Observation (CEACR) - adopted 1995, published 83rd ILC session (1996)

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

1. The Committee notes the Government's detailed report for the period ending June 1994, which demonstrates the consideration given to the comments on the application of the Convention. It regrets, however, that the data supplied by the Government, like those from the OECD, confirm the continuing deterioration of the employment situation since the beginning of the decade. The slow growth in economic activity and its recession in 1993 resulted in a decrease in total employment of 0.8 per cent in 1992 and 1.2 per cent in 1993. The unemployment rate, which was 9.4 per cent in 1991, increased rapidly to 10.4 per cent in 1992, 11.7 per cent in 1993 and 12.3 per cent in 1994. The Committee notes that, according to the OECD, the upsurge in activity and in employment should allow unemployment to stabilize at a rate estimated at 12 per cent in 1995. Swelled by dismissals and a drop in the number of unemployed finding work, the increase in rate of unemployment has been more pronounced for the age groups having the highest rate of activity. Young people under 25 years of age, however, experienced unemployment levels of up to 27.5 per cent in 1994, despite the considerable reduction of activity in this age group. The unemployment situation is still very worrying, because of both the unprecedented level of unemployment and the percentage of long-term unemployment.

2. Referring to its previous observations, the Committee notes the indications supplied by the Government on the general economic policy measures taken with a view to promoting employment. The Government stresses that priority must be given to reducing interest rates which can only be obtained by reducing public deficits. It considers that the beneficial effects of such a policy for activity and employment will be felt only progressively, which justifies the adoption in the interval of selective fiscal measures to encourage private consumption of durables and investment in home ownership or assisting enterprises to overcome their present difficulties. In addition, as a remedy for structural financing problems of firms, the Government has adopted measures designed to promote a better allocation of savings, to cut down the tax burdens on restructuring operations in enterprises and to conclude privatization of enterprises in the competitive sector. The Committee invites the Government to continue to supply information on the various aspects of the macroeconomic policies pursued with a view to promoting growth in activity and employment. It requests it in particular to specify in what manner the main objectives in terms of interest rates, exchange rates or budgetary deficit are determined and reviewed regularly on the basis of their actual or expected impact on employment.

3. The Government has, moreover, sent detailed information on the labour market policy measures implemented during the period. The Committee, which notes the importance of hirings under the solidarity employment contract system, invites the Government to supply information on how this arrangement contributes to lasting integration into employment of those concerned. It also requests the Government to supply any assessment available of the effectiveness of the various measures for integrating young people in alternating training. The Committee notes the provisions of the five-year law of 20 December 1993 concerning work, employment and vocational training. It notes that this law tends to promote the creation or maintenance of jobs by lowering the cost of labour through measures to exempt from social charges, to encourage better distribution of work by the negotiated arrangement of the organization and duration of work and to better coordinate the various measures for apprenticeship, training and occupational integration. The Committee would be grateful if the Government would supply in its next report information on the results which had been obtained in each of these fields through these arrangements, which do not for the moment, as the 1995 OECD economic survey seems to suggest, according to evaluation available, to have had clear and appreciable effects in terms of combating unemployment.

4. The Committee notes the indications on the consultation of representatives of employers' and workers' organizations in the higher employment committee established under the Ministry of Labour. It recalls on this score that the consultations required by Article 3 of the Convention should be extended to all aspects of economic policies having an influence on employment. The Committee would be grateful if the Government would indicate whether such consultations allowing the representatives of the persons affected to collaborate in formulating these policies are held, for example, in the Economic and Social Council.