Employment Policy Convention, 1964 (No. 122) - Croatia (RATIFICATION: 1991)

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The Committee notes the information provided by the Government, which answers the points raised in its previous direct request and has no further matters to raise in this regard.

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Articles 1 and 2 of the Convention. Employment trends and implementation of an active employment policy. The Committee notes with interest the range of measures undertaken by the Government with a view to attaining the objectives of the Convention within the framework of a coordinated economic and social policy. The Government indicates that, as a member of the European Union (EU) since July 2013, Croatia develops a National Reform Programme (NRP) each year within the broader process of economic policy coordination, referred to as the European Semester. In this regard, the Committee notes that the 2017 NRP includes, among its main targets, increasing employability and connecting education with the labour market. In 2014, the Guidelines for development and implementation of active labour market policy for the period 2015–17 were adopted, which provide for an increase in coverage in active labour market policy interventions with special attention paid to the most vulnerable groups, including youth, the long-term unemployed, older workers, low-skilled workers and persons further away from the labour market. The Guidelines establish four main priorities: increasing employment, competitiveness, labour mobility and matching labour market supply and demand. In addition, an independent and comprehensive evaluation of all active labour market policies carried out between 2010 and 2013 was published in February 2016 with the aim of determining their impact on employment. The Committee notes the adoption of a new Labour Act on 15 July 2014. According to the European Foundation for the Improvement of Living and Working Conditions (Eurofound), the Act is aimed at increasing the number of people in employment and creating a legal framework that enables employers to develop more flexible business models and to adapt to market demands, while maintaining employee protection and combating the grey economy. The Committee recalls that the Croatian economy contracted by a cumulative 12.6 per cent between 2009 and 2014, and returned to growth in 2015 after six years of recession. With respect to employment trends, according to the Labour Force Survey (LFS) data published by Eurostat, the employment rate (population aged 15–64) increased from 52.5 per cent in 2013 to 56.9 per cent in 2016. The unemployment rate fell from 17.3 per cent in 2013 and 2014 to 13.3 per cent in 2016. In addition, according to the 2017 European Semester: Country Report on Croatia, unemployment remains significantly above the EU average, including for young people, and almost two-thirds of the unemployed have been without a job for more than a year. The report states that the rapid decrease in the unemployment rate is only partly due to a contraction of the labour force. The Committee requests the Government to provide updated information on the impact of the employment measures taken under the NRPs and the Guidelines for development and implementation of active labour market policy for the period 2015–17, including measures to promote the employment of youth and other disadvantaged groups. The Committee further requests the Government to provide information on the impact of the new Labour Act in the creation of lasting and decent employment. It also requests the Government to continue to provide information on employment trends, disaggregated by age and sex, and on the procedures for deciding on, and reviewing, employment measures implemented within the framework of an overall economic and social policy.

Education and training policies. In its previous comments, the Committee requested the Government to provide information on measures taken to coordinate education and training measures with employment policy measures, as well as the involvement of the social partners in this process. The Committee notes that the adoption of the Vocational Education and Training Development Programme was envisaged under the 2016 NRP and aims at increasing participation in vocational education and harmonizing learning outcomes in vocational education with labour market needs. The Government refers to several measures undertaken to improve harmonization of supply and demand in the labour force, including the establishment of a standard occupational system as the basis for the development of standards of qualifications, and sectoral councils, which provide expert assistance in evaluating proposed occupational and qualification standards. The Government also indicates that emphasis will be placed on further development of the Croatian Qualifications Framework (CROQF), through the Act on the CROQF in order to regulate a more flexible education system. In addition, the Government provides information on the implementation of training courses by the Croatian Employment Service (HZZ), including on-the-job training and occupational training for young people without job experience. It adds that the number of participants in institutional training declined from 16,411 in 2011 to 2,534 in 2012 and remained stable at 2,000 thereafter. In contrast, the number of participants in workplace training increased from 4,762 in 2011 to 15,059 in 2016. The Committee requests the Government to provide information on the impact of the Vocational Education and Training Development Programme. It also requests the Government to indicate the manner in which the social partners and other stakeholders concerned are consulted with respect to the development and implementation of education and training programmes that meet the current and anticipated needs of the labour market.

Persons with disabilities. The Committee notes the information provided by the Government concerning the adoption of the Act on Vocational Rehabilitation and Employment of Persons with Disabilities (OG No. 157/13, 152/14), which increases the quota system for employers in the public and real sectors who employ at least 20 workers to 3 per cent. The Government indicates that vocational rehabilitation centres were established in 2015 with the objective of training persons with disabilities for work and providing employers with professional assistance in the employment of persons with disabilities. The Committee requests the Government to continue providing information on the measures taken or envisaged to promote employment opportunities of persons with disabilities in the open labour market and on their impact, including information on the application of the Act on Vocational Rehabilitation and Employment of Persons with Disabilities.

Business development. The Committee notes the adoption of measures to improve the business environment, including the promulgation of an action plan for reducing the administrative burden on enterprises and removing barriers to the service market as well as the establishment of a new “Non-tax Levies Register”. The goal of the latter is to determine the non-tax levies that weigh on entrepreneurs in order to reduce them. In addition, several national strategies have been implemented, which aim to support entrepreneurship, including the adoption of a national entrepreneurship and crafts support programme, “Entrepreneurial Impulse 2015”, as well as the establishment of the “HITRO.HR portal”. This portal is intended to support businesses by providing an online registration platform for limited liability companies, thereby accelerating and simplifying their creation and reducing the costs related to their establishment. Furthermore, the Government indicates that one of the targets set by the Guidelines for development and implementation of active labour market policy is the promotion of entrepreneurship among unemployed persons. In this respect, the HZZ has granted self-employment subsidies to registered unemployed persons who have developed a sustainable business and has established a support system to provide them with counselling to assist them in the development of their business ideas. The number of businesses created through these means has increased from 772 in 2011 to 2,776 in 2015. The Committee requests the Government to continue to provide information on the impact of business development measures on employment creation and access to decent work, including measures aimed at promoting the development of small and medium-sized enterprises.

Cooperation between the public employment service and private employment agencies. In reply to the Committee’s previous comments, the Government indicates that the public employment service cooperates with all private employment agencies and that the services provided are available to all employers. Services include the publication of job vacancies, organization of job meetings, recruitment activities and provision of subsidies for employment. It further indicates that, in 2016, there were 6,356 registered jobseekers, 4,021 vacancies were published and 2,957 workers were placed in employment. The Committee requests the Government to continue to provide detailed information on measures taken to encourage and maintain collaboration between the public employment service and private employment agencies, as well as on other measures taken or envisaged to build and strengthen the institutions necessary for the realization of full, productive and freely chosen employment.

Article 3. Consultation with the social partners. The Government indicates that the social partners and civil society organizations are included in defining main reform measures covered by the NRP, both through the creation of key legislative packages and the process of consultation with the public. The Committee notes the establishment of the Economic and Social Council (ESC) to determine and realize coordinated activities with the aim of pursuing harmonized economic, social and development policies. The Government also indicates that the social partners are directly involved in the formulation of labour market measures, as they are represented in the Interdepartmental Committee for the adoption, implementation and monitoring of the Guidelines for development and implementation of active labour market policy for the period 2015–17 as well as on the Governing Board of the HZZ. The Committee requests the Government to continue to provide information on the activities of the ESC, the Interdepartmental Committee for adoption, implementation and monitoring of the Guidelines for development and implementation of active labour market policy for the period 2015–17, and the Governing Board of the HZZ with respect to the development, implementation and review of coordinated employment policy measures and programmes and their links to other economic and social policies, indicating the nature and extent of the involvement of the social partners in this regard.

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The Committee notes with regret that the Government’s report has not been received. It hopes that the next report will contain full information on the matters raised in its previous comments.

Repetition

Articles 1 and 2 of the Convention. Employment trends and implementation of an active employment policy. The Committee notes the replies provided in the Government’s report received in December 2011 to the points raised in the 2010 direct request. The Government indicates that in the last years, there was a drop in employment and an increase in unemployment rates. Between 2009 and 2010, the employment policy measures have been implemented under circumstances characterized by substantially reduced fiscal revenues and a growing expenditure on the account of passive labour market measures. The expenditure for unemployment benefits rose by 53 per cent in 2009 and by a further increase of 19.4 per cent in 2010. The Government further indicates that the National Employment Promotion Plan 2009–10 covered 13,088 registered unemployed persons, 49.4 per cent of which were women. Of the 13,088 persons covered, 2,139 were employed on the basis of employment subsidy schemes, 284 started their own businesses, and 5,037 were employed in the public works programme. In 2010, 767 young persons were covered by the scheme for subsidizing employment for youth with no work experience. The employment subsidies for the long-term unemployed and for persons over 50 years of age benefited 940 and 305 persons, respectively. The Government reports that the number of persons covered was low as the ratio between the number of beneficiaries of these measures and the average number of registered unemployed persons in 2010 was only 4.3 per cent. The impact of employment measures on mitigating the growth of regional unemployment imbalances was not sizeable. The Government indicates that the National Employment Promotion Plan 2011–12 was adopted in March 2011. It further indicates that the Croatian Employment Service has established an electronic recording and statistical monitoring system for evaluating these measures. The Committee notes that according to the Croatian Bureau of Statistics, in 2010 the labour force participation rate in Croatia was as low as 46.6 per cent (1,747,000 persons) and the employment rate stood at 41.1 per cent (1,541,000 persons). In the same year, registered unemployment stood at 11.8 per cent (206,000 persons). The Committee invites the Government to provide in its next report information on the impact of the measures implemented in the framework of the National Employment Promotion Plan 2011–12. It also requests the Government to provide information in its next report on the impact of the employment promotion measures targeting vulnerable categories of workers, including women, young persons, older workers and the long-term unemployed.

Education and training policies. The Government indicates that the focus should be on providing training to the unemployed. Labour market training is aimed at improving the employability of unemployed persons, especially vulnerable categories of workers such as the long-term unemployed with lower education levels, school drop-outs and low-skilled women. The Government reports that in the framework of the National Employment Promotion Plan 2009–10, 614 persons underwent subsidized on-the-job training, and 4,566 persons were included in labour market training. The Committee invites the Government to provide further information in its next report on measures taken to coordinate education and training measures with employment policy, as well as the involvement of the social partners in this process.

Business development. In its previous comments, the Committee noted that the Government planned to implement various measures targeting business development in the 2008–11 period. Measures for small and medium-sized enterprises (SMEs) were to be implemented after the adoption of the Government Programme for the Promotion of Small and Medium-sized Enterprises 2008–12. The Committee invites the Government to provide in its next report information on the effectiveness of measures implemented to support the establishment of SMEs and their impact in terms of establishing a conducive business environment and stimulating sustainable employment creation. It also invites the Government to include information concerning the policy approaches used by the Government to improve the success rate of young entrepreneurs and to involve the social partners in informing small businesses of key labour market concerns and opportunities.

Cooperation between the public employment service and private employment agencies. The Committee notes the Government’s information on the functioning of private employment agencies acting as intermediaries. These agencies are obliged to supply to the Ministry of Economy, Labour and Entrepreneurship data recorded on employers and jobseekers. In 2010, a total of 323 employers in Croatia and 30 employers settled abroad used the services of private employment agencies to seek workers. Some 700 workers were hired through these agencies, of which 447 in Croatia and 253 abroad. The Committee refers to its 2010 direct request and invites the Government to provide information in its next report on measures taken to encourage the collaboration between the public employment service and private employment agencies, as well as on other measures taken to build institutions necessary for the realization of full employment.

Article 3. Participation of the social partners in the formulation and implementation of policies. The Government indicates that social partners participated at the national and regional levels in the preparation, implementation and monitoring of the results of the National Employment Promotion Plan 2009–10. Social partners are also members of the Commission for monitoring the Joint Assessment of the Employment Policy Priorities of the Republic of Croatia (JAP) in the framework of the EU Pre-accession Strategy. The Committee invites the Government to provide in its next report more detailed information on how consultations with the social partners and with other stakeholders have been used in practical terms in the formulation, implementation, monitoring and evaluation of employment policies and programmes.

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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 comments.

Repetition

Articles 1 and 2 of the Convention. Employment trends and implementation of an active employment policy. The Committee notes the replies provided in the Government’s report received in December 2011 to the points raised in the 2010 direct request. The Government indicates that in the last years, there was a drop in employment and an increase in unemployment rates. Between 2009 and 2010, the employment policy measures have been implemented under circumstances characterized by substantially reduced fiscal revenues and a growing expenditure on the account of passive labour market measures. The expenditure for unemployment benefits rose by 53 per cent in 2009 and by a further increase of 19.4 per cent in 2010. The Government further indicates that the National Employment Promotion Plan 2009–10 covered 13,088 registered unemployed persons, 49.4 per cent of which were women. Of the 13,088 persons covered, 2,139 were employed on the basis of employment subsidy schemes, 284 started their own businesses, and 5,037 were employed in the public works programme. In 2010, 767 young persons were covered by the scheme for subsidizing employment for youth with no work experience. The employment subsidies for the long-term unemployed and for persons over 50 years of age benefited 940 and 305 persons, respectively. The Government reports that the number of persons covered was low as the ratio between the number of beneficiaries of these measures and the average number of registered unemployed persons in 2010 was only 4.3 per cent. The impact of employment measures on mitigating the growth of regional unemployment imbalances was not sizeable. The Government indicates that the National Employment Promotion Plan 2011–12 was adopted in March 2011. It further indicates that the Croatian Employment Service has established an electronic recording and statistical monitoring system for evaluating these measures. The Committee notes that according to the Croatian Bureau of Statistics, in 2010 the labour force participation rate in Croatia was as low as 46.6 per cent (1,747,000 persons) and the employment rate stood at 41.1 per cent (1,541,000 persons). In the same year, registered unemployment stood at 11.8 per cent (206,000 persons). The Committee invites the Government to provide in its next report information on the impact of the measures implemented in the framework of the National Employment Promotion Plan 2011–12. It also requests the Government to provide information in its next report on the impact of the employment promotion measures targeting vulnerable categories of workers, including women, young persons, older workers and the long-term unemployed.

Education and training policies. The Government indicates that the focus should be on providing training to the unemployed. Labour market training is aimed at improving the employability of unemployed persons, especially vulnerable categories of workers such as the long-term unemployed with lower education levels, school drop-outs and low-skilled women. The Government reports that in the framework of the National Employment Promotion Plan 2009–10, 614 persons underwent subsidized on-the-job training, and 4,566 persons were included in labour market training. The Committee invites the Government to provide further information in its next report on measures taken to coordinate education and training measures with employment policy, as well as the involvement of the social partners in this process.

Business development. In its previous comments, the Committee noted that the Government planned to implement various measures targeting business development in the 2008–11 period. Measures for small and medium-sized enterprises (SMEs) were to be implemented after the adoption of the Government Programme for the Promotion of Small and Medium-sized Enterprises 2008–12. The Committee invites the Government to provide in its next report information on the effectiveness of measures implemented to support the establishment of SMEs and their impact in terms of establishing a conducive business environment and stimulating sustainable employment creation. It also invites the Government to include information concerning the policy approaches used by the Government to improve the success rate of young entrepreneurs and to involve the social partners in informing small businesses of key labour market concerns and opportunities.

Cooperation between the public employment service and private employment agencies. The Committee notes the Government’s information on the functioning of private employment agencies acting as intermediaries. These agencies are obliged to supply to the Ministry of Economy, Labour and Entrepreneurship data recorded on employers and jobseekers. In 2010, a total of 323 employers in Croatia and 30 employers settled abroad used the services of private employment agencies to seek workers. Some 700 workers were hired through these agencies, of which 447 in Croatia and 253 abroad. The Committee refers to its 2010 direct request and invites the Government to provide information in its next report on measures taken to encourage the collaboration between the public employment service and private employment agencies, as well as on other measures taken to build institutions necessary for the realization of full employment.

Article 3. Participation of the social partners in the formulation and implementation of policies. The Government indicates that social partners participated at the national and regional levels in the preparation, implementation and monitoring of the results of the National Employment Promotion Plan 2009–10. Social partners are also members of the Commission for monitoring the Joint Assessment of the Employment Policy Priorities of the Republic of Croatia (JAP) in the framework of the EU Pre-accession Strategy. The Committee invites the Government to provide in its next report more detailed information on how consultations with the social partners and with other stakeholders have been used in practical terms in the formulation, implementation, monitoring and evaluation of employment policies and programmes.

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Articles 1 and 2 of the Convention. Employment trends and implementation of an active employment policy. The Committee notes the replies provided in the Government’s report received in December 2011 to the points raised in the 2010 direct request. The Government indicates that in the last years, there was a drop in employment and an increase in unemployment rates. Between 2009 and 2010, the employment policy measures have been implemented under circumstances characterized by substantially reduced fiscal revenues and a growing expenditure on the account of passive labour market measures. The expenditure for unemployment benefits rose by 53 per cent in 2009 and by a further increase of 19.4 per cent in 2010. The Government further indicates that the National Employment Promotion Plan 2009–10 covered 13,088 registered unemployed persons, 49.4 per cent of which were women. Of the 13,088 persons covered, 2,139 were employed on the basis of employment subsidy schemes, 284 started their own businesses, and 5,037 were employed in the public works programme. In 2010, 767 young persons were covered by the scheme for subsidizing employment for youth with no work experience. The employment subsidies for the long-term unemployed and for persons over 50 years of age benefited 940 and 305 persons, respectively. The Government reports that the number of persons covered was low as the ratio between the number of beneficiaries of these measures and the average number of registered unemployed persons in 2010 was only 4.3 per cent. The impact of employment measures on mitigating the growth of regional unemployment imbalances was not sizeable. The Government indicates that the National Employment Promotion Plan 2011–12 was adopted in March 2011. It further indicates that the Croatian Employment Service has established an electronic recording and statistical monitoring system for evaluating these measures. The Committee notes that according to the Croatian Bureau of Statistics, in 2010 the labour force participation rate in Croatia was as low as 46.6 per cent (1,747,000 persons) and the employment rate stood at 41.1 per cent (1,541,000 persons). In the same year, registered unemployment stood at 11.8 per cent (206,000 persons). The Committee invites the Government to provide in its next report information on the impact of the measures implemented in the framework of the National Employment Promotion Plan 2011–12. It also requests the Government to provide information in its next report on the impact of the employment promotion measures targeting vulnerable categories of workers, including women, young persons, older workers and the long-term unemployed.

Education and training policies. The Government indicates that the focus should be on providing training to the unemployed. Labour market training is aimed at improving the employability of unemployed persons, especially vulnerable categories of workers such as the long-term unemployed with lower education levels, school drop-outs and low-skilled women. The Government reports that in the framework of the National Employment Promotion Plan 2009–10, 614 persons underwent subsidized on-the-job training, and 4,566 persons were included in labour market training. The Committee invites the Government to provide further information in its next report on measures taken to coordinate education and training measures with employment policy, as well as the involvement of the social partners in this process.

Business development. In its previous comments, the Committee noted that the Government planned to implement various measures targeting business development in the 2008–11 period. Measures for small and medium-sized enterprises (SMEs) were to be implemented after the adoption of the Government Programme for the Promotion of Small and Medium-sized Enterprises 2008–12. The Committee invites the Government to provide in its next report information on the effectiveness of measures implemented to support the establishment of SMEs and their impact in terms of establishing a conducive business environment and stimulating sustainable employment creation. It also invites the Government to include information concerning the policy approaches used by the Government to improve the success rate of young entrepreneurs and to involve the social partners in informing small businesses of key labour market concerns and opportunities.

Cooperation between the public employment service and private employment agencies. The Committee notes the Government’s information on the functioning of private employment agencies acting as intermediaries. These agencies are obliged to supply to the Ministry of Economy, Labour and Entrepreneurship data recorded on employers and jobseekers. In 2010, a total of 323 employers in Croatia and 30 employers settled abroad used the services of private employment agencies to seek workers. Some 700 workers were hired through these agencies, of which 447 in Croatia and 253 abroad. The Committee refers to its 2010 direct request and invites the Government to provide information in its next report on measures taken to encourage the collaboration between the public employment service and private employment agencies, as well as on other measures taken to build institutions necessary for the realization of full employment.

Article 3. Participation of the social partners in the formulation and implementation of policies. The Government indicates that social partners participated at the national and regional levels in the preparation, implementation and monitoring of the results of the National Employment Promotion Plan 2009–10. Social partners are also members of the Commission for monitoring the Joint Assessment of the Employment Policy Priorities of the Republic of Croatia (JAP) in the framework of the EU Pre-accession Strategy. The Committee invites the Government to provide in its next report more detailed information on how consultations with the social partners and with other stakeholders have been used in practical terms in the formulation, implementation, monitoring and evaluation of employment policies and programmes.

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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:

Repetition

The Committee notes the replies provided in the Government’s report received in December 2009 to the points raised in the 2007 direct request.

Articles 1 and 2 of the Convention. Employment trends and active labour market policies. The Government indicates in its report that the employment rate of adults increased significantly from 55.6 per cent in 2006, to 59.7 per cent in 2008. Following the retirement plan reform, measures taken to combat unregistered work and stronger action from labour inspection, a significant increase of registered employment was observed in 2007. The unemployment rate decreased from 11.2 per cent in 2006 to 8.4 per cent in 2008. Based on the annual employment incentives plan – a plan which, inter alia, provides employment subsidies for enterprises employing vulnerable groups including unemployed youth, long-term unemployed and older unemployed persons – 4,869 registered unemployed persons were employed in 2006, 8,494 in 2007 and 7,531 in 2008. The Committee notes that according to the Croatian Central Bureau of Statistics, the registered unemployment rate reached 11.2 per cent in the first trimester of 2010 (197,000 persons unemployed). In this regard, it also notes that the National Employment Promotion Plan 2009–10 points out amongst the main challenges of the labour market in Croatia that the employment rate was significantly lower than the EU average: in 2009 the employment rate was 46.5 per cent in Croatia, compared with 64.6 per cent in the EU (27 countries) as the result of both low activity rates and high unemployment rates. Another significant problem that the Croatian labour market is facing are major regional disparities with regard to employment, unemployment, average wage, GDP per capita and level of education. The National Employment Promotion Plan 2009–10 was prepared to promote entrepreneurship and private investment. The key strategic objectives and priorities of the Plan include: increasing the employment rate; reducing long-term unemployment; bringing closer labour demand and labour supply; increasing investments in human capital through improved education and training; and balancing labour market flexibility with workers’ security. The Committee invites the Government to provide in its next report an evaluation of the measures implemented in the framework of the National Employment Promotion Plan 2009–10, as well as on the impact of the anti-crisis packages on the labour market. It also invites the Government to include information on the impact of the measures taken to address regional disparities with regard to employment.

Vulnerable categories of workers. The Committee notes that one of the objectives of the National Employment Promotion Plan 2009–10 is increasing the employability and participation rate of prime-age women (25–45) (especially those with a low level of skills), older workers and youth. The Committee invites the Government to provide information in its next report on the impact of the measures designed, especially in the framework of the National Employment Promotion Plan 2009–10, to encourage and support employment levels for vulnerable categories of workers including women, young persons, old workers and the long-term unemployed. It also requests the Government to provide information on the mechanisms put in place to monitor and evaluate these measures.

Education and training policies. The Committee notes that in the period 2008–11, the Government, in consultation with the social partners at the national and local levels, intends to develop lifelong and entrepreneurship learning. Moreover, within the planned Croatian Employment Service reform, its capacity to implement a lifelong learning approach will be strengthened to improve the employability of the long-term unemployed and other vulnerable groups. The Committee invites the Government to continue to provide information in its next report on measures taken in the area of education and training policies and on their impact on the employability and competitiveness of the labour force, as well as the involvement of the social partners in this process.

Business development. The Government indicates that in the period 2008–11, the following measures targeting business development will be implemented: removing barriers to entrepreneurial development with an aim to reduce business costs up to 25 per cent; enhancing the support to small and medium-sized enterprises (SMEs); improving grant schemes (strengthening the coordination and targeting of grant allocations for micro-, small and medium-sized enterprises), improving the system for financing SMEs and facilitating access to subsidies for entrepreneurial projects; improving the quality of entrepreneurial infrastructure; continuing the development of business zones, with the aim of putting in operation at least 400 business zones; developing a more conducive business environment; and strengthening links between enterprises and research and development (R&D) institutions. The Government indicates that the measures for SMEs will be implemented after the adoption of the Government Programme for the Promotion of Small and Medium-sized Enterprises 2008–12. The Committee invites the Government to provide in its next report information on the impact and sustainability of these measures on long-lasting and productive employment. It also asks the Government to include information concerning the methods used by the Government to improve the success rate of young entrepreneurs and to involve social partners in informing small businesses of key labour market concerns and opportunities.

Cooperation between the public employment service and private employment agencies. The Government indicates several measures to be implemented in the period 2008–11. These include: reform the Croatian Employment Service to increase its capacity to identify labour market demands; improve its mediation and counselling services at the local level; improve the employability of unemployed persons; and facilitate the recruitment of young people. Regarding private employment agencies, the Government indicates that following entry into force, in January 2009, of the Act regulating Employment Mediation and Entitlements during Employment and the Ordinance regulating the carrying out of mediation activities, 30 employment mediation agencies were selected and became operational. The Committee recalls that in its General Survey of 2010 on employment instruments, it observed that Convention No. 122 calls for member States to build, or strive to build, institutions necessary to ensure the realization of full employment. To this end, the Employment Service Convention, 1948 (No. 88), and the Private Employment Agencies Convention, 1997 (No. 181), invite member States to establish employment services to assist workers and employers in achieving and maintaining optimal employment. Thus, the conjunction of these Conventions forms a necessary building block for employment growth. The Committee invites the Government to provide information in its next report on measures taken to encourage the collaboration between the public employment service and private employment agencies, as well as on other measures taken to build institutions necessary to the realization of full employment.

Article 3. Participation of the social partners in the formulation and application of policies. The Government indicates that social partners participated in the preparation of the National Employment Promotion Plan 2009–10, which foresees strategy development for the bipartite and social dialogue at the sectoral level and the establishment of criteria for the representativeness of social partners in economic and state councils and in collective bargaining. The Committee requests the Government to provide in its next report concrete examples on the manner in which the views of employers and workers representatives, as well as of other concerned stakeholders, are taken sufficiently into account in the development, implementation and review of employment policies and programmes.

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The Committee notes the replies provided in the Government’s report received in December 2009 to the points raised in the 2007 direct request.

Articles 1 and 2 of the Convention. Employment trends and active labour market policies. The Government indicates in its report that the employment rate of adults increased significantly from 55.6 per cent in 2006, to 59.7 per cent in 2008. Following the retirement plan reform, measures taken to combat unregistered work and stronger action from labour inspection, a significant increase of registered employment was observed in 2007. The Unemployment rate decreased from 11.2 per cent in 2006 to 8.4 per cent in 2008. Based on the annual employment incentives plan – a plan which, inter alia, provides employment subsidies for enterprises employing vulnerable groups including unemployed youth, long-term unemployed and older unemployed persons – 4,869 registered unemployed persons were employed in 2006, 8,494 in 2007 and 7,531 in 2008. The Committee notes that according to the Croatian Central Bureau of Statistics, the registered unemployment rate reached 11.2 per cent in the first trimester of 2010 (197,000 persons unemployed). In this regard, it also notes that the National Employment Promotion Plan 2009–10 points out amongst the main challenges of the labour market in Croatia that the employment rate was significantly lower than the EU average: in 2009 the employment rate was 46.5 per cent in Croatia, compared with 64.6 per cent in the EU (27 countries) as the result of both low activity rates and high unemployment rates. Another significant problem that the Croatian labour market is facing are major regional disparities with regard to employment, unemployment, average wage, GDP per capita and level of education. The National Employment Promotion Plan 2009–10 was prepared to promote entrepreneurship and private investment. The key strategic objectives and priorities of the Plan include: increasing the employment rate; reducing long-term unemployment; bringing closer labour demand and labour supply; increasing investments in human capital through improved education and training; and balancing labour market flexibility with workers’ security. The Committee invites the Government to provide in its next report an evaluation of the measures implemented in the framework of the National Employment Promotion Plan 2009–10, as well as on the impact of the anti-crisis packages on the labour market. It also invites the Government to include information on the impact of the measures taken to address regional disparities with regard to employment.

Vulnerable categories of workers. The Committee notes that one of the objectives of the National Employment Promotion Plan 2009–10 is increasing the employability and participation rate of prime-age women (25–45) (especially those with a low level of skills), older workers and youth. The Committee invites the Government to provide information in its next report on the impact of the measures designed, especially in the framework of the National Employment Promotion Plan 2009–10, to encourage and support employment levels for vulnerable categories of workers including women, young persons, old workers and the long-term unemployed. It also requests the Government to provide information on the mechanisms put in place to monitor and evaluate these measures.

Education and training policies. The Committee notes that in the period 2008–11, the Government, in consultation with the social partners at the national and local levels, intends to develop lifelong and entrepreneurship learning. Moreover, within the planned Croatian Employment Service reform, its capacity to implement a lifelong learning approach will be strengthened to improve the employability of the long-term unemployed and other vulnerable groups. The Committee invites the Government to continue to provide information in its next report on measures taken in the area of education and training policies and on their impact on the employability and competitiveness of the labour force, as well as the involvement of the social partners in this process.

Business development. The Government indicates that in the period
2008–11, the following measures targeting business development will be implemented: removing barriers to entrepreneurial development with an aim to reduce business costs up to 25 per cent; enhancing the support to small and medium-sized enterprises (SMEs); improving grant schemes (strengthening the coordination and targeting of grant allocations for micro, small and medium-sized enterprises), improving the system for financing SMEs and facilitating access to subsidies for entrepreneurial projects; improving the quality of entrepreneurial infrastructure; continuing the development of business zones, with the aim of putting in operation at least 400 business zones; developing a more conducive business environment; and strengthening links between enterprises and research and development (R&D) institutions. The Government indicates that the measures for SMEs will be implemented after the adoption of the Government Programme for the Promotion of Small and Medium-sized Enterprises 2008–12. The Committee invites the Government to provide in its next report information on the impact and sustainability of these measures on long-lasting and productive employment. It also asks the Government to include information concerning the methods used by the Government to improve the success rate of young entrepreneurs and to involve social partners in informing small businesses of key labour market concerns and opportunities.

Cooperation between the public employment service and private employment agencies. The Government indicates several measures to be implemented in the period 2008–11. These include: reform the Croatian Employment Service to increase its capacity to identify labour market demands; improve its mediation and counselling services at the local level; improve the employability of unemployed persons; and facilitate the recruitment of young people. Regarding private employment agencies, the Government indicates that following entry into force, in January 2009, of the Act regulating Employment Mediation and Entitlements during Employment and the Ordinance regulating the carrying out of mediation activities, 30 employment mediation agencies were selected and became operational. The Committee recalls that in its General Survey of 2010 on employment instruments, it observed that Convention No. 122 calls for member States to build, or strive to build, institutions necessary to ensure the realization of full employment. To this end, the Employment Service Convention, 1948 (No. 88) and the Private Employment Agencies Convention, 1997 (No. 181), invite member States to establish employment services to assist workers and employers in achieving and maintaining optimal employment. Thus, the conjunction of these Conventions forms a necessary building block for employment growth. The Committee invites the Government to provide information in its next report on measures taken to encourage the collaboration between the public employment service and private employment agencies, as well as on other measures taken to build institutions necessary to the realization of full employment.

Article 3. Participation of the social partners in the formulation and application of policies. The Government indicates that social partners participated in the preparation of the National Employment Promotion Plan
2009–10, which foresees strategy development for the bipartite and social dialogue at the sectoral level and the establishment of criteria for the representativeness of social partners in economic and state councils and in collective bargaining. The Committee requests the Government to provide in its next report concrete examples on the manner in which the views of employers and workers representatives, as well as of other concerned stakeholders, are taken sufficiently into account in the development, implementation and review of employment policies and programmes.

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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:

The Committee notes the detailed replies provided by the Government in October 2007 to the matters raised in the 2005 direct request.

1. Articles 1 and 2 of the Convention. Employment trends and active labour market policies. The Government indicates that the unemployment rate was measured at 16.6 per cent in 2006, down from 17.9 per cent in 2005. According to the most recent data, the unemployment rate was down 5.2 per cent from June 2006 to June 2007. Women accounted for 61.5 per cent of the total number of unemployed in June 2007 and persons over 50 had the largest proportion of registered unemployed with 28.6 per cent. Based on the National Employment Action Plan for the period 2005–08, the Government has adopted the 2007 Annual Employment Promotion Plan which includes measures targeting self-employment, training for the long-term unemployed, persons with low levels of education and young persons who have dropped out of school. The aim of these measures is to effectively match labour market supply to demand by providing additional training to workers. The Government indicates that special emphasis in the elaboration of implementing measures of the 2007 Plan was placed on promoting the integration of and combating discrimination against persons with disabilities, unemployed single parents with minor children and unemployed veterans. The Committee also notes the effects of measures implemented under the 2006 Annual Employment Promotion Plan such as the measures undertaken by the Croatian Employment Service to provide education and training to unemployed persons in order to help them reintegrate the labour market, measures targeting business development and measures targeting workers with disabilities. The Committee asks the Government to keep providing information on the impact of its measures on employment promotion. It also asks the Government to provide in its next report detailed information on measures designed to encourage and support employment levels of vulnerable categories of workers.

2. Education and training policies. The Government reports that it faces the problem of an inadequate educational structure and a high drop-out rate and, as a result, it adopted the National Programme of Measures for the Introduction of Compulsory Secondary Education with goals that include promoting better and more coordinated cooperation between business and education sectors and creating prerequisites for lifelong learning. In June 2005, the Government adopted a Plan for the Education System Development for 2005–10 with four key development priorities: increasing the quality and efficiency of education; encouraging permanent professional development for teachers and other staff members in the education system; developing new strategies for managing the education process and its efficiency; and education for social cohesion, economic growth and development. The Government’s report indicates that a proposal for the Adult Education Act is in the process of adoption and that the Agency for Adult Education has been founded. The Committee requests that the Government continue to provide information in its next report on the measures taken in the area of education and training policies and on their impact on prospective employment opportunities.

3. Business development. The Committee notes the measures targeting business development mentioned in the Government’s report. The Government indicates that 3,502 loan applications were approved under the project “Local Development Projects – The Entrepreneur”. In June 2006, the “e-Craft” service was launched and 10,080 new businesses were registered over the Internet in 2006. Also, to enhance the development of small enterprises in the tourism sector, 616 loan‑based investments were approved which enabled the creation of 1,700 jobs. The Committee notes the measures taken to stimulate business growth in developed and underdeveloped regions and asks the Government to provide in its next report information on the effects of these measures on long-lasting and productive employment. It also asks the Government to provide in its next report information concerning the methods used by the Government to improve the success rate of young entrepreneurs and to involve the social partners in informing small business of key labour market concerns and opportunities. The Government may deem useful to consult the provisions of the Job Creation in Small and Medium-Sized Enterprises Recommendation, 1998 (No. 189).

4. Private employment agencies. The Government indicates in its report that 21 temporary employment agencies are currently operating in the country and that employment mediation activities are currently carried out by 21 physical and legal persons. The Committee refers to its previous direct request and would also appreciate further information on the manner in which the employment services have increased the efficiency of the labour market measures implemented by the Government’s policies.

5. Article 3. Participation of the social partners in the formulation and application of policies. The Government indicates that it holds consultations with representatives of workers and employers to be able to take into account their experiences and opinions, and to ensure their full cooperation in the preparation of these policies and in gaining support for them. The Committee recalls that the Convention asks Governments to ensure that the opinions of workers’ and employers’ organizations as well as other interested groups are to be consulted “with a view to taking fully into account their experience and views”. It asks the Government to provide concrete examples on the manner in which the views of employers, workers and other affected groups are taken sufficiently into account in the development, implementation and review of employment policies and programmes.

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The Committee notes the detailed replies provided by the Government in October 2007 to the matters raised in the 2005 direct request.

1. Articles 1 and 2 of the Convention. Employment trends and active labour market policies. The Government indicates that the unemployment rate was measured at 16.6 per cent in 2006, down from 17.9 per cent in 2005. According to the most recent data, the unemployment rate was down 5.2 per cent from June 2006 to June 2007. Women accounted for 61.5 per cent of the total number of unemployed in June 2007 and persons over 50 had the largest proportion of registered unemployed with 28.6 per cent. Based on the National Employment Action Plan for the period 2005–08, the Government has adopted the 2007 Annual Employment Promotion Plan which includes measures targeting self-employment, training for the long-term unemployed, persons with low levels of education and young persons who have dropped out of school. The aim of these measures is to effectively match labour market supply to demand by providing additional training to workers. The Government indicates that special emphasis in the elaboration of implementing measures of the 2007 Plan was placed on promoting the integration of and combating discrimination against persons with disabilities, unemployed single parents with minor children and unemployed veterans. The Committee also notes the effects of measures implemented under the 2006 Annual Employment Promotion Plan such as the measures undertaken by the Croatian Employment Service to provide education and training to unemployed persons in order to help them reintegrate the labour market, measures targeting business development and measures targeting workers with disabilities. The Committee asks the Government to keep providing information on the impact of its measures on employment promotion. It also asks the Government to provide in its next report detailed information on measures designed to encourage and support employment levels of vulnerable categories of workers.

2. Education and training policies. The Government reports that it faces the problem of an inadequate educational structure and a high drop-out rate and, as a result, it adopted the National Programme of Measures for the Introduction of Compulsory Secondary Education with goals that include promoting better and more coordinated cooperation between business and education sectors and creating prerequisites for lifelong learning. In June 2005, the Government adopted a Plan for the Education System Development for 2005–10 with four key development priorities: increasing the quality and efficiency of education; encouraging permanent professional development for teachers and other staff members in the education system; developing new strategies for managing the education process and its efficiency; and education for social cohesion, economic growth and development. The Government’s report indicates that a proposal for the Adult Education Act is in the process of adoption and that the Agency for Adult Education has been founded. The Committee requests that the Government continue to provide information in its next report on the measures taken in the area of education and training policies and on their impact on prospective employment opportunities.

3. Business development. The Committee notes the measures targeting business development mentioned in the Government’s report. The Government indicates that 3,502 loan applications were approved under the project “Local Development Projects – The Entrepreneur”. In June 2006, the “e-Craft” service was launched and 10,080 new businesses were registered over the Internet in 2006. Also, to enhance the development of small enterprises in the tourism sector, 616 loan-based investments were approved which enabled the creation of 1,700 jobs. The Committee notes the measures taken to stimulate business growth in developed and underdeveloped regions and asks the Government to provide in its next report information on the effects of these measures on long-lasting and productive employment. It also asks the Government to provide in its next report information concerning the methods used by the Government to improve the success rate of young entrepreneurs and to involve the social partners in informing small business of key labour market concerns and opportunities. The Government may deem useful to consult the provisions of the Job Creation in Small and Medium-Sized Enterprises Recommendation, 1998 (No. 189).

4. Private employment agencies. The Government indicates in its report that 21 temporary employment agencies are currently operating in the country and that employment mediation activities are currently carried out by 21 physical and legal persons. The Committee refers to its previous direct request and would also appreciate further information on the manner in which the employment services have increased the efficiency of the labour market measures implemented by the Government’s policies.

5. Article 3. Participation of the social partners in the formulation and application of policies. The Government indicates that it holds consultations with representatives of workers and employers to be able to take into account their experiences and opinions, and to ensure their full cooperation in the preparation of these policies and in gaining support for them. The Committee recalls that the Convention asks Governments to ensure that the opinions of workers’ and employers’ organizations as well as other interested groups are to be consulted “with a view to taking fully into account their experience and views”. It asks the Government to provide concrete examples on the manner in which the views of employers, workers and other affected groups are taken sufficiently into account in the development, implementation and review of employment policies and programmes.

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The Committee notes the comprehensive information provided by the Government in its report for the period ending in May 2005, as well as the replies in response to its 2003 direct request.

1. Employment trends and active labour market measures. The Government indicates that, since the implementation of its Programme for Promoting Employment in 2002, a total of 72,798 people found employment. However, since 2002, the increase in the employment rate of women was only half that of men. The Government also indicates that the unemployment rate has been decreasing since 2002 but still stood at a high level of 13.8 per cent in 2004 (compared to 15.2 per cent in 2002). Proportionally, the unemployment rates have also been decreasing for women and youth since 2002, but are still a matter of concern with rates of respectively 16 per cent and 33.8 per cent in the last half of 2004.

2. The Government indicates that it has adopted a National Plan of Action for Employment for the period running from 2005 to 2008, which follows the directives of the European Employment Strategy and contains an entire series of directives and measures for achieving full employment, quality and labour productivity, social cohesion and inclusion. Particular attention has been devoted to measures of active policies through which it is planned to prevent or reduce the phenomenon of long-term unemployment in general and particularly the long-term unemployment of the young. The Government indicates its intention to create and implement a stable model of financing measures for the active employment policy. Furthermore, it indicates that there are plans to promote the creation of new jobs in small and medium-sized enterprises by shortening the procedure for their registration, accelerating the solution of business and labour disputes, and creating a favourable business climate. The Government also mentions that it is preparing a reform of secondary schooling, directed at the acquisition of basic skills, in order to achieve greater productivity, flexibility and adaptability on the labour market, and that a reform in professional training is ongoing, directed towards standardization of professions and the development of a system for the recognition of diplomas. The Committee asks the Government to continue providing information on the various labour market policy measures referred to in the report and their impact on employment, particularly as concerns employment of women and young persons. It would also appreciate receiving further information on how the measures taken to promote full and productive employment operate within a "framework of a coordinated economic and social policy" (Articles 1 and 2 of the Convention).

3. With reference to the Committee’s previous request, the Government indicates that the private employment agencies are having a favourable, although not significant, effect on employment and complement well with the Croatian Employment Service. The committee draws again the Government’s attention to the fact that it may deem it useful to consult the instruments on the public employment services (Convention No. 88 and Recommendation No. 83) and on the private employment agencies (Convention No. 181 and Recommendation No. 188) adopted by the Conference at its 31st and 85th Sessions (1948 and 1997).

4. Participation of the social partners. The Government indicates that various ministries, state institutions, scientific research institutions, employers’ and workers’ associations, unions, non-governmental organizations and representatives of the local communities participated in the preparation of the National Plan of Employment Activity. It also indicates that social partners can have an impact on the employment policy and its implementation through participation in the work of the Economic-Social Council and through their representatives, in the Executive Council of the Croatian Employment Service. The Committee asks the Government to keep providing information on the manner in which the views of employers and workers, including representatives of rural workers and other affected groups, are taken sufficiently into account in the development, implementation and review of employment policies and programmes (Article 3).

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The Committee notes the detailed information contained in the Government’s reports for the period ending in September 2003.

1. Articles 1 and 2 of the Convention. The Committee notes the detailed statistics included by the Government in its report which covers: jobseekers registered with the Croatian Employment Service, disaggregated unemployment statistics by age and gender, statistics on underemployment as a share of total employment and data by sector and economic activity. The Government reports that unemployment for the second half of 2002 was approximately 15.8 per cent down from 16.3 per cent for the same period in 2000. The employment situation for women and youth has deteriorated with unemployment reaching 18.7 per cent and 41.7 per cent, respectively. Please continue to provide detailed statistics on the level and trends of the active population, employment, underemployment and unemployment in the various sectors of activity and for the different categories of the population.

2. The Committee notes that Law No. 32 of 28 March 2002 concerning mediation during employment and rights during the time of unemployment, governs activities such as mediation during employment or hiring, professional orientation, education for the purpose of increasing the employment of labour, unemployment insurance, an active effect on the labour market for the sake of increasing vocational and geographical mobility of the labour force, and new employment and self-employment. The Government also states that, although the legislative modifications introduced have not modified the rights guaranteed by the old Employment Law in terms of social protection of unemployed persons, the actual definition of an unemployed person has changed which might lead to changes in the structure and extent of registered unemployment. The Committee has taken note of this information and would appreciate receiving further details in the Government’s next report on the recorded changes, as a result of the new law, in trends and levels of employment and unemployment. Please also describe how the new legislation contributes to the promotion of the objectives of full, productive and freely chosen employment.

3. Pursuant to Law No. 32, a number of regulations have also been adopted that cover, inter alia, regulations concerning the undertaking of activities in connection with employment outside the Croatian Employment Institute. The Committee requests that the Government indicate what impact these activities have had on the functioning of the labour market. The Government may deem it useful to consult the instruments on the public employment services (Convention No. 88 and Recommendation No. 83) and on private employment agencies (Convention No. 181 and Recommendation No. 188) adopted by the Conference at its 31st and 85th Sessions (1948 and 1997).

4. The Government describes in its report the principal measures of its active employment policy. It states that as regards social policy, employment promotion has been pointed out as the fundamental instrument for solving social problems and combating poverty. The document entitled "Foundations of the economic and social policy for 2002 and 2003" specified two main macroeconomic goals in the medium and in the long term: growth of employment and reduction of unemployment and a rise in the standard of living. To promote these objectives and finance active labour market policy the Government has established the Development and Employment Fund. Beginning in March 2002, the Employment Promotion Programme, which includes active labour market and training measures, has been implemented through the Croatian Employment Service. The programme’s main objectives are the reduction of unemployment, job creation, restructuring of the economy, reduction of the structural difference between the labour force demand and supply and to provide employment for disadvantaged groups within the labour market. The Committee notes the efforts made by the Government to develop varied employment strategies and policies addressing sectoral development, the employment market and education and training. In order to fully assess the benefit of this strategy, the Committee would appreciate receiving further information on the evaluation of policies and programmes implemented, including any indication as the extent to which the employment objectives set out in the two-year programme (2001-02) have been or are being attained. Finally, the Committee requests that the Government indicate the manner in which the implementation of these policy measures takes into account other economic and social objectives, and the conditions under which these measures are decided on and kept under review within the framework of a coordinated economic and social policy.

5. Article 3. With reference to its previous request, in which it noted there was no formal procedure for consultations and that no consultation had taken place with the social partners concerning employment policies, the Committee again requests further details on the manner in which consultations are held with representatives of employers, workers and other groups, such as rural and informal sector workers, and on the outcome of these consultations.

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The Committee notes the information contained in the Government’s report for the period 1998-2000.

1. Article 1 of the Convention. The Government states that GDP shrank by 0.3 per cent in 1999 and has not picked up much as of mid-2000. In 1998-2000, the total number of registered employed decreased by about 5 per cent per year. Labour force survey data indicate that 52 per cent of working-age men and 39 per cent of working-age women were employed in 1999. Unemployment has a mild but persistent upward trend, and was 17.2 per cent in 1999 and 21.5 per cent in 2000, according to administrative sources. Labour force data indicate that unemployment was 11.2 per cent in the first quarter of 1998 and 12.6 per cent in the first quarter of 1999. Unemployment is fairly evenly distributed across gender and age categories.

2. The Government states that it adopted a national employment policy in 1998. The goals of the national employment policy include decreasing unemployment and increasing the efficiency of labour market institutions. Programmes to decrease unemployment include: lowering labour costs by cutting payroll, health and pensions contributions; loans to aid the unemployed to become self-employed, and to help small and medium-sized enterprises avoid layoffs and expand operations; subsidizing wages of veterans and paying employers a hiring bonus; and subsidizing professional training, retraining and upgrading of skills. The Government states that the total number of people benefiting from these active labour market policy measures was 15,753, but that the programme has been suspended temporarily for lack of funding and proposed new measures have not been funded. The Committee notes this information. It also notes that the Government’s report contains little information on how the national employment policy is coordinated with other policies. It would appreciate receiving further information on how the employment policy objectives are related to other economic and social objectives, as requested in the report form under Article 1.

3. Article 2. The Committee notes that the Government’s report does not contain any information on the impact of the abovementioned programmes on employment promotion. Please describe the procedures adopted to ensure that the principal measures of employment policy are decided on and kept under periodic review within the framework of a coordinated economic and social policy.

4. Article 3. The Government states that the social partners are consulted through their participation on the Management Board of the Employment Service, on the Economic and Social Council and at special events. There is no formal consultation procedure and at present no consultation takes place with other groups affected by the measures taken to promote employment. Please provide further information on the manner in which workers’ and employers’ representatives are consulted, and on the steps taken or envisaged to consult with representatives of other sectors of the economically active population, such as those working in the rural and the informal sectors.

5. Part V of the report form. The Committee notes that the ILO is the associated agency for the inter-agency and bilaterally funded Project for Reconstruction and Social Development in War-torn Areas in Croatia. The ILO Local Economic Development Programme is providing assistance in the creation and operation of local economic development agencies and the InFocus Programme on Boosting Employment through Small Enterprise Development. The Committee would appreciate receiving information on the outcome of this technical cooperation.

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1. The Committee notes the Government's report for the period ending June 1998 and the useful information that it contains in reply to its previous request. Observing with interest the fact that labour force surveys are now conducted periodically, the Committee notes the Government's explanations concerning the significant gap between the rate of registered unemployment, established on the basis of data provided by the employment service, and the much lower rate derived from labour force surveys. It requests the Government to continue providing information that is as complete as possible on the situation and trends of employment, unemployment and underemployment, and on the levels of the various forms of informal employment.

2. The Committee notes the adoption in February 1998 of a national employment policy with the priorities of economic growth, the reduction of taxes and deregulation, as well as the assistance provided to categories of the population encountering particular difficulties. It notes that the results which have been obtained in controlling inflation and the budgetary deficit, as well as the rapid rate of economic growth, have not made it possible to reduce the level of unemployment during the period. The Committee requests the Government to state whether fiscal and monetary policies are reviewed in terms of their actual or expected effects on employment. Please also provide information on the manner in which the policy to reduce labour costs contributes to the promotion of employment and, more generally, on incomes and wages policies.

3. The Committee notes the new series of active labour market measures envisaged in the national employment policy. It would be grateful if the Government would provide with its next report any evaluation that is available of the effectiveness of each of these measures in terms of the lasting integration of their beneficiaries in employment. Please continue to provide information on vocational training and retraining activities.

4. Article 3 of the Convention. The Committee notes that the Government refers to the participation of the Socio-Economic Council in the definition, monitoring and evaluation of labour market policies. It requests the Government to provide examples of the subjects covered by the Council, the opinions issued and the manner in which they are taken into account. The Committee notes that, according to the Government, it is regrettable that representatives of sectors of the active population such as the informal sector and the rural sector are not associated in the formulation of employment policy. Please indicate whether measures have been taken or are envisaged to associate representatives of other persons concerned, in addition to organizations of employers and workers, in consultations on employment policies.

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The Committee notes the Government's report for the period ending June 1996 and the information that it contains in reply to its previous request. It hopes that the Government will endeavour to transmit the information and studies required in the report form adopted by the Governing Body, particularly with regard to the following matters.

1. The Committee notes that the data provided only relates to unemployed persons who are registered in employment offices. It notes in this regard that a survey of the active population is currently being carried out, and that its results should be available in 1997. The Committee hopes that the Government will be in a position to supply full statistical information in its next report on the situation and trends of employment, underemployment and unemployment. Please indicate any progress that it has been possible to achieve in the compilation and analysis of the necessary data as a basis for decisions on employment policy measures.

2. The Committee notes the description of certain measures to promote self-employment which are intended in particular for disabled war veterans and persons with disabilities, as well as the assistance for geographical mobility for employment. Please state the approximate number of workers concerned by these measures and the results obtained.

3. Please also supply information on the implementation of the other labour market policy measures envisaged by the Employment Act, such as subsidies for the recruitment of the unemployed and public works programmes.

4. Please supply information on vocational training and retraining activities for the unemployed, and the measures adopted or envisaged to coordinate education and training policies with prospective employment opportunities.

5. Please state whether measures have been adopted to prevent or accompany lay-offs for economic or structural reasons.

6. The Committee notes that, according to the Government, active employment policy measures cannot reduce registered unemployment in the current economic situation. It recalls that employment policy in the meaning of the Convention involves other aspects of government action and must, under the terms of Article 2 of the Convention, be pursued within the framework of a coordinated economic and social policy. The Committee once again requests the Government to describe the manner in which the principal measures of its general economic policy contribute to promoting full, productive and freely chosen employment, as a major goal, in accordance with Article 1 of the Convention. Please, in particular, describe the measures adopted for this purpose in such fields as investment policy, fiscal and monetary policies, trade policy and prices, incomes and wages policies, in response to the relevant questions in the report form adopted by the Governing Body.

7. Article 3. The Committee notes that the report contains no information on the effect given to this fundamental provision of the Convention. It once again requests the Government to describe the machinery adopted or envisaged to ensure consultation on the employment policy of the representatives of the persons affected by the measures to be taken.

8. Part V of the report form. The Committee has been informed of the request for ILO assistance made by the Ministry of Labour and Social Affairs with a view to improving the employment policy. It understands that the Budapest multidisciplinary team has been in contact with the Government for this purpose and that a number of proposals have been made for future activities. It trusts that the Government will continue this collaboration.

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The Committee notes with interest the Government's first report, which covers the application of the Convention during the period ending June 1994. It also notes the communication from the Union of Autonomous Trade Unions of Croatia (UATC), dated 15 March 1995, relating to the Convention, a copy of which has been transmitted to the Government. In order to enable it to make a better evaluation of the effect given to the provisions of the Convention, the Committee would be grateful if the Government would provide further information in its next report in reply to each of the questions in the report form, with particular reference to the following points.

1. The Committee notes that, according to the statistics of the Employment Office, the rate of registered unemployment was 16.3 per cent in June 1994. However, the Government emphasizes that unemployment statistics, which are based only on the registration of the unemployed at employment offices, do not provide an adequate basis for decisions in the field of employment policy. It states that research has been undertaken with a view to carrying out a survey of the active population. The Committee takes due note in this respect of the Government's wish to benefit from the technical cooperation of the ILO to undertake this project. It would be grateful if the Government would indicate any progress achieved in the compilation and analysis of statistical data concerning the situation and trends of employment, underemployment and unemployment.

2. The Government provides information in its report on the labour market policy measures. These have been implemented by the Employment Office to promote the creation of jobs through financial incentives and to facilitate the occupational and geographical mobility of the unemployed through vocational guidance, training and retraining measures. The Committee would be grateful if the Government would provide any evaluation that is available of the results achieved through these different measures, particularly as regards the long-term integration of their beneficiaries into employment. Please also provide detailed information on measures designed to promote access to self-employment by jobseekers. Please also indicate whether measures to prevent termination of employment for economic or structural reasons have been implemented or are envisaged.

3. The Committee notes that, in the opinion of the UATC, the provisions of the Employment Act (as amended by the Act of 21 October 1994) relating to the grounds upon which unemployed persons can be erased from the unemployment register have the effect of denying many categories of jobseekers access to the services of employment offices and thereby prejudice their freedom of choice of employment. The Committee notes that the Government has not responded to the request to make known its views on this matter. It would be grateful if the Government would indicate in its next report the measures that have been taken to guarantee to all persons seeking employment the broadest possible access to the services provided by employment offices, particularly in the fields of guidance and placement. (See also the observation under Convention No. 102.)

4. While appreciating the information that has been supplied, the Committee nevertheless notes that it only relates to the labour market measures for which the Employment Office is responsible. It is bound to recall that, under the terms of Articles 1 and 2 of the Convention, the measures to be adopted with a view to promoting, "as a major goal", full, productive and freely chosen employment shall be decided on and kept under review "within the framework of a coordinated economic and social policy". In this respect, the Committee requests the Government to provide information on the manner in which general economic policy measures contribute to the achievement of employment objectives. In particular, please describe the measures that have been taken for this purpose in such fields as investment policy; fiscal and monetary policies; trade policy; and prices, incomes and wages policies.

5. The Committee also notes, with regard to the effect given to Article 3 of the Convention, that the Government only refers to the association of employers' and workers' organizations in the management of the Employment Office. It recalls that the consultations provided for by this important provision of the Convention should cover all aspects of economic policy which have an impact on employment and should include the representatives of all the persons affected by the measures to be taken. The Committee would be grateful if the Government would describe the machinery that has been adopted or is envisaged for this purpose.