Observation (CEACR) - adopted 2011, published 101st ILC session (2012)

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

Articles 1 and 2 of the Convention. Employment trends and active labour market measures. The Committee notes the Government’s report received in September 2011 containing detailed information in reply to the points raised in the 2009 observation. The Committee notes the data concerning employment and unemployment rates, as well as the employment situation of beneficiaries of the Special Prevention Action Plan 2009–10. The Government indicates that the economy was not directly affected by the global financial crisis due to the negligible exposure of the financial sector to toxic financial products. However, the economy was affected in an indirect manner due to its small size and open nature, resulting in a 1.7 per cent contraction in GDP in 2009 before rebounding by 0.9 per cent in 2010. The unemployment rate between 2008 and 2010 rose from 3.6 per cent to 6.5 per cent. The Government reports that the substantial increase in unemployment is a new and unfamiliar phenomenon for the country, which has traditionally enjoyed conditions of almost full employment. In 2009, the economic downturn primarily affected male-dominated sectors such as construction, real estate and tourism, which has led to more male than female workers losing their jobs. According to ILO data, the unemployment rate reached 7.1 per cent in the second quarter of 2011. The Government further reports that the National Reform Programme (NRP) for Europe 2020 presents structural reforms that aim to boost growth, employment and social cohesion. In particular, increasing labour market participation and creating employment opportunities for the highly skilled workforce by restructuring the economy remain top priorities. Along these lines, the NRP presents five national quantitative targets that are interrelated with employment, three of them directly related (employment: 75–77 per cent level of the population aged 20–64 should be employed by 2020; education: 46 per cent of the population aged 30–54 should have completed tertiary education by 2020 and the share of early school leavers should be 10 per cent; and social inclusion: reduction of the number of people at risk of poverty and social exclusion by 27,000 or to 19 per cent by 2020), while the innovation and the climate/energy targets are indirectly related, leading to increased competitiveness, more efficient use of resources and green growth. Furthermore,a National Action Plan for reducing the gender pay gap covering the period 2010–15 has been laid out and schemes aimed at improving the productivity of small and medium-sized enterprises (SMEs) and the enhancement of the competitiveness of micro-enterprises have been implemented by the Human Resource Development Authority (HRDA) for the period 2010–14. 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 debt crisis on the labour market and have translated into the generation of productive and lasting employment opportunities for the unemployed and other categories of vulnerable workers.

Education and training policies. The Government indicates that the HRDA has put forward a Special Prevention Action Plan 2009–10 which comprises the following main features: in-company/on-the-job training programmes for employees facing layoffs, training programmes for upgrading the skills of unemployed persons, job placement and training for unemployed tertiary education graduates, and accelerated initial training programmes for newcomers and other unemployed persons in occupations which are in demand. The Government reports that the strategic objectives set forth in the National Strategic Plan 2007–13 are being pursued by the promotion of targeted actions which may be classified under the following five priority pillars:(1) training and development of human resources; (2) support of enterprises for upgrading their human resources; (3) human resource development and infrastructure systems; (4) research and development; and (5) effective governance. In order to meet this wide range of training and development needs, the HRDA promotes specific schemes, each with their own aims and targets, such as: initial training programmes, continuing training programmes and other developmental activities. The Government further reports the launch of a Lifelong Learning Strategy 2007–13 (CyLLS) in order to promote lifelong learning in a systemic and integrated basis. As a result of this initiative, the rate of lifelong learning has improved from 5.6 per cent in 2005 to 7.8 per cent in 2009. The Committee notes with interest the Government’s indication that the CyLLS is in line with Article 2(a) of the Convention which provides for a coordinated policy that will be kept under review. The Committee invites the Government to provide information on the measures taken in the area of education and training policies and on their relation to prospective employment opportunities.

Article 3. Participation of social partners. The Government reports that several evaluation studies conducted by independent consultants have been presented to the Board of Governors of the HRDA, which is made up of representatives of the Government, the employers’ organizations and trade unions. Based on the evaluation studies results, the Board will make policy decisions for modifying and enriching the HRDA’s training and development activities and thus improving the efficiency and effectiveness of vocational training in Cyprus. The Committee invites the Government to supply information on the policy decisions made by the Board, including concrete examples on the manner in which the views of the social partners are taken into account in the development, implementation and review of employment policies and programmes.