Observation (CEACR) - adopted 1994, published 81st ILC session (1994)

Employment Policy Convention, 1964 (No. 122) - Chile (Ratification: 1968)

1. The Committee notes with interest the Government's report for the period 1990-92 containing a detailed analysis of employment policy problems and the information requested in the Committee's previous comments.

2. With reference to its previous observation, the Committee notes that the employment and labour market situation has continued to improve. After a decline in 1990 as a result of the adjustment policy to cope with inflationary pressures, there was an upturn in employment growth in 1991 (more than 100,000 new jobs were created in 1991 and the employed active population grew by more than 200,000 between 1991 and 1992). The Government stresses the productive nature of the jobs created (70 per cent of them were in the industrial and construction sectors) and states that they were concentrated in the formal sector (only 25 per cent of the new jobs were in the informal sector). The downward trend in unemployment, noted previously, continued: the unemployment rate dropped to approximately 5 per cent of the active population in April-June 1992, and the Government describes this as "close to full employment". With regard to remuneration and income distribution, the information in the report shows an increase in real wages (of 4.5 per cent over the past year), largely to the advantage of low wages, partly as a result of a series of tripartite agreements on economic and social issues.

3. The Committee has received comments from the Regional Employment Programme for Latin America and the Caribbean (PREALC) concerning the Government's report, which, generally speaking, bear out the Government's analysis and evaluations. PREALC points out, however, that there are still problems in the labour market: the high percentage of workers in low productivity jobs, and regions or industries in decline (such as coal), temporary workers in the agricultural sector, and youth unemployment. The Government makes it clear that it is still worried by the problem of youth unemployment, whose rate is still double that of the active population (11 per cent) and which mainly affects young people from the poorest households.

4. The Government attributes the results obtained to the implementation of an active employment and human resources policy, within the framework of an economic policy aimed at reconciling growth and equity. The economic indicators (particularly an annual product increase rate of 7 per cent) and the above-mentioned labour market indicators (employment and unemployment) bear out the progress registered during the reporting period. The Committee notes the information on the development of consultation procedures and more extensive cooperation between the social partners, which, while they appear to focus more on wages and remuneration than employment itself, constitute progress towards meeting the requirements of Article 3 of the Convention. It also notes with interest the various PREALC technical cooperation activities and the actions taken as a result, which have furthered the application of the Convention.

5. The Committee would be grateful if the Government would continue to provide information on efforts to achieve employment objectives as laid down in Article 1, by means of measures which, under Article 2 must be decided on and kept under review within the framework of a coordinated economic and social policy.

The Committee also asks for additional information in a direct request on certain other points, and particularly the impact, which is still difficult to assess as PREALC confirms, of policies or specific instruments concerning the categories of workers or the population referred to above which are still encountering difficulties in the labour market.