Observation (CEACR) - adopted 2010, published 100th ILC session (2011)

Employment Policy Convention, 1964 (No. 122) - Ukraine (Ratification: 1968)

Articles 1 and 2 of the Convention. Implementation of an active employment policy. The Committee recalls that in its 2009 observation, it requested the Government to report on the measures implemented as a part of an active policy intended to promote full, productive and freely chosen employment. In the report received in October 2010, the Government indicates that the strategic goal of the state employment policy is the promotion of productive employment. In order to achieve this goal, the Government aims at ensuring the implementation of priorities which include: enhancement of labour market competitiveness; promotion of job creation; reorientation of education and training to match labour market needs; improvement in the employability of the labour force; strengthening productive employment and avoiding undeclared work; and increased social protection for the unemployed. The Government also reports that the draft Decision of the Cabinet of Ministers of Ukraine on the approval of the Basic Lines of the State Employment Policy 2010–11, has been agreed upon with the representatives of workers’ and employers’ organizations. Its priorities include the promotion of entrepreneurship and self-employment and the enhancement of labour market quality and competitiveness. The Committee notes that one of the goals of the Decent Work Country Programme 2008–10 is improving employment policy formulation and promoting equal opportunities in the labour market. The Committee invites the Government to provide in its next report an assessment of the effectiveness and relevance of the measures implemented in the framework of the Basic Lines of the State Employment Policy 2010–11. It further requests the Government to provide information on the impact of the Decent Work Country Programme 2008–10 on improving employment policy formulation and review, and the involvement of the social partners in this process.

Measures taken in response to the global crisis. The Committee notes that the economic crisis resulted in GDP falling by 15 per cent in 2009. The crisis also accentuated the vulnerabilities of the banking sector. Since October 2008, the national currency has lost about 40 per cent of its value against the US dollar. Ukraine’s economy resumed growth in 2010 and provided moderate improvements in external demand. Real GDP grew by 4.9 per cent year-on-year in the first quarter of 2010, and by 6 per cent year-on-year in the second quarter. The International Monetary Fund concluded in July 2010 a standby arrangement for Ukraine in support of the authorities’ economic adjustment and reform programme. The Committee further observes that the number of persons employed decreased from 21 million in 2008 to 20,190,000 in 2009. In light of the financial constraints, the Government decreased expenditures for active labour market measures. There was a sharp increase in registered unemployment between November 2008 and May 2009 and a considerable increase in unemployment benefit expenses. The Committee notes that one of the priorities of the State Employment Policy is to minimize the negative impact of the financial and economic crisis on the labour market. In this context, the Government adopted, among other legislative measures, Law No. 799-VI of 25 December 2008 to amend certain legislative texts in order to minimize the negative impact of the global financial crisis on employment, to strengthen social protection against unemployment and to ensure a dynamic response to the effects of the financial and economic crisis on the labour market. The Committee invites the Government to provide information in its next report on how the measures adopted have succeeded in mitigating the impact of the crisis on the labour market and have been translated into the generation of productive and lasting employment opportunities for the unemployed and other categories of vulnerable workers such as those who were laid off as a result of restructuring in the mining sector.

Coordination of education and training policies with employment policy. The Government indicates in its report that the development of a flexible and employment-oriented system of vocational guidance and training is among the priorities of the State Employment Service. In 2009, 80,800 unemployed persons underwent vocational training on referral of the State Employment Service. Nevertheless, the Committee understands that in 2009 the number of participants in available training programmes, decreased by 36 per cent compared to 2008, when there were 49 per cent fewer people participating in paid social work and 35 per cent fewer jobseekers placed. It further notes that the Ukrainian economy suffers from a severe skills mismatch which hampers business growth, may limit job creation and gives rise to structural unemployment. Many of the unemployed lack the skills that employers require. Excess demand for some skills coexist with excess supply of other skills. The Committee notes that one of the priorities of the Ukrainian employment policy is the reorientation of education and training to match labour market needs. In its 2010 General Survey concerning employment instruments, the Committee reiterated its conviction that broad social dialogue is the best guarantee of the effectiveness of employment policies and human resources development. Increased involvement of the representatives of employers’ and workers’ organizations is not only essential to ensure the successful implementation of the necessary measures, but can also contribute to improving the quality of social dialogue (paragraph 166 of the 2010 General Survey). The Committee therefore invites the Government to provide an assessment in its next report on the efficiency and relevance of training programmes and other initiatives undertaken in collaboration with the social partners, in promoting the return of unemployed persons to productive employment. In this context, the Committee would appreciate information on the impact of specific mechanisms and measures for improving the quality and labour market relevance of training in lifelong learning perspective, as well as tools for skills analysis and forecasting, especially at the sector level. It further invites the Government to include information on the measures taken to improve coordination of employment and education and training policies with a view to enhancing the employability and competitiveness of the labour force.  

Youth employment. The Government indicates that, out of 542,800 registered unemployed persons in 2010, 214,100 were persons less than 35 years of age. It further indicates that one of the objectives of the draft Basic Lines of the State Employment Policy 2010–11 is strengthening youth employment. The Committee observes that it is youth and, above all, school leavers who are massively experiencing unemployment due to the crisis. In its 2010 General Survey concerning employment instruments, the Committee noted that there was a growing problem of unemployment among educated workers, particularly young university graduates who are unable to find secure employment commensurate with their skill level. This is an issue for advanced market economies as well as developing countries. Not only are their skills underutilized but this pattern of casual jobs can prove detrimental to their lifetime career progression (see paragraph 800 of the 2010 General Survey). The Committee invites the Government to provide information on the efforts made to improve the employment situation for young persons and the results achieved in terms of designing targeted programmes and incentives for promotion of sustainable job creation for the youth.