and unemployment data provided by the Government are not complete, that they differ considerably depending upon the institution which compiles them and do not make a clear distinction between employment in the informal sector, underemployment and unemployment. Moreover, unemployment statistics are only drawn up for the large urban areas. There are no data on rural employment. There are few or no indications concerning the employment of specific and underprivileged groups of the population. The Committee is bound to point out in this connection the need for sufficiently accurate and reliable statistical data on the situation and trends in employment, underemployment and unemployment in both the modern sector and the informal sector (where 50 per cent of the active population appears to be employed), in order to design and implement appropriate employment policy measures. It asks the Government in its next report to indicate the measures taken or under consideration to ensure that decisions on employment policy are based on adequate knowledge of the nature and extent of unemployment and underemployment and their trends. International recommendations on labour statistics could usefully be taken into account in this context.

3. The Committee also notes that, in addition to its placement and vocational guidance activities, the National Employment System (SINE) is responsible for planning, coordinating and monitoring the employment programmes of the different States. The Committee would appreciate information on the objectives and implementation of these employment programmes in the next report, so that it can better ascertain the functioning of the system.

4. The Government indicates that employers and workers are represented on an equal footing in the Tripartite Deliberating Council of the Workers' Protection Fund. The elaboration of employment policy does not, however, appear to be within the scope of the authority of the above body. Furthermore, the Committee recalls that Article 3 of the Convention requires not only representatives of employers' and workers' organizations to be consulted on employment policy, but also representatives of other "persons affected" by the measures to be taken, "with a view to taking fully into account their experience and views and securing their full cooperation in formulating and enlisting support for such policies". In view of the fact that they account for a large proportion of the active population, it would be appropriate for workers in the rural sector and the informal sector, amongst others, to be involved in the consultations on employment policy.

5. The Committee is aware of the constraints on the Government's choice of economic policy. However, it is bound to express concern at the Government's indication that, in accordance with the priorities established, it is determined to pursue a stabilization policy which it realizes is an obstacle in the short term to the objective of full employment. Moreover, the Government provides no information on employment policy measures which it might implement concurrently with its economic policy so as to attenuate the latter's effects on the least privileged categories of the population. The Committee hopes that the Government will consider the possibility of reviewing, in accordance with Article 2, within the framework of a coordinated economic and social policy, the measures to be adopted for attaining the objectives set out in Article 1. It trusts that the next report will contain new information demonstrating that the Government pursues "as a major goal" an active policy designed to promote employment, in accordance with the Convention.

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1. The Committee notes the Government's report and the information supplied in reply to its previous observation.

2. In its report for the period 1988-90, the Government indicates that it has decided to deal with the immediate causes of the serious level of inflation, which is the only manner of subsequently achieving full employment, since the best employment policy consists of stimulating economic growth, for which inflation has to be controlled. This is a priority objective of economic policy, and takes the form in particular of restrictive budgetary and monetary policies, a temporary freeze on prices and wages, and freeing imports. As regards the evaluation of the impact of the economic plan on employment levels, the Government states that the slow-down in economic activity resulting from the anti-inflationary policy has affected the poorest categories of the population and has resulted in an increase in the until now relatively low unemployment rate. The most affected have been the capital goods, civil works and the automobile and metalworking sectors. The Government expresses its concern at the negative impact on small and medium enterprises and the informal sector, in view of their traditional role in the creation of jobs and/or absorbing labour in periods of crisis. Although it notes that it does not have precise information available on the impact of the plan on employment levels, the Government reports that, according to the information supplied by the trade union movement, 300,000 workers were dismissed between March and April 1990 in Sao Paulo alone. It also foresees migrations from the North and North-West towards the South, Centre and South-East, with the main concentration of workers in the South-East. With a GDP growth rate for 1990 that it calculates at between -5.5 per cent and -2 per cent, the Government estimates that the unemployment rate is between 7.6 and 9.5 per cent, as compared with 3.7 per cent in 1988.

3. In view of the effects of the economic stabilisation policies and the estimates of a rise in the unemployment rate, the Committee would be grateful if the Government would refer in more detail in its next report to the measures that have been taken or are contemplated to give effect to the fundamental provisions of the Convention, including Article 1 which it recalls requires an active policy designed to promote full, productive and freely chosen employment to be declared and pursued, "as a major goal". Please indicate the difficulties that have been encountered in attaining these objectives (Article 1 of the Convention).

4. The Committee also notes the information on the general provisions of the Constitution of 1988 concerning the protection of workers' rights, and on the regulations adopted respecting dismissal, unemployment insurance, minimum wages and the decentralisation of the National Employment System (SINE). It would be grateful if the Government would supply information on the procedures adopted to ensure that the effects on employment receive due consideration at both the planning and the implementation stages of the economic and social policy, and that the principal measures of employment policy are decided on and kept under periodical review on the basis of statistical and other data concerning the size and distribution of the labour force, the nature and extent of unemployment and underemployment and trends in these fields (Article 2).

5. In its previous comments, the Committee recalled the importance that it attaches to the consultation of representatives of the persons affected by employment policy measures that are to be adopted, so that they can fully co-operate in formulating and implementing these policies. Furthermore, it particularly welcomed the results achieved by the Government in establishing consultation procedures with representatives of the informal sector. The Committee would be grateful if the Government would continue to supply examples of the consultations held regarding employment policy with representatives of the informal and the rural sectors. More generally, it requests the Government to supply detailed information on other consultations that have taken place in order to promote the objectives of the Convention with representatives of employers and workers (Article 3).

6. Part V. The Committee notes with interest that the National Secretariat of Labour received the support of the Regional Employment Programme for Latin America and the Caribbean (PREALC) through the United Nations Development Programme (UNDP). It requests the Government to indicate in its next report the action taken as a result and also any factors which may have prevented or delayed such action.

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1. The Committee notes the Government's report for the period 1987-88. It also notes the written information communicated to the Conference and the discussion in the Conference Committee in June 1988.

2. In its last report, the Government indicates that it proposes to pursue an active employment policy, through a policy of investment and social programmes to absorb the labour force and to extend the formal sector of the labour market, through a wages policy to increase the purchasing power of employees and an industrial relations policy to promote the rights of workers. The Macro-economic Control Plan, launched in the second quarter of 1987, has the objective of achieving economic stability with specific reference to the creation of the conditions for the self-sustained growth of the gross domestic product in order to ensure the required expansion of employment. The Government Action Plan for 1987-91 considers employment to be the right of the citizens and intends to emphasise it as a social priority. Furthermore, quantitative targets have been set for employment generation for the 1987-91 period.

The Government enumerates the employment promotion programmes undertaken by the National Employment System (SINE) to benefit the most underprivileged groups of the population and the least developed regions of the country. In its report, it also refers to the various aspects of labour and industrial relations legislation which require amendment: first of all, it is necessary to regulate collective and individual dismissals.

3. In its previous comments, the Committee expressed its deep concern at the continued increase in unemployment during the 1982-83 period. The Committee now notes that the open unemployment rate in the principal urban centres, which had reached 7.1 per cent in 1984, decreased to less than 4 per cent in 1987. The measures adopted by the Government within the context of the Cruzado Plan of 1986 resulted in rapid employment generation while at the same time, for a short while, inflation was curbed. Nevertheless, according to the information supplied by the Regional Employment Programme for Latin America and the Caribbean (PREALC), the Macro-economic Control Plan, which was launched in June 1987, has been costly in terms of the deceleration of growth and employment. The objectives of the Government Action Programme, which was commenced in July 1987, have not been achieved with regard to the labour market. Employment stagnated, the minimum wage did not increase and inflation accelerated up to the annual rate of 934 per cent. The formal sector absorbed employment slowly and 25 million workers, that is 45 per cent of the economically active population, found themselves outside the formal labour market, in conditions of underemployment or in a precarious occupational situation.

4. The Committee would be grateful if the Government would continue supplying regular information on its principal policies and on the measures adopted to promote the objective of full, productive and freely chosen employment, and if it would indicate the difficulties encountered in achieving it. This information could include, in particular, indications on investment, fiscal and monetary policy, prices and wages policy and measures to promote balanced regional development (Article 1 of the Convention). The Committee would also be grateful if the Government would describe the procedures adopted to ensure that the effects on employment of its economic and social policy have received due consideration and that the principal measures of employment policy are decided on and kept under periodical review on the basis of statistics on the volume and type of unemployment and underemployment (Article 2).

5. Article 3. The Committee recalls the importance that it attaches to the consultation of representatives of the persons to be affected by employment policy measures that are to be adopted and to taking their experience and views fully into account and securing their full co-operation in formulating and implementing employment policy. It notes with interest, from the Government's report, that when evaluating the implementation of the Programme of Social Priorities (PPS), which was launched in May 1985, it was found that the projects undertaken with the effective participation of the communities concerned showed the best results at the lowest cost. The Government adds that, despite the few resources available to the Ministry of Labour, some units of the SINE, in collaboration with other institutions, are supporting micro-production units in close collaboration with associations and federations of beneficiaries. The Committee particularly appreciates the results achieved by the Government in establishing consultation procedures with representatives of those working in the informal sector and requests the Government to continue to supply examples of the consultations held regarding employment policy with those who work in the rural sector and the informal sector. Please supply detailed information on other consultations that have taken place in order to promote the objectives of the Convention with representatives of employers and workers.

6. Finally, the Committee notes with interest that the Government has the benefit of the technical assistance of the ILO within the context of a project concerning employment and wage policy. The Committee requests the Government to indicate in its next report the action taken as a result of the technical assistance received in various ILO projects concerning employment policy, in particular in the rural sector.