Observation (CEACR) - adopted 2012, published 102nd ILC session (2013)

Employment Policy Convention, 1964 (No. 122) - Iceland (Ratification: 1990)

Articles 1 and 2 of the Convention. Employment trends and active labour market measures. The Committee notes the information provided by the Government in a report prepared with the Icelandic Tripartite ILO Committee and received in August 2012. The Government reports that unemployment has fallen from its peak level in 2009. In June 2009, unemployment reached 8.1 per cent, falling to 7.6 per cent in June 2010, and 6.7 per cent in June 2011. Unemployment is greater among young persons (aged 16 to 24) than among older persons (aged 60 and over). According to the labour market surveys by Statistics Iceland, 16 per cent of young people were unemployed in 2009 and 16.2 per cent in 2010. The Government indicates that its main tasks in the employment sphere are to cut unemployment by deliberate means, to eradicate long-term unemployment and to create a more solid foundation for the Icelandic business sector in the future. It also indicates that it is committed to promoting the formulation of a comprehensive employment policy for Iceland, based on equality of status between the occupational sectors, gender equality, healthy commercial practice and “green” economic development in accordance with the principles of sustainable development. This policy is to be implemented by means of consultation between central and local government, the social partners and the academic community. The Government further indicates that a broad campaign to generate employment will include measures aimed at enabling companies to take on people who are registered as unemployed in temporary positions with the support of the Unemployment Insurance Fund, improving the business environment for start-ups and innovative companies by adjustments to the tax legislation, prioritizing state-funded projects that call for large manpower input, and creating job opportunities for young persons. With respect to young persons, a total of ISK250 million was allocated by the Unemployment Insurance Fund in 2010 to create summer jobs for students in a campaign called “856 New Jobs”. The same approach was used in 2011 with a campaign to increase the number of jobs available in state and municipal bodies for students and other jobseekers. The Committee notes that the Government intends to initiate wide-range consultation under the leadership of the Office of the Prime Minister on regional development projects aimed at building up employment and future quality of life. Collaboration with the social partners is to be sought on active labour market measures to combat unemployment. The Committee invites the Government to provide information in its next report on the impact of the measures taken to generate employment through the implementation of an active employment policy. It also invites the Government to include in its next report further information on the employment measures implemented at the regional level in cooperation with the social partners (Article 3).

Youth employment. The Government reports that in autumn 2009, the Minister of Social Affairs and Social Security appointed a task force to examine the remedies available and educational options open to people who had lost their jobs, and to propose improvements. Extensive data was gathered on the circumstances of the unemployed, and when this was analysed, priority was given to establishing the position of young people as unemployment is highest in the under-30 age group. The Government indicates that the main aim in combating the negative effects of unemployment among young people was to reduce the number of persons who were inactive while receiving unemployment benefits. Further measures were seen as necessary to activate this group and enable continuing education centres, upper-secondary schools and foundation course departments to admit these individuals. It was proposed that attention be given to expanding the range of vocational training courses and increasing the number of courses designed to keep people involved in social activities. The Committee invites the Government to continue to provide information on the measures taken to combat youth unemployment.

Education and training policies. The Government reports that as of 2011 the Business Sector’s Educational Centre has administered the Educational Fund. Previously, grants for vocational training in the business sector were made by the Vocational Education Council. The role of the Educational Fund is to encourage the provision of suitable educational opportunities for persons with little formal education. The Committee notes that, as a further measure, the Government plans to set up the Workplace Study Fund. In this regard, the Government has decided to earmark ISK450 million for workplace study schemes in 2012–14. Furthermore, the programme “Study is a Viable Way” is based on proposals from a consultative group appointed by the Prime Minister and representing government ministries, all the parties represented in Parliament, the social partners and students’ movement. The financing for the programme was secured by agreement between the Government and the social partners in connection with collective wage agreements. The Committee notes that the programme aims to reduce the proportion of people aged 20–66 who have not completed upper-secondary education from 30 per cent to 10 per cent by 2020. The Committee invites the Government to provide information on the impact of the measures taken in the area of education and training policies and on their relation to the obtainment of productive employment for the beneficiaries of these measures.

Business development. The Government indicates that a collaborative programme, Entrepreneurial Enterprise, which is administered by the Directorate of Labour and Innovation Centre Iceland, aims at creating jobs for young people by supplying training and guidance to enable them to put their own entrepreneurial ideas into practice. With respect to business development and women, the Committee notes that the Women’s Credit Guarantee Fund was restored in March 2011. Its role is to support women to take part in employment and innovation by granting security for loans they obtain. The Fund’s priorities are to support women who own and operate small enterprises, to strive to increase the number of women owning and operating enterprise, to augment women’s access to capital for the purpose of running a business, to generate employment and encourage innovation in the business sector, and to encourage marginal groups of women (immigrants) to participate in business ventures. The Committee invites the Government to continue to provide information on the impact of business development measures on employment creation and decent work.