Observation (CEACR) - adopted 2006, published 96th ILC session (2007)

Employment Policy Convention, 1964 (No. 122) - Czechia (Ratification: 1993)

The Committee notes the detailed information contained in the Government’s report received in October 2005. It also notes the National Action Plan for Employment 2004-06.

1. General economic policies and employment trends. Supplemented by the data published by the OECD, the Government’s report demonstrates that, after remaining above 9 per cent in 2005, the unemployment rate reached a record high of 10.2 per cent in January 2006. The highest rates of unemployment were recorded in the northern regions of Bohemia and Moravia, reaching over 20 per cent in some areas. About 40 per cent of unemployed people are long-term unemployed (more than 12 months), while the rate for young people under the age of 25 is twice that of the general unemployment rate. The Government also indicates that, while the employment rate of women has traditionally been higher than the EU average, that is mainly due to part-time work and extended possibilities for short-time work. The Government acknowledges that it still has to combat the structural causes of unemployment in order to reach the EU target of 60 per cent employment rate by 2010.

2. The Government emphasizes in its report the importance of regional policy for tackling the regional disparities in the impact of large-scale structural changes on economic activity and employment. Under the regional development strategy, which includes the implementation of several state programmes, such as the Countryside Support Programme, resources are concentrated on the least developed or the regions which have the highest unemployment rates. The Government also indicates that, since it joined the EU, support for regional development has been secured through EU-funded programmes aimed at supporting enterprises in selected regions and increasing the development of infrastructure. The Government also mentions its industrial policy, designed to encourage foreign direct investment and to promote exports, as well as a policy to support the development of small and medium-sized enterprises. Regarding its support for investors within the framework of investment incentives, the Government indicates that these measures have started to show some results on employment, for instance in the Ústí region, where around 30 investors have undertaken to create nearly 7,200 jobs. The Committee notes this information and recalls that success in employment creation is linked to the successful coordination of macroeconomic policies, as well as structural policies. It therefore asks the Government to continue to report on how employment policy measures are kept under regular review within the framework of a coordinated economic and social policy. It also asks the Government to communicate, in its next report, any evaluation available of the impact of the programmes and measures that it describes on economic activity and employment. It would also be grateful if the Government could continue to provide disaggregated data on the level and trends of employment, unemployment and underemployment, and indicate the measures taken and the results achieved in reducing labour market disparities in the country (Articles 1 and 2 of the Convention).

3. Labour market and training policies. The Government indicates that employment policy objectives and measures are included in its National Action Plan for Employment, adopted in accordance with the European Employment Strategy. The Government indicates that special attention is devoted to vulnerable groups to provide them with further vocational training. In this regard, the Committee hopes that the Government will include information in its next report on the results of the measures taken to provide skills to young and older workers, in order to keep those categories of vulnerable workers in the labour market.

4. Participation of the social partners in the formulation and application of policies. Regarding consultations with the social partners on employment policy issues, the Government provides an overview of all the plenary meetings held by the Economic and Social Council (RHSD) during the reporting period. The Government emphasizes the fact that these tripartite meetings were attended by high-level government officials, as well as by the most representative workers’ and employers’ organizations, and their agenda included the most significant issues related to employment policy. It also states that respect for the social partners’ positions on individual aspects of employment policy is considered not only relevant, but absolutely necessary and essential. The Committee notes with interest the approach taken and asks the Government to continue to provide information on the consultation of the social partners on employment policy issues (Article 3).