Direct Request (CEACR) - adopted 2003, published 92nd ILC session (2004)

Employment Policy Convention, 1964 (No. 122) - Germany (Ratification: 1971)

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

1. Articles 1 and 2 of the Convention. Supplemented by the data published by the OECD, the report reveals that the labour market situation did not improve during the period in question. The increase in economic growth fell short of the Government’s expectations and the number of gainfully employed workers decreased by about 230,000 in 2002. The unemployment rate has continued to increase, going from an average 7.8 per cent in 2000 to 8.2 per cent in 2002. Unemployment in the old Länder rose considerably, increasing by 170,900 people, while in the new Länder (the Länder of the former German Democratic Republic) it showed a slight increase of 37,800 people. The Government also indicates that there exist significant differences in the development of the economy and of employment between the old Länder and the new Länder. Indeed, while almost all old Länder show a rate of unemployment below 10 per cent, new Länder have considerably higher rates. The lowest rates of unemployment, at below 5 per cent, can be observed in the southern regions, while the jobless persons in some parts of the new Länder and Berlin account for almost 20 per cent of the labour force. Additionally, there exists a considerable gap in employment between age groups in the new Länder with older workers having substantially higher rates of unemployment. The Committee would appreciate continuing to receive information on further developments in this respect and on the Government’s efforts to overcome this regional imbalance in order to provide full, productive and freely chosen employment to workers of all ages. Please also provide information on how employment objectives are integrated into overall macroeconomic policies.

2. The Government explains that youth unemployment has continued to rise according to the national definition, reaching a level of 497,400. Furthermore, youth unemployment continues to be particularly high in the new Länder with rates only half as high in the old Länder. To reduce the extent of unemployment among young persons the Government has established a focus of support for the new Länder with the implementation of an emergency action programme. In 2002, the Government allocated about 3.2 billion euros to assist 532,000 young persons under the age of 25 on the basis of the Employment Promotion Act and the guidelines for the emergency action programme. The Committee notes this information and trusts that the Government will continue to provide information on policies and programmes that address the special needs of young workers as well as data on the levels and trends in employment for this group.

3. The Government indicates that in February 2002 it established a two-stage plan aimed at creating more competition-oriented services for the job market. The German Federal Employment Service has been provided with management structures like those in private industry. Additionally, a government-appointed commission on "Modern services in the labour market" has made several legislative proposals, the first of which came into force on 1 January 2003. The basic conditions established by the new legislation concern, inter alia, personnel service agencies, the acceleration of placement by requiring workers to register early on, the revision of the organization of vocational training, the increase in competition for furnishing services to promote work, encouraging older workers into work by ensuring earnings, making it easier for the unemployed to secure temporary employment, tax assistance, do small jobs in private households, and facilitating entry into self-employment. The Committee has taken note of this information and wishes to remain informed on the application of these legislative reforms and on their impact on the labour market.

4. In this respect, the Committee hopes that the Government will also provide details in its next reports on Conventions Nos. 88 and 142 about how the Federal Employment Service contributes to the achievement of full employment and to the development of comprehensive and coordinated policies and programmes of vocational guidance and vocational training.