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

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The Committee takes note of the supplementary information provided by the Government in light of the decision adopted by the Governing Body at its 338th session (June 2020). The Committee examines the application of the Convention on the basis of the supplementary information received from the Government this year, as well as on the basis of the information at its disposal in 2019.

COVID-19 pandemic. Socioeconomic impacts. Response and recovery measures. The Committee notes the serious social and economic impact of the COVID-19 pandemic at the national and local levels as well as the measures taken by the Government to mitigate it. In this context, the Committee notes from the ILO monitor on country policy responses, the set of measures adopted by the Government to support enterprises, jobs and incomes, such as providing unemployment benefits for citizens who have lost their jobs due to the crisis (amounting to 50 per cent of the employee's average salary, and up to 80 per cent of the average salary in the country), financial support to the private sector (USD260 per employee for April and May, or alternative, subsidizing 50 per cent of the mandatory social contributions) and loans to micro, small and medium size enterprises (MSMEs) through the Development Bank of North Macedonia. The Committee recalls the comprehensive guidance provided by international labour standards. In this regard, the Committee wishes to draw the Government’s attention to the Employment and Decent Work for Peace and Resilience Recommendation, 2017 (No. 205), which provides guidelines for developing and implementing effective, consensus-based and inclusive responses to the profound socio-economic impacts of the pandemic. The Committee invites the Government to provide updated information in its next report on the impact of the global COVID-19 pandemic and the measures taken to address it in the context of the implementation of the programs and measures aimed at ensuring the objectives of the Convention.

Articles 1 and 3 of the Convention. Implementation of an active employment policy. Consultation with the social partners. The Committee notes with interest the range of measures undertaken by the Government with a view to attaining the objectives of the Convention. In this regard, the Committee notes the adoption in March 2019 of the Decent Work Country Programme for North Macedonia 2019–22 (DWCP). The DWCP was prepared in consultation with the social partners with the aim of addressing, among other issues, insufficient employment opportunities, inadequate earnings and unproductive work, lack of stability and security at work, and unequal opportunities and treatment in employment. The Committee further notes the launch in August 2017 of the Employment and Social Reform Programme 2020 (ESPR 2020), following consultations with a large number of relevant stakeholders, including the social partners. The impact of the measures taken under the ESPR is regularly monitored and evaluated in order to adapt them to the specific needs of the different target groups identified. In this regard, the ESPR 2022 was adopted in December 2019 following approval by the tripartite Economic Social Council (ESC). It revises the ESPR 2020 and extends the duration of the Programme until 2022. The Government indicates that the ESPR programme was adopted within the framework of a joint initiative between the European Commission and the Government as a candidate country for EU membership. Its objectives include, inter alia, promoting economic development and job creation; tackling unemployment among persons in vulnerable situations (young persons, the long-term unemployed, persons with disabilities and economically inactive persons), reducing the size of the informal economy and the extend of informal employment, strengthening the public employment service, and promoting social dialogue and collective bargaining. Furthermore, the Government refers in the ESPR 2020 to the implementation of the National Employment Strategy of the Republic of North Macedonia 2016–20, which sets out the main mid-term challenges in the labour market and sets strategic goals and objectives to be attained during this period. The Strategy’s principal goal is to promote employment, job quality and productivity, and places a special focus on groups in vulnerable situations. In this framework, annual Operational Plans for Active Employment Programs and Measures are adopted and implemented by the Employment Agency of the Republic of North Macedonia (EARM) in collaboration with the relevant institutions from the labour market. The Government indicates that the Operational Plan includes employment programs, measures and services that seek to ensure direct employment and increase the employability of the unemployed. The Committee also notes the statistical information provided by the Government concerning the number of participants in the different active employment measures between 2018 and 2019. The Committee notes from the ESPR 2022 that motivational training is regularly organized for unemployed people, with preference given to young persons, those with lower skills and the long-term unemployed. In addition, specific active labour market measures tailored to the needs of these groups are supported, also through assistance from the EU. The ESPR 2022 notes, however, that North Macedonia is not spending much on active labour market programmes for the unemployed, compared to other EU countries, noting that in 2017 the expenditure on labour market programmes represented only 0.16 per cent of the Gross Domestic Product (GDP). With regard to employment trends, the Committee notes that, according to ILOSTAT, in 2019, before the outbreak of the COVID-19 pandemic, the overall labour force participation rate stood at 55.5 per cent, the employment rate was 45.9 per cent, and the unemployment rate was 17.3 per cent. The Committee requests the Government to continue to provide up-to-date, detailed information on the results of the measures implemented in the framework of the Decent Work Country Programme for North Macedonia 2019–22, the Employment and Social Reform Programme 2022, the National Employment Strategy of the Republic of North Macedonia 2016–20, and the Operational Plans for Active Employment Programs and Measures. In particular, the Committee requests the Government to provide information on the manner and extent to which the measures implemented have enabled the beneficiaries to obtain full, productive and sustainable employment. It also requests the Government to provide updated statistical information on trends in the labour market, especially in relation to the economically active population, employment and unemployment, disaggregated by sex and age. The Committee further requests the Government to continue to provide detailed information on the manner in which it has ensured that the social partners participate in the design, implementation and evaluation of the employment policies.

Education and training. The Committee notes that the ESPR includes the attainment of objectives related to education and training, particularly for the target groups identified in the ESPR, including ensuring fully inclusive education and equal access to education for all, implementing the National Qualification Framework (NQF) for lifelong learning, strengthening the employability of the workforce and building learning pathways in the context of lifelong learning. In respect of lifelong learning, the ESPR provides for measures to further develop vocational education and training as well as adult education; to promote various forms of lifelong learning and strengthen entrepreneurial culture; and to ensure active consultation and the inclusion of local governments and social partners within these processes. Moreover, according to the ESPR 2020, a Comprehensive Education Strategy and Action Plan for the period up to 2020 was developed through a consultative process involving the participation of a large number of relevant stakeholders. The Strategy establishes the priorities and pathways of action toward ensuring a comprehensive and inclusive education with modern and up-to-date programs that will enable future generations to acquire knowledge, skills and competences that are competitive and adapted to the actual needs of the labour market. The ESPR 2022 also envisages the establishment of a Skills Observatory, which is intended to map and update graduates’ competencies and labour market needs, but notes that while progress has been made in establishing sectoral qualifications councils as well as the qualifications register, the Skills Observatory has not yet been established. The Committee requests the Government to provide information on the impact of the measures taken in the area of education and training, including those adopted in the framework of the Comprehensive Education Strategy and its Action Plan, and on their relation to prospective employment opportunities. It also requests the Government to provide information on progress made in the establishment and functioning of the Skills Observatory.

The informal economy. The Committee observes that, according to the cited 2018 European Commission staff working document, employment in the informal economy is declining, but remains high. The report indicates that, according to the National Statistical Office, some 18 per cent of total employment in 2016 was located in the informal economy. Informal work is distributed unevenly among population groups, with a particularly high proportion of young workers, women and long-term unemployed persons. The ESPR 2022 refers to the Strategy on Formalization of the Informal Economy 2018-2022, whose objective is to create a comprehensive and consistent system to efficiently reduce the number of informally employed, unregistered business entities and informal activities. The ESPR 2022 states that tackling the informal economy remains a priority for North Macedonia for long-term improvement of the labour market. It provides for, among other measures, the promotion of processes and mechanisms for measurement, monitoring and detection of the informal economy and providing incentives and support for formalization of informal economic activities. It sets the target of reducing the share of the informal employment to 15.9 per cent by 2022. The Committee requests the Government to continue to provide detailed up-to-date information on the nature and impact of measures taken to integrate informal economy workers into the formal labour market, particularly young workers, women and the long-term unemployed.

Women. In reply to the Committee’s previous comments, the Government indicates that the annual Operational Plans for Active Employment Programs and Measures ensure the equal participation of men and women in these activities. The Government reports that the participation of women in these activities increased to 53.82 per cent between 2015 and 2017. However, the Committee observes that, according to ILOSTAT, in 2019 the labour participation rate of women stood at 44.9 per cent, their employment rate was 36.7 per cent, and their unemployment rate was 18.4 per cent. In addition, the Committee notes that, in its concluding observations of 14 November 2018, the Committee on the Elimination of Discrimination against Women (CEDAW) expressed its concern about the significant gender pay gap in the country, noting its prevalence in sectors such as the garment industry, where women make up 81 per cent of workers, the low rate of participation of women in the labour market, and the overrepresentation of women in unpaid care work as well as in the informal economy (document CEDAW/C/MKD/CO/6, paragraph 35, subparagraphs (a) and (b)). Against this background, the Committee notes that the ESPR 2022 contemplates a set of measures to promote the integration of women in the labour market and reduce the gender gap, such as the implementation of the Strategy for Development of Women‘s Entrepreneurship in the Republic of North Macedonia (2019-23), which aims to create an enabling business climate and providing support for the development of women’s entrepreneurial potential. The Committee requests the Government to provide updated detailed information on the nature and impact of measures adopted or envisaged to promote the participation of women in the labour market, including statistical data disaggregated by sex and age.

Young persons. The Committee observes that, according to ILOSTAT, the overall youth labour force participation rate in 2017 was 32.8 per cent (41.7 per cent among young men and 23.4 per cent among young women). The overall unemployment rate was 46.7 per cent (45.8 per cent for young men compared to 48.6 per cent for young women), while the share of youth not in employment, education or training (NEET) was 24.9 per cent (23.9 per cent for men and 25.9 per cent for women). The Committee notes from the 2017 European Commission report on “Youth policies in the Former Yugoslav Republic of Macedonia”, that the low economic participation rates of youth are due to: (i) shrinking employment opportunities and difficulties associated with the school-to-work transition; (ii) the unwillingness of employers to bear the costs of on-the-job training for youth lacking job experience, as the pool of experienced jobseekers is large; and (iii) skills mismatches between the needs of employers and the skills young persons obtain through the education system. The Government refers in the ESPR 2020 to the implementation of the Action Plan on Youth Employment 2016–20, whose objective is to promote more and better jobs for young men and women by improving skills matching; promoting job creation led by the private sector and facilitating the transition of young people into the world of work. The Government also notes that over qualification among young people has become a major barrier preventing young people from finding suitable job positions in North Macedonia. As a result, a number of young people have to leave the country to realize their professional ambitions. The Committee welcomes the information provided by the Government concerning the implementation of employment measures for young persons in the framework of the annual Operational Plans for Active Employment Programs and Measures, and their impact. According to the ESPR 2022, in 2018, young people up to the age of 29 years made up 65 per cent of the participants in active labour market employment programmes and measures, up from 36 per cent in 2017. Finally, the Committee refers to its 2020 comments on the application of the Human Resources Development Convention, 1975 (No. 142), in which it notes the implementation of the Youth Guarantee, which is aimed at ensuring that all young people under the age of 25 years receive a quality offer of employment, continued education, apprenticeship or traineeship within a period of four months of becoming unemployed or leaving formal education. The Committee requests the Government to continue to provide updated information on the measures envisaged or taken with a view to assisting young persons in finding, advancing and retaining lasting employment, particularly with regard to increasing employment opportunities for young people, and on the impact of these measures, including disaggregated statistical data by sex.

Persons with disabilities. The Committee notes that, according to the ESPR 2020, the measures and programs included in the annual active labour market programs seek to promote the access of persons with disabilities to the labour market and increase their employability. In particular, the ESPR 2020 provides for the establishment of a centre for rehabilitation and work qualification within the institute of rehabilitation of children and youth (Skopje) and measures to promote the access of persons with disabilities to all levels of education. According to the ESPR 2022, there has been progress in terms of employment of persons with disabilities, mostly through the Programme for self-employment of persons with disabilities. The ESPR 2022 sets a target of improving or maintaining 60 per cent of registered employment of persons with disabilities in the open labour market, as compared with the proportion of sheltered employment. Nevertheless, the Committee notes that, in its concluding observations of 29 October 2018, the Committee on the Rights of Persons with Disabilities (CRPD) expressed concerns with regard to: (a) discrimination against and inequalities in employment and working conditions for persons with disabilities, particularly women, notably in several provisions of the Law on Civil Servants; (b) the fact that the Law on Labour Relations does not specifically require employers to provide reasonable accommodation to persons with disabilities; (c) the fact that persons with disabilities and public and private employers are not fully aware of the rights of and opportunities for employment in the open labour market (document CRPD/C/MKD/CO/1, paragraph 45). The Committee requests the Government to provide detailed and updated information on the measures taken or envisaged to promote employment opportunities for persons with disabilities, especially women, in the open labour market, including measures to raise public awareness of the rights and capacities of persons with disabilities, and on the impact of these measures.

Older workers. In reply to the Committee’s previous comments, the Government reports that it is implementing measures to promote the participation of persons aged 50 to 64 years in the labour market. It adds that older workers represent 8 per cent of the participants in active employment measures and programs, and 24 per cent of the participants in the project “Macedonia Employs 1 and 2”. The Committee requests the Government to provide detailed updated information on the nature and the impact of the different measures taken to facilitate the integration of older workers into the labour market.

The Roma minority. The Committee notes that, according to the ESPR 2022, the employment rate among the Roma minority is 23 per cent (almost twice lower than the national average) and the unemployment rate is as high as 67 per cent. The employment rate for Roma women is 8 per cent. In addition, the Roma community faces a high rate of informal employment (on average 25 per cent are working informally). In this context, the ESPR 2020 provides for the implementation of measures to improve employment opportunities and reduce unemployment for persons belonging to the Roma community. These objectives are to be reached through increasing the participation of Roma in different active employment programs and measures, raising their education level as well as their participation and inclusion at all levels of education. The Committee notes that the ESPR 2022 extends the implementation of the abovementioned measures. It sets a target for 2022 of the successful inclusion of at least 325 Roma in active employment measures, reaching 10,000 Roma with services; and reducing the rate of registered unemployed in the Roma community to 8.7 per cent. The Committee requests the Government to continue to provide updated and detailed information on the nature and impact of measures taken to increase full, productive and freely chosen employment of members of the Roma community, including statistical data, disaggregated by age and sex.

Small and medium-sized enterprises (SMEs). In its previous comments, the Committee requested the Government to provide information on the impact of the Programme for Self-Employment and other measures taken to support the establishment of SMEs in terms of employment generation. The Government reports that, in 2019 1,309 persons participated in the Programme for Self-Employment. The Committee notes that the ESPR provides for adoption of measures to support and improve competitiveness and entrepreneurship in the SMEs sector. In addition, the Government refers to the adoption of measures to support SMEs in the framework of the Strategy for Development of SMEs 2018-23 and its accompanying Action Plan, such as establishing a coordination body for monitoring the implementation of the Strategy and initiating the drafting of a new law on SMEs. The Committee requests the Government to provide updated detailed information on the impact of the Strategy for Development of Small and Medium-size Enterprises and its accompanying Action Plan. In particular, it requests the Government to provide statistical information on the number and type of enterprises established and the number of jobs created by such enterprises. The Committee also requests the Government to provide information on the status of the draft law on SMEs, and to provide a copy once it is adopted.

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Articles 1 and 3 of the Convention. Implementation of an active employment policy. Consultation with the social partners. The Committee notes with interest the range of measures undertaken by the Government with a view to attaining the objectives of the Convention. In this regard, the Committee notes the adoption in March 2019 of the Decent Work Country Programme for North Macedonia 2019–22 (DWCP), as a result of the strategic planning of ILO cooperation activities in the country. The DWCP was prepared in consultation with the social partners with the aim of addressing, among other issues, insufficient employment opportunities, inadequate earnings and unproductive work, lack of stability and security at work, and unequal opportunities and treatment in employment. In August 2017, the Government launched the Employment and Social Reform Programme 2020 (ESPR), following consultations with a large number of relevant stakeholders, including the social partners. The Government indicates that the ESPR programme was adopted within the framework of a joint initiative between the European Commission and the Government as a candidate country for EU membership. The ESPR’s objectives include, inter alia, promoting economic development and job creation; tackling unemployment among persons in vulnerable situations (young persons, the long-term unemployed, persons with disabilities and economically inactive persons), reducing the size of the informal economy and the incidence of informal employment, strengthening the public employment service, and promoting social dialogue and collective bargaining. To achieve these objectives, the ESPR envisages the development and implementation of employment incentives for the long-term unemployed (especially those who have been unemployed for more than two years), as well as measures to promote the employment of women, persons with disabilities and those considered to be at social risk (such as social assistance beneficiaries and members of the Roma community). The impact of the measures taken under the ESPR will be regularly monitored and evaluated in order to adapt them to the specific needs of the different target groups identified. The Government also refers in the ESPR report to the implementation of the National Employment Strategy of the Republic of North Macedonia 2016–20, which sets out the main mid-term challenges in the labour market and sets strategic goals and objectives to be attained during this period. The Strategy’s principal goal is to promote employment, job quality and productivity, and places a special focus on groups in vulnerable situations. In this framework, annual Operational Plans for Active Employment Programs and Measures are adopted and implemented by the Employment Agency of the Republic of North Macedonia (EARM) in collaboration with the relevant institutions from the labour market. The Government indicates that the Operational Plan includes employment programs, measures and services that seek to ensure direct employment and increase the employability of the unemployed. The Government reports that, between 2015 and 2017, 19,632 persons participated in active employment programs. With regard to employment trends, the Committee notes that, according to ILOSTAT, the overall labour force participation rate in 2017 stood at 55.1 per cent, the employment rate was 42.8 per cent, and the unemployment rate was 22.4 per cent. The Committee requests the Government to provide up-to-date, detailed information on the results of the measures implemented in the framework of the Decent Work Country Programme for North Macedonia 2019–22, the Employment and Social Reform Programme 2020, the National Employment Strategy of the Republic of North Macedonia 2016–20, and the Operational Plans for Active Employment Programs and Measures. In particular, the Committee requests the Government to provide information on the manner and extent to which the measures implemented have enabled the beneficiaries to obtain full, productive and sustainable employment. It also requests the Government to provide updated statistical information on trends in the labour market, especially in relation to the economically active population, employment and unemployment, disaggregated by sex and age. The Committee further requests the Government to continue to provide detailed information on the manner in which it has ensured that the social partners participate in the design, implementation and evaluation of the employment policies.

Education and training. The Committee notes that the ESPR includes the attainment of objectives related to education and training, particularly for the target groups identified in the ESPR, including ensuring fully inclusive education and equal access to education for all, implementing the National Qualification Framework (NQF) for lifelong learning, strengthening the employability of the workforce and building learning pathways in the context of lifelong learning. In respect of lifelong learning, the ESPR provides for measures to further develop vocational education and training as well as adult education; to promote various forms of lifelong learning and strengthen entrepreneurial culture; and to ensure active consultation and the inclusion of local governments and social partners within these processes. Moreover, according to the ESPR report, a Comprehensive Education Strategy and Action Plan for the period up to 2020 was developed through a consultative process involving the participation of a large number of relevant stakeholders. The Government indicates in the ESPR report that the Strategy establishes the priorities and pathways of action toward ensuring a comprehensive and inclusive education with modern and up-to-date programs that will enable future generations to acquire knowledge, skills and competences that are competitive and adapted to the actual needs of the labour market. The ESPR also envisages the establishment of a Skills Observatory, which is intended to map and update graduates’ competencies and labour market needs. Nevertheless, the Committee observes that, according to the 2018 European Commission staff working document on the former Yugoslav Republic of Macedonia (document SDW (2018) 154 final), the national educational system is slow to address skills mismatches. The Committee requests the Government to provide information on the impact of the measures taken in the area of education and training, including those adopted in the framework of the Comprehensive Education Strategy and its Action Plan, and on their relation to prospective employment opportunities. It also requests the Government to provide information on progress made in the establishment and functioning of a Skills Observatory.

The informal economy. The Committee observes that, according to the cited 2018 European Commission staff working document, employment in the informal economy is declining, but remains high. The report indicates that, according to the National Statistical Office, some 18 per cent of total employment in 2016 was located in the informal economy. Informal work is distributed unevenly among population groups, with a particularly high proportion of young workers, women and long-term unemployed persons. The ESPR contemplates a number of measures to reduce the incidence of informal employment, including the development and adoption of a tripartite National Strategy for the formalization of the informal economy, and the development and roll-out of national campaigns and other activities to raise public awareness concerning the need for and the benefits of formalizing the informal employment. The Committee requests the Government to provide detailed up-to-date information on the nature and impact of measures taken to integrate informal economy workers into the formal labour market, particularly young workers, women and the long-term unemployed. The Committee further requests the Government to indicate the progress made in the adoption of the Tripartite National Strategy for the formalization of the informal economy, and to provide a copy once it has been adopted.

Women. In reply to the Committee’s previous comments, the Government indicates that the annual Operational Plans for Active Employment Programs and Measures ensure the equal participation of men and women in these activities. The Government reports that the participation of women in these activities increased to 53.82 per cent during the reporting period. However, the Committee observes that, according to ILOSTAT, the labour participation rate of women stood at 42.7 per cent, their employment rate was 33.4 per cent, and their unemployment rate was 21.8 per cent. In addition, the Committee notes that, in its concluding observations of 14 November 2018, the Committee on the Elimination of Discrimination against Women (CEDAW) expressed its concern about the significant gender pay gap in the country, noting its prevalence in sectors such as the garment industry, where women make up 81 per cent of workers, the low rate of participation of women in the labour market, and the overrepresentation of women in unpaid care work as well as in the informal economy (document CEDAW/C/MKD/CO/6, paragraph 35, subparagraphs (a) and (b)). The Committee requests the Government to provide updated detailed information on the nature and impact of measures adopted or envisaged to promote the participation of women in the labour market, including statistical data disaggregated by sex and age.

Young persons. The Committee observes that, according to ILOSTAT, the overall youth labour force participation rate in 2017 was 32.8 per cent (41.7 per cent among young men and 23.4 per cent among young women). The overall unemployment rate was 46.7 per cent (45.8 per cent for young men compared to 48.6 per cent for young women), while the share of youth not in employment, education or training (NEET) was 24.9 (23.9 men and 25.9 per cent women). The Committee notes from the 2017 European Commission report on “Youth policies in the Former Yugoslav Republic of Macedonia”, that the low economic participation rates of youth are due to: (i) shrinking employment opportunities and difficulties associated with the school-to-work transition; (ii) the unwillingness of employers to bear the costs of on-the-job training for youth lacking job experience, as the pool of experienced jobseekers is large; and (iii) skills mismatches between the needs of employers and the skills young persons obtain through the education system. The Government refers in the ESPR report to the implementation of the Action Plan on Youth Employment 2016–20, whose objective is to promote more and better jobs for young men and women by improving skills matching; promoting job creation led by the private sector and facilitating the transition of young people into the world of work. The Government also notes that over qualification among young people has become a major barrier preventing young people from finding suitable job positions in Macedonia. As a result, a number of young people have to leave the country to realize their professional ambitions. The Committee welcomes the information provided by the Government concerning the implementation of employment measures for young persons in the framework of the annual Operational Plans for Active Employment Programs and Measures, and their impact. In this regard, the Government reports that during the reporting period, young people up to the age of 29 years made up 59.6 per cent of the participants in the employment programs and measures. By the end of 2016, the EARM offered individual employment services to 42 per cent of young people (aged 15 to 29 years) registered as unemployed. The Committee requests the Government to continue to provide updated information on the measures envisaged or taken with a view to assisting young persons in finding, advancing and retaining lasting employment, particularly with regard to increasing employment opportunities for young people, and on the impact of these measures, including disaggregated statistical data by sex.

Persons with disabilities. The Committee notes that, according to the ESPR report, the measures and programs included in the annual active labour market programs seek to promote the access of persons with disabilities to the labour market and increase their employability. In particular, the ESPR report provides for the establishment of a centre for rehabilitation and work qualification within the institute of rehabilitation of children and youth (Skopje) and measures to promote the access of persons with disabilities to all levels of education. The ESPR sets a target of improving or maintaining 60 per cent of registered employment of persons with disabilities in the open labour market, as compared with the proportion of sheltered employment. Nevertheless, the Committee notes that, in its concluding observations of 29 October 2018, the Committee on the Rights of Persons with Disabilities (CRPD) expressed concerns with regard to: (a) discrimination against and inequalities in employment and working conditions for persons with disabilities, particularly women, notably in several provisions of the Law on Civil Servants; (b) the fact that the Law on Labour Relations does not specifically require employers to provide reasonable accommodation to persons with disabilities; (c) the fact that persons with disabilities and public and private employers are not fully aware of the rights of and opportunities for employment in the open labour market (document CRPD/C/MKD/CO/1, paragraph 45). The Committee requests the Government to provide detailed and updated information on the measures taken or envisaged to promote employment opportunities for persons with disabilities, especially women, in the open labour market, including measures to raise public awareness of the rights and capacities of persons with disabilities, and on the impact of these measures.

Older workers. In reply to the Committee’s previous comments, the Government reports that it is implementing measures to promote the participation of persons aged 50 to 64 years in the labour market. It adds that older workers represent 8 per cent of the participants in active employment measures and programs, and 24 per cent of the participants in the project “Macedonia Employs 1 and 2”. The Committee requests the Government to provide detailed updated information on the nature and the impact of the different measures taken to facilitate the integration of older workers into the labour market.

The Roma minority. The Committee notes that the ESPR report provides for the implementation of measures to improve employment opportunities and reduce unemployment for persons belonging to the Roma community. These objectives are to be reached through increasing the participation of Roma in different active employment programs and measures, raising their education level as well as their participation and inclusion at all levels of education. The ESPR report sets a target for 2020 of the successful inclusion of at least 1,400 Roma in active employment measures and services, of which 30 per cent are to be women and young persons; and reducing the rate of Roma registered unemployment persons in the EARM to 4.5 per cent. The Government reports that 2.11 per cent of the participants in the measures implemented in the framework of the annual Operational Plans for Active Employment Programs and Measures belong to the Roma community. The Committee requests the Government to provide updated and detailed information on the nature and impact of measures taken to increase full, productive and freely chosen employment of members of the Roma community, including statistical data, disaggregated by age and sex.

Small and medium-sized enterprises (SMEs). In its previous comments, the Committee requested the Government to provide information on the impact of the Programme for Self-Employment and other measures taken to support the establishment of SMEs in terms of employment generation. The Government reports that, in the framework of the Programme for Self-Employment, during the reporting period, 3,387 new legal entities and 3,565 persons were registered. The Committee also notes that the ESPR provides for adoption of measures to support and improve competitiveness and entrepreneurship in the SME sector, including the formulation of a Strategy for Development of Small and Medium-size Enterprises and its accompanying Action Plan. The Committee requests the Government to indicate the progress made in the adoption of the Strategy for Development of Small and Medium-size Enterprises, and to provide a copy once it has been adopted. In addition, it requests the Government to provide statistical information on the number and type of enterprises established and the number of jobs created by such enterprises.

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The Committee notes 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 initially made in 2015.

Repetition

Articles 1 and 3 of the Convention. Implementation of an active employment policy. Consultation with the social partners. The Government refers in its report to the National Action Plan for Employment 2011–13 and the Strategy for Employment 2011–15. It indicates that organizations of employers and workers actively participated in the Strategy’s design and implementation. According to the 2014 labour force survey, the country’s population over 15 years of age was 1,673,494 persons (total population of 2,022,547), of which 57.3 per cent were actively participating in the labour market. The Committee notes that the unemployment-to-population ratio stood at 28 per cent. The Committee requests the Government to provide detailed information on the results of the measures implemented in the framework of the National Action Plan for Employment, the Strategy for Employment and other policies and programmes adopted in line with the Convention. Referring to the Transition from the Informal to the Formal Economy Recommendation, 2015 (No. 204), the Committee requests the Government to provide details of programmes pursuing the objective of quality job creation in the formal economy, especially in less-developed regions and for the most vulnerable groups of the population. Please also continue to include information on the consultations held with employers’ and workers’ organizations concerning the formulation and implementation of employment policies and programmes.

Coordination of economic and social policy for poverty reduction. Education and training. The Government states that the Strategy for Employment and action plans for employment are in line with guideline 10 on promoting social inclusion and combating poverty of the EU Council’s Strategy for Jobs and Growth “Europe 2020” of 26 March 2010. The Committee notes that, according to the information contained in the Action Plan on Youth Employment 2012–15, despite increased spending on social assistance, the head count poverty index increased from 28.7 per cent in 2008 to 31.1 per cent in 2009. The index declined slightly to 30.9 per cent in 2010. The Government recognizes the need to improve its support for lifelong learning for which, as a starting point, the large percentage of the working population without primary education has to be supported through educational measures. The Committee emphasizes that unemployment and education are important determinants of poverty as manifested in the findings in the Action Plan on Youth Employment 2012–15. The Committee requests the Government to provide information on the impact of the measures taken, such as the Action Plan on Youth Employment 2012–15, to improve the coordination of economic and social policy for poverty reduction, especially with regard to education and training policies in relation to prospective employment opportunities.

Women. The Committee notes that, based on the 2014 labour force survey, the activity rate of women aged 15–64 years stood at around 32.4 per cent, while 13 per cent were unemployed and 54.7 per cent were inactive. In contrast, 50.1 per cent of men were employed, 19.1 per cent unemployed and 30.7 per cent inactive. In terms of overall employment-to-population ratio, the employment rate of women in 2014 was lower than that of men by 24 percentage points (69.3 per cent for men and 45.3 per cent for women). In 2011, the difference between the same rates was 17 percentage points. The Committee requests the Government to provide updated information on the impact of the measures taken to increase the participation of women in the labour market.

Young persons. The Committee notes that young people aged 15–24 years had an employment-to-population ratio of 15.2 per cent in 2014, a slight increase when compared to 14.4 per cent in 2011. The employment-to-population ratio for young women stood at 11.3 per cent and 18.9 per cent for young men. The Committee further notes the Government’s emphasis on fostering youth employment by strengthening the youth labour market’s governance system, private sector development and ensuring labour market inclusion of disadvantaged youth as part of the Action Plan on Youth Employment 2012–15. In this regard, measures target 28 per cent of the total youth population aged 15–29 years old, equivalent to 135,000 young men and women. The Committee requests the Government to provide information on the impact of the measures implemented to promote employment opportunities for young persons.

Older workers. The Committee notes that older workers in the 50–64 age group had an activity rate of 58.8 per cent, an employment rate of 45.6 and an unemployment rate of 22.4 per cent. The activity rate of persons aged 64 and older was 2.4 per cent. In order to increase the participation rate of persons over the age of 55, the Government intends to employ 4,000 older unemployed persons in public works through the Employment Service Agency. In this regard, 3,297 persons in 77 municipalities participated in the programme for up to six months. The Committee requests the Government to continue to provide information on the impact of the measures implemented to increase the participation of older workers in the labour market.

Roma minority. The Government indicates that, in addition to individual skills and training courses, measures targeting the Roma minority in 2013 and 2014 include grants for self-employment, subsidized employment and internships. Moreover, a team of mentors and assistants for employment was formed to assist all unemployed Roma people and persons at risk of social exclusion. This team is responsible for motivating and regularly providing information on employment opportunities and opportunities to improve professional capacities offered in local communities or through the national programmes and measures for employment. These measures are complemented by the web-based Roma Informative Portal, launched in February 2015. The Committee requests the Government to continue to provide updated information on the measures taken to encourage and support the labour market participation of the Roma minority.

Small and medium-sized enterprises (SMEs). The Government refers to its Programme for Self-Employment which is one of the measures taken to support the creation of SMEs and employment. The Committee requests the Government to provide further information on the impact of the Programme for Self-Employment and other measures taken to support the establishment of SMEs in terms of employment generation.

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Articles 1 and 3 of the Convention. Implementation of an active employment policy. Consultation with the social partners. The Government refers in its report to the National Action Plan for Employment 2011–13 and the Strategy for Employment 2011–15. It indicates that organizations of employers and workers actively participated in the Strategy’s design and implementation. According to the 2014 labour force survey, the country’s population over 15 years of age was 1,673,494 persons (total population of 2,022,547), of which 57.3 per cent were actively participating in the labour market. The Committee notes that the unemployment-to-population ratio stood at 28 per cent. The Committee requests the Government to provide detailed information on the results of the measures implemented in the framework of the National Action Plan for Employment, the Strategy for Employment and other policies and programmes adopted in line with the Convention. Referring to the Transition from the Informal to the Formal Economy Recommendation, 2015 (No. 204), the Committee requests the Government to provide details of programmes pursuing the objective of quality job creation in the formal economy, especially in less-developed regions and for the most vulnerable groups of the population. Please also continue to include information on the consultations held with employers’ and workers’ organizations concerning the formulation and implementation of employment policies and programmes.

Coordination of economic and social policy for poverty reduction. Education and training. The Government states that the Strategy for Employment and action plans for employment are in line with guideline 10 on promoting social inclusion and combating poverty of the EU Council’s Strategy for Jobs and Growth “Europe 2020” of 26 March 2010. The Committee notes that, according to the information contained in the Action Plan on Youth Employment 2012–15, despite increased spending on social assistance, the head count poverty index increased from 28.7 per cent in 2008 to 31.1 per cent in 2009. The index declined slightly to 30.9 per cent in 2010. The Government recognizes the need to improve its support for lifelong learning for which, as a starting point, the large percentage of the working population without primary education has to be supported through educational measures. The Committee emphasizes that unemployment and education are important determinants of poverty as manifested in the findings in the Action Plan on Youth Employment 2012–15. The Committee requests the Government to provide information on the impact of the measures taken, such as the Action Plan on Youth Employment 2012–15, to improve the coordination of economic and social policy for poverty reduction, especially with regard to education and training policies in relation to prospective employment opportunities.

Women. The Committee notes that, based on the 2014 labour force survey, the activity rate of women aged 15–64 years stood at around 32.4 per cent, while 13 per cent were unemployed and 54.7 per cent were inactive. In contrast, 50.1 per cent of men were employed, 19.1 per cent unemployed and 30.7 per cent inactive. In terms of overall employment-to-population ratio, the employment rate of women in 2014 was lower than that of men by 24 percentage points (69.3 per cent for men and 45.3 per cent for women). In 2011, the difference between the same rates was 17 percentage points. The Committee requests the Government to provide updated information on the impact of the measures taken to increase the participation of women in the labour market.

Young persons. The Committee notes that young people aged 15–24 years had an employment-to-population ratio of 15.2 per cent in 2014, a slight increase when compared to 14.4 per cent in 2011. The employment-to-population ratio for young women stood at 11.3 per cent and 18.9 per cent for young men. The Committee further notes the Government’s emphasis on fostering youth employment by strengthening the youth labour market’s governance system, private sector development and ensuring labour market inclusion of disadvantaged youth as part of the Action Plan on Youth Employment 2012–15. In this regard, measures target 28 per cent of the total youth population aged 15–29 years old, equivalent to 135,000 young men and women. The Committee requests the Government to provide information on the impact of the measures implemented to promote employment opportunities for young persons.

Older workers. The Committee notes that older workers in the 50–64 age group had an activity rate of 58.8 per cent, an employment rate of 45.6 and an unemployment rate of 22.4 per cent. The activity rate of persons aged 64 and older was 2.4 per cent. In order to increase the participation rate of persons over the age of 55, the Government intends to employ 4,000 older unemployed persons in public works through the Employment Service Agency. In this regard, 3,297 persons in 77 municipalities participated in the programme for up to six months. The Committee requests the Government to continue to provide information on the impact of the measures implemented to increase the participation of older workers in the labour market.

Roma minority. The Government indicates that, in addition to individual skills and training courses, measures targeting the Roma minority in 2013 and 2014 include grants for self-employment, subsidized employment and internships. Moreover, a team of mentors and assistants for employment was formed to assist all unemployed Roma people and persons at risk of social exclusion. This team is responsible for motivating and regularly providing information on employment opportunities and opportunities to improve professional capacities offered in local communities or through the national programmes and measures for employment. These measures are complemented by the web-based Roma Informative Portal, launched in February 2015. The Committee requests the Government to continue to provide updated information on the measures taken to encourage and support the labour market participation of the Roma minority.

Small and medium-sized enterprises (SMEs). The Government refers to its Programme for Self-Employment which is one of the measures taken to support the creation of SMEs and employment. The Committee requests the Government to provide further information on the impact of the Programme for Self-Employment and other measures taken to support the establishment of SMEs in terms of employment generation.

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Implementation of an active employment policy. Consultation with the social partners. The Committee notes the Government’s report received in August 2012 which includes replies to the 2011 direct request and results of a programme aimed at formalizing businesses, realized through the Operational Programme for active employment programmes and measures in 2008. The Government indicates that one component of the Twinning project to support national employment policies, funded by the European Union, is to strengthen the monitoring and evaluation capacities in order to create conditions for further evaluation of employment policies. The Government indicates that one of its main challenges is to reduce the unemployment rate. It reports on the adoption, every year since 2007, of an Operational Programme for active employment programmes and measures intended for target groups such as women, young and older unemployed persons, the Roma population, persons with disabilities and the long-term unemployed. The Committee invites the Government to provide in its next report the results of the measures implemented in the framework of the National Action Plan for Employment and other programmes related to employment. It also invites the Government to include detailed information on the employment policies and related measures adopted in line with Articles 1 and 2 of the Convention. It also invites the Government to provide details on the consultations held with employers’ and workers’ organizations concerning the formulation and implementation of employment policies and programmes (Article 3 of the Convention).

Coordination of economic and social policy for poverty reduction. The Committee notes that a new poverty reduction strategy was adopted, the National Strategy on Alleviation of Poverty and Social Exclusion 2010–20, and one of the main goals of the Strategy is to foster employment creation and reduce unemployment, enhance the standard of living and strengthen social cohesion. The Government indicates that the employment goals will be attained by reduction of long-term unemployment, increasing access to employment, increasing gender equality at the workplace, and creating equal employment opportunities for older workers and persons with disabilities. The Committee invites the Government to provide in its next report information on the impact of the labour market measures adopted in line with its poverty reduction strategy and the involvement of the social partners in this process.

Regional development. The Government indicates that it takes regional representation in consideration during the implementation of active employment measures in order to create possibilities for improving the employability and increasing the job opportunities for unemployed persons in the less developed regions. It further indicates that training, self-employment and subsidized employment programmes are accessible in all regions of the country. The Committee invites the Government to include in its next report information on the specific measures taken to address regional imbalances and promote higher employment levels in the less developed regions.

Informal economy. The Government indicates that during the 2009–10 a programme was completed aimed at formalizing businesses with the objective of reducing the informal economy. The programme resulted in the formalization of 250 businesses in 2009 and 250 in 2010. The Committee invites the Government to continue to provide information on the measures taken to facilitate the transition of the informal economy towards the formal labour market.

Women. The Government reports that the Operational Programme for active employment programmes and measures for 2009 included women as a special target group. In some of the programmes, female participation was dominant. It also reports that there is a high percentage of women in training programmes. The Committee invites the Government to continue to provide information on the impact of the measures taken to increase the employment participation rate of women.

Young persons. The Government indicates that it has made efforts to overcome the problem of youth unemployment in the country through the implementation of various active employment programmes and measures. In this regard, the Committee notes that the Internship Programme aims to provide young unemployed persons up to 27 years of age with an opportunity to acquire practical skills and knowledge in order to be better prepared to enter the labour market. In 2009, 120 young persons benefited from the programme (60 women), and 142 in 2010 (83 women). The Committee invites the Government to continue providing information on the measures implemented and their impact to promote employment opportunities for young persons.

Older workers. The Government indicates that older unemployed adults (55–64 years of age) were covered as a special target group in employment programmes and measures in 2009 and 2010, such as subsidized employment. The Committee notes that in 2009 the Government adopted a new measure intended to ease the consequences of the crisis by employing 5,000 unemployed persons, among which older persons were the target group, in different municipalities to perform public works for a period of six months. The Committee invites the Government to continue providing information on the measures implemented and their impact to increase the participation of older workers in the labour market.

The Roma minority. The Government indicates that a programme to support the employment of Roma people was implemented in 2010. The Committee previously noted in its comments adopted in 2011 on the application of the Discrimination (Employment and Occupation) Convention, 1958 (No. 111), that few tangible measures had been taken to implement the National Action Plan for Roma Employment, the General Employment Plan, which includes, since 2009, a special programme for Roma, as well as the Self-Employment Programme, due to a lack of resources. The Committee requests the Government to provide information on the measures taken to encourage and support labour market participation of the Roma population and other vulnerable groups.

Education and training. The Government indicates that the Operational Programme for active employment programmes and measures includes programmes for the preparation for employment which covered 3,468 unemployed persons in 2009 and 3,194 in 2010. The Government previously indicated that the range of training programmes offered does not meet the new demand for modern teaching methods and certification of vocational and professional qualification. The Committee invites the Government to include in its next report information on the impact of the measures taken to better coordinate education and training policies with prospective employment opportunities.

Small and medium-sized enterprises (SMEs). The Government reiterates that the Operational Programme for 2009 included programmes aimed at supporting formal self-businesses through credit assistance and training. The Committee recalls that the ILO has on several occasions reaffirmed the importance of SMEs as an engine of economic growth and development and has emphasized the need to establish a legal framework that is adapted to their needs (General Survey concerning employment instruments, 2010, paragraph 385). The Committee invites the Government to continue to provide information on the measures taken to support the establishment of small and medium-sized enterprises and their impact on generating employment.

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Articles 1, 2 and 3 of the Convention. Implementation of an active employment policy. Consultation with the social partners. The Committee notes the Government’s first report on the application of the Convention received in September 2010. The Government indicates that the employment situation in the country is unfavourable and is characterized by a relatively low participation rate, low employment rate and high unemployment rate. Due to low economic growth, an inefficient privatization process, structural problems and the existence of a large informal economy, the formal labour market is stagnant with limited opportunities for new entrants. Labour market participation in the country remained very low with a high unemployment rate of 32.7 per cent in the first quarter of 2009 (350,000 persons), affecting to a higher degree young people and the less educated. The Government indicates that in October 2006, the National Employment Strategy (NES) 2010, which contained the medium-term employment strategies for Macedonia, was prepared. The National Action Plan for Employment (NAPE) 2009–10 was adopted as an implementation tool of the NES 2010. The Committee invites the Government to provide in its next report an evaluation of the effectiveness and relevance of the measures implemented in the framework of the NAPE 2009–10. It also requests the Government to provide details on the involvement of workers’ and employers’ representatives in the development, implementation and review of employment policies and programmes.

Coordination of economic and social policy with poverty reduction. The Government indicates that poverty is a multidimensional problem in the country. A National Strategy for Poverty Reduction (NSPR) was adopted in 2002. The Committee notes that poverty remained at about 19 per cent in 2006 and data showed a successive increase in poverty among the poorest, an amplification of regional differences and a progressive increase of the incidence of poverty on peripheral urban areas. The Committee requests the Government to provide information on the manner in which its strategy to combat poverty is linked with its employment policy and the impact of the labour market measures adopted on poverty reduction.

Regional development. The Government indicates that economic and social disparities between cities and between regions are evident and differences between urban and rural centres are further increasing. In the last years, the situation in the capital Skopje improved when compared to the rest of the country, while the north-eastern part of the country fell behind other regions. The Committee requests the Government to include in its next report information on the measures taken to address regional imbalances and promote higher employment levels in disadvantaged regions.

Informal economy. The Government indicates that addressing issues related to the informal economy is among the strategic priorities of the NAPE 2009–10. The Law on Labour Relations and the 2006 legislation on temporary employment agencies are expected to encourage a gradual shift in employment from the undeclared to the formal sector. The Committee requests the Government to provide information on the measures taken to enable the transition of the undeclared economy towards the formal labour market.

Women. The Government indicates that one of the main reasons for a high female unemployment rate and low employment rate is the traditional living habits in a part of the country and the traditional role of the woman in the family. The Committee notes that according to the 2009 Labour Force Survey (LFS), the employment rate for women was as low as 29.4 per cent and the unemployment rate was measured at 32.8 per cent. The Committee requests the Government to provide information on the measures taken to increase the employment participation rate of women in the open labour market.

Youth employment. The Committee notes that according to the 2009 LFS, youth unemployment is as high as 55.1 per cent. The Committee requests the Government to provide information on the measures implemented to promote employment opportunities for young persons.

Older workers. The 2009 LFS shows that the employment rate for persons between 55 and 64 years reached 34.6 per cent. The Committee requests the Government to provide information on the measures implemented to increase the participation of older workers in the labour market.

The Roma minority. The Committee recalls its 2009 direct request on the Discrimination (Employment and Occupation) Convention, 1958 (No. 111), noting that approximately 70 per cent of the Roma population were not in formal employment and that due to their low level of education, as well as discrimination faced in the labour market, many of them had great difficulties in finding jobs. The Government indicates that the Operational Programme for 2009 includes a programme to support the employment of Roma people, which grants monetary allowances to both trainees and employers during the training period and provides for an obligation to hire those who have successfully completed training. The Committee requests the Government to provide information on the measures taken to encourage and support labour market participation of the Roma population and other ethnic minority groups.

Education and training. The Government indicates that the range of educational programmes offered does not meet the new demand for modern methods of training and retraining of the active labour force and certification of vocational and professional qualification. The Committee refers to its comments on the Human Resources Development Convention, 1975 (No. 142), and invites the Government to include in its next report information on the impact of the measures taken to better coordinate education and training policies with prospective employment opportunities.

Small and medium-sized enterprises. The Government indicates that in the framework of the national employment policy measures to promote self employment and SMEs include: easing the burden for starting-up businesses, increasing the number of SMEs, promoting financial and non-financial support to entrepreneurs, and encouraging the development of an entrepreneurial culture. The Operational Programme for 2009 includes programmes aimed at supporting formal self-businesses through credit assistance and training. The Committee invites the Government to include information on measures taken to support the establishment of small and medium-sized enterprises and their results on stimulating employment.