Observation (CEACR) - adopted 2006, published 96th ILC session (2007)

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

1. Implementation of an active employment policy. The Committee notes the information contained in the Government’s report for the period ending in May 2005. Despite encouraging economic growth, the Government indicates that the resulting effects have yet to be observed on the unemployment rate which averaged 10.5 per cent in 2004 – 2.3 per cent higher than in 2002. It reports that higher growth and employment are the most important policy objectives at the Länder level and that full employment is achievable through structural reforms. Among the labour market reforms already in place, the Committee notes that the Job-AQTIV law introduced a new orientation to employment legislation. Other legislative initiatives established new forms of part-time work, greater entrepreneurial support and extended the regulations for low-paid jobs (mini-jobs), which are exempt from tax and social security contributions. Furthermore, the unemployment benefits system and social security benefits system were merged to form a unified regime called “Basic Assistance for Jobseekers” providing all the help that jobseekers require to enter the world of work and to meet their basic needs. The Committee notes from the Government’s report that other legislative amendments are being prepared to facilitate the creation of new jobs, especially in small businesses and new enterprises. It also notes the Government’s funding initiatives related to vocational training, job creation and structural adjustment, along with self-employment and integration incentives. In the light of the above measures, the Committee asks the Government to provide information in its next report on the outcome of its labour market reforms and employment promotion programmes, as well as on the consultation held with representatives of the social partners in relation to the implementation of the measures adopted (Articles 1 and 3 of the Convention).

2. Regional employment inequalities. The Government reports that, despite a persistently high rate of unemployment in the new Länder in 2004, unemployment in this region fell by 24,000 between 2003 and 2004, as did the number of unemployed older workers over the age of 55 (down to 9.1 per cent). Nonetheless, unemployment levels in the new Länder remained more than twice as high as those in the old Länder (18.4 per cent versus 8.5 per cent). Among the measures taken to remedy this situation, the Government points to its renewed commitment in 2004 to the Training Programme for the East, which aims to reduce youth unemployment in the region. It also reports the extension of investment grants offering 600 million euros to strengthen the new Länder as a place for business and thereby improve local employment opportunities. Recalling its previous concerns in this regard, the Committee asks the Government to continue providing information on the progress achieved in reducing existing regional employment inequalities.

3. Specific categories of workers. Young people and women. The Committee notes that the Government, in consultation with business associations, signed the “National Pact for Vocational Training and Young Apprentice Development” in June 2004 setting out a three-year commitment to provide training opportunities for young people. Under this agreement, businesses pledge to make an average of 30,000 training places available per year, as well as 25,000 places for entry-level qualification courses. The Committee notes from the Government’s report that, by September 2004, the number of newly signed vocational training contracts rose by 22,600 over the previous year and that nearly twice the number of training places promised were created in 2004 (59,000). Additionally, under the new “Basic Assistance for Jobseekers” programme, young people receive comprehensive support for their integration into the labour market and the Government indicates that its reform agenda seeks to improve the advisory and placement services for unemployed young people through individual profiling and appropriate action programmes. With respect to women workers, the Committee notes the Eurostat figures reported by the Government showing that, despite increased employment levels, the unemployment rate among women rose from 9.5 per cent in 2002 to 10.1 per cent in 2004. It also notes that women spend, on average, more time in unemployment than men and are at greater risk than men of long-term unemployment. Nonetheless, the participation of women in active labour market policy initiatives exceeded the Government’s target levels for 2003 and 2004. The Committee asks the Government to continue providing detailed information in its next report on the efforts made to improve the employment situation of young people and women, and the results achieved in terms of job creation as a result of the programmes adopted, particularly in the new Länder.