Observation (CEACR) - adopted 2008, published 98th ILC session (2009)

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

1. Articles 1 and 2 of the Convention. Implementation of an active employment policy. The Committee notes the detailed information contained in the Government’s report for the period ending in May 2007. It further notes the comments transmitted by the Confederation of German Trade Unions (DGB) in December 2007. The Government reports that the continuing economic growth in 2006 and the application of labour market measures resulted in a drop of the average unemployment rate, as compared to 2005, by eight percentage points to 10.8 per cent. Despite a persistently high rate of unemployment in the new Länder, in 2006 the number of unemployed persons fell by 124,038 as compared to 2005. Still, unemployment levels in the new Länder remained at 17.3 per cent, as compared to 9.1 per cent in the old Länder. The labour market measures applied comprised of continuing, yet decreased, funding initiatives related to vocational training, job creation and structural adjustment, along with self‑employment and integration incentives. In this regard, the Committee notes that the employment measures that were started as part of the Agenda 2010 through tax measures are continuing to facilitate the creation of new jobs, especially in small businesses and new enterprises. The DGB queries the overall link between policy measures and the downturn in unemployment and states that the reduction of unemployment was nearly entirely caused by the strong economic growth in 2006. The Committee asks the Government to provide in its next report information available on the impact of the various labour market reform measures undertaken on the employment situation and, more generally, on the pursuit of the objective of full, productive and freely chosen employment, as set out in the Convention.

2. Long-term unemployment. The Government reports that the number of persons without work for more than 12 months in the period under review rose from 1.5 million to 1.6 million, of which 49.6 per cent were women. In general, 40.1 per cent men and 43.6 per cent women have been unemployed for more than 12 months. One third of the long-term unemployed women were registered in the new Länder. In the new Länder, the absolute figure of women affected by long-term unemployment was 274,000 (45 per cent) as opposed to 253,000
(38 per cent) men. The Government reports that long-term unemployed were a particular target group for employment promotion. Accordingly, legislation was reformed in 2003 with a view to improving the hiring of workers over 50 years of age, through the possibility of limiting the duration of contracts without specific reasons. Furthermore, a new Act to improve employment opportunities of older people, in force since 1 May 2007, brought some provisions concerning the duration of an employment contract into line with European Community law. This led to a rise of part-time employment by 1.4 million (4.7 per cent of overall employment) to 7.9 million in 2005, which constituted a 24.5 per cent rise. The DGB noted that, by focusing on persons easier to reintegrate into the employment market, the benefit of the Government’s measures for long-term unemployed persons was only marginal and failed to effectively combat long-term unemployment. In addition, the DGB noted that the reforms had led to considerable negative repercussions for workers, evidenced, inter alia, in the fivefold increase of persons, who, despite being employed, face difficulties in sustaining their standard of living. The Committee asks the Government to provide information in its next report on the results achieved through measures taken to combat long-term unemployment, particularly for those who have only benefited from part-time jobs.

3. Youth unemployment. The Committee notes that the average unemployment rate for persons below 25 years stood at 7.9 per cent in May 2007, reflecting a decline of 25.9 percentage points as compared to the previous year. The unemployment rates of persons below 25 years still differs between new and old Länder, amounting to 6.4 per cent for the old Länder and 13.6 per cent for the new Länder. The Government has focused on specific employment promotion measures, for which €4 billion have been allocated. Almost 40 per cent of the recipients of these measures are located in the new Länder. Under the National Agreement on Training and Young Skilled Workers, adopted in 2004, the number of new training contracts increased from 550,200 in 2005 to 576,200 in 2006. The Government reports that the integration of young people into the labour market would continue to be a central area of its concern. It had therefore developed draft legislation under which provisions for qualifications and integration allowances were developed. While welcoming the Government’s efforts in combating long-term youth unemployment, the DGB remains concerned about the increase in precarious employment in this age group, which regularly led to unemployment in later working life. 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 persons, and the results achieved in terms of job creation as a result of the programmes adopted, particularly in the new Länder.

4. Women. The Committee notes the Eurostat figures reported by the Government, showing that, in line with the overall development, the general unemployment rate among women declined from 13.4 per cent in 2005 to 12 per cent in 2006 and was on a par with the figure for men. Despite these achievements, the DGB noted that women were largely in precarious and insecure employment relationships and that the high employment participation rate was only achieved through the large number of “mini-jobs” which are exempt from social security contributions. The Committee asks the Government to continue providing detailed information in its next report on the efforts made to improve the employment situation of women, and the results achieved in terms of job creation as a result of the programmes adopted, particularly in the new Länder.

5. Article 3. Participation of the social partners in the preparation and formulation of policies. The DGB notes that, in general, trade unions are consulted formally and informally concerning legislative processes on employment policy. It maintains that the reorganization of the welfare system for the long-term unemployed has impaired the right of employment agencies to self‑regulation, thus depriving the social partners of any possibility to be consulted, let alone participate in the discussions. Bearing in mind the numerous initiatives taken to promote employment, the Committee asks the Government to provide in its next report information on the manner in which the representatives of the social partners were consulted when policies were prepared and formulated “with a view to taking fully into account their experience and views and securing their full cooperation in formulating and enlisting support for such policies”.