Observation (CEACR) - adopted 2001, published 90th ILC session (2002)

Employment Policy Convention, 1964 (No. 122) - Brazil (Ratification: 1969)

1. The Committee notes the comprehensive and detailed report supplied by the Government in reply to its 1998 observation. The Government indicates that the unemployment rate jumped from approximately 5.4 per cent (1996 and 1997) to almost 7.5 per cent (1998 and 1999). The expansion of some 4.5 per cent in the GNP (PIB) in 2000 and a decrease in inflation helped to decrease unemployment slightly (7.1 per cent in 2000, 4.6 per cent in Sao Paulo and 3.3 per cent in Rio de Janeiro). The Government states that its objectives concerning macroeconomic policies are to control inflation, promote sustainable growth and continuously improve living conditions. The process of opening up the economy has had positive effects on the accumulation of capital, reflected in improved efficiency and productivity of labour and a reduction in the long term of the external restrictions placed on economic growth through enhanced competitiveness of the national economy. The Government has taken steps to integrate public employment and income policies through the Employment Action Management Information System (SIGAE). The Committee would appreciate receiving indications on how the structural reforms undertaken and the consequences of regional financial crises have affected the labour market. Please also continue to supply information on how macroeconomic and monetary policies take into account the employment policy objectives of Articles 1 and 2 of the Convention.

2. The Government states in its report that there had been an overall decrease in the effectiveness of the unemployment insurance placement system, due partly to an increase in the number of registered unemployed. Only 40 per cent of vacancies get filled, indicating a high mismatch and limited availability of appropriate training. However, the Government has undertaken an innovative project to establish employment service agencies in partnership with worker and employer representative bodies. The pilot was launched in 1998, with agencies established in several trade unions. This programme resulted in an increase in 1999 in placements made by the National Employment Offices (SINE). The Committee notes this information with interest. It would appreciate continuing to receive information on the outcome of this programme and any plans to expand it, as well as information on any plans to expand the number of SINE offices.

3. In a direct request, the Committee raises other issues concerning the application of the Convention on the informal economy, the achievements of some programmes implemented by the Government and the consultations in the Worker Protection Fund (FAT).