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

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Articles 1 to 3 of the Convention. Implementation of an active employment policy. Participation of the social partners. The Committee notes with interest the adoption in May 2022 of the National Employment Plan for 2022–26, which was drawn up in consultation with the employers’ and workers’ organizations and with ILO technical support. The plan is intended to promote decent work through policies and action that contribute to economic growth and regeneration. Its objectives include public and private action to stimulate formal employment growth as the economy grows, to revive employment following the COVID-19 pandemic, with an emphasis on youth, women, and vulnerable groups. Noting also that the Government indicates that one of the objectives of the Employment Reactivation Plan for 2020–21 was to revive employment and productive occupational reskilling through tripartite consensus. The Government also reports that in 2019 the Tripartite Advisory Council of the National Vocational Promotion Service (SNPP) was created, and that together with the governing body of the National Training and Labour Skills System (SINAFOCAL) both bodies have integrated social dialogue as a permanent feature. The Committee notes, according to the National Institute for Statistics, that in the first quarter of 2023 the labour force participation rate stood at 70.1 per cent (57.4 per cent for women and 83.1 per cent for men); the employment rate stood at 65.6 per cent (52.3 per cent for women and 79.2 per cent for men); while the unemployment rate stood at 6.5 per cent (8.9 per cent for women and 4.8 per cent for men). Given the significant gender gap in labour force participation and the higher unemployment rates for women, the Committee requests the Government to indicate measures adopted or envisaged to counter these inequalities and promote women’s employment at all levels and in all sectors, including in decision-making positions. It further requests the Government to continue to provide detailed and updated information on the manner in which the social partners have participated in the implementation and evaluation of the above measures that form part of the employment policy and its action programmes. The Committee also requests the Government to send clear, updated statistical information, disaggregated by age and sex, on employment, unemployment and underemployment trends, situation, and level, both in urban sectors and in rural areas of the country.

Contribution of the employment service to employment promotion. The Government reports that in 2021, a total of 65,077 jobseekers were alerted to work opportunities via the “Employment Window” (Vidriera de Empleo) put in place on the Web portal of the Ministry of Labour, Employment and Social Security (MTESS), and through virtual and in-person employment fairs, with the result that 4689 women and 8351 men obtained a formal sector job. The Government also indicates that it has organized labour intermediation action for victims of trafficking in persons, such as registering the data on these persons in the MTESS Employment Exchange (Bolsa de Empleo), with a view to proposing them training and occupational opportunities. The Government further indicates that it has concluded an agreement with the Saraki Foundation with the aim of generating opportunities within the private sector for young persons with disabilities to integrate the labour market. Services offered include the registration of candidates in the MTESS “Employment Exchange” and “Employment Window”, job offers, interpersonal skills training, application of employment skills testing and business consultancy. Finally, the Government refers to the “Work in your own town” plan (Empléate en tu ciudad), the aim of which is to undertake skills training and promote new employment in each municipality in the country with the help of the National Employment Network. While noting this information, the Committee requests the Government to continue to provide detailed and updated information on the nature and impact of the measures adopted to increase employment services and improve their quality, such as increasing funding levels and investment to optimize the internal operational capacity of the public employment services, and strengthening coordination between the different entities, both public and private, that participate in applying employment and social policies at local level. Finally, the Committee requests the Government to send information on the measures adopted to increase the coverage of employment offices across the entire country.

Youth employment. The Government indicates that it has developed partnerships with various institutions and bodies to allow it to undertake a series of activities aimed at young persons, such as the Social Project in Vulnerable Neighbourhoods, which includes skills and entrepreneurship training, employment promotion and labour protection. It also reports on the December 2018 establishment of the Entrepreneurs’ Training Centre (CEE), the objective of which is to increase young persons’ entrepreneurial skills through training, technical assistance and leverages other actors of the national and international entrepreneurial system. Various projects have been implemented through the CEE aimed at young persons of 18 to 29 years in vulnerable regions, including: (i) the “Sape’a 2.0” project, which from 2020 to 2022 provided training in drafting business plans for 900 young persons, 69 of whom obtained seed capital funding equivalent to 5,000,000 Paraguay guaranis. In 2022, a total of 23 entrepreneurs from the Asunción, Central, Guaira, San Pedro and Caaguazú regions benefited from capital sums of 6,000,000 guaranis; (ii) the “Start your business now” (Emprende ya) project, through which 251 young persons were trained in drafting their business plans, 74 of whom obtained seed capital funding of 5,000,000 guaranis and ten of whom each obtained seed capital of 8,000,000 guaranis. The Government refers to the introduction of the apprenticeship contract, a new form of contract for recruitment of workers, which aims at providing young learners with knowledge through training, while enabling them to earn an income. The Committee observes that this contract type was introduced in 2019 under MTESS Decision 1159/2019 on regulating the apprenticeship contract and establishing the procedure for its approval. Noting that the Government provides no information regarding the impact in terms of young persons’ sustainable labour market integration, including those in rural areas who have benefited from Government projects, the Committee requests the Government to provide updated information on all measures taken to promote sustainable labour market integration of young persons. In this regard, the Committee wishes to stress that to improve the employment rate among young persons, it is in general necessary for them to acquire skills answering to the needs of enterprises. The skills gap is to a certain extent often related to low levels of education – the longer the time spent in the education system, the better the employment prospects, including as regards the quality of the employment. With reference to its previous comments, the Committee requests the Government to provide information on the amendment process of the Youth Employment Integration Act.

Promotion of small and medium-sized enterprises and employment promotion. The Committee notes that the Government has adopted the National Promotion and Formalization Plan for Developing and Increasing the Competitivity of MSMEs. The Plan has five, crosscutting objectives: (1) design and promote instruments to develop and make MSMEs more competitive; (2) simplify the procedures for formalizing MSMEs; (3) promote a favourable environment for entrepreneurship and new sectors; (4) encourage suitable financial products for MSMEs; and (5) encourage quality, innovation, and technological development among MSMEs. The Government also reports the adoption of: (i) Act 6380/2019 on modernizing and simplifying the tax system which, it maintains, is primarily intended to simplify tax obligation compliance for small and medium-sized enterprises; and (ii) MTESS Decision No. 2852/2019 on approving the plan for strengthening and improving small and micro-enterprises’ compliance with administrative labour standards and occupational safety and health standards. It further reports that it has joined with the Paraguayan Industrial Union (UIP) to implement the “Paraguay Poguapy” Plan, the main objective of which is to boost economic revival in the country. The “Action MSMEs” competition was held under the Plan, which awarded seed capital and provided entrepreneurship training to 131 MSMEs from various sectors. Moreover, in 2021, under the project “Improve Occupational Skills, Strengthen MSMEs and the SINAFOCAL, to Reactivate the Economy”, more than 500 MSMEs benefited from occupational training and seed capital. In view of the high rate of Paraguayans economically active in small and micro-enterprises, where productivity tends to be low and informal labour predominates, and the economic base enabling the generation of productive employment and decent work is deficient, the Committee requests the Government to provide detailed information on the impact of Act 6380/2019 and MTESS Decision No. 2852/2019, as well as on the National Promotion and Formalization Plan for Developing and Increasing the Competitivity of MSMEs for 2018–23, on the creation of productive and sustainable employment; and on the manner in which these initiatives ensure adequate labour and social protection for MSME workers through the progressive integration of informal economy workers in the formal employment market.

Coordination of training policy with employment opportunities. The Government indicates that SINFOCAL provides training courses and occupational training to support labour market integration, aimed at specific sectors, including indigenous peoples, persons with disabilities, persons in confinement, the economically active population, and those in social reintegration. The courses are provided in three ways: (1) occupational training projects mounted through specific agreements concluded with education entities and non-profit institutions; (2) training activities undertaken by SINAFOCAL officials; and (3) course given by the occupational training institutes (IFCL) through calls for public tender. The training given responds to market research and opinion surveys carried out by the Occupational Observatory. On that basis, decisions are taken that allow occupational training courses to be aligned to labour market needs. Thus, through implementation of the National Vocational Training Strategy, approved in 2020, a total of 10,203 training courses were given to 130,903 women and 67,538 men. Under this Strategy, and in conjunction with well-known national and international enterprises, the “Digital Generation” Plan was launched in 2021, which seeks to train 100,000 young persons and adults in digital skills to integrate them into the labour market. The Plan also offers international training with internships and international certification. The Government reports on the adoption in 2020 of the 2020-2023 Road Map for Reinforcing the National System of Occupational Qualifications in Paraguay, which aims to respond to the country’s competitive challenges, allowing persons to follow lifelong occupational learning trajectories and recognizes knowledge acquired through formal, non-formal and informal channels, through linkages between the public institutions involved and the productive sector. The Committee also notes the statistical information provided by the Government on the number of young persons participating in diverse technical and occupational training programmes in 2021. In this regard, the Committee observes that there is a significant gap between young men and women. For example, only 81 young women participated in the apprenticeship programmes, against 295 young men; only 70 young women took part in the Sheltered Work Training Programme, against 277 young men. It further notes that the majority of programmes are concentrated in the municipalities of Asunción and Itauguá. The Government also reports that between 2019 and 2022, SINAFOCAL gave 1,829 courses and awarded 468 certificates. The Committee requests the Government to communicate information on: (i) the reasons for the significant gap in the participation of men and women in the technical and occupational training programmes; (ii) the specific measures to promote access of women and young indigenous women in rural areas to these programmes; (iii) updated statistical data, disaggregated by age and sex, on the number of persons participating in the education and training programmes and the impact that these have on their access to decent, productive and sustainable work. Finally, the Committee requests the Government to continue to supply detailed and updated information on the coordination between occupational training and education policies and employment policies and, specifically, on how the supply of training is coordinated with the demand for knowledge and skills required and both current and future needs of the labour market.

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The Committee notes the observations of the Central Confederation of Workers Authentic (CUT-A), received on 30 August 2022. The Committee notes that it has received no response to these observations from the Government and requests it to provide its comments in this regard.

Articles 1 and 3 of the Convention. Active employment measures. Informal economy. The Committee notes information from the Government on the approval in May 2022 of the National Employment Plan for 2022–26, which includes, inter alia, promoting the transition to formality through monitoring activities, stimulating labour intermediation, and building in greater advantages and incentives. In this regard, the Plan envisages the development of public and private action aimed at generating formal employment as the economy grows, with emphasis placed on young persons, women, and groups in vulnerable situations. The Committee also notes: (i) the adoption of the Employment Reactivation Plan for 2020–21, which includes promoting formal employment among its objectives; and (ii) the inauguration in 2018 of the Entrepreneurs’ Training Centre (CEE), with the objective of providing guidance and increasing entrepreneurial skills to build sustainable enterprises or businesses, by promoting formalization of self-employment and enterprises, through mentoring, training, technical assistance and leveraging other actors of the national and international entrepreneurial system. The Committee notes the adoption in 2019 of the National Promotion and Formalization Plan for Developing and Increasing the Competitivity of MSMEs, 2018–23, which includes among its five cross-cutting objectives the simplification of procedures to formalize MSMEs. Regarding measures adopted under the national employment policy to facilitate the transition to the formal economy in rural areas, the Committee notes that Decree No. 3678/20 of 2020, which regulates Act No. 5446/2015 on public policies for rural women, provides for: (i) the implementation of employment formalization programmes in rural areas, such as the inclusion of women workers in the social security system (IPS); (ii) the formulation of occupational training courses; (iii) the creation of first job policies for young rural women; and (iv) the provision of information on the voluntary inclusion of independent rural women workers in the IPS Social Security – Retirement and Pensions Fund. The Committee notes that the CUT-A stresses that no progress has been made regarding the informal economy. The Committee observes that the phenomenon of informality is related to the level of social and economic development and that there is a clear correlation between poverty and informality, as informal economy workers are frequently in a situation of poverty or extreme poverty. In many developing countries, a large part of the labour force is employed informally, often for their own account, but also as occasional workers, home workers, or domestic workers. In this connection, the Committee stresses how important it is that public policies addressing factors leading to informality include macroeconomic policies favourable to employment that support aggregate demand, productive investment and structural transformation to create formal employment, together with strengthened social security systems. It further highlights the importance of consulting the representatives of the social partners and persons working in the rural sector and the informal economy. Adapting policy support to the most affected and vulnerable groups in the informal economy, including women and young persons, will be crucial in the period following the COVID-19 crisis. Where a large part of the workforce works in the informal economy, it is essential that informal and rural workers’ associations, where they exist, take part in the elaboration of national employment policy with a view to fixing its primary objective: to ensure access to high quality and productive employment for the greatest number of persons under conditions that allow them to escape from poverty. Noting the importance of an integrated strategy for the formalization of employment and for social security, the Committee requests the Government to provide detailed and updated information on the measures adopted with regard to employment policy and their impact on promoting the transition from the informal to the formal economy, in coordination with other public policies including, for example, social protection, education, fiscal and rural development policies.

Coordination of employment policy with economic and social policies. The Government states that the Social Policy of Paraguay, which is part of the National Development Plan (PND) 2030, facilitates coordinated action between the sectoral bodies under the Executive and with the various Government echelons, civil society, the private sector, and with the judicial and legislative authorities. The Ministry for Social Development (MDS) was created in 2018 to design and apply policies, plans, programmes and projects relating to development and social equity through coordinated, inter-institutional action aimed at reducing inequalities and improving the quality of life of vulnerable populations and those living in poverty. In its previous comment, the Committee noted the implementation of the “Tekopora” cash transfer programme with co-responsibility, and of the “Tenoderã” programme to support socioeconomic inclusion. The Government reports that these programmes continue to operate: “Tekopora” covered 166,164 families during the first two months of 2022, of which 85 per cent were headed by women, with 80 per cent of the homes located in rural areas. The “Tenonderã” programme, operating in 14 departments, provided seed capital to 9,331 families in 2021; 83 per cent of the families were headed by women and 17 per cent headed by men. The Committee also notes from the report of the Office of the United Nations High Commissioner for Human Rights for the Human rights Council Universal Periodic Review, dated 1 March 2021, that “the Committee on the Elimination of Racial Discrimination (CERD) was concerned by reports of the precarious working conditions faced by many indigenous people, in particular on farms in the Chaco region” (A/HRC/WG.6/38/PRY/2, paragraph 33). The Committee observes that, in the context of planning national employment policies, coordination between the various parties concerned and between employment objectives and other economic and social objectives, as provided under Article 1(3) of the Convention, is essential, but can prove complicated due to differences of opinion. It also observes that the ILO has supported the creation of employment committees, informal consultations and drafting groups to promote coordination and that some countries have made use of existing structures, such as inter-ministerial committees, while others have established ad hoc committees to design national employment policies. The Committee emphasizes that, if the coordination is to be effective, the committees must be tripartite and inter-ministerial and must have power of decision. They must involve different ministries, including finance, planning and other sectors, as well as employers’ and workers’ organizations, civil society and development partners. The participation of influential bodies, such as national labour advisory committees or economic and social councils, has been beneficial in many countries. The Committee also emphasizes that high-level representation, including government leaders, can promote cooperation between the parties concerned. Recalling that the Convention establishes the objective of employment policy to be stimulating economic growth and development, raising levels of living, meeting manpower requirements and overcoming unemployment and underemployment, the Committee requests the Government to provide information on the measures adopted or envisaged to give full, productive and freely chosen employment a preponderant place in all growth and development strategies, in particular those concerning members of the indigenous peoples. The Committee also requests the Government to indicate the impact of cash transfer and seed capital programmes and initiatives referred to above.

The Committee is raising other matters in a request addressed directly to the Government.

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Articles 1 to 3 of the Convention. Implementation of an active employment policy. Participation of the social partners. The Committee notes that, according to information available on the Government’s website, in November 2018 the National Employment Plan was in the process of being prepared with ILO support. The objectives of the Plan include the creation of decent jobs and the improvement of the functioning of the labour market, so that they are aligned with the objectives of the National Development Plan (PND) and in compliance with the Sustainable Development Goals (SDGs). The principal elements of the programme include programmes to promote employment and entrepreneurship skills, the strengthening of employment services and their articulation with skills training. The Government indicates that the Plan will give special consideration to the situation of young people, due to the high rate of youth unemployment in the country. With regard to labour market trends, the Government indicates that, according to the Continuous Employment Survey of the Directorate General of Statistics, Surveys and Census (DGEEC), the activity rate in the third quarter of 2017 was around 65.7 per cent, which was lower than the figure for the same quarter in 2016. Over the same period, the activity rate fell from 93.1 per cent to 92.4 per cent, while the unemployment rate rose from 6.9 per cent to 7.6 per cent. The Committee also notes that the number of employed persons earning less than the minimum wage rose from 25.8 per cent to 27.6 per cent. Moreover, in 2017, approximately 4.1 per cent of the economically active population was underemployed. The Committee requests the Government to provide detailed and updated information on the formulation, adoption and implementation of the National Employment Plan and to indicate the manner in which the experience and views of the social partners were taken into account in this regard. The Committee also requests the Government to continue providing updated statistical data, disaggregated by age and sex, on the situation, level and trends of employment, underemployment and unemployment in both urban and rural areas of the country.

Contribution of the employment service to employment promotion. The Government indicates that the General Directorate of Employment has undertaken a series of measures with a view to improving labour intermediation, guidance and placement services for jobseekers who are unemployed or inactive. The objectives of the General Directorate of Employment include: promoting the access of the unemployed and underemployed to full employment, and the formalization of those engaged in informal productive work; promoting action to increase and improve employment, with emphasis on vulnerable groups; and developing relations with employment placement enterprises and organizations. The Government indicates that a total of 42,255 people were assisted by the public employment services between 2016 and May 2018. The Committee also notes the Government’s information concerning the implementation of the employment portal, entitled “Paraguay Can Do More” (Paraguay Puede Más), where those interested can register to have access to job vacancies. Moreover, in 2017, a total of 40 employment fairs were held focusing on the most vulnerable population groups, including persons with disabilities, single mothers and workers in the rural sector and maquila enterprises. Finally, the Government reiterates that the National Employment Office has concluded various cooperation agreements with local governments and that an increase in the number of local employment offices was planned for 2015 to reach a total of 29 offices throughout the national territory. The Committee requests the Government to provide detailed and updated information on the impact of the measures adopted to improve the quality of employment placement and guidance services and to increase the coverage of the network of employment offices throughout the country.

Youth employment. The Committee notes the information provided by the Government in its report on the measures adopted to promote youth employment. In particular, the Government refers, among other actions, to the holding of youth employment fairs, the development of skills training in educational institutions and the preparation of the document “Youth Employment Strategies 2016” with a view to promoting the integration of young people into employment and improving their situation on the labour market. The Government also reports on the implementation of the Employment Integration Support Programme (PAIL), co-financed by the Inter-American Development Bank (IADB), with the objective of improving the conditions of the employability of young people in Asunción and the Central Department through innovative training and skills development methods, financial support for skills development for vulnerable young people and the social commitment of enterprises, taking into account the gender perspective. Furthermore, in 2015, an Inter-institutional Round Table on Rural Youth Entrepreneurship was established with a view to developing the skills and generating sources of employment for youth in rural areas. The Government indicates that the Youth Employment Integration Act is undergoing a process of amendment due to the problems raised by its application in practice. However, the Committee notes that the Government has not provided information on the impact on the beneficiaries of the various programmes in terms of the lasting integration of young people into the labour market. The Committee reiterates its request to the Government to provide detailed information, disaggregated by sex and age, on the impact on the beneficiaries of government projects in terms of the lasting labour market integration of young people, including young people in rural areas. The Committee also requests the Government to provide a copy of the Youth Employment Integration Act once it has been amended and to indicate the extent to which the new contractual arrangements envisaged in the Act have contributed to the creation of productive employment for beneficiaries.

Promotion of small and medium-sized enterprises and employment promotion. In its previous comments, the Committee once again requested the Government to provide detailed information on the impact on productive and lasting employment creation of Act No. 4457 of 16 May 2012, establishing the regulatory framework to promote and encourage the creation, development and competitiveness of micro, small and medium-sized enterprises (MSMEs), and for their integration into the formal productive system for goods and services. It also requested the Government to indicate the manner in which the legislation in force ensures adequate labour protection for workers in MSMEs and enables the gradual integration of workers in the informal economy into the formal employment market. The Committee notes, based on the ILO technical report of 2017 “Paraguay: Current situation of MSMEs and formalization policies”, that MSMEs account for the majority of economic units in the country and most employment. The technical report emphasizes in particular that the economy in Paraguay is dominated by very small, low productivity, labour-intensive production units in which a high proportion of employment is concentrated. This structural situation gives rise to important gaps in decent work and working conditions in relation to large enterprises in terms of the quality of employment, income, productivity, education, social security coverage, unionization rate and informality. The report emphasizes that the informal employment that is a characteristic of the Paraguayan labour market is concentrated in MSMEs and own-account occupations (the data shows that in 2015 in microenterprises with between two and five employed persons, 84 per cent of employment was informal, and that the figure was 72 per cent in microenterprises with between six and ten employed persons, while the level of informality at the national level was around 71 per cent). The Committee also notes the information provided by the Government on the measures adopted with a view to promoting the formalization of MSMEs. The Government refers to the conclusion of formalization agreements with various institutions, such as Ciudad Mujer and the University of the Pacific, with a view to establishing a formalization unit for entrepreneurs and owners of MSMEs and providing training, business plans and technical assistance to entrepreneurs. Within the framework of measures for the formalization of MSMEs, over 500 enterprises were provided with assistance and over 20,000 persons were informed of the benefits of formalization. Between December 2014 and June 2018, the number of MSME units in the National MSME Register increased from 17 to 2,590. The Government indicates that the benefits available to formalized MSMEs include access to soft loans, training and technical assistance. However, the Committee notes that the Government includes among the benefits to which it refers the so-called simplified labour regime for MSMEs, which allows fixed-term employment contracts for three years without the requirement to give notice and authorizes the payment of wages below the statutory minimum level with the prior authorization of the MTESS, which are practices that are not in conformity with ILO instruments. Finally, the Government reports the implementation in 2016 and 2017 of the Micro-Entrepreneur Strengthening and Development Project, which provides non-reimbursable financing and entrepreneurship education to micro-entrepreneurs with a view to guaranteeing the sustainability of their enterprises, as well as granting micro-credits called “Ñepyryra” to trainees of the National Vocational Promotion Service (SNPP) for the development of microenterprises. The Committee requests the Government to continue providing detailed information on the impact of Act No. 4457 on the creation of productive and lasting employment. It also requests the Government to continue providing detailed information on the manner in which the legislation in force ensures adequate labour protection for workers in MSMEs and promotes the progressive integration of workers in the informal economy into the formal employment market.

Coordination of training policy with employment opportunities. The Committee notes the information provided by the Government on the various training and labour skills courses provided between 2016 and 2018 by the National Training and Labour Skills System (SINAFOCAL), in collaboration with workers’ organizations, and the number of participants. The Government also refers to the implementation of various programmes, such as the dual training model (MoPaDual) through which the beneficiaries received, in combination with theoretical training, practical training in a private enterprise or public institution. Between January 2014 and May 2018, a total of 729,464 certificates were delivered in the context of the training courses provided by the SNPP for men and women at different levels and in the various sectors of the economy. With reference to the measures adopted to improve the provision of training and skills development, the Government reports the preparation of studies and investigations to identify qualitative and quantitative vocational training needs. In this context, the Prioritization Index for Vocational Training Courses (IPCL) was developed to establish indicators to be taken into consideration for the prioritization of the labour skills demanded. Moreover, in 2017, a Register of Vocational Training and Skills Development Institutions (REIFOCAl) was developed, through which certificates are issued regularly for training and skills development institutions with a view to formalizing enterprises which provide training and skills development services. The Committee also notes the adoption of Act No. 5749 of 24 January 2017 issuing the organizational chart of the Ministry of Education and Sciences (MEC), creating the National Education and Labour Council (CNET) as a bi-ministerial operational body (the MEC and the Ministry of Labour, Employment and Social Security – MTESS), composed of representatives of employers’ and workers’ organizations. The Government indicates that the responsibilities of the CNET include: approval of a Strategic Education and Labour Plan; guaranteeing coordination with the various sectors involved in the implementation of public policies in the fields of education and labour; and cooperating in the implementation of the National Catalogue of Occupational Classifications. However, the Government indicates that the CNET is not yet operational, as its members are still to be appointed. Finally, the Committee notes that, in its concluding observations of 22 November 2017, the Committee on the Elimination of Discrimination against Women (CEDAW) welcomed “the introduction of non-formal literacy programmes for indigenous communities and non-formal vocational programmes allowing young people and adults to develop practical skills for specific occupations”. However, the CEDAW expressed concern at the “persistence of structural barriers to access to high-quality education for girls, in particular at the secondary and tertiary levels, owing to, among other things, inadequate budget allocations to the sector … especially in rural areas” and the “[p]ersistent disparities in literacy rates for women and men and the significant level of illiteracy among indigenous women and rural women” (CEDAW/C/PRY/CO/7, paragraph 32(a) and (b)). The Committee requests the Government to provide updated statistical data, disaggregated by age and sex, on the number of persons, including women and indigenous girls in rural areas, who participate in education and training programmes and the impact of these programmes on their access to decent, productive and lasting employment. The Committee also requests the Government to continue providing detailed and updated information on the coordination of education and vocational training policies with employment policies and, particularly, on how the provision of training is coordinated with the demand for knowledge and skills, and on current and anticipated labour market requirements.

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Articles 1 and 3 of the Convention. Active employment measures. Informal economy. The Committee notes that, according to the ILO technical report of 2018 on critical segments of labour informality in Paraguay, it is one of the countries in the region with the highest incidence of informal employment. The technical report indicates that, in 2016, seven out of every ten active persons were informal, which has led to a growing prioritization in national public policies on the formalization of workers. The Committee also observes that, according to the technical report, most informal workers receive income for the tasks performed that are far from the minimum levels set for formal employed persons. In particular, the report indicates that 68.7 per cent of informal employed persons in 2016 received wages below the statutory minimum wage which covers formal employed persons in a dependent employment relationship. In the case of own-account informal workers, income levels are substantially lower than those received by employed persons (83.8 per cent receive wages below the statutory minimum wage). Moreover, four in ten informal own-account workers are not able to rise above the poverty line with the income that they earn. In this context, the Committee notes the approval in February 2018 of the Integrated Strategy for the Formalization of Employment and Social Security by the Tripartite Advisory Economic Council, the objective of which is to achieve growth of approximately 25 per cent in the formalization of employment by 2030. This Strategy is included in the priority objectives and actions of the Paraguay National Development Plan 2030, which includes as a target the formalization of the economy with the objective of achieving 90 per cent formalization of economic activity in the principal economic sectors in the country by 2030. The Government adds that the Strategy includes social information and awareness-raising (such as decent-work fairs, visits to schools and free advisory services), as well as coordination and articulation between the institutions producing data on formality levels of enterprises, employment and social security. The Government reports the preparation of a proposal for the reinforcement of social security inspection with a view to promoting effective social security inspection and strengthening inter-institutional collaboration and coordination mechanisms between the Ministry of Labour and Social Security (MTESS) and the Social Insurance Institute (IPS). A protocol has also been prepared for application by various institutions, such as the General Directorate of Social Security and the General Directorate of Workers’ and Employers’ Contributions of the IPS, in the event that unregistered employment is identified through complaints, mediation, controls and inspection. However, the Committee notes that, according to the ILO technical report, the major challenges to formalization relate to those on the margins separating the informal economy from the formal economy, such as workers in rural areas. The technical report indicates that almost all own-account workers in agricultural, stock-raising and fishing are informal and that nine out of ten employed persons in those sectors are also informal. The formalization initiatives that have been carried out in the country do not cover work in rural areas, as they are focused on employed persons in urban areas. The report emphasizes that in certain cases the difficulty lies in the invisibility of the activity or in the low incomes associated with low-productivity activities which are insufficient to cover the costs of formalization. In other cases, the difficulty is particularly related to the lack of a public policy or the weaknesses of design and implementation that undermine its effectiveness. Finally, the Committee notes that, according to the report of 20 July 2018 of the United Nations Special Rapporteur on contemporary forms of slavery, including its causes and consequences, “[w]orkers in the informal economy – who are more likely to be women – are often subject to a high degree of precariousness, have no access to social or workplace protection (a fundamental feature of decent work) and work in sectors not fully covered by labour laws, making them highly vulnerable to exploitation, including contemporary forms of slavery” (A/HRC/39/52/Add.1, paragraph 33). The Committee draws the Government’s attention to the guidance provided in the Transition from the Informal to the Formal Economy Recommendation, 2015 (No. 204). It requests the Government to continue providing detailed and updated information on the scope of the informal economy and the measures adopted in accordance with its national employment policy to facilitate the transition to the formal economy, particularly in rural areas of the country, including the measures adopted within the framework of the Integrated Strategy for the Formalization of Employment and Social Security, and their impact.

Coordination of employment policy with economic and social policies. The Committee notes, based on the report of the United Nations Special Rapporteur on contemporary forms of slavery, including its causes and consequences, that “[a]lthough it has witnessed sustained growth in GDP over the past five years, it continues to be affected by significant levels of both poverty and inequality, and is one of the poorest countries in the Latin American region.” The report adds that “while the macroeconomic policy of attracting foreign investment to promote agribusiness (such as soya production and cattle farming) and establishing maquiladoras (manufacturing plants that import and assemble duty-free components for export) bolsters the economy, poverty and inequality continue. The fiscal benefits received by private businesses are not passed on in the form of job creation or social development for poorer communities. The policy aimed at transforming the country into a low-tax haven, with low minimum wages and labour market and administrative flexibility creates a situation whereby forced labour, child labour and hazardous child labour thrive, as many families send their children to work in order to survive. The policy also facilitates labour exploitation and obscures the State’s lack of investment in public policies” (A/HRC/39/52/Add.1, paragraphs 4 and 30). With regard to the implementation of social programmes, the Committee notes the Government’s reference, among other measures, to the implementation of cash transfer programmes with co-responsibility “Tekopora” and “Abrazo”, and the pilot project “Incubating Opportunities Family by Family”, intended for people in extreme poverty. The Committee notes, based on the information available in the ILO technical report of 2018, that in 2016 the “Tekopora” programme covered 700,000 people in poverty. Around half of those covered were children, while responsibility under the programme was assumed in 76 per cent of cases by women and 88 per cent of the participants were in rural areas. Finally, the Committee notes the implementation of the socio-economic programme to support inclusion known as “Tenodera”, which has the objective of providing families with productive, financial and social resources to generate their own incomes. The ILO technical report indicates that in 2016 some 11,540 families participated, in 75 per cent of which responsibility was assumed by women. However, the Committee notes that, according to the report of the United Nations Special Rapporteur, “[s]ocial investment has dropped while structural problems perpetuate discrimination and the marginalization of vulnerable and indigenous peoples, compounding their vulnerability and leading to their entrapment in contemporary forms of slavery” (paragraph 30). The Committee therefore requests the Government to provide information on the measures adopted or envisaged with a view to giving priority to full, productive and freely chosen employment in all growth and development strategies. The Committee also requests the Government to provide detailed information, disaggregated by age, sex and region of the country, on the results achieved in terms of the generation of employment as a result of the implementation of government programmes.

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Articles 1 and 3 of the Convention. Implementation of an active employment policy. Participation of the social partners. The Government indicates in its report that employment is a fundamental instrument for increasing productivity, competitiveness and sustainable development in the country. The Government refers to a revised proposal for a national employment plan which will be submitted to the political, economic and social partners for consideration. The Committee notes the information on the labour market provided by the Government in its report confirming the data in the Economic Survey of Latin America and the Caribbean 2015 published by the Economic Commission for Latin America and the Caribbean (ECLAC). According to ECLAC, despite the growth experienced by the country, employment remained relatively stable in 2013–14. According to the results of the continuous employment survey, in 2014 the average annual employment rate remained at 59.7 per cent and the average open unemployment rate stood at about 8 per cent, including up to the first quarter of 2015. However, in disaggregating the data by gender, ECLAC observed a rise of 1.4 percentage points in the employment rate for men and a similar fall in the same rate for women, giving an unemployment rate of 6.5 per cent for men and 9.9 per cent for women. The Committee requests the Government to continue providing information on the adoption and implementation of the national employment plan and to describe the manner in which account has been taken of the experiences and opinions of the social partners in formulating and implementing employment policy measures. The Committee also requests the Government to continue providing up-to-date information on the situation, level and trends of employment, unemployment and underemployment in both urban and rural areas of the country. The Committee refers to the Transition from the Informal to the Formal Economy Recommendation, 2015 (No. 204), and requests the Government to continue providing information on the scope of the informal economy and on the steps taken in line with its national employment policy to facilitate the transition to the formal economy.

Contribution of the employment service to the promotion of employment. The Government indicates that, in addition to the employment offices operating in Asunción and the metropolitan area, the National Employment Office has signed various cooperation agreements with local governments. A total of 18 offices have opened in the rest of the country and another six will open soon. The Committee requests the Government to continue providing information on the steps taken to improve the quality of job placement and vocational guidance services and extend the coverage of the network of employment offices to the whole of the country.

Coordination of employment policy with economic and social policy. The Committee notes the adoption in 2014 of the National Development Plan 2030. This plan considers employment to be an integral part of inclusive economic growth and also one of the strategies of social policy. The Government indicates that contingency employment plans are being devised for population groups living in extreme poverty who are beneficiaries of the Tekopora and Abrazo programmes (involving cash transfers with joint responsibility) and the Sembrando Oportunidades programme (for combating extreme poverty). These programmes provide for training and employment in public works carried out by the Ministry of Public Works and the National Secretariat for Housing and Habitat, and skills certification in relation to such works. The Government explains that the initial objective is to cater for over 3,000 persons in situations of extreme poverty. The Committee requests the Government to provide information on the results achieved in terms of job creation as a result of the implementation of the government programmes.

Youth employment. The Government indicates that, as a result of ILO technical assistance, vocational counsellors have been equipped to follow up on job placements effected through the National Employment Office. As regards the impact of the “Single window” facility, the Government adds that, since the National Employment Office started to operate, more than 12,000 persons have been catered for and over 3,600 persons have been placed in jobs, of whom 83 per cent are young people between 18 and 29 years of age. The Government adds that regulations are being adopted in relation to the Youth Employment Act (No. 4951/13). The Committee requests the Government to continue providing information on the impact of programmes targeting youth and the “Single window” facility in terms of long-term employment for their beneficiaries. The Committee also requests the Government to provide information on the implementation of the Youth Employment Act and on the extent to which the new contractual arrangements have contributed towards creating productive employment for beneficiaries.

Promotion of small and medium-sized enterprises and promotion of employment. The Government indicates that the National Employment Office and the local offices have a support service for micro-, small and medium-sized enterprises with a view to their formalization and the appropriate selection of staff. With regard to the Job Creation in Small and Medium-Sized Enterprises Recommendation, 1998 (No. 189), the Committee indicated in its General Survey of 2010 concerning employment instruments, paragraph 398, that any measures designed to promote full employment and encourage the creation of productive and sustainable jobs, particularly in small and medium-sized enterprises, should be adopted in consultation with the social partners, under conditions that are socially adequate for all those concerned, and in full conformity with ratified international instruments. The Committee requests the Government once again to include detailed information on the impact of Act No. 4457 on the creation of productive and sustainable jobs. The Committee also requests the Government to indicate the manner in which the legislation in force ensures adequate labour protection for workers in micro-, small and medium-sized enterprises and enables the gradual integration of workers in the informal economy into the formal employment market.

Coordination of training policy with employment opportunities. The Government indicates that the interaction between the Directorate-General of Employment, the National Vocational Promotion Service (SNPP) and the National Vocational Training System (SINAFOCAL) has resulted in improved links with enterprises with a view to identifying the skills required by the priority sectors of the economy. In addition, the Government is ensuring that the coordination between the Ministry of Labour, Employment and Social Security and the Ministry of Industry and Commerce makes it possible to identify in advance the labour profiles that would require future private investment and to arrange the necessary training. The Government adds that the “Programme of training in employment and vocational guidance policies” implemented jointly by the ILO and the Inter-American Development Bank, designed for officials at the Ministry of Labour and local employment offices, is in the initial stage of implementation. The Committee requests the Government to continue providing information on the coordination of education and vocational training policies with employment policies, and specifically on the manner in which the provision of training is coordinated with the demand for the requisite knowledge and skills and the needs of the labour market.

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Implementation of an active employment policy. Participation of the social partners. The Committee takes note of the Government’s detailed report and of the replies it received in September 2012 to the 2011 direct request. With its report, the Government attached an executive summary of the national employment plan that the Ministry of Justice and Labour had submitted to the Technical Planning Secretariat of the Office of the President of the Republic for analysis and approval. Data in the report shows that around 60 per cent of the population of working age made up the economically active population (EAP) and that there was a considerable difference between the rate of activity for men (72.8 per cent) and for women (48.9 per cent). From 2010 to 2011, the EAP increased by 121,203 workers. Unemployment in 2011 stood at 5.6 per cent, compared to 5.7 per cent in 2010 and 6.4 per cent in 2009. Women suffered more from unemployment than men and children between the ages of ten and 14 years tended to enter the labour market early. These children accounted for 12.4 per cent of the economic activity in the country and included some very young children, there being a notable difference between boys (almost 17 per cent) and girls (7.8 per cent). Some 22 per cent of the manpower employed in 2011 suffered from underemployment, most of them being salaried workers engaged for fewer than 30 hours a week and earning less than the legal minimum wage in force. Almost five out of every ten people employed earned an income by selling their goods and services. Most of the workers were engaged in small businesses. Domestic employment accounted for 6.6 per cent of the employed population. The Government indicates that the decline of the employment rate since 2010 could be attributable to the gradual formalization of the labour market. The Committee understands that, in addition to the extent of informal and precarious employment, the main trend that needs to be reversed to improve the labour market situation is that of the number of people employed in the services sector. The Committee again requests the Government in its next report to indicate whether a national employment policy has been adopted and how the experience and views of the social partners were taken into account in the formulation and implementation of the employment policy measures (Articles 1 and 3 of the Convention). The Committee also invites the Government to include information on the progress made in improving the quality of job placement and vocational guidance services and in extending the network of employment offices to the whole country. The Committee invites the Government to include up-to-date data on the situation, level and trend of employment, unemployment and underemployment in both the urban and the rural areas of the country. Please also include specific information on the employment measures taken to address the issue of entry into the labour market of very young children.

Coordination of employment policy with economic and social policy. In response to an earlier request on the results of the Economic and Social Strategic Plan (PEES) 2008–13, the Government states that it has established bases for designing its employment policies, plans and projects. The establishment has also been proposed of a General Directorate of Employment to facilitate the adoption of the state policy on the employment of young people, the Ñamba’apo Paraguay temporary employment programme and the programme for young entrepreneurs. The Committee takes note of the Government’s intention for the future is to maintain progress in strengthening the institutions that already exist and create a Ministry of Labour, Employment and Social Security. The Committee invites the Government to include in its next report information that would allow it to examine the manner in which the Government has succeeded in extending and enhancing the scope of the plans and programmes that have been drawn up and whether it has duly taken into account the objectives of full and productive employment called for in the Convention.

Youth employment. Following on from its earlier comments, the Government provides information on the initiatives taken by the National Round Table for the Generation of Youth Employment under whose auspices the national youth employment policy and plan were adopted. The Committee notes that Presidential Decree No. 8620 of 19 March 2012 approved the youth employment policy and authorized the implementation of the National Youth Employment Plan 2011–20, whose objective is to adopt measures to enable young people to build themselves a future in decent work. The Committee takes note of the observations of the National Confederation of Workers (CNT) and the Central Confederation of Workers–Authentic (CUT–A), which were transmitted to the Government in May 2013, voicing the trade unions’ concern with the bill’s contents. The Committee also notes that the Youth Employment Act No. 4951 was adopted on 20 June 2013. The Committee invites the Government to include in its next report information on the projects’ impact on the long-term insertion in the labour market of the young people who took part in them. Specifically, the Committee would like to examine up-to-date information on the impact that the Programme for Young Entrepreneurs and the Ventanilla Única have had in enabling young people to find decent and productive work. The Committee also invites the Government to include in its next report information on the application of the Youth Employment Act in practice and on the extent to which the new contractual arrangements have contributed to creating productive employment for their beneficiaries.

Promotion of small and medium-sized enterprises and promotion of employment. The Committee notes the observations of the CNT and CUT–A expressing their concerns about Act No. 4457, promulgated on 16 May 2012, which established a set of regulations to promote the creation, development and competitiveness of micro-, small and medium-sized enterprises and to integrate them into the formal goods and services production structure. According to the two confederations, Act No. 4457 leaves around 60 per cent of the employed population without any kind of protection in their jobs and in some instances allows the guarantees conferred by the general labour legislation not to be applied. In its examination of the Job Creation in Small and Medium-Sized Enterprises Recommendation, 1998 (No. 189), the Committee has expressed that any measure to promote full employment and the creation of productive and sustainable jobs, notably in small and medium-sized enterprises, should be adopted only after consultation with the social partners, in circumstances that are socially acceptable to all the interested parties and in full compliance with ratified international instruments. The Committee has also referred to the conclusions concerning the promotion of sustainable enterprises adopted in June 1997 in which the Conference urged all enterprises, irrespective of size, to apply workplace practices based on full respect for fundamental principles and rights at work and international labour standards (General Survey concerning employment instruments, 2010, paragraphs 398–399). The Committee requests the Government in its next report to include detailed information on the impact that Act No. 4457 has had on the creation of productive and sustainable jobs. The Committee invites the Government to indicate how the legislation in force ensures adequate labour protection for workers in micro-, small and medium-sized enterprises and permits the gradual integration of informal economy workers into the formal labour market.

Coordination of training policy with employment opportunities. The Government reiterates that it is pursuing its efforts to facilitate social dialogue and coordination of the institutions responsible for formal education and for vocational training. The Committee takes note of the proposal to create a General Training and Employment Council and that a proposed legislation to regulate technical and vocational education is being examined. In its previous comments the Committee took note of the Government’s intention to combine the National Vocational Promotion Service (SNPP) with the National Vocational Training System (SINAFOCAL) so as to avoid duplication and ensure coordination with the Ministry of Education and Culture. The Committee once again invites the Government in its report to include up-to-date information on the coordination of education and vocational training policies with employment policies, and especially on how the supply of training is coordinated with the demand for knowledge and skills and the needs of the labour market.

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Implementation of an active employment policy. The Committee notes the detailed information sent by the Government in a report received in August 2010 in reply to the observation of 2009. The Government indicates that a National Employment Plan is being drawn up in the context of the Inter-American Development Bank project to promote a programme of reinvestment. The objective of the National Employment Plan is to cater for vulnerable groups and give special attention to gender issues. According to the 2009 National Household Survey (EPH), the economically active population numbered 3,163,241 persons. The open unemployment rate stood at 6.4 per cent (202,298 persons), with women worse affected than men (7.8 and 5.5 per cent, respectively). Despite a slight decrease of 1.4 per cent by comparison with 2008, a total of 8.2 per cent (259,602 persons) of the economically active population were in a situation of visible underemployment, while 16.9 per cent (533,717 persons) were affected by invisible underemployment. The Committee notes the content of the Draft Public Social Development Policy 2010–20 (“Paraguay for All”), whose objectives include the design and promotion of mechanisms to create decent work in a sustained manner. Specific proposals include designing and implementing public services and instruments which promote equal opportunities in the context of a national employment policy, promoting public–private coordination in the area of training, developing and implementing suitable measures to promote and reinforce micro-, small and medium-sized enterprises and adapting and implementing the regulatory framework for employment. The Government states that, in the context of the Decent Work Country Programme 2009, the “Campaign for decent work and employment promotion” has been in the process of development in collaboration with workers’ organizations with a view to creating employment. The Committee notes that the social partners form part of discussion forums such as the National Round Table for the Generation of Youth Employment and the Tripartite Committee for Monitoring the Decent Work Agreement. The Government mentions that, further to a technical visit to the Brazilian Ministry of Labour and Employment, it is intended to establish tripartite bodies to provide advice and support and undertake supervision and evaluation. The Committee requests the Government to include information in its next report on the adoption of the National Employment Plan. The Committee would also be interested in information on the impact of the “Campaign for decent work and employment promotion” as regards generating productive, high-quality employment. The Committee requests the Government to include information in its report on the situation, level and trends of employment, unemployment and underemployment in both urban and rural areas of the country.

Coordination of employment policy with economic and social policy. The Committee notes the Economic and Social Strategic Plan (PEES) 2008–13 aimed at establishing a system for coordinating the various public policies and implementing the economic growth strategy in the medium term. The objectives of the PEES include continuing the pursuit of economic growth with more job creation and better income distribution, and promoting the participation of civil society and the private sector in the economy to strengthen small and medium-sized enterprises, especially small agricultural holdings, increasing their competitive capacity. Other goals include boosting infrastructure development, increasing competitiveness and improving the climate for business and investment in order to create employment and reduce poverty. The Committee notes the Government’s intention to promote the participation of the peasant farming sector by strengthening the social and community fabric. The Committee requests the Government to include information in its next report on the manner in which the goal of full employment has been taken into account in the formulation of strategic plans such as the PEES. The Government is also requested to indicate whether difficulties have been encountered in achieving the employment goals established in the context of the PEES.

Strengthening of employment services. The Committee notes the Government’s statement that the National Employment Service (SNE) is being reinforced and consolidated with a view to the ratification of the Employment Service Convention, 1948 (No. 88). Moreover, the Government reports on the implementation phase of the “Project to strengthen public employment policies”, which involves collaboration from the Spanish Agency for International Development Cooperation (AECID). The Government is seeking to implement active public employment policies aimed at improving job placement through vocational guidance, information and training activities. Six new employment offices will be opened in various departments. The Committee recalls that the Conventions relating to employment services (the Employment Service Convention, 1948 (No. 88), and the Private Employment Agencies Convention, 1997 (No. 181), promote the creation of the necessary structures to sustain full employment (see Chapter III of the 2010 General Survey concerning employment instruments). The Committee requests the Government to include information in its next report on progress made in the context of the “Project to strengthen public employment policies” to improve the quality of job placement and guidance services and extend the network of employment offices to cover the whole country.

Youth employment. The Government indicates that almost 60 per cent of the population is under 30 years of age. The open unemployment rate for young persons between 15 and 24 years of age was 13.4 per cent for men and 17.9 per cent for women. The Committee notes the establishment in September 2008, with technical assistance from the ILO, of the National Round Table for the Generation of Youth Employment. In addition, preparatory work for a Youth Employment Bill and a youth employment strategy is in progress. The Committee requests the Government to indicate in its next report the impact of the new legislation relating to youth employment and the measures taken to provide young persons with decent and productive work.

Poverty reduction and vulnerable groups. The Government indicates that the most vulnerable social collectives are concentrated in family-run agricultural undertakings and micro- and small enterprises. According to the statistical information in the report, 66 per cent of the population works in enterprises employing between two and five persons. The development of these productive units and the better incorporation thereof in markets represent key aspects of a growth strategy that seeks to reduce poverty indices and improve the quality of life for all. The Committee also notes the “Namba’apo Paraguay” programme, the objective of which is to support workers in vulnerable situations so that they can refresh their skills and find decent employment. The Committee requests the Government to include information in its next report on the actions aimed at generating high-quality jobs among the sections of the population that face major difficulties in finding and retaining employment.

Coordination of training policy with employment opportunities. The Government indicates that it intends to reform the system of technical and vocational training, gearing its activities to demand for capacity in the private sector. Moreover, it is planned to unify the National Vocational Promotion Service (SNPP) and the National Vocational Training System (SINAFOCAL) to avoid duplication and ensure coordination with the Ministry of Education and Culture. The Committee requests the Government to include information on the coordination of education and training policies with employment policies, especially on how the supply of training is coordinated with the demand for knowledge and skills and the needs of the labour market.

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The Committee notes the detailed document prepared by the National Employment Service, received in September 2009, in reply to its previous comments.

Articles 1, 2 and 3 of the Convention. Implementation of an active employment policy. The Government provides detailed statistics on employment characteristics and developments in Paraguay. In 2008, the period of relative economic growth continued, while both the economically active population and the rate of unemployment remained at similar levels to those of 2007 (69.5 per cent and 5.6 per cent respectively). The population of working age registered sustained growth between 2003 and 2008 (increasing from 62.9 per cent to 66.2 per cent) and unemployment among young persons aged between 15 and 19 years (13.6 per cent) and between 20 and 24 years (10.2 per cent) is considerably higher than in other groups, confirming the trend of previous years. The Government indicates that since August 2008, based on the new guidelines of the government plan, the generation of permanent employment has been considered as a means of reducing extreme poverty. A National Employment Plan has been drawn up with advice from the Inter-American Development Bank and efforts are being made to strengthen the National Employment Service (SNE), which devises, implements and oversees employment policy. A new organizational structure for the SNE has been proposed to provide it with a network of employment offices, a section responsible for vocational training, a labour observatory and a planning division. The Committee notes the Decent Work Country Programme, approved by tripartite agreement in February 2009, which includes the priorities of formulating and implementing an employment strategy and generating employment through public investment. The Committee also notes that the Ministry of Justice and Labour’s Strategic Plan for 2008–13 includes decent work as one of the areas to be addressed. The Committee requests the Government to include information in its next report on the results achieved through the implementation of the National Employment Plan and the Decent Work Country Programme in achieving the objective of full and productive employment set out in the Convention. The Committee also requests the Government to include quantitive information in its report on the activities of the National Employment Service. Please also indicate the manner in which it has been ensured that the social partners and the representatives of other groups concerned, such as workers in the rural sector and the informal economy, participate in the formulation and implementation of employment policies.

Regional dimension of employment policy. The Committee notes the information included in the report concerning the agreement reached by the Ministers of Labour of the MERCOSUR countries during Paraguay’s Presidency. At the 98th Session of the Conference (June 2009), MERCOSUR expressed its support for the Global Jobs Pact agreeing to maintain the MERCOSUR Employment Growth Strategy (GAN Empleo) as devised by the High-level Employment Group. The Committee notes with interest the declaration signed on 17 June 2009 by the Ministers of Labour of the MERCOSUR countries on the protection of employment against the crisis, which asserts “the right to work as a fundamental human right generating both social and economic wealth in harmony with productive capital”. The MERCOSUR initiatives include proposals to expand unemployment protection systems; link the extension of social protection to employment with training activities; develop measures to protect and formalize jobs with the agreement of employers and trade unions to prevent the crisis from having a negative impact on workers; strengthen the institutional framework of public employment services by promoting their coordination in the region; support and strengthen employment programmes for vulnerable groups, especially young persons; and support the operation of micro and small enterprises and individual undertakings. The Committee requests the Government to continue providing information on the manner in which the MERCOSUR initiatives aimed at promoting active employment policies within the meaning of the Convention have been implemented.

Youth employment. The Committee also notes that, with ILO assistance, the National Round Table for the Generation of Youth Employment has been established. The Round Table is an inter-institutional tripartite body encompassing various legislative and policy initiatives aimed at increasing job opportunities for young persons. The initiatives include the establishment of departmental committees in all regions, the proposal for a comprehensive labour integration system, the identification of vulnerable groups and the establishment of tripartite bodies to ensure the implementation of the policies. The National Committee drew up a bill on the integration of young persons into the labour market which provides for the integration into employment of young persons aged between 18 and 29 years through training, work placements, work scholarships, starter employment contracts and part-time contracts. The Committee requests the Government to include information in its next report on the impact of the decisions of the National Committee for the Generation of Youth Employment, including information on the adoption of the draft legislation designed to promote the productive employment of young persons.

Coordination of employment policy with education and vocational training policies. The Committee notes with interest the participation of the Ministry of Education and Culture in the National Committee for the Generation of Youth Employment, which has in turn established a vocational training, education and labour committee. The working group on rules relating to vocational training has received support from the ILO. The Committee notes that the working group refers to the overlap between the efforts of the bodies under the Ministry of Justice and Labour responsible for training (the National Vocational Promotion Service and the National Vocational Training System). The working group also mentions the lack of coordination of both bodies with the Ministry of Education and Culture. The Committee reiterates its interest in receiving information on the efforts made to improve the coordination of education and vocational training policies with employment policy.

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The Committee notes that the Government’s report has not been received. It hopes that a report will be supplied for examination by the Committee at its next session and that it will contain full information on the matters raised in its previous direct request, which read as follows:

1. Implementation of an active employment policy. The Committee notes the Government’s report received in March 2006 indicating that in July and August 2005 technical tripartite meetings were held to discuss the text of the proposed employment policy formulated by the Government. The agreed text of the principal elements of the employment policy appear to be consistent with the objectives set out in the Convention. The Committee refers to its previous comments and requests the Government to provide information in its next report on the results achieved in terms of the generation of productive employment through the policies agreed by the social partners. The Committee also requests the Government to provide information in its next report on the manner in which the objectives of full employment were taken into account in the formulation of the economic and social policy. Furthermore, the Committee would be grateful to continue receiving information on the experience of the social partners in Paraguay with regard to the application of the Convention, in particular where representatives of the rural sector and the informal economy have been included in the consultations required by the Convention (Articles 1, 2 and 3 of the Convention).

2. The Committee notes the information on the situation, level and trends of employment provided by the Government in its report: the labour participation rate was 63 per cent in 2004, and the open unemployment rate amounted to 7.3 per cent of the population (8.1 per cent in 2003). Underemployment affects 24 per cent of the population, with underemployment in the country being augmented by badly paid jobs. Open unemployment affects in particular the population category between 15 and 19 years of age, and especially young women (22.1 per cent of the young female population is actively seeking employment). The Government indicates that these proportions remain high until the age of 29 years, when eight out of every 100 persons is unemployed. The Committee would be grateful to be able to continue examining in the Government’s next report statistical data such as those required by the report form for the Convention through which it is possible to assess the manner in which the measures adopted under the agreed employment policy orientations have improved the employment prospects of women and young persons seeking productive employment.

3. Coordination of employment policy with education and vocational training policies. The Committee notes the information provided on the training activities for micro-entrepreneurs carried out in 2004–05 by the National Vocational Training System and the National Vocational Promotion Service. The Government also provided information in its report on the initiatives taken to promote dual apprenticeship for young persons. The Committee requests the Government to continue providing information in its next report on the programmes and projects undertaken to ensure the coordination of education and vocational training policies with employment policy, which is essential if each worker is to have every opportunity to acquire the necessary training to find suitable employment and to use their training and skills in such employment.

4. ILO technical cooperation. The Committee notes with interest that, in the context of a project for the harmonization and comparability of labour indicators in MERCOSUR, implemented with ILO support, a conceptual and methodological revision has been undertaken of the measurement of labour indicators in MERCOSUR countries with a view to defining a set of harmonized labour market indicators. The Committee would be grateful if the Government would provide information in its next report on the initiatives supported by the ILO to promote, at both the national and subregional levels, the objectives of reducing poverty and creating productive employment (Part V of the report form).

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1. Implementation of an active employment policy. The Committee notes the Government’s report received in March 2006 indicating that in July and August 2005 technical tripartite meetings were held to discuss the text of the proposed employment policy formulated by the Government. The agreed text of the principal elements of the employment policy appear to be consistent with the objectives set out in the Convention. The Committee refers to its previous comments and requests the Government to provide information in its next report on the results achieved in terms of the generation of productive employment through the policies agreed by the social partners. The Committee also requests the Government to provide information in its next report on the manner in which the objectives of full employment were taken into account in the formulation of the economic and social policy. Furthermore, the Committee would be grateful to continue receiving information on the experience of the social partners in Paraguay with regard to the application of the Convention, in particular where representatives of the rural sector and the informal economy have been included in the consultations required by the Convention (Articles 1, 2 and 3 of the Convention).

2. The Committee notes the information on the situation, level and trends of employment provided by the Government in its report: the labour participation rate was 63 per cent in 2004, and the open unemployment rate amounted to 7.3 per cent of the population (8.1 per cent in 2003). Underemployment affects 24 per cent of the population, with underemployment in the country being augmented by badly paid jobs. Open unemployment affects in particular the population category between 15 and 19 years of age, and especially young women (22.1 per cent of the young female population is actively seeking employment). The Government indicates that these proportions remain high until the age of 29 years, when eight out of every 100 persons is unemployed. The Committee would be grateful to be able to continue examining in the Government’s next report statistical data such as those required by the report form for the Convention through which it is possible to assess the manner in which the measures adopted under the agreed employment policy orientations have improved the employment prospects of women and young persons seeking productive employment.

3. Coordination of employment policy with education and vocational training policies. The Committee notes the information provided on the training activities for micro-entrepreneurs carried out in 2004-05 by the National Vocational Training System and the National Vocational Promotion Service. The Government also provided information in its report on the initiatives taken to promote dual apprenticeship for young persons. The Committee requests the Government to continue providing information in its next report on the programmes and projects undertaken to ensure the coordination of education and vocational training policies with employment policy, which is essential if each worker is to have every opportunity to acquire the necessary training to find suitable employment and to use their training and skills in such employment.

4. ILO technical cooperation. The Committee notes with interest that, in the context of a project for the harmonization and comparability of labour indicators in MERCOSUR, implemented with ILO support, a conceptual and methodological revision has been undertaken of the measurement of labour indicators in MERCOSUR countries with a view to defining a set of harmonized labour market indicators. The Committee would be grateful if the Government would provide information in its next report on the initiatives supported by the ILO to promote, at both the national and subregional levels, the objectives of reducing poverty and creating productive employment (Part V of the report form).

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The Committee notes with regret that the Government’s report has not been received. It hopes that a report will be supplied for examination by the Committee at its next session and that it will contain full information on the matters raised in its 2002 direct request, which read as follows:

1. Articles 1 and 2 of the Convention. The Committee notes the Government’s report in which it recognizes the need to establish conditions for the creation of good quality jobs and productive activities which guarantee the population improved income and social protection. The Government also refers to an occupational training programme carried out by the Ministry of Justice and Labour (with the support of the Inter-American Development Bank) and the restructuring of the National Vocational Promotion Service, with the establishment of a National System of Vocational Training. The Committee hopes that in its next report the Government will provide information on the results achieved in terms of the creation of productive employment by the above programmes, as well as the results of the training programme for micro-entrepreneurs and the employment programme for young persons seeking their first job.

2. The Committee recalls that the compilation and analysis of statistical information has to serve as a basis for the adoption of employment policy measures. The Committee once again requests information on the situation, level and trends of employment, unemployment and underemployment throughout the country and the extent to which they affect the most vulnerable categories of workers (such as women, young persons and rural workers), who often encounter the greatest difficulties in finding lasting employment.

3. Article 3. The Committee notes with interest that, within the context of the Tripartite Council for Social Dialogue, committees have been set up (on state reform, employment and wages, investment and financial policy, social policy) in areas directly related to the application of the Convention. The Committee hopes that in its next report the Government will supply information on the manner in which the work of the Tripartite Council for Social Dialogue has contributed to the declaration and perusal of an active policy designed to promote full and productive employment, as required by the Convention.

4. Part V of the report form. The Committee notes that the ILO is participating in a support programme for the development of a national strategy to reduce poverty in the social and labour field. According to the information available for 1999, some 33.7 per cent of the population live in poverty and 15.5 per cent are in conditions of extreme poverty. The Committee hopes that the Government will also include information in its next report on the action taken as a result of the assistance received from the Office with a view to reducing poverty and creating productive employment.

CMNT_TITLE

The Committee notes that the Government’s report has not been received. It hopes that a report will be supplied for examination by the Committee at its next session and that it will contain full information on the matters raised in its 2002 direct request, which read as follows:

1. Articles 1 and 2 of the Convention. The Committee notes the Government’s report in which it recognizes the need to establish conditions for the creation of good quality jobs and productive activities which guarantee the population improved income and social protection. The Government also refers to an occupational training programme carried out by the Ministry of Justice and Labour (with the support of the Inter-American Development Bank) and the restructuring of the National Vocational Promotion Service, with the establishment of a National System of Vocational Training. The Committee hopes that in its next report the Government will provide information on the results achieved in terms of the creation of productive employment by the above programmes, as well as the results of the training programme for micro-entrepreneurs and the employment programme for young persons seeking their first job.

2. The Committee recalls that the compilation and analysis of statistical information has to serve as a basis for the adoption of employment policy measures. The Committee once again requests information on the situation, level and trends of employment, unemployment and underemployment throughout the country and the extent to which they affect the most vulnerable categories of workers (such as women, young persons and rural workers), who often encounter the greatest difficulties in finding lasting employment.

3. Article 3. The Committee notes with interest that, within the context of the Tripartite Council for Social Dialogue, committees have been set up (on state reform, employment and wages, investment and financial policy, social policy) in areas directly related to the application of the Convention. The Committee hopes that in its next report the Government will supply information on the manner in which the work of the Tripartite Council for Social Dialogue has contributed to the declaration and perusal of an active policy designed to promote full and productive employment, as required by the Convention.

4. Part V of the report form. The Committee notes that the ILO is participating in a support programme for the development of a national strategy to reduce poverty in the social and labour field. According to the information available for 1999, some 33.7 per cent of the population live in poverty and 15.5 per cent are in conditions of extreme poverty. The Committee hopes that the Government will also include information in its next report on the action taken as a result of the assistance received from the Office with a view to reducing poverty and creating productive employment.

CMNT_TITLE

The Committee notes that the Government’s report has not been received. It hopes that a report will be supplied for examination by the Committee at its next session and that it will contain full information on the matters raised in its 2002 direct request, which read as follows.

1. Articles 1 and 2 of the Convention. The Committee notes the Government’s report in which it recognizes the need to establish conditions for the creation of good quality jobs and productive activities which guarantee the population improved income and social protection. The Government also refers to an occupational training programme carried out by the Ministry of Justice and Labour (with the support of the Inter-American Development Bank) and the restructuring of the National Vocational Promotion Service, with the establishment of a National System of Vocational Training. The Committee hopes that in its next report the Government will provide information on the results achieved in terms of the creation of productive employment by the above programmes, as well as the results of the training programme for micro-entrepreneurs and the employment programme for young persons seeking their first job.

2. The Committee recalls that the compilation and analysis of statistical information has to serve as a basis for the adoption of employment policy measures. The Committee once again requests information on the situation, level and trends of employment, unemployment and underemployment throughout the country and the extent to which they affect the most vulnerable categories of workers (such as women, young persons and rural workers), who often encounter the greatest difficulties in finding lasting employment.

3. Article 3. The Committee notes with interest that, within the context of the Tripartite Council for Social Dialogue, committees have been set up (on state reform, employment and wages, investment and financial policy, social policy) in areas directly related to the application of the Convention. The Committee hopes that in its next report the Government will supply information on the manner in which the work of the Tripartite Council for Social Dialogue has contributed to the declaration and pursual of an active policy designed to promote full and productive employment, as required by the Convention.

4. Part V of the report form. The Committee notes that the ILO is participating in a support programme for the development of a national strategy to reduce poverty in the social and labour field. According to the information available for 1999, some 33.7 per cent of the population live in poverty and 15.5 per cent are in conditions of extreme poverty. The Committee hopes that the Government will also include information in its next report on the action taken as a result of the assistance received from the Office with a view to reducing poverty and creating productive employment.

CMNT_TITLE

1. Articles 1 and 2 of the Convention. The Committee notes the Government’s report in which it recognizes the need to establish conditions for the creation of good quality jobs and productive activities which guarantee the population improved income and social protection. The Government also refers to an occupational training programme carried out by the Ministry of Justice and Labour (with the support of the Inter-American Development Bank) and the restructuring of the National Vocational Promotion Service, with the establishment of a National System of Vocational Training. The Committee hopes that in its next report the Government will provide information on the results achieved in terms of the creation of productive employment by the above programmes, as well as the results of the training programme for micro-entrepreneurs and the employment programme for young persons seeking their first job.

2. The Committee recalls that the compilation and analysis of statistical information has to serve as a basis for the adoption of employment policy measures. The Committee once again requests information on the situation, level and trends of employment, unemployment and underemployment throughout the country and the extent to which they affect the most vulnerable categories of workers (such as women, young persons and rural workers), who often encounter the greatest difficulties in finding lasting employment.

3. Article 3. The Committee notes with interest that, within the context of the Tripartite Council for Social Dialogue, committees have been set up (on state reform, employment and wages, investment and financial policy, social policy) in areas directly related to the application of the Convention. The Committee hopes that in its next report the Government will supply information on the manner in which the work of the Tripartite Council for Social Dialogue has contributed to the declaration and pursual of an active policy designed to promote full and productive employment, as required by the Convention.

4. Part V of the report form. The Committee notes that the ILO is participating in a support programme for the development of a national strategy to reduce poverty in the social and labour field. According to the information available for 1999, some 33.7 per cent of the population live in poverty and 15.5 per cent are in conditions of extreme poverty. The Committee hopes that the Government will also include information in its next report on the action taken as a result of the assistance received from the Office with a view to reducing poverty and creating productive employment.

CMNT_TITLE

The Committee notes that the Government's report has not been received. It must therefore once again take up the following points which it raised in its earlier comments:

1. The Committee would be grateful if the Government would specify in its next report if there have been particular difficulties in reaching the employment objectives set out in the development programme for 1994-98, and indicate to what extent these difficulties have been overcome. It would greatly appreciate information on the situation, level and trends in employment, unemployment and underemployment in the country as a whole and on the extent to which it affects particular categories of workers such as women, young people, indigenous people and rural workers, and how those workers were affected by industrial restructuring processes.

2. The Committee previously noted with interest the progress made in applying Article 3 of the Convention which lays down that representatives of the persons affected should be consulted concerning the measures to be taken to promote the objectives of full, productive and freely chosen employment. It would be particularly useful in labour markets such as that of Paraguay if the consultations required under the Convention took place with representatives of workers from the informal and rural sectors and if their participation were envisaged in the formal consultation machinery. The Committee would be grateful if the Government would include indications on any progress made in this matter in its next report.

3. The Committee asks the Government to provide information on specific developments in the activities of the National Employment Service, the Programme of Associated Young Persons Enterprises and the National Service for Vocational Promotion in order to ensure that workers who have benefited from the programmes can gain access to the labour market and find lasting employment.

4. The Committee refers to the report form for Article 2 of the Convention which requests information on the measures taken to collect and analyse statistical and other data concerning the size and distribution of the labour force, the nature and extent of unemployment and trends therein. Given that the collection and analysis of statistical data must be the basis of any employment policy measures, the Committee trusts that the Government will make every effort to obtain the employment data required for the development and implementation of an employment policy within the meaning of the Convention.

5. The Committee would be grateful if the Government would include in its report comprehensive data on any employment promotion measures adopted by the Institute of Rural Welfare which would allow it to assess the manner in which the Convention is being applied in the rural sector and with regard to the indigenous peoples.

6. The Committee would be grateful if the Government would also provide data on the role of the informal sector in the creation of productive and lasting employment, as well as information on the progress made in including independent and self-employed workers in the modern sector of the economy.

The Committee trusts that the Government will provide a detailed report containing the information requested above and any other information which the Government may consider useful. At the same time, the Committee takes note of the communication of the American Secretariat of the World Federation of Trade Unions (WFTU) containing the views of the Paraguay Union of Journalists on dismissals that jeopardize employment. The Office in November 1998 transmitted these observations to the Government. The Committee hopes that the Government in its next report will provide its own comments on the questions raised by the WFTU and their impact on employment policy.

CMNT_TITLE

Referring to its observation, the Committee would be grateful if the Government would include information on the following points in its next detailed report on the application of the Convention.

1. The Committee notes that most of the data on employment sent by the Government in its report concerns the Central Department and the metropolitan area of Asunción. Furthermore, the unemployment rate estimated from the study carried out by the Department of Social and Economic Research of the Faculty of Economy is only 8.6 per cent compared with 14.4 per cent estimated by PREALC on the basis of econometric projections. The Committee refers to the report form for Article 2 of the Convention which calls for indications on the measures taken to collect and analyse statistical and other data concerning the size and distribution of the labour force, the nature and extent of unemployment and underemployment and trends therein. Given that the collection and analysis of statistical information must serve as the basis for adopting measures on employment policy, the Committee trusts that the Government will make every effort in its power to provide this information on employment which is required in order to formulate and implement an employment policy within the meaning of the Convention.

2. The Committee notes that an aggressive agrarian reform policy is being carried out through the Institute for Rural Welfare which grants and regularizes land holding in the rural sector. Small rural holdings are also being financed. The Government is requested to include complete data on this matter enabling the Committee to assess the manner in which application of the Convention in the rural sector and with respect to indigenous peoples is promoted.

3. The Government indicates that, like other Latin American countries, the trend already observed more than a decade ago is accentuating: micro-enterprises in the informal sector and small and medium-sized enterprises in the formal sector absorb the greater part of the labour force. The Government adds that the role of the small enterprise as a generator of income and a source of employment for the labour force is both important and traditional. The Committee would be grateful if the Government would continue to supply data on the participation of the informal sector in the generation of productive and lasting employment and the results achieved in integrating independent and self-employed workers in the modern sector of the economy.

CMNT_TITLE

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

1. The Committee notes the Government's report received in January 1995. The Government indicates that the labour market has been gradually modernizing at a slow but steady pace which is reflected positively in the reduction of self-employed workers and an increase in the number of wage-earners. The national level of unemployment is relatively low but underemployment affects some 48 per cent of the labour force and constitutes "the main problem on the labour market". The reasons for underemployment are demographic and economic, since the economic infrastructure of the formal sector cannot satisfy job demands adequately and the informal sector serves as a refuge for a large percentage of the labour force. Since underemployment has a greater effect on workers in the rural sector, the Government's efforts are concentrated in this area. An economic and social development programme for 1994-98 has the target of creating jobs in more productive activities, increasing productivity and income in backward activities (small urban businesses and micro-businesses and small rural producers), and the broadening of the job security network. The Committee would be grateful if the Government would specify in its next report if there have been particular difficulties in reaching the employment objectives set out in this programme and indicate to what extent these difficulties have been overcome. It would greatly appreciate information on the situation, level and trends in employment, unemployment and underemployment in the country as a whole and on the extent to which it affects particular categories of workers such as women, young people, indigenous people and rural workers who have difficulty in finding lasting employment and how those workers are affected by industrial restructuring processes.

2. With reference to the comments its has been making for several years, the Committee notes that information has been included in the report on a policy of dialogue and consultation promoted by the Ministry of Justice and Labour. A tripartite negotiating board has been set up whose central themes are wages, the formulation and proposal of employment programmes, and social security. The Committee welcomes this progress in the application of Article 3 of the Convention which lays down that representatives of the persons affected shall be consulted concerning the measures to be taken to promote the objectives of full, productive and freely chosen employment. It would be particularly useful for a labour market such as that described by the Government that the consultations required under the Convention should also take place with representatives of workers from the informal and rural sectors and that their participation might be envisaged in the formal consultation machinery mentioned in the report. The Committee would be grateful if the Government would include indications on any new progress made in this matter.

3. In reply to previous comments, the Government states that its prime objective is the development of human resources through training and improvement of employment opportunities. Workers are offered free vocational guidance and training services by the National Employment Service, the Programme of Associated Young Persons Enterprises and the National Service for Vocational Promotion. The Government states that these efforts claim not only to coordinate occupational training policies and activities with real employment prospects but also to ensure that young people in particular and workers in general achieve effective integration into the labour market with a lasting job and/or full productive activity where they can develop to the maximum their potential, as required in Convention No. 122, Convention No. 142 and Recommendation No. 150 on the development of human resources, 1975. The Committee requests the Government to continue supplying information on specific developments in the activities mentioned above in order to ensure that workers who have benefited from the programmes can access the labour market and find lasting employment.

4. In a direct request, the Committee is asking the Government certain questions on other aspects of the application of the Convention related to compilation and analysis of statistics, rural employment and employment in the informal sector.

CMNT_TITLE

Referring to its observation, the Committee would be grateful if the Government would include information on the following points in its next detailed report on the application of the Convention.

1. The Committee notes that most of the data on employment sent by the Government in its report concerns the Central Department and the metropolitan area of Asunción. Furthermore, the unemployment rate estimated from the study carried out by the Department of Social and Economic Research of the Faculty of Economy is only 8.6 per cent compared with 14.4 per cent estimated by PREALC on the basis of econometric projections. The Committee refers to the report form for Article 2 of the Convention which calls for indications on the measures taken to collect and analyse statistical and other data concerning the size and distribution of the labour force, the nature and extent of unemployment and underemployment and trends therein. Given that the collection and analysis of statistical information must serve as the basis for adopting measures on employment policy, the Committee trusts that the Government will make every effort in its power to provide this information on employment which is required in order to formulate and implement an employment policy within the meaning of the Convention.

2. The Committee notes that an aggressive agrarian reform policy is being carried out through the Institute for Rural Welfare which grants and regularizes land holding in the rural sector. Small rural holdings are also being financed. The Government is requested to include complete data on this matter enabling the Committee to assess the manner in which application of the Convention in the rural sector and with respect to indigenous peoples is promoted.

3. The Government indicates that, like other Latin American countries, the trend already observed more than a decade ago is accentuating: micro-enterprises in the informal sector and small and medium-sized enterprises in the formal sector absorb the greater part of the labour force. The Government adds that the role of the small enterprise as a generator of income and a source of employment for the labour force is both important and traditional. The Committee would be grateful if the Government would continue to supply data on the participation of the informal sector in the generation of productive and lasting employment and the results achieved in integrating independent and self-employed workers in the modern sector of the economy.

CMNT_TITLE

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

1. The Committee notes the Government's report received in January 1995. The Government indicates that the labour market has been gradually modernizing at a slow but steady pace which is reflected positively in the reduction of self-employed workers and an increase in the number of wage-earners. The national level of unemployment is relatively low but underemployment affects some 48 per cent of the labour force and constitutes "the main problem on the labour market". The reasons for underemployment are demographic and economic, since the economic infrastructure of the formal sector cannot satisfy job demands adequately and the informal sector serves as a refuge for a large percentage of the labour force. Since underemployment has a greater effect on workers in the rural sector, the Government's efforts are concentrated in this area. An economic and social development programme for 1994-98 has the target of creating jobs in more productive activities, increasing productivity and income in backward activities (small urban businesses and micro-businesses and small rural producers), and the broadening of the job security network. The Committee would be grateful if the Government would specify in its next report if there have been particular difficulties in reaching the employment objectives set out in this programme and indicate to what extent these difficulties have been overcome. It would greatly appreciate information on the situation, level and trends in employment, unemployment and underemployment in the country as a whole and on the extent to which it affects particular categories of workers such as women, young people, indigenous people and rural workers who have difficulty in finding lasting employment and how those workers are affected by industrial restructuring processes.

2. With reference to the comments its has been making for several years, the Committee notes that information has been included in the report on a policy of dialogue and consultation promoted by the Ministry of Justice and Labour. A tripartite negotiating board has been set up whose central themes are wages, the formulation and proposal of employment programmes, and social security. The Committee welcomes this progress in the application of Article 3 of the Convention which lays down that representatives of the persons affected shall be consulted concerning the measures to be taken to promote the objectives of full, productive and freely chosen employment. It would be particularly useful for a labour market such as that described by the Government that the consultations required under the Convention should also take place with representatives of workers from the informal and rural sectors and that their participation might be envisaged in the formal consultation machinery mentioned in the report. The Committee would be grateful if the Government would include indications on any new progress made in this matter.

3. In reply to previous comments, the Government states that its prime objective is the development of human resources through training and improvement of employment opportunities. Workers are offered free vocational guidance and training services by the National Employment Service, the Programme of Associated Young Persons Enterprises and the National Service for Vocational Promotion. The Government states that these efforts claim not only to coordinate occupational training policies and activities with real employment prospects but also to ensure that young people in particular and workers in general achieve effective integration into the labour market with a lasting job and/or full productive activity where they can develop to the maximum their potential, as required in Convention No. 122, Convention No. 142 and Recommendation No. 150 on the development of human resources, 1975. The Committee requests the Government to continue supplying information on specific developments in the activities mentioned above in order to ensure that workers who have benefited from the programmes can access the labour market and find lasting employment.

4. In a direct request, the Committee is asking the Government certain questions on other aspects of the application of the Convention related to compilation and analysis of statistics, rural employment and employment in the informal sector.

CMNT_TITLE

Referring to its observation, the Committee would be grateful if the Government would include information on the following points in its next detailed report on the application of the Convention.

1. The Committee notes that most of the data on employment sent by the Government in its report concerns the Central Department and the metropolitan area of Asunción. Furthermore, the unemployment rate estimated from the study carried out by the Department of Social and Economic Research of the Faculty of Economy is only 8.6 per cent compared with 14.4 per cent estimated by PREALC on the basis of econometric projections. The Committee refers to the report form for Article 2 of the Convention which calls for indications on the measures taken to collect and analyse statistical and other data concerning the size and distribution of the labour force, the nature and extent of unemployment and underemployment and trends therein. Given that the collection and analysis of statistical information must serve as the basis for adopting measures on employment policy, the Committee trusts that the Government will make every effort in its power to provide this information on employment which is required in order to formulate and implement an employment policy within the meaning of the Convention.

2. The Committee notes that an aggressive agrarian reform policy is being carried out through the Institute for Rural Welfare which grants and regularizes land holding in the rural sector. Small rural holdings are also being financed. The Government is requested to include complete data on this matter enabling the Committee to assess the manner in which application of the Convention in the rural sector and with respect to indigenous peoples is promoted.

3. The Government indicates that, like other Latin American countries, the trend already observed more than a decade ago is accentuating: micro-enterprises in the informal sector and small and medium-sized enterprises in the formal sector absorb the greater part of the labour force. The Government adds that the role of the small enterprise as a generator of income and a source of employment for the labour force is both important and traditional. The Committee would be grateful if the Government would continue to supply data on the participation of the informal sector in the generation of productive and lasting employment and the results achieved in integrating independent and self-employed workers in the modern sector of the economy.

CMNT_TITLE

1. The Committee notes the Government's report received in January 1995. The Government indicates that the labour market has been gradually modernizing at a slow but steady pace which is reflected positively in the reduction of self-employed workers and an increase in the number of wage-earners. The national level of unemployment is relatively low but underemployment affects some 48 per cent of the labour force and constitutes "the main problem on the labour market". The reasons for underemployment are demographic and economic, since the economic infrastructure of the formal sector cannot satisfy job demands adequately and the informal sector serves as a refuge for a large percentage of the labour force. Since underemployment has a greater effect on workers in the rural sector, the Government's efforts are concentrated in this area. An economic and social development programme for 1994-98 has the target of creating jobs in more productive activities, increasing productivity and income in backward activities (small urban businesses and micro-businesses and small rural producers), and the broadening of the job security network. The Committee would be grateful if the Government would specify in its next report if there have been particular difficulties in reaching the employment objectives set out in this programme and indicate to what extent these difficulties have been overcome. It would greatly appreciate information on the situation, level and trends in employment, unemployment and underemployment in the country as a whole and on the extent to which it affects particular categories of workers such as women, young people, indigenous people and rural workers who have difficulty in finding lasting employment and how those workers are affected by industrial restructuring processes.

2. With reference to the comments its has been making for several years, the Committee notes that information has been included in the report on a policy of dialogue and consultation promoted by the Ministry of Justice and Labour. A tripartite negotiating board has been set up whose central themes are wages, the formulation and proposal of employment programmes, and social security. The Committee welcomes this progress in the application of Article 3 of the Convention which lays down that representatives of the persons affected shall be consulted concerning the measures to be taken to promote the objectives of full, productive and freely chosen employment. It would be particularly useful for a labour market such as that described by the Government that the consultations required under the Convention should also take place with representatives of workers from the informal and rural sectors and that their participation might be envisaged in the formal consultation machinery mentioned in the report. The Committee would be grateful if the Government would include indications on any new progress made in this matter.

3. In reply to previous comments, the Government states that its prime objective is the development of human resources through training and improvement of employment opportunities. Workers are offered free vocational guidance and training services by the National Employment Service, the Programme of Associated Young Persons Enterprises and the National Service for Vocational Promotion. The Government states that these efforts claim not only to coordinate occupational training policies and activities with real employment prospects but also to ensure that young people in particular and workers in general achieve effective integration into the labour market with a lasting job and/or full productive activity where they can develop to the maximum their potential, as required in Convention No. 122, Convention No. 142 and Recommendation No. 150 on the development of human resources, 1975. The Committee requests the Government to continue supplying information on specific developments in the activities mentioned above in order to ensure that workers who have benefited from the programmes can access the labour market and find lasting employment.

4. In a direct request, the Committee is asking the Government certain questions on other aspects of the application of the Convention related to compilation and analysis of statistics, rural employment and employment in the informal sector.

CMNT_TITLE

1. The Committee notes the Government's report and its communication of June 1993. The Government states in the communication that the problem of developing countries such as Paraguay is principally related to external debt (to which a solution is being found in Paraguay, which is the Latin American country with the lowest rate of external debt per capita), the protectionist policies pursued by the industrialized countries and, above all, their traditions of authoritarianism. These unfavourable conditions, in the Government's opinion, have undoubtedly had a negative influence on the implementation of an employment policy, which is nevertheless imperative for the State under the terms of the new Constitution. The Committee notes in this connection that sections 85 and 86 of the new national Constitution, which was adopted in June 1992, provide that "all the inhabitants of the Republic are entitled to lawful and freely chosen work and to personal development in conditions of dignity and justice" and that "the State shall promote policies for full employment and the vocational training of human resources, giving preference to nationals". The Committee trusts that the Government will indicate in its next report the measures which have been adopted under these important provisions of the Constitution.

2. The information supplied by the Government indicates that the open unemployment rate at the national level reached 10.4 per cent in 1991, which was a marked increase in relation to 1989 (6.7 per cent). The rise in unemployment is linked to the fall in economic activity and exports, and to a general situation of recession. The open unemployment rate in the metropolitan area of Asuncion is 5.1 per cent of the active population, with women accounting for 41 per cent of the unemployed and men for 59 per cent; the underemployment rate, which bears witness to the rapid development of the informal sector and which is the principal problem on the labour market, is estimated at around 9.5 per cent (and affected around 50,000 precarious workers in 1991). The Government refers in its report to various programmes and measures such as: the loans granted by the National Development Bank for producers in the agricultural, industrial and artisanal sectors; the creation of new jobs in the public sector (as the State is one of the principal providers of jobs for the unemployed); the extension of the network for the provision of energy and the distribution of drinking-water; and rural development projects (in the Caazapa region and for rural establishments in the framework of the agrarian reform). The Committee would be grateful if the Government would indicate the extent to which these programmes contribute in practice to the promotion of employment objectives, in accordance with the national Constitution and the Convention. It hopes that the Government will supply information in its next report on the measures which have been taken, based on data concerning the nature and level of unemployment, to ensure that the principal measures of employment policy are decided on and kept under periodical review within the framework of a coordinated economic and social policy (Articles 1 and 2 of the Convention).

3. In its previous comments, the Committee referred to the programmes undertaken to coordinate education and training policies with prospective employment opportunities. It notes with interest in this respect the annual report of the activities of the National Vocational Training Board, which reports an increase in the number of participants and courses provided. It also notes the report of the General Directorate for Human Resources describing the results, up to 31 October 1992, of the programme to promote enterpreneurship among young persons, implemented on the basis of an ILO technical cooperation project. The Committee would be grateful if the Government would continue to supply information on the development of these programmes, with an indication of the measures which have been adopted or are envisaged so that the workers who benefit from these programmes manage to enter the labour market and find lasting employment. With regard to vocational guidance and training policies, in relation with employment policy, the Committee recalls the relevance of the instruments adopted in 1975 on the development of human resources (Convention No. 142 and Recommendation No. 150), as well as the 1991 General Survey on that subject.

4. For several years, the Committee has been raising the question of the application of Article 3 of the Convention, which requires consultation with the representatives of the persons affected by the measures to be taken, and in particular the representatives of employers' and workers' organizations, "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". The Committee notes that the Government has not supplied precise information on this subject in its report. It notes that the Government describes in its communication the prospects for establishing renewed dialogue following the arrival in power of the new authorities, on 15 August 1993, with a view to the formulation of policies and strategies constituting an employment policy. The Committee is bound to renew its hope that the Government's next report will contain the information called for in the report form concerning the consultations which have to be undertaken in the field of employment policy with the representatives of the persons concerned (including those working in the rural sector and the informal sector).

CMNT_TITLE

The Committee notes that the Government's report has not been received. It hopes that a report will be supplied for examination by the Committee at its next session and that it will contain full information on the matters raised in its previous direct request, which read as follows:

The Committee refers to its observation and would be grateful if the Government would supply information in its next report on the following points:

1. The Committee notes with interest the information on the follow-up of persons trained under the National Service for Vocational Advancement. Please continue to supply up-to-date information showing whether workers who have benefited from the activities of the National Service for Vocational Advancement can use the training that they receive. The Government could refer in this context to the 1975 instruments on human resources development (Convention No. 142 and Recommendation No. 150), as well as the Committee's 1991 General Survey on that subject.

2. The Government states that public works constitute replacement employment measures. Please supply information on the impact on the labour market of the public works that have been undertaken. The Government may consider it useful to refer to the provisions of the Employment Policy (Supplementary Provisions) Recommendation, 1984 (No. 169), which is attached to the report form for this Convention, with regard to public investment programmes and special public works programmes.

3. The Government considers that the unemployment rate is in the order of 4 per cent, but that one of the principal problems in the country is underemployment. Please continue to supply information on the situation, level and trends of employment, unemployment and underemployment, and in particular the extent to which urban and rural workers are affected, as well as particular categories of workers such as women, disabled workers, older workers, the long-term unemployed, migrant workers and workers affected by restructuring measures.

4. Please supply the available information on the activities that have been undertaken and the impact of measures to promote the employment of young persons adopted by the Youth Promotion Board. In particular, please indicate any action taken as a result of project PAR/85/005, which was carried out by the ILO, on "the participation of young persons in development".

5. Please continue to supply information on the activities undertaken by the Paraguayan Cooperation and Development Foundation in relation to employment, and in particular to support micro-enterprises.

CMNT_TITLE

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

1. The Committee notes the Government's report. The Government states that, since the move towards a democratic system, a national economic and social development plan for the biennium 1989-90 has been formulated. The Committee notes with interest that the primary objective in relation to employment and human resources is that of "maintaining the growth rate of the absorption of the labour force, seeking to bring the national economy to a situation of full employment". The other objectives concern the relationship between the formal and informal sectors, achieving a progressive increase in real wages, increasing the level of technical, managerial and vocational skills of the workforce, improving worker-management relations, strengthening the machinery for the collection and interpretation of labour market data and achieving greater coordination between labour institutions. The Government adds in its report that, in order to achieve these objectives, various measures are being taken in both the public and private sectors and that these involve the revision of various laws such as the legislation respecting investments, the Labour Code, the tax legislation and much other legislation that is related directly or indirectly to employment. There has been strong employment growth in the informal sector, and even if this employment is not reflected in current statistics it is one of the major reasons for the decrease in the unemployment figures, although it has given rise to greater underemployment (estimated at around 40 per cent) in informal work that brings in little remuneration. In view of the predominance of young people in the population, which is growing and becoming very significantly concentrated in urban areas, the Government accords special importance to the development of youth employment, in connection with which it is expecting technical assistance from the Office. Furthermore, as laid down in Articles 1 and 2 of the Convention, measures have been taken to coordinate vocational training measures with prospective employment opportunities and to collect and analyse information on the labour market as a basis for the adoption of employment policy measures. The Committee hopes that in its next report the Government will indicate the extent to which the objectives set out in the national economic and social development plan of 1989-90 (45,000 new jobs per year) have been achieved and that it will also be able to supply information on the measures that have been adopted under the "policy guidelines for employment and human resources" as set out in the plan. Please indicate any difficulties that have been encountered in pursuing an active policy designed to achieve full employment.

2. With reference to the comments that the Committee has been making for a number of years on the application of Article 3, the Government states in its report that the representatives of workers and employers participate fully in the councils on which they sit, but that employment policy measures are not covered in full in such bodies (such as the Social Welfare Institute, the National Service for Vocational Advancement, the National Workers' Bank, the National Council on Minimum Wages, and the Permanent Board of Conciliation and Arbitration). The Government adds that, since the new authorities took power, there has been greater openness and interest both by the national authorities and the other social partners who are active in the field of employment. The Committee trusts that the Government will be able to supply information in its next report on the progress that has been achieved in relation to the consultations concerning employment policies that are to be held with representatives of the persons affected (representatives of employers' and workers' organizations and representatives of other sectors of the economically active population, such as those working in the rural sector and the informal sector). The Committee points out, in relation to the objective of the consultations, that Article 3 of the Convention provides that such consultations shall be held "with a view to taking fully into account their experience and views and securing their full cooperation in formulating and enlisting support" for the policies in question.

3. In a direct request, the Committee is requesting information on certain aspects of the application of the Convention (the impact of the activities of the National Service for Vocational Advancement and of current public works, as well as statistical data on the labour market and the situation of certain categories of workers, together with information on the employment of young persons and programmes to support micro-enterprises).

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The Committee refers to its observation and would be grateful if the Government would supply information in its next report on the following points:

1. The Committee notes with interest the information on the follow-up of persons trained under the National Service for Vocational Advancement. Please continue to supply up-to-date information showing whether workers who have benefited from the activities of the National Service for Vocational Advancement can use the training that they receive. The Government could refer in this context to the 1975 instruments on human resources development (Convention No. 142 and Recommendation No. 150), as well as the Committee's 1991 General Survey on that subject.

2. The Government states that public works constitute replacement employment measures. Please supply information on the impact on the labour market of the public works that have been undertaken. The Government may consider it useful to refer to the provisions of the Employment Policy (Supplementary Provisions) Recommendation, 1984 (No. 169), which is attached to the report form for this Convention, with regard to public investment programmes and special public works programmes.

3. The Government considers that the unemployment rate is in the order of 4 per cent, but that one of the principal problems in the country is underemployment. Please continue to supply information on the situation, level and trends of employment, unemployment and underemployment, and in particular the extent to which urban and rural workers are affected, as well as particular categories of workers such as women, disabled workers, older workers, the long-term unemployed, migrant workers and workers affected by restructuring measures.

4. Please supply the available information on the activities that have been undertaken and the impact of measures to promote the employment of young persons adopted by the Youth Promotion Board. In particular, please indicate any action taken as a result of project PAR/85/005, which was carried out by the ILO, on "the participation of young persons in development".

5. Please continue to supply information on the activities undertaken by the Paraguayan Cooperation and Development Foundation in relation to employment, and in particular to support micro-enterprises.

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1. The Committee notes the Government's report. The Government states that, since the move towards a democratic system, a national economic and social development plan for the biennium 1989-90 has been formulated. The Committee notes with interest that the primary objective in relation to employment and human resources is that of "maintaining the growth rate of the absorption of the labour force, seeking to bring the national economy to a situation of full employment". The other objectives concern the relationship between the formal and informal sectors, achieving a progressive increase in real wages, increasing the level of technical, managerial and vocational skills of the workforce, improving worker-management relations, strengthening the machinery for the collection and interpretation of labour market data and achieving greater coordination between labour institutions. The Government adds in its report that, in order to achieve these objectives, various measures are being taken in both the public and private sectors and that these involve the revision of various laws such as the legislation respecting investments, the Labour Code, the tax legislation and much other legislation that is related directly or indirectly to employment. There has been strong employment growth in the informal sector, and even if this employment is not reflected in current statistics it is one of the major reasons for the decrease in the unemployment figures, although it has given rise to greater underemployment (estimated at around 40 per cent) in informal work that brings in little remuneration. In view of the predominance of young people in the population, which is growing and becoming very significantly concentrated in urban areas, the Government accords special importance to the development of youth employment, in connection with which it is expecting technical assistance from the Office. Furthermore, as laid down in Articles 1 and 2 of the Convention, measures have been taken to coordinate vocational training measures with prospective employment opportunities and to collect and analyse information on the labour market as a basis for the adoption of employment policy measures. The Committee hopes that in its next report the Government will indicate the extent to which the objectives set out in the national economic and social development plan of 1989-90 (45,000 new jobs per year) have been achieved and that it will also be able to supply information on the measures that have been adopted under the "policy guidelines for employment and human resources" as set out in the plan. Please indicate any difficulties that have been encountered in pursuing an active policy designed to achieve full employment.

2. With reference to the comments that the Committee has been making for a number of years on the application of Article 3, the Government states in its report that the representatives of workers and employers participate fully in the councils on which they sit, but that employment policy measures are not covered in full in such bodies (such as the Social Welfare Institute, the National Service for Vocational Advancement, the National Workers' Bank, the National Council on Minimum Wages, and the Permanent Board of Conciliation and Arbitration). The Government adds that, since the new authorities took power, there has been greater openness and interest both by the national authorities and the other social partners who are active in the field of employment. The Committee trusts that the Government will be able to supply information in its next report on the progress that has been achieved in relation to the consultations concerning employment policies that are to be held with representatives of the persons affected (representatives of employers' and workers' organisations and representatives of other sectors of the economically active population, such as those working in the rural sector and the informal sector). The Committee points out, in relation to the objective of the consultations, that Article 3 of the Convention provides that such consultations shall be held "with a view to taking fully into account their experience and views and securing their full cooperation in formulating and enlisting support" for the policies in question.

3. In a direct request, the Committee is requesting information on certain aspects of the application of the Convention (the impact of the activities of the National Service for Vocational Advancement and of current public works, as well as statistical data on the labour market and the situation of certain categories of workers, together with information on the employment of young persons and programmes to support micro-enterprises).

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The Committee refers to its observation and to its previous comments. It would be grateful if, in its next report, the Government would provide information on the following points.

1. The Committee notes with interest that during the period 1985-88, a number of technical training schools were set up; 50 per cent of them are in the interior of the country and a total of 11,745 persons have registered (1986). In addition, a new Act respecting the National Service for the Promotion of Vocational Training has been adopted. Please provide a copy of the Act, adopted in 1987, along with data of the results obtained by the National Service for the Promotion of Vocational Training in ensuring that the graduates obtain employment in which they can make use of the training received.

2. The Committee notes with interest the information on the public investment projects and the data concerning public works which have been completed or are nearing completion. Please continue to provide information on jobs created as a result of the activities of the Municipal Development Institute (IDM). Please indicate the measures that are envisaged to offset any job dislocation that may occur as a result of completion of public works.

3. The Committee takes note of the data on employment and unemployment trends in Asunción and the Metropolitan Area. According to data available in the Office, the open unemployment rate in the rest of the country is 11 per cent (estimate of the Central Bank of Paraguay, published by the ECLAC in the Economic Survey of Latin America and the Caribbean (1988). Please continue to provide statistics of labour market trends, particularly in the rural sector, indicating the extent to which such data are used as the basis for employment policy measures adopted.

4. Please indicate the action undertaken with regard to employment policy, as a result of the project PAR/85/005 "Youth participation in development", and continue to provide information on the "youth joint production ventures" (empresas asociativas juveniles de producción), referred to by the Government in its report.

5. Part V of the report form. Please indicate the action undertaken as a result of the technical assistance project being implemented in the context of the World Employment Programme, PAR/88/003 "Diagnosis of the urban informal sector and support for the micro-enterprise", or any factors which may have prevented or delayed it.

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1. The Committee takes note of the Government's report. In a previous observation, the Committee requested information on the application of Articles 1, 2 and 3 of the Convention. In particular, it requested information on the extent to which employment objectives included in development plans and programmes were being attained, particularly those in the 1985-89 National Economic and Social Development Plan; the measures adopted to co-ordinate education and vocational training policies with employment prospects and opportunities; statistics on the labour market situation and on the consequences for job creation of measures such as major public works programmes and the main rural and agricultural settlement programmes. It also requested detailed information on the way in which consultation and collaboration is ensured with the representatives of the persons affected by employment policy.

2. In its reply, the Government describes recent trends in the economy, showing that the economic recovery process which began in 1984 continued in 1987 and 1988. GDP rose by 4.3 per cent and 6.2 per cent in 1987 and 1988 respectively. The data on the employment situation for 1986 and 1987 show a drop in the number of unemployed despite the increase in the active population. In its analysis of the external factors obstructing production and employment growth, the report refers in particular to the terms of trade, the increase in interest rates and the foreign debt burden. In this connection, it provides detailed information on the amount, composition and trends of the external debt, whose balance represented 48.3 per cent of GDP in 1987; debt servicing as a proportion of the value of exports is estimated at approximately 70 per cent. The Government warns that if Paraguay has to service its external debt regularly in the years to come, it will undoubtedly be at the cost of reducing its economic growth rate to a minimum. The Government adds that the foregoing shows the need to propose a new policy on regular external debt servicing to the international co-operation organisations and external creditors. According to the Government, a sizeable reduction in external debt servicing will enable the country to return to former levels of economic growth.

3. The Committee takes note of the foregoing information and would be grateful if, in its next report, the Government could also include the information required by the report form for Articles 1 and 2 of the Convention. It would be useful for example if it stated the employment objectives included in development plans and programmes currently being implemented and described the main employment policy measures as well as the procedures adopted to ensure that the effects on employment of measures taken to promote economic development or other economic and social objectives receive due consideration.

4. The Committee notes that consultation and collaboration with employers and workers is ensured by their permanent participation in bodies such as the Council of State, the Social Welfare Institute, the National Service for the Promotion of Vocational Training, the National Workers' Bank, the National Council on Minimum Wages and the Permanent Board of Conciliation and Arbitration. The Committee would be grateful if, in its next report, the Government would include indications on employment policy measures that have been dealt with by the above bodies and on the consultations held with representatives of other sectors of the economically active population, such as workers in the rural and informal sectors. With regard to the purpose of consultations, the Committee recalls that Article 3 of the Convention provides that representatives of the persons affected should be consulted "with a view to taking fully into account their experience and views and securing their full co-operation in formulating and enlisting support for such policies".

5. In a direct request, the Committee asks for information on other questions related to the application of the Convention.