Observation (CEACR) - adopted 2011, published 101st ILC session (2012)

Employment Policy Convention, 1964 (No. 122) - Iran (Islamic Republic of) (Ratification: 1972)

The Committee notes the Government’s report received in September 2011 which includes indications related to the 2010 observation, as well as replies to the comments raised by the International Trade Union Confederation (ITUC). The ITUC noted that the unemployment rate was very high and job cuts operated in large industrial enterprises in Asalouyeh and leather factories in north-eastern Iran affected the employment situation in those regions. The ITUC further indicated that the job market struggles to absorb the influx of young educated people and pointed out the difficulties for women to be fully integrated in the labour market. It finally expressed concern at the lack of effective consultations with the social partners on employment policy issues.

Articles 1 and 2 of the Convention. Application and implementation of an active employment policy. The Government provided in its report the document on general policies of employment adopted by the Supreme Leader, which contains policy orientations for the state authorities listed in 13 points. Its objective for 2010 was creating 1,100,000 jobs and a survey is being carried out to assess the achievement of that goal. The Government also reports that a database for assessing job creation is being completed and that the “Plan for development of fast growth and entrepreneurial enterprises”, which started in 2006 with the aim of promoting small and medium-sized enterprises (SMEs), is planned to continue. Moreover, various “Entrepreneurship plans” were developed. In 2010, a Plan for Rural Jobs was adopted. In October 2010, as many as 44,271 persons were employed in Asalouyeh. The Government indicates that supportive policies were adopted to create alternative opportunities for addressing the employment gap in the Khorasan province. The Committee invites the Government to provide in its next report further information on the procedures and mechanisms established to review and assess the results of its employment policy measures. The Committee also asks the Government to include information on the policies that promote full, productive and lasting employment opportunities to the unemployed and other categories of workers affected by the difficult employment situation in different regions.

Labour market information and employment trends. The Government states that statistics released by the Statistics Centre of Iran (SCI) are based on the ILO definitions. It further indicates that a comprehensive Labour Market Information System (LMIS) needs to be completed and staff in charge of collecting statistical data should be trained. The Government reiterates that differences in economic participation between women and men are due to social and cultural reasons. The real share of women in employment may be underestimated. Notwithstanding, the Government intends to take measures to address this issue through a plan aiming to increase job opportunities for women and promoting a legal and administrative framework for home-based work. The Committee notes that the Government’s objective is to move women’s work from the informal to the formal economy. It further notes that in 2010 the labour force participation rate was 39 per cent, being 61.7 per cent among men and 16 per cent among women. The unemployment rate was measured at 14.6 per cent, accounting for 11.9 per cent among men and 25 per cent among women. The Committee requests the Government to provide in its next report data assessing the effectiveness of the measures implemented to promote productive employment opportunities for women. It also invites the Government to provide information on any developments towards the establishment of the LMIS.

Labour market measures. The Committee notes the data provided by the Government on the operation of the Workers’ Unemployment Prevention Fund. The Government indicates that efforts have been made to reduce the term of payment of unemployment benefits and extend their scope of coverage. The Committee notes the data supplied by the Government on job opportunities advertised at public employment centres and private employment agencies. The Government indicates that only a small percentage of jobseekers register at employment offices, whether public or private. The Committee invites the Government to provide information on the impact of measures taken under the Workers’ Unemployment Prevention Fund. It also requests the Government to provide information on the measures taken or envisaged to strengthen labour market institutions.

Integration of Afghan workers in the labour market. The Government reports that efforts have been made to provide Afghan workers with proper training and ensure that they and their families are residing legally in the country. The implementation of the plan to redevelop job opportunities in line with the national labour market needs is expected to increase job opportunities for Afghan and other foreign citizens. The Committee would appreciate receiving further information on the integration of Afghan workers and other foreign workers in the local labour market including information on the nature of the jobs available for those workers (see Part X of the Employment Policy (Supplementary Provisions) Recommendation, 1984 (No. 169)).

Youth employment. The Government indicates that the policies established in recent years have been directed at increasing job opportunities for the youth through technical and vocational training and support for entrepreneurship, as well as addressing the issue of graduates’ unemployment. The Committee notes that the internship project provides for incentives for employers who sign internship contracts with graduates, and further incentives for those who employ such graduates. The Government indicates that, in 2009, 70,000 young persons benefited from the project and it is forecast that by the end of 2011 another 100,000 will be covered. More than 50 per cent of trainees were women and in some provinces this ratio reached 60 to 70 per cent. Both the Parliament and the private sector supported the continuation of the project. The Government also indicates that, in order to improve the performance of the State Technical and Vocation Organization (TVTO), it has designed the National System of Skill and Technology, which orients technical and vocational training towards the system of skills and technology and pursues, inter alia, the objective of linking skills training with labour market needs. The Committee notes that, according to 2010 data provided by the Government, the youth unemployment rate reached 29.6 per cent in 2010, reaching 46.5 per cent among young women. Referring to its comments on Convention No. 142, the Committee invites the Government to supply disaggregated data on young persons obtaining lasting employment following their participation in vocational guidance and vocational training programmes. The Government might also wish to hold appropriate consultation with the social partners and others stakeholders concerned on the difficulties encountered to obtain lasting employment for young people.

Article 3. Participation of the social partners. The Government indicates that the Supreme Council of Employment, which is composed of government officials, and delegates of employers’ and employees’ organizations, decides on the monitoring and following-up of the fulfilment of quantitative and qualitative objectives of employment in the programmes approved by the same Council. The Council participated in the development of the Fifth Development Plan with regards to the labour market component. The ITUC pointed out that consultations with social partners have so far failed to address employment-related issues. Independent unions must be allowed in order to create an environment that enables real social dialogue, through which problems related to employment policy can be addressed. The Committee invites the Government to provide information in its next report on how consultations with the social partners have been used in the formulation and implementation of the employment policy. In this regard, the Committee asks the Government to focus on the points raised in this observation and the procedures which enable to take fully into account the views and experiences of persons affected by employment policy measures so as to secure their full cooperation in formulating and enlisting support for such measures.