Observation (CEACR) - adopted 2003, published 92nd ILC session (2004)

Employment Policy Convention, 1964 (No. 122) - Cyprus (Ratification: 1966)

The Committee notes the detailed information contained in the Government’s report for the period ending 31 May 2002.

1. Articles 1 and 2 of the Convention. The Government indicates that GDP grew for the fourth consecutive year reaching 4 per cent in real terms in 2001. The fiscal records recorded a marginal rise to 2.8 per cent of GDP while the rate of inflation slowed to 2 per cent and the current account deficit was reduced to 4.3 per cent compared to 5.2 per cent in 2000. Despite poor global economic conditions, external demand for goods and services expanded by 4 per cent in real terms. Registered unemployment decreased, going from 3.4 per cent of the economically active population in 2000 to 3 per cent in 2001. The Government states that Cyprus enjoys "full employment" conditions and that unemployment is low even among vulnerable groups, such as women, youth, recent university graduates and older workers. The Committee notes this information with interest and wishes to continue to be informed of developments in employment levels and trends for the population as a whole as well as for specific groups of workers.

2. The Government states that it is pursuing an active employment policy modelled on the European Employment Strategy and has adopted a Strategic Development Plan 1999-2006 that introduces an integral approach to stimulating employment through active and coordinated cooperation among economic, educational and financial partners. The Committee notes the various measures the Government has taken to promote employment, including modernizing the labour market, improving skills match, updating the training system, and establishing targeted programmes for women, young jobseekers, and the long-term unemployed. It also notes the Government’s statement that in conjunction with the European Commission, it is in the process of preparing an employment policy review with conclusions on the outcomes of the various labour market measures and programmes. Please continue to provide information on any further developments in this matter, including copies of the main findings of policy and programme evaluations when they become available.

3. Article 3. With reference to previous comments, the Committee would appreciate receiving more detailed information on the Labour Advisory Board and the functioning of this body in relation to the matters covered by the Convention. Please also continue to provide information on how representatives of workers, employers and other persons affected by the measures taken are consulted concerning employment policies, with a view to taking fully into account their experience and views and securing their full cooperation.