Observation (CEACR) - adopted 1994, published 81st ILC session (1994)

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

1. The Committee notes the Government's report for the period ending June 1992, which as usual, contains detailed information in reply to each of the questions contained in the report form and supplies valuable documents annexed to the report. The Government states that the high growth in employment which had characterized the previous reporting period was reversed as from the middle of 1990. Since then, total employment has declined by 2.3 per cent (and full-time employment by nearly 6 per cent). In view of the maintenance of a high participation rate, particularly among women, the unemployment rate, which was below 7 per cent in 1990, increased rapidly up to nearly 11 per cent in 1992-93. The Government considers that this level of unemployment is "unacceptably high" and is concerned that long-term unemployment erodes the dignity of workers and social cohesion.

2. For the Government, the particular difficulties encountered in achieving the objectives set out in the Convention are principally associated with the economic recession. Although it states that it is convinced that the key to reducing unemployment is sustained and strong growth, it nevertheless considers that, due to the long process of restructuring which has been embarked upon, employment is likely to respond more gradually to the recovery in demand than in previous recoveries. Furthermore, the Government of South Australia also draws attention to the foreseeable consequences on employment of the deregulation of trade: according to its estimates, the progressive reduction of customs tariffs between 1992 and 2000 will result in a 20 per cent reduction in employment in South Australia.

3. The Committee notes with interest that the Government reaffirms in this context that full employment remains a fundamental objective, as illustrated for example by the document issued to accompany the presentation of the 1992-93 budget, which is attached to the report. The economic policy, which is aimed at improving the medium and long-term growth prospects of the economy, which are necessary for a lasting increase in employment and a rise in living standards, is based on containing the increase in real wages, including minimum wages, by means of the prices and wages agreement concluded with the trade union movement, measures to combat inflation which have resulted in a significant decrease in interest rates, and the pursual of fiscal reforms to encourage investment by enterprises. The Government also states that, in the short term, its budget policy has become more stimulatory by allowing an increase in the budget deficit and undertaking new expenditure with a view to stimulating economic activity and employment. In view of the results obtained in respect of inflation and interest rates, and the persistance of a high unemployment rate, the Committee would be grateful if the Government would continue to indicate the manner which, in accordance with Article 2 of the Convention, measures adopted to promote employment are decided upon and kept under review "within the framework of a coordinated economic and social policy".

4. The Committee also notes the information concerning the labour market policy measures adopted by the federal Government and by the States. Expenditure on these programmes practically doubled between 1991-92 and 1992-93. For the Government, in view of the need for competitiveness, the flexibility and "efficiency" of the labour market are vital factors in the adjustment process. In the context of the globalization of the economy and the resulting pressures, high priority is therefore given by both the federal Government and state governments, to the training and mobility of the workforce. In this respect, the Government of Queensland emphasizes that skills development is a responsibility which the Government has to share with enterprises, which derive economic benefit from it. The Committee would be grateful if the Government would supply the evaluation, which is planned for 1994, of the application of the Training Guarantee Act of 1990, which places enterprises under an obligation to allocate a certain level of expenditure to financing training activities. The Government also describes the new system of unemployment protection which came into force in July 1991, which marks a closer liaison between unemployment benefit and programmes of active measures. Finally, the report also describes inter-ministerial iniatiatives to promote the employment of women, persons with disabilities and older workers. The Committee requests the Government to supply all available information in its next report on the impact of the various employment measures on the persons concerned.