Employment Policy Convention, 1964 (No. 122) - Czechia (RATIFICATION: 1993)

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Articles 1 and 2 of the Convention. Employment trends and active labour market measures. The Committee notes with interest the comprehensive information provided by the Government in its report, including replies to its previous questions, updates on the implementation of employment plans and measures taken to combat the effects of the COVID-19 pandemic, such as the “Antivirus” short-time subsidized work program. The Committee also notes the measures envisaged under the Strategic Framework for Employment Policy until 2030 (Strategic Framework) adopted in 2020, which aims to improve the efficiency of the employment services and respond to digital transformations and demographic changes as the result of an aging population. The Strategic Framework will be implemented through short- to medium-term action plans developed for a period of two to three years that are geared to responding flexibly to changing labour market conditions, economic fluctuations, as well as to internal and external factors. The Government indicates that, in 2020, the overall employment rate for persons aged 20–64 stood at 79.7 per cent (87.2 per cent for men and 71.9 per cent for women), representing a decrease of 0.6 percentage points as compared to 2019. The Committee notes that, at 68.2 per cent, the employment rate for older workers aged 55–64 was significantly lower than the overall employment rate. During the same period, the rate of persons without employment for more than 12 months increased from 20.8 per cent to 23.5 per cent, while the overall unemployment rate increased by 0.6 percentage points to 2.6 per cent, reaching 3.1 per cent in May 2021. In 2020, the unemployment rate among young persons (15-24 years of age) was 12.3 per cent, almost four times the overall unemployment rate. The Committee notes that during the reporting period, the implementation of projects under the Operational Programme Employment (OPE) continued, supporting projects in the amount of €2,811,000 and benefiting 498,000 participants. It also notes the implementation, in 2020, of projects that would usually not be implemented due to expected market failures, including a project to provide preferential interest-free loans to social entrepreneurs and those interested in social entrepreneurship, regardless of the size of the social enterprise. The loans are supplemented by the provision of consultancies for social enterprises, with the aim of fostering their competencies in management, organization and production, marketing and public relations. In addition, the Committee notes the launch of the “shared job” project aimed at creating part-time work opportunities, especially for persons with caregiving responsibilities, involving granting financial incentives to employers, regardless of whether the part-time employees were already employed or are new recruits. The Committee requests the Government to continue to provide detailed updated information, including statistical data disaggregated by age and sex, concerning the size and distribution of the labour force, the nature and extent of employment, unemployment and underemployment. It also requests the Government to continue to provide updated information, including disaggregated statistical data, on the impact of the active employment policy measures, particularly those under the Strategic Framework, implemented to increase employment and reduce unemployment for all age groups, including for older workers.

Article 3. Education and training policies and programmes. Consultations with the social partners. The Committee notes the Government’s indication that the social partners are closely involved in discussions in the Council of Economic and Social Agreement of the Czech Republic (RHSD) in relation to the development of employment services and policies and related labour law issues. The Government adds that, during the reporting period, government representatives and the social partners at the level of the RHSD repeatedly discussed proposals for education reform measures with a focus on ensuring the acquisition of competencies needed for active civic, professional and personal life, reducing educational inequality and ensuring fair access to education. The tripartite discussions also included setting up, as a joint task shared by the Ministry of Education and the Ministry of Labour and Social Affairs, a lifelong learning system to facilitate graduates’ entry into the labour market; help unemployment persons secure new employment; and enable persons already in employment to keep their jobs. Lastly, the Committee refers to its direct request on the application of the Employment Service Convention, 1948 (No. 88), in which it notes the role played by the public employment services in implementing these Government policies. The Committee requests the Government to continue to provide detailed updated information, including statistical data disaggregated by age and sex, on the impact of education and training policies and programmes on access to lasting employment and decent work for Czech workers, particularly for young persons and older workers.The Committee alsorequests the Government to continue to provide more detailed information on the involvement of the social partners, in accordance with Article 3 of the Convention, in the design, implementation, monitoring and review of the active employment policy, including concrete and detailed information on the manner in which consultations held in the Council of Economic and Social Agreement, the Ministry of Labour and of Social Affairs and other bodies have contributed to the implementation and coordination of the employment policy, including active labour market measures.

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Articles 1 and 2 of the Convention. Employment policy measures. The Committee notes that, since 2014, the situation in the labour market has been steadily improving. In 2013, the Government approved the 2014–20 Regional Development Strategy as an instrument for coordinating public policies with an impact on regional development, including the national employment policy (NEP). In light of the aim of the Ministry of Labour and Social Affairs (MoLSA) to remove some persistent structural mismatches in the labour market, an analysis of supply and demand in the labour market was prepared and approved by the Government in 2016. The analysis included a set of measures to eliminate disproportions in the Czech labour market aimed, inter alia, at increasing the motivation of the workforce to enter employment. The Government indicates several Labour Law amendments implemented in 2015, 2016 and 2017. The Committee notes with interest a series of amendments aimed at promoting the employment of persons with disabilities, disadvantaged people or people at risk in the labour market through projects implemented, inter alia, by the Fund for Further Education. The Committee also notes that an active employment policy instrument was introduced in the form of a contribution while working under short-time working schemes (the so-called “kurzarbeit”) and that in 2017, there were adjustments in the field of employment facilitation by employment agencies programmes. Furthermore, in 2015, the Government introduced an attractive investment environment in the Czech Republic providing investment incentives to investors for the creation of new jobs and retraining or training of employees. The Government indicates that funds from the European Social Fund have been allocated to projects aiming to increase employment and employability of the workforce. Several projects implemented within the framework of the Operational Programme Human Resources and Employment (OP HRE) for the 2007–13 programming period were completed in 2015 and the final evaluation reports were approved in 2016. The OP HRE focused on reducing unemployment through an active job market policy and provision of professional training, promoting employment and workforce adaptability and mobility, integrating young people, socially excluded and disadvantaged people into the labour market, promoting gender equality in all aspects of employment, improving the quality of education and vocational training, and improving the quality of public administration and international cooperation in the mentioned areas. The implementation of projects under the Operational Programme Employment (OPE) for the 2014–20 programming period is gradually gaining momentum. In 2016, 6,866,805,000 Czech Republic koruna (CZK) was spent on the active employment policy (AEP) and 74,289 persons (job seekers, employees and self-employed persons) were supported. The most used instruments were socially beneficial jobs, retraining and community service. To assess the impact of the AEP measures and establish an ongoing monitoring system to gauge their effectiveness, the MoLSA has initiated the project “Evaluating the Efficiency and Effectiveness of the AEP Implementation”. The Committee requests the Government to provide updated information on the impact and effectiveness of the AEP measures implemented on increasing employment and reducing unemployment, and specifically on the impact of the projects implemented under the OPE for 2014–20. The Committee also requests the Government to provide information on the evaluation of the AEP implementation.

Employment trends. The Committee takes note of the detailed labour market statistics provided by the Government for 2014–17. Following positive growth in economic development in 2014 and 2015, GDP growth dropped to 2.4 per cent in 2016, a slowdown related, inter alia, to a mismatch between supply and demand in the labour market due to the large increase in the number of reported job vacancies and the significant drop in the number of jobseekers. Between 2014 and 2016, there was an absolute increase in employment, due to growth in the tertiary and secondary education sectors. Employment growth accelerated to 1.9 per cent in 2016. The employment rate reached 58.2 per cent in the second quarter of 2017 according to the data provided by the Czech Statistical Office. Moreover, the general unemployment rate was 3 per cent in 2017. The increase in employment was mainly due to the increased participation of women. In 2016, the share of men in the labour force fell to 56 per cent, and the share of women increased to 44 per cent. The Committee notes with interest the decline in unemployment among groups of people who are at a disadvantage, including due to health status, age, lack of experience or insufficient education. With respect to young persons under 25, according to the ILOSTAT database, in 2016 the youth labour force participation rate was 32 per cent. However, the proportion of people aged 50 and above, people with disabilities or people with the lowest levels of education is increasing among the unemployed. The Committee requests the Government to continue to provide statistical data concerning the size and distribution of the labour force, the nature and extent of employment, unemployment and underemployment.

Education and training policies and programmes. The Government indicates that the amended Education Act aims to improve cooperation between secondary vocational schools and employers to prepare students for the transition to work. In this context, the Government promotes the involvement of professionals in schools and provides incentives to employers to cooperate with schools by providing them tax relief when they demonstrably participate in cooperation agreements with schools to provide training. In line with new measures for the promotion of vocational training, the Government recommends ensuring a unified procedure for concluding a contractual relationship between an employer and a secondary school student or a student of a higher vocational school who is being prepared for work. The Government has also modified final examination requirements to allow a mandatory single final examination in certain fields where accompanied with a certificate of apprenticeship. The Government indicates that experimental verification of the multi-tiered education model and completion of education will take place from the school year 2016–17 until the school year 2022–23. The results of the experimental verification will be used to modify the framework of educational programmes in selected fields of education. The Committee requests the Government to continue to provide information on the impact of education and training policies and programmes on the employment opportunities on workers, including young people.

Business development. The Government indicates that in the framework of the Operational Program Enterprise and Innovation 2007–13 (OPEI), a total of 41,470 jobs were created by the end of 2015, with the share of women standing at 30.8 per cent. Of those, 6,073 jobs were created in research and development. The Operational Program on Entrepreneurship and Innovation for Competitiveness 2014–20 is being implemented in the new programming period. The Committee requests the Government to continue to provide information on the impact of business development measures on employment creation.

Article 3. Consultations with the social partners. The Government indicates that the focus of the active employment policy is regularly discussed on a tripartite basis. At the national level, from September 2011 to October 2014, the Plenary Session of the Council of Economic and Social Agreement met several times and discussed various employment-related issues. At the regional level, to ensure cooperation in the labour market, the Public Employment Service establishes advisory councils which meet at least twice a year and are composed primarily of representatives of trade unions, employers’ organizations, cooperative bodies, organizations of persons with disabilities, the Czech Chamber of Commerce and self-governing territorial units. The purpose of each of these advisory councils is to coordinate the implementation of the employment policy and human resource development in the respective administrative districts. Furthermore, the social partners are involved in the Labour Market Predictions project (KOMPAS), launched on 1 January 2017 to build a comprehensive system capable of predicting developments in the labour market in future years. The Committee requests the Government to continue to include information on the involvement of the social partners, in accordance with Article 3 of the Convention, which requires their views and experiences to be fully taken into account when designing and implementing an active employment policy and to include indications in its next report on the manner in which consultations held in the Council of Economic and Social Agreement and the advisory bodies have contributed to the implementation and coordination of an active employment policy.

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Education and training policies and programmes. In reply to previous comments, the Government indicates that the International Competiveness Strategy for Czech Republic 2012–20 (ICS) was used as a basis to develop the Government Action Plan to Promote Economic Growth and Jobs in the Czech Republic. The Committee notes that, in the first semester of 2014, the largest groups of jobseekers were apprentices and applicants with primary education (199,000 and 149,900 persons, respectively) who account for 37 per cent and 27.9 per cent, respectively, of the total unemployment. The Committee requests the Government to continue to provide information on the impact of education and training policies and programmes on employment opportunities on workers, including young people and older workers.

Business development. The Government indicates that the Entrepreneurship and Innovation Operational Programme for the period 2007–13 was designed to support business, particularly in relation to small and medium-sized enterprises, and to increase competitiveness of businesses. The impact of the measures on employment was monitored through the indicator of newly created jobs, which reached 27,487 as at 31 December 2013 (of which 19,956 for men and 7,531 for women). Another indicator, the number of newly established companies, was 182 as at the same date. The Government indicates that, by its Resolution No. 581 of 14 July 2014, the Cabinet approved the 2014–20 Entrepreneurship and Innovation for Competitiveness Operational Programme. The Committee requests the Government to continue to provide information on the impact of business development measures on employment creation.

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The Committee notes the observations of the Confederation of Industry of the Czech Republic and the Czech-Moravian Confederation of Trade Unions (CM KOS) communicated with the Government’s report.

Articles 1, 2 and 3 of the Convention. Employment policy measures. Consultations with the social partners. In reply to previous comments, the Government indicates in its report that the employment policy objectives were elaborated in the Government Action Plan to Promote Economic Growth and Jobs in the Czech Republic, which was taken note of, after detailed tripartite discussions, at the 113th plenary meeting of the Council of Economic and Social Agreement of the Czech Republic on 20 October 2014 with a view to its submission to the Cabinet once all comments were incorporated. At the same time, an employment policy strategy until 2020 was prepared and approved, following discussions with the social partners. The strategy aims at increasing the total employment rate in the 20–64 age group to the target level of 75 per cent and, at the same time, meeting the national targets (increased employment of women, increased employment of older persons, reduced unemployment among young people and reduced unemployment of low-qualified persons). Moreover, by its Resolution No. 344 of 15 May 2013, the Cabinet approved the 2014–20 Regional Development Strategy as an instrument to coordinate the different public policies, including the employment policy. With regard to active employment policy measures, the Committee notes that a total of 4,285,714 Czech koruna (CZK) was expended on active employment policy (AEP) in 2013 by the Ministry of Labour and Social Affairs and the Labour Office of the Czech Republic. Compared to 2012, AEP expenditure increased by 65.1 per cent. In particular, the level of AEP expenditure financed from the European Social Fund rose to reach more than the double of the 2012 amount. Support was provided to a total of 89,611 persons (jobseekers, employees, self-employed). In its observations, CM KOS indicates that cooperation within the tripartite mechanisms has improved. Nevertheless, CM KOS adds that it cannot be satisfied with the implementation of the Convention in a situation where, for example, there are more than 500,000 registered jobseekers (of which about one third have been registered for more than one year); and active employment policy programmes suffer from permanently insufficient levels of funding. Consequently, CM KOS submits proposals to help deal with the situation, which include developing, as a matter of urgency, a national plan to fight unemployment and poverty and ensure sufficient financial resources for the plan in the public budget system. The Committee requests the Government to provide information on the impact and effectiveness of its employment policy measures in terms of job creation. Please also continue to include information on the involvement of the social partners, in accordance with Article 3 of the Convention, which requires that their views and experiences are fully taken into account when designing and implementing an active employment policy.

Employment trends. The Government indicates that, in the aftermath of the financial and economic crisis, there was a broad decrease in employment, regardless of the age group or educational level (except for university graduates). In spite of a moderate recovery of the economy, a slowdown in the growth of registered unemployment became evident only in the second half of 2013. Its development was largely contributed by the increase in part-time employment among women as well as men. Unemployment was measured at 7.4 per cent in December 2012 and 8.2 per cent at the end of 2013. In the first half of 2014, unemployment was measured at 6.4 per cent. According to EUROSTAT, the unemployment rate continued to decrease to 5.1 per cent in July 2015, which was among the lowest unemployment rates of the EU Member States. The Committee requests the Government to continue to provide data concerning the size and distribution of the labour force, the nature and extent of unemployment and underemployment and trends therein.

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

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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, 2 and 3 of the Convention. Employment policy measures. Consultations with social partners. The Committee notes the Government’s detailed reports received in October 2010 and 2011, including comments from the Czech-Moravian Confederation of Trade Unions (CMKOS) and the Confederation of Industry and Transport (CIT). The Government summarizes the discussion that took place on 18 October 2010 at the Council of Economic and Social Agreement of the Czech Republic (CESA CR). CMKOS and CIT both claimed that social partners jointly proposed the possibility to introduce measures that had been adopted in other European Union countries and had a positive impact on keeping jobs, production and overall employment. The social partners noted that unfortunately, these proposals were not further developed by the Government. CMKOS indicated, in its 2010 comments, that measures which promote greater labour market flexibility and reduce labour costs for entrepreneurs are one of the factors which contributed to the development of the crisis, worsened conditions of employees and did not necessarily bring the expected benefits in terms of raising entrepreneurial activity and a greater willingness of entrepreneurs to create more jobs. CMKOS believes that in evaluating the implementation of the Convention, the decisive factor should ultimately be the situation in the labour market and not formal reporting of government measures. The Government recalled in its 2010 report several employment policy measures taken during the economic crisis, mainly the vocational training and retraining programmes for workers, financed by the European Social Fund. The Committee notes the Government’s expectations in the sense that the social partners will take an active role in the future when it will bring forward further reforms regarding the competitiveness of the Czech economy and its labour market. CMKOS indicated, in its 2011 comments, that it is dissatisfied with the application of Article 3 of the Convention because no consideration is afforded to the positions and opinions of social partners and trade unions, in particular, when adopting new labour legislation. CMKOS is also concerned with the Government’s budgetary cuts in the implementation of an active labour market policy. In response, the Government reports that tripartite consultations have been regularly held and the mere fact of not reaching an agreement favourable to all does not constitute a violation of the Convention. The Committee invites the Government to provide information in its next report on the impact and results achieved in terms of productive jobs creation by new labour market regulations. It also invites the Government to include information on the involvement of the social partners, in accordance with Article 3 of the Convention, which requires that their views and experiences are fully taken into account when designing and implementing an active employment policy.

Employment trends and active labour market policies. The Government recalls that its economic situation during the 2008–10 period was strongly affected by the global financial and economic crisis, and reports that, starting in the mid fourth quarter of 2008, there were repeated monthly declines in industrial production amounting to nearly 10 per cent, whereas in January of 2009, the industrial production was down by 23.3 per cent as compared to 2008. However, the economy did show some signs of revitalization in 2010 as industrial production increased by 10.3 per cent and continued to rise through the first quarter of 2011, during which production increased by 12.7 per cent. Furthermore, the foreign trade turnover recorded the highest ever decline in the history of the Czech Republic in the first half of 2009, a decline calculated at 20.3 per cent when compared with the first half of 2008. The Government indicates that the implications of the recession were immediately apparent in the labour market through the gradual increase in unemployment and the reduction in the number of vacancies. Starting in December 2008, the reported instances of mass lay-offs started to increase with the highest number of reported instances recorded in January 2009. In June 2009, the registered unemployment rate reached 8 per cent and, in 2010, it further increased to 9 per cent and attained an estimated rate of 9.6 per cent in the first quarter of 2011. The Committee notes that, from January to June 2009, the total number of foreign workers decreased by more than 11 per cent, from approximately 285,000 to less than 252,000. The Government indicates that in 2008 the Ministry of Labour and Social Affairs granted investment incentives to 45 investors who subsequently undertook to create 5,563 new jobs and train or retrain up to 6,132 new employees. In terms of regional distribution of this support, the most financial funds went to Ústí nad Labem Region (64.1 per cent), followed by the Moravian-Silesian Region (13.0 per cent). The Committee notes that the Government grants financial support in order to create new jobs in regions most affected by unemployment. Funds were attributed to investors who undertook to support and create employment, and to provide training and retraining. The Committee invites the Government to continue to provide in its next report data concerning the size and distribution of the labour force, the nature and extent of unemployment and underemployment and trends therein, as a basis for deciding on employment policy measures, especially in regions most affected by unemployment.

Education and training policies. The Government recalls that, in December 2008, the action plan for the support of specialized education was adopted which focuses on the support of cooperation with employers, and accentuates certain measures such as the transition and success of graduates of specialized schools in practice. The Government further states that the national individual project involves practical training for young people up to 29 years of age registered by labour offices for at least five months, for the purpose of acquiring, improving and refreshing specialized skills. It further indicates that the practical training should comprise counselling activities as well as the hands-on training itself for the period of 6–12 months, during which time the labour office provides salary grants to the employer. In 2011, the Ministry of Industry and Trade prepared the International Competiveness Strategy for Czech Republic 2012–20 (ICS). The ICS aims at increasing the employment of certain population groups, such as older workers, women, people with low qualifications and young people. As part of the ICS, the Changes in the Content of Education programme was implemented to change the educational system in order to help young persons acquire a wider range of skills and to motivate them to take part in lifelong learning. The Committee invites the Government to continue to provide information regarding policies and programmes for lasting employment opportunities for young people and older workers. The Committee invites the Government to provide further information on the ICS and its impact in overcoming the difficulties in finding lasting employment for workers affected by the crisis.

Business development. The Government indicates that the Operational Programme Enterprise and Innovation (OPEI) for the period of 2007–13 is intended to support business activities, namely in the area of small and medium-sized enterprises (SMEs), and to increase the competitiveness of enterprises. The OPEI grants support for the development of business activities and monitors the impacts of the measures on the creation of jobs via a newly created jobs indicator. The Government indicates further measures to create a favourable business environment necessary for the development of business thinking and to promote competitiveness of SMEs. These measures include the simplification of tax legislation and less administration as factors affecting the creation of a more favourable business environment. The Committee invites the Government to continue to include information in its next report on the effects of these measures on employment creation and its impact to improve the success of young entrepreneurs. Please also indicate how the social partners were involved in informing SMEs of key labour market concerns and opportunities.

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Articles 1, 2 and 3 of the Convention. Employment policy measures. Consultations with social partners. The Committee notes the Government’s detailed reports received in October 2010 and 2011, including comments from the Czech-Moravian Confederation of Trade Unions (CMKOS) and the Confederation of Industry and Transport (CIT). The Government summarizes the discussion that took place on 18 October 2010 at the Council of Economic and Social Agreement of the Czech Republic (CESA CR). CMKOS and CIT both claimed that social partners jointly proposed the possibility to introduce measures that had been adopted in other European Union countries and had a positive impact on keeping jobs, production and overall employment. The social partners noted that unfortunately, these proposals were not further developed by the Government. CMKOS indicated, in its 2010 comments, that measures which promote greater labour market flexibility and reduce labour costs for entrepreneurs are one of the factors which contributed to the development of the crisis, worsened conditions of employees and did not necessarily bring the expected benefits in terms of raising entrepreneurial activity and a greater willingness of entrepreneurs to create more jobs. CMKOS believes that in evaluating the implementation of the Convention, the decisive factor should ultimately be the situation in the labour market and not formal reporting of government measures. The Government recalled in its 2010 report several employment policy measures taken during the economic crisis, mainly the vocational training and retraining programmes for workers, financed by the European Social Fund. The Committee notes the Government’s expectations in the sense that the social partners will take an active role in the future when it will bring forward further reforms regarding the competitiveness of the Czech economy and its labour market. CMKOS indicated, in its 2011 comments, that it is dissatisfied with the application of Article 3 of the Convention because no consideration is afforded to the positions and opinions of social partners and trade unions, in particular, when adopting new labour legislation. CMKOS is also concerned with the Government’s budgetary cuts in the implementation of an active labour market policy. In response, the Government reports that tripartite consultations have been regularly held and the mere fact of not reaching an agreement favourable to all does not constitute a violation of the Convention. The Committee invites the Government to provide information in its next report on the impact and results achieved in terms of productive jobs creation by new labour market regulations. It also invites the Government to include information on the involvement of the social partners, in accordance with Article 3 of the Convention, which requires that their views and experiences are fully taken into account when designing and implementing an active employment policy.

Employment trends and active labour market policies. The Government recalls that its economic situation during the 2008–10 period was strongly affected by the global financial and economic crisis, and reports that, starting in the mid fourth quarter of 2008, there were repeated monthly declines in industrial production amounting to nearly 10 per cent, whereas in January of 2009, the industrial production was down by 23.3 per cent as compared to 2008. However, the economy did show some signs of revitalization in 2010 as industrial production increased by 10.3 per cent and continued to rise through the first quarter of 2011, during which production increased by 12.7 per cent. Furthermore, the foreign trade turnover recorded the highest ever decline in the history of the Czech Republic in the first half of 2009, a decline calculated at 20.3 per cent when compared with the first half of 2008. The Government indicates that the implications of the recession were immediately apparent in the labour market through the gradual increase in unemployment and the reduction in the number of vacancies. Starting in December 2008, the reported instances of mass lay-offs started to increase with the highest number of reported instances recorded in January 2009. In June 2009, the registered unemployment rate reached 8 per cent and, in 2010, it further increased to 9 per cent and attained an estimated rate of 9.6 per cent in the first quarter of 2011. The Committee notes that, from January to June 2009, the total number of foreign workers decreased by more than 11 per cent, from approximately 285,000 to less than 252,000. The Government indicates that in 2008 the Ministry of Labour and Social Affairs granted investment incentives to 45 investors who subsequently undertook to create 5,563 new jobs and train or retrain up to 6,132 new employees. In terms of regional distribution of this support, the most financial funds went to Ústí nad Labem Region (64.1 per cent), followed by the Moravian-Silesian Region (13.0 per cent). The Committee notes that the Government grants financial support in order to create new jobs in regions most affected by unemployment. Funds were attributed to investors who undertook to support and create employment, and to provide training and retraining. The Committee invites the Government to continue to provide in its next report data concerning the size and distribution of the labour force, the nature and extent of unemployment and underemployment and trends therein, as a basis for deciding on employment policy measures, especially in regions most affected by unemployment.

Education and training policies. The Government recalls that, in December 2008, the action plan for the support of specialized education was adopted which focuses on the support of cooperation with employers, and accentuates certain measures such as the transition and success of graduates of specialized schools in practice. The Government further states that the national individual project involves practical training for young people up to 29 years of age registered by labour offices for at least five months, for the purpose of acquiring, improving and refreshing specialized skills. It further indicates that the practical training should comprise counselling activities as well as the hands-on training itself for the period of 6–12 months, during which time the labour office provides salary grants to the employer. In 2011, the Ministry of Industry and Trade prepared the International Competiveness Strategy for Czech Republic 2012–20 (ICS). The ICS aims at increasing the employment of certain population groups, such as older workers, women, people with low qualifications and young people. As part of the ICS, the Changes in the Content of Education programme was implemented to change the educational system in order to help young persons acquire a wider range of skills and to motivate them to take part in lifelong learning. The Committee invites the Government to continue to provide information regarding policies and programmes for lasting employment opportunities for young people and older workers. The Committee invites the Government to provide further information on the ICS and its impact in overcoming the difficulties in finding lasting employment for workers affected by the crisis.

Business development. The Government indicates that the Operational Programme Enterprise and Innovation (OPEI) for the period of 2007–13 is intended to support business activities, namely in the area of small and medium-sized enterprises (SMEs), and to increase the competitiveness of enterprises. The OPEI grants support for the development of business activities and monitors the impacts of the measures on the creation of jobs via a newly created jobs indicator. The Government indicates further measures to create a favourable business environment necessary for the development of business thinking and to promote competitiveness of SMEs. These measures include the simplification of tax legislation and less administration as factors affecting the creation of a more favourable business environment. The Committee invites the Government to continue to include information in its next report on the effects of these measures on employment creation and its impact to improve the success of young entrepreneurs. Please also indicate how the social partners were involved in informing SMEs of key labour market concerns and opportunities.

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

1. Articles 1 and 2 of the Convention. Employment trends and active labour market policies. The Committee notes the Government’s detailed report received in August 2007 including the comments and a statement from the Czech–Moravian Confederation of Trade Unions. The Government indicates that unemployment fell to 8.1 per cent in 2006, down from 9 per cent in 2005 and, as at 31 May 2007, the registered unemployment rate decreased to 6.4 per cent. It further indicates that in 2006 the employment rate increased by 1.3 per cent over the previous year and that employment was at its highest level since 1999. The highest unemployment rate was registered in the northern regions of Bohemia and Moravia. Approximately 41 per cent of unemployed persons are long-term unemployed (for longer than 12 months). In terms of age structure, the highest specific unemployment rate is among those up to 25 years of age (15.9 per cent as at 31 December 2006), which is two times more than the overall unemployment rate. The Government confirms that it must keep fighting the structural causes of unemployment so that, by 2010, it meets the EU goal of a 60 per cent employment rate. The Committee asks the Government to provide information in its next report on various policies and programmes promoting regional development and how these policies and programmes will translate into productive and lasting employment opportunities for the unemployed and other categories of vulnerable workers such as young people, older workers and persons with disabilities.

2. The Committee notes that the National Reform Programme 2005–08 was approved by the Government under Resolution No. 1200 of 14 September 2005. Special attention is paid to groups at risk of social exclusion such as poorly skilled workers, the long-term unemployed, persons with disabilities and older workers. In its 2006 observation, the Committee asked the Government to continue to report on how employment policy measures are kept under regular review within the framework of a coordinated economic and social policy. The Government indicates in its report that the basic task of achieving the goals of the employment rate and thus reducing unemployment primarily requires the implementation of systemic changes. It also indicates that this goal cannot be achieved merely by means of the active employment policy but that it is also necessary to respect the broader dimensions influencing employment, such as the economic policy, tax and budget policy, education policy, social policy and regional policy. The Committee further notes that the Czech–Moravian Confederation of Trade Unions has stated its opposition to the draft bill for the proposed public finance reform. The Czech–Moravian Confederation of Trade Unions indicates that the reform proposals are primarily aimed at the sharp lowering of taxes for those inhabitants and companies with the highest incomes and the greatest holdings, a fundamental change of the distribution and redistribution systems in society, and therefore a pronounced reduction of social solidarity. The opinion of the Czech–Moravian Confederation of Trade Unions is that the reform will not lead to the proclaimed social guarantees, but will bring about a sharp decline in income and social expenditures, with implications for a majority of the people, namely employees. The Committee requests information on the manner in which the social partners’ views are taken into account when formulating, and enlisting support for attaining, the employment objectives of the National Reform Programme and the public finance reform.

3. Education and training policies. The Government indicates that education reform included in the National Reform Programme focuses on enhancing the quality of the workforce, expanding the possibilities of education and training, and supporting citizens’ ability to cope with the demanding conditions of the evolving labour market. It includes an amendment to the education law (Schools Act), the adoption of a law on the recognition of the results of further education and the creation of a functioning system of lifelong learning. The Government also describes in its report the training and retraining of employees under specific investment incentives. For example, in 2006 the Ministry of Labour and Social Affairs awarded grants to 29 investors for the training or retraining of 3,320 employees in new positions intended for highly skilled workers. The Committee asks the Government to provide updated information on the impact of such measures in overcoming the difficulties in finding lasting employment for young workers and other categories of vulnerable workers entering the labour market.

4. Business development. The Government indicates that the support of businesses and the business environment, especially to small and medium-sized enterprises (SMEs), is based on a system of direct and indirect financial assistance. One of the main measures focusing on the direct support of SMEs via resources from EU funds is the Enterprise and Innovation Operational Programme (EIOP) approved under Government Resolution No. 1302 of 13 November 2006 and complemented by national SME support programmes in accordance with Government Resolution No. 1425 of 12 December 2006. The Committee asks the Government to include information in its next report on the effects of these measures on employment creation. It also asks for information concerning the methods used by the Government to improve the success rate of young entrepreneurs and to involve the social partners in informing SME owners and entrepreneurs of key labour market concerns and opportunities.

5. Article 3. Participation of the social partners in the formulation and application of policies. The Government provides an overview of the plenary sessions of the Economic and Social Council with regard to consultations with the social partners in 2006. Furthermore, the social partners participated in a second joint work programme of European social partners, 2006–08 that is based on joint analysis on the key challenges facing Europe’s labour markets. On that basis, the social partners wish to contribute to support economic growth, job creation and modernization of the EU social model. Among the expected outcomes of such cooperation is an agreement on joint recommendations and priorities in employment at the European and national levels, and an autonomous framework agreement on either the integration of disadvantaged groups in the labour market or lifelong learning at the European level. The Committee refers to point 2 of this observation and asks the Government to also include indications in its next report on the manner in which the consultations held by the Economic and Social Council have contributed to the implementation of an active employment policy.

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1. Articles 1 and 2 of the Convention. Employment trends and active labour market policies. The Committee notes the Government’s detailed report received in August 2007 including the comments and a statement from the Czech–Moravian Confederation of Trade Unions. The Government indicates that unemployment fell to 8.1 per cent in 2006, down from 9 per cent in 2005 and, as at 31 May 2007, the registered unemployment rate decreased to 6.4 per cent. It further indicates that in 2006 the employment rate increased by 1.3 per cent over the previous year and that employment was at its highest level since 1999. The highest unemployment rate was registered in the northern regions of Bohemia and Moravia. Approximately 41 per cent of unemployed persons are long-term unemployed (for longer than 12 months). In terms of age structure, the highest specific unemployment rate is among those up to 25 years of age (15.9 per cent as at 31 December 2006), which is two times more than the overall unemployment rate. The Government confirms that it must keep fighting the structural causes of unemployment so that, by 2010, it meets the EU goal of a 60 per cent employment rate. The Committee asks the Government to provide information in its next report on various policies and programmes promoting regional development and how these policies and programmes will translate into productive and lasting employment opportunities for the unemployed and other categories of vulnerable workers such as young people, older workers and persons with disabilities.

2. The Committee notes that the National Reform Programme 2005–08 was approved by the Government under Resolution No. 1200 of 14 September 2005. Special attention is paid to groups at risk of social exclusion such as poorly skilled workers, the long-term unemployed, persons with disabilities and older workers. In its 2006 observation, the Committee asked the Government to continue to report on how employment policy measures are kept under regular review within the framework of a coordinated economic and social policy. The Government indicates in its report that the basic task of achieving the goals of the employment rate and thus reducing unemployment primarily requires the implementation of systemic changes. It also indicates that this goal cannot be achieved merely by means of the active employment policy but that it is also necessary to respect the broader dimensions influencing employment, such as the economic policy, tax and budget policy, education policy, social policy and regional policy. The Committee further notes that the Czech–Moravian Confederation of Trade Unions has stated its opposition to the draft bill for the proposed public finance reform. The Czech–Moravian Confederation of Trade Unions indicates that the reform proposals are primarily aimed at the sharp lowering of taxes for those inhabitants and companies with the highest incomes and the greatest holdings, a fundamental change of the distribution and redistribution systems in society, and therefore a pronounced reduction of social solidarity. The opinion of the Czech–Moravian Confederation of Trade Unions is that the reform will not lead to the proclaimed social guarantees, but will bring about a sharp decline in income and social expenditures, with implications for a majority of the people, namely employees. The Committee requests information on the manner in which the social partners’ views are taken into account when formulating, and enlisting support for attaining, the employment objectives of the National Reform Programme and the public finance reform.

3. Education and training policies. The Government indicates that education reform included in the National Reform Programme focuses on enhancing the quality of the workforce, expanding the possibilities of education and training, and supporting citizens’ ability to cope with the demanding conditions of the evolving labour market. It includes an amendment to the education law (Schools Act), the adoption of a law on the recognition of the results of further education and the creation of a functioning system of lifelong learning. The Government also describes in its report the training and retraining of employees under specific investment incentives. For example, in 2006 the Ministry of Labour and Social Affairs awarded grants to 29 investors for the training or retraining of 3,320 employees in new positions intended for highly skilled workers. The Committee asks the Government to provide updated information on the impact of such measures in overcoming the difficulties in finding lasting employment for young workers and other categories of vulnerable workers entering the labour market.

4. Business development. The Government indicates that the support of businesses and the business environment, especially to small and medium-sized enterprises (SMEs), is based on a system of direct and indirect financial assistance. One of the main measures focusing on the direct support of SMEs via resources from EU funds is the Enterprise and Innovation Operational Programme (EIOP) approved under Government Resolution No. 1302 of 13 November 2006 and complemented by national SME support programmes in accordance with Government Resolution No. 1425 of 12 December 2006. The Committee asks the Government to include information in its next report on the effects of these measures on employment creation. It also asks for information concerning the methods used by the Government to improve the success rate of young entrepreneurs and to involve the social partners in informing SME owners and entrepreneurs of key labour market concerns and opportunities.

5. Article 3. Participation of the social partners in the formulation and application of policies. The Government provides an overview of the plenary sessions of the Economic and Social Council with regard to consultations with the social partners in 2006. Furthermore, the social partners participated in a second joint work programme of European social partners, 2006–08 that is based on joint analysis on the key challenges facing Europe’s labour markets. On that basis, the social partners wish to contribute to support economic growth, job creation and modernization of the EU social model. Among the expected outcomes of such cooperation is an agreement on joint recommendations and priorities in employment at the European and national levels, and an autonomous framework agreement on either the integration of disadvantaged groups in the labour market or lifelong learning at the European level. The Committee refers to point 2 of this observation and asks the Government to also include indications in its next report on the manner in which the consultations held by the Economic and Social Council have contributed to the implementation of an active employment policy.

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The Committee notes the detailed information contained in the Government’s report received in October 2005. It also notes the National Action Plan for Employment 2004-06.

1. General economic policies and employment trends. Supplemented by the data published by the OECD, the Government’s report demonstrates that, after remaining above 9 per cent in 2005, the unemployment rate reached a record high of 10.2 per cent in January 2006. The highest rates of unemployment were recorded in the northern regions of Bohemia and Moravia, reaching over 20 per cent in some areas. About 40 per cent of unemployed people are long-term unemployed (more than 12 months), while the rate for young people under the age of 25 is twice that of the general unemployment rate. The Government also indicates that, while the employment rate of women has traditionally been higher than the EU average, that is mainly due to part-time work and extended possibilities for short-time work. The Government acknowledges that it still has to combat the structural causes of unemployment in order to reach the EU target of 60 per cent employment rate by 2010.

2. The Government emphasizes in its report the importance of regional policy for tackling the regional disparities in the impact of large-scale structural changes on economic activity and employment. Under the regional development strategy, which includes the implementation of several state programmes, such as the Countryside Support Programme, resources are concentrated on the least developed or the regions which have the highest unemployment rates. The Government also indicates that, since it joined the EU, support for regional development has been secured through EU-funded programmes aimed at supporting enterprises in selected regions and increasing the development of infrastructure. The Government also mentions its industrial policy, designed to encourage foreign direct investment and to promote exports, as well as a policy to support the development of small and medium-sized enterprises. Regarding its support for investors within the framework of investment incentives, the Government indicates that these measures have started to show some results on employment, for instance in the Ústí region, where around 30 investors have undertaken to create nearly 7,200 jobs. The Committee notes this information and recalls that success in employment creation is linked to the successful coordination of macroeconomic policies, as well as structural policies. It therefore asks the Government to continue to report on how employment policy measures are kept under regular review within the framework of a coordinated economic and social policy. It also asks the Government to communicate, in its next report, any evaluation available of the impact of the programmes and measures that it describes on economic activity and employment. It would also be grateful if the Government could continue to provide disaggregated data on the level and trends of employment, unemployment and underemployment, and indicate the measures taken and the results achieved in reducing labour market disparities in the country (Articles 1 and 2 of the Convention).

3. Labour market and training policies. The Government indicates that employment policy objectives and measures are included in its National Action Plan for Employment, adopted in accordance with the European Employment Strategy. The Government indicates that special attention is devoted to vulnerable groups to provide them with further vocational training. In this regard, the Committee hopes that the Government will include information in its next report on the results of the measures taken to provide skills to young and older workers, in order to keep those categories of vulnerable workers in the labour market.

4. Participation of the social partners in the formulation and application of policies. Regarding consultations with the social partners on employment policy issues, the Government provides an overview of all the plenary meetings held by the Economic and Social Council (RHSD) during the reporting period. The Government emphasizes the fact that these tripartite meetings were attended by high-level government officials, as well as by the most representative workers’ and employers’ organizations, and their agenda included the most significant issues related to employment policy. It also states that respect for the social partners’ positions on individual aspects of employment policy is considered not only relevant, but absolutely necessary and essential. The Committee notes with interest the approach taken and asks the Government to continue to provide information on the consultation of the social partners on employment policy issues (Article 3).

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The Committee noted the Government’s report for the period ending in August 2003. It is also aware of the National Employment Action Plan approved by the Government on 14 July 2004. The Committee notes that, according to OECD data, the rate of unemployment, which fell from 8.2 per cent in 2001 to 7.3 per cent in 2002, reached 7.8 per cent in 2003, despite a decrease in the activity rate. It observes, among the worrying features of the employment situation in 2003, an unemployment rate of 17.6 per cent among young people under 25 years of age and 18.8 per cent among persons without secondary education, as well as the high incidence of long-term unemployment, nearly half of the unemployed being out of work for more than 12 months. In its report the Government describes a set of policies implemented principally to combat the structural causes of unemployment.

1. General economic policies. The Government emphasizes in its report the importance of regional policy for tackling the regional disparities in the impact of large-scale structural changes on economic activity and employment. Under the regional development strategy, resources are concentrated on the least developed or the most affected regions which have the highest unemployment rates. The various programmes which are being implemented are to contribute to the creation of jobs by diversification of activities, and their effectiveness will be the subject of an evaluation in 2006. The Government also refers to an industrial policy designed to encourage foreign direct investment and to promote exports, as well as a policy to support the development of small and medium-sized enterprises aimed at increasing their share in economic growth and the reduction of unemployment. The Committee would be grateful if the Government would communicate in its future reports any evaluation available of the impact of these programmes and measures that it describes on activity and employment. It also invites it to describe the way in which the main aspects of its monetary and budgetary policies contribute to the promotion of employment.

2. Labour market and training policies. The Government indicates that employment policy objectives and measures are included in the National Employment Action Plan adopted in accordance with the European Employment Strategy. Particular attention is devoted to the prevention of long-term unemployment and exclusion from the labour market, particularly by support geared to the individual in active job search, which supposes a strengthening of the capacity of the employment services. The Committee requests the Government to indicate progress made in this regard. In as much as a lack of appropriate skills is identified as one of the main factors of unemployment, the Committee also asks the Government to describe the measures taken in the context of its lifelong learning strategy in order to increase the supply of continuing vocational training.

3. Consultation of the representatives of the persons affected. The Committee notes the indications provided by the Government on consultations held within the Economic and Social Council, particularly concerning the preparation and evaluation of national employment plans. It requests the Government to continue to provide information on consultation with the social partners on employment policy, indicating opinions delivered and the manner in which account was taken of them (Article 3 of the Convention).

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The Committee notes the reports supplied by the Government and the documents appended, received in January 2001 and November 2002 for the period ending August 2002.

1. Articles 1 and 2 of the Convention. The Committee notes the "Joint Assessment of the Employment Policy - Priorities of the Czech Republic" of 11 May 2000, prepared by the Government with the European Commission, which contains an agreed set of employment and labour market objectives to advance the labour market transformation, to adapt the employment system so as to allow implementation of the Employment Strategy and to prepare the Czech Republic for accession to the European Union. It further notes the National Action Plan for Employment 2002, which for the first time, features the performance indicators used in the European Union to evaluate the achievements of employment policy objectives. The Committee also observes that unemployment has accelerated sharply since 1997, registering 9.4 per cent in September 2002 (according to data provided by the ILO multidisciplinary team). Higher than average unemployment rates currently apply for women, people with disabilities, the low skilled, school leavers and increasingly among older workers. As the Committee noted in its 1998 observation, the Roma population is still disproportionately affected by unemployment.

2. The Committee also notes the measures envisaged and the objectives established by the Government in its National Employment Plan which is intended to create new jobs and achieve more productive patterns of present employment, enhance incentives for the unemployed to accept available jobs, match training for employment, match the volume of immigrant workers with the situation on the labour market, increase the efficiency of active labour market policies, and provide support to the operation of employment services. The Committee would appreciate receiving further details as the National Employment Plan is implemented. Please state whether special difficulties have been encountered in attaining the objectives of the National Employment Plan and indicate how far these difficulties have been overcome.

3. The Committee would also appreciate receiving further information on the impact of the employment promotion programmes for vulnerable and disadvantaged groups, in particular the Roma minority and workers displaced from the rural sector or affected by industrial adjustments. Please also indicate how the reform of the Public Employment Services has contributed to employment creation and human resources development.

4. Article 3. The Committee notes the Statutes of the Economic and Social Council of the Czech Republic (RHSD CR) by which the Government and social partners negotiate with a view to reaching tripartite agreements on essential issues of economic and social development. The Committee would appreciate receiving details on the decisions taken by the RHSD CR in relation to employment policies. Please supply information on the manner in which representatives of the persons affected by economic restructuring are consulted concerning employment policies.

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

1.  The Committee refers to its previous observation and notes the two consecutive reports submitted by the Government for the period ending June 1998. The Government states that, following a period of relative stability, the rate of unemployment increased from 3.5 per cent to 4.3 per cent in 1997 owing to a marked slow-down in economic growth at the end of the period. According to the latest OECD forecasts, the unemployment rate would rise to 5.8 per cent in 1998. The Committee nevertheless notes that, despite this recent deterioration, the employment situation continues to compare favourably with that of other European countries which are in a period of transition to a market economy and with the majority of Western European countries.

2.  The Government emphasizes that unemployment particularly affects certain groups of the economically active population, such as unskilled workers, young people with no work experience, the Roma ethnic minority and persons with disabilities. Moreover, levels of unemployment are highest in the regions of North Bohemia and North Moravia, which are undergoing industrial restructuring, and in mainly agricultural areas. The Government states that, in order to stem this rise in structural unemployment, it has adjusted its employment policy to strengthen measures targeting the most vulnerable regions and groups of workers. Emphasis is placed, in particular, on the development of infrastructure in the transport and service industries and the promotion of small and medium-sized enterprises as sources of new employment opportunities, as well as on retraining, not only for jobseekers, but also as a preventative measure for workers whose jobs are at risk as a consequence of structural changes. The Committee notes in this respect that refocusing of active labour market policy measures appears to have resulted in a decrease in the number of beneficiaries during the period in question. The Committee would be grateful if the Government would provide in its next report any evaluation of the effectiveness of these measures in terms of placing those concerned in employment.

3.  The Committee notes with interest the detailed information provided by the Government in respect of the changes in employment and unemployment, as well as the labour market policy measures implemented. The Committee recalls that, under Article 2 of the Convention, the measures which are to be adopted, with a view to promoting full, productive and freely chosen employment, shall be decided and kept under review "within the framework of a coordinated economic and social policy", and hopes that the Government will also transmit in its next report the information required by the report form on the manner in which general economic policies in areas such as monetary and fiscal policies, trade policies or prices, incomes and wages policies contribute to the pursuit of the employment objectives of the Convention. The Committee requests the Government, in particular, to specify the impact which the Stabilization and Recovery Programme adopted in May 1997 has had or is expected to have on employment.

4.  The Committee notes that the questions relative to employment policy are discussed by the social partners, both within the framework of the Council for Economic and Social Agreement, which was established in 1997, and in the advisory committees of employment offices. The Government states in particular that the preparation of a new national employment plan will be subject to in-depth debate in the Council for Social and Economic Agreement. The Committee requests the Government to provide detailed information in its next report on the activities of the Council, the opinions issued and the manner in which they are taken into account, in accordance with the provisions of Article 3 of the Convention.

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1. The Committee refers to its previous observation and notes the two consecutive reports submitted by the Government for the period ending June 1998. The Government states that, following a period of relative stability, the rate of unemployment increased from 3.5 per cent to 4.3 per cent in 1997 owing to a marked slow-down in economic growth at the end of the period. According to the latest OECD forecasts, the unemployment rate would rise to 5.8 per cent in 1998. The Committee nevertheless notes that, despite this recent deterioration, the employment situation continues to compare favourably with that of other European countries which are in a period of transition to a market economy and with the majority of Western European countries.

2. The Government emphasizes that unemployment particularly affects certain groups of the economically active population, such as unskilled workers, young people with no work experience, the Roma ethnic minority and persons with disabilities. Moreover, levels of unemployment are highest in the regions of North Bohemia and North Moravia, which are undergoing industrial restructuring, and in mainly agricultural areas. The Government states that, in order to stem this rise in structural unemployment, it has adjusted its employment policy to strengthen measures targeting the most vulnerable regions and groups of workers. Emphasis is placed, in particular, on the development of infrastructure in the transport and service industries and the promotion of small and medium-sized enterprises as sources of new employment opportunities, as well as on retraining, not only for jobseekers, but also as a preventative measure for workers whose jobs are at risk as a consequence of structural changes. The Committee notes in this respect that refocusing of active labour market policy measures appears to have resulted in a decrease in the number of beneficiaries during the period in question. The Committee would be grateful if the Government would provide in its next report any evaluation of the effectiveness of these measures in terms of placing those concerned in employment.

3. The Committee notes with interest the detailed information provided by the Government in respect of the changes in employment and unemployment, as well as the labour market policy measures implemented. The Committee recalls that, under Article 2 of the Convention, the measures which are to be adopted, with a view to promoting full, productive and freely chosen employment, shall be decided and kept under review "within the framework of a coordinated economic and social policy", and hopes that the Government will also transmit in its next report the information required by the report form on the manner in which general economic policies in areas such as monetary and fiscal policies, trade policies or prices, incomes and wages policies contribute to the pursuit of the employment objectives of the Convention. The Committee requests the Government, in particular, to specify the impact which the Stabilization and Recovery Programme adopted in May 1997 has had or is expected to have on employment.

4. The Committee notes that the questions relative to employment policy are discussed by the social partners, both within the framework of the Council for Economic and Social Agreement, which was established in 1997, and in the advisory committees of employment offices. The Government states in particular that the preparation of a new national employment plan will be subject to in-depth debate in the Council for Social and Economic Agreement. The Committee requests the Government to provide detailed information in its next report on the activities of the Council, the opinions issued and the manner in which they are taken into account, in accordance with the provisions of Article 3 of the Convention.

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The Committee notes with regret that the Government's report has not been received. It hopes that a detailed report will be supplied for examination by the Committee at its next session and that it will contain full information on each provision of the Convention and in response to each question of the report form.

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The Committee notes that the Government's report has not been received. It hopes that a detailed report will be supplied for examination by the Committee at its next session and that it will contain full information on each provision of the Convention and in response to each question of the report form.

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The Committee has taken note of the Government's reports for the period ending June 1991. It notes with interest the entry into force of the Employment Act of 4 December 1990, prepared in collaboration with the competent departments of the ILO. The Committee notes that, according to the Government, the onset of declared unemployment at the end of the period in question testifies to the break from the employment situation previously prevailing and, in particular, to the abandonment of the system of centralised direction of the economy, which managed to ensure full employment only at the expense of labour productivity. The Government states in its report that the establishment of an efficient labour market is an essential feature of its policy, which is henceforth aimed at speeding up the constitution of a market economy system. To enable it to appreciate to the full the application of the Convention in this new context, the Committee would be grateful if the Government would supply in its next report full information on each of the provisions of the Convention and on each question in the report form. In particular it asks the Government to indicate the decrees adopted pursuant to section 31 of the Employment Act to give effect to the Act and to refer to the following points:

1. The Committee notes that unemployment, which appeared in 1990, has greatly increased since the beginning of 1991. It had reached 3.8 per cent of the economically active population by 30 June 1991 and, according to OECD estimates, 7.5 per cent by the end of the year. Its progress affects the Czech Republic and the Slovak Republic very differently; their unemployment rates were 2.6 per cent and 6.3 per cent respectively on 30 June 1991 and 3.9 per cent and 10.3 per cent respectively at the end of the year. The Government mentions, among population groups particularly affected, the Gypsies, the handicapped and young school-leavers in search of their first job. The Committee hopes that the Government will be able to supply in its next report detailed statistical data concerning the level and trends of employment, underemployment and unemployment and concerning the duration of periods of unemployment in the country as a whole, in each of the Republics and at the regional level, in the various sectors of economic activity, and for various population categories such as, in particular, young people, women, older workers and the handicapped. Please supply information on the measures taken or contemplated to collect and analyse the relevant statistical data.

2. The Committee notes with interest that, in the words of the Employment Act of 4 December 1990, "Attainment of full, productive and freely chosen employment is one of the fundamental goals of the economic and social policy of the State". It would be grateful if the Government would indicate the procedures adopted to ensure that the goal of full, productive and freely chosen employment is duly taken into account in implementing the programme of transition to the market economy, in particular in such matters as: reform of the regime of property and enterprise management; budgetary, monetary and exchange rate policies; investment, price, income and wage policies; and global, sectoral and regional industrial policies. The Committee notes the information supplied by the Government, in response to its direct request, concerning employment in the agricultural sector. Please continue to provide detailed information on the development of employment in that sector and on the measures adopted in connection with rural development.

3. The Committee notes that, in the words of section 3 of the Employment Act, "State employment policy shall be aimed at maintaining a balance between supply of and demand for labour, at promoting productive utilisation of manpower resources and at securing the right of citizens to employment". The succeeding articles deal in turn with employment services and retraining. Please supply information on the measures taken or contemplated to give effect to the provisions of the Employment Act in order to develop the employment services and adapt them to their new tasks. Please communicate the available data on the number and nature of cases processed by the employment services and on the time taken to respond to demands for and offers of employment. With regard to retraining, the Government's report indicates that measures of vocational reorientation, whereby workers' skills can be quickly adapted both within the undertaking and through the implementation of national and regional programmes, are an essential feature of its active employment policy. Please continue supplying information on policies and programmes in the field of vocational training for workers in employment and for jobseekers, taking into account the relevant provisions of Conventions Nos. 140 and 142. The Committee notes in this connection that the report on the application of Convention No. 142 has not been received. In hopes to have at its disposal at its next session full information on developments in the area of human resources development.

4. The Committee notes with interest the provisions of the Employment Act requiring employment services to pay special attention to certain jobseekers such as young people seeking their first job, older workers, workers who have lost their employment as a result of structural changes, and the long-term unemployed; it also notes the special provisions concerning the employment of disabled persons. Please supply information on the measures taken pursuant to those provisions to promote the employment of these particular categories of the population.

5. The Government describes a series of active measures to promote employment, including fiscal incentives for the recruitment of handicapped or young persons and for apprentice training; the coverage of part of the expense involved in creating a new job when it is filled by an unemployed or a young person; the promotion of geographical mobility and of flexibility in forms of employment; early retirement and restrictions on the economic activity of retirees. The Committee notes that according to the Government it is not yet possible to make a precise assessment of the effects of each of these measures on employment. It hopes that the Government will be in a position to supply such an assessment in its next report.

6. The Committee notes from the "principles" enunciated in introducing the draft Employment Act that the active employment policy will also have as a goal the social welfare of workers in the event of temporary loss of employment. Specific provisions to that effect have been included in the Act. Please supply information on the implementation of the regime of unemployment compensation and, more generally, on the coordination of social welfare measures with employment and labour market policies.

7. The Committee has noted with interest the provisions for consultation with employers' and workers' organisations in particular for the purposes of applying the Employment Act. In addition it has been informed of the establishment at the federal level of a Council for Economic and Social Agreement composed of representatives of the Government, of the Czech and Slovak Confederation of Trade Unions, and of the Employers' Association Coordinating Committee, which has concluded a General Agreement on Wages specifying that the State shall undertake to devise an overall employment strategy. Please supply information concerning the clauses of that Agreement which relate to employment policy and concerning the way the representatives of the circles concerned are consulted with regard to employment policy.

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1. The Committee notes the detailed information supplied by the Government in reply to its previous direct request, and the legislative texts attached to it. The Committee notes in particular the relevant provisions of Act No. 81 of 1986 respecting the Eighth Five-Year Plan, and those of Act No. 88 of 1988 on state enterprises. The Government indicates in its report that the reconstruction of the Czechoslovakian economic management system is intended in particular to extend the economic independence of productive organisations and increase the productivity of employment. The Committee hopes that the Government will continue supplying information on the measures adopted to make work as productive as possible, as laid down in Article 1, paragraph 2(b), of the Convention. It trusts that the Government will continue to ensure that "there is work for all who are available for and seeking work" (Article 1, paragraph 2(a)) and to guarantee freedom of choice of employment under the circumstances laid down in paragraph 2(c). Please specify whether particular difficulties have been encountered in achieving the objectives of the employment policy of the State Development Plan for the National Economy of the Czechoslovak Socialist Republic, 1986-90, and indicate the extent to which these difficulties have been overcome.

2. The Government indicates in its report that a measure to retrain workers for their reintegration into the labour market is being prepared. Please supply, in the next report, information on the progress achieved in this respect. The Committee hopes that the Government will continue to supply, for this Convention and for Conventions Nos. 142 and 159, information on training policy, vocational rehabilitation and retraining policy, and on the measures taken to co-ordinate these policies with the forecast supply and demand of labour.

3. The Committee notes the information and statistics supplied on employment in the agricultural sector. Please continue supplying detailed information on the development of the employment situation in this sector, if possible based on the available results of the survey of 1 February 1989. In particular, please specify the effect on the creation of productive employment of the provisions of Act No. 95 of 1988, which makes it possible for individuals, or groups of individuals, to rent agricultural land from collective farms for the purpose of production.

4. Article 3. The Committee notes that under the terms of Act No. 88 of 1988 on state enterprises "collective workers' councils" will be given greater responsibility with regard to the planning of production and on matters related to employment policy in the enterprise. The report also indicates that the committees of agricultural co-operatives have responsibilities in this area. Please supply additional information on the way in which full account is taken of the experience and views of representatives of the various parties concerned with the formulation and implementation of employment policy, particularly within the context of the current reconstruction process of the national economic management system.