Observation (CEACR) - adopted 2002, published 91st ILC session (2003)

Employment Policy Convention, 1964 (No. 122) - New Zealand (Ratification: 1965)

The Committee notes the information contained in the Government’s detailed and well-organized report for the period 1 June 2000 to 31 May 2002.

1. Article 1 of the Convention. The Government states that in the year to September 2001 employment has been at an all time high, and all ethnic groups have experienced employment growth. Labour market participation also has gone up, in particular for older workers. GDP grew by 2.2 per cent for the year to September 2001. Solid economic growth has also led to robust growth in employment: unemployment fell from 6.4 per cent in March 2000 quarter to 5.4 per cent in March 2001 quarter and 5.3 per cent in March 2002 quarter.

2. Concerning training, including training of youth, the Committee notes the Government’s intention to focus on foundation skills and sustainable employment. This will include focusing eligibility for training on lack of foundation skills and difficulty in finding and sustaining employment. The Committee recalls the importance of ensuring broad access to training and lifelong learning and would appreciate receiving further information on the results of measures taken. Please also indicate the measures taken or envisaged to ensure access to training for those who do not lack foundation skills.

3. The Committee notes with interest that the welfare system has been replaced by a programme entitled "From Social Welfare to Social Development". This programme aims to increase skill levels and move more people into paid work through local partnerships and individualized assistance. It also notes that the Government has committed to moving more people with disabilities into the open labour market, and has developed some programmes aimed at reaching this objective. The Committee would appreciate receiving more information on the outcome of these programmes.

4. Articles 2 and 3. The Committee notes with interest the information contained in the attached annexes, which indicate that policies and programmes are evaluated in substantial detail, using a variety of criteria and with wide consultation. It also notes the development of the Employment Evaluation Strategy, which aims to improve the utility of administrative databases for evaluation, develop standard definitions and measures, measure the impact of employment interventions, and evaluate cost-effectiveness. It looks forward to receiving in future reports policy and programme evaluations based on this systematic approach.

5. Article 3. The Committee notes the comments sent by Business New Zealand. Business New Zealand emphasizes the importance of sustainable economic growth for employment promotion. Present growth in employment is due, in its opinion, to strong economic growth resulting from external factors. The current growth in inflation casts doubt on the future prospects for economic growth. Business New Zealand is also concerned that potential liability for stress or fatigue-related action against an employer may result in increased discrimination against people with disabilities. Lastly, it notes that the high compliance costs imposed on employers discourages self-employed persons from expanding and hiring others, and considers that the current Government tends to discount the views of the productive sector. The Committee trusts that the next Government report will also include information on the issues raised by Business New Zealand.