Observation (CEACR) - adopted 2018, published 108th ILC session (2019)

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

Articles 1 and 2 of the Convention. Implementation of an active employment policy. Labour trends. In its previous observation, the Committee noted an alarming deterioration of the employment situation in Cyprus and requested the Government to indicate the measures taken to address the situation. The Committee notes the employment measures implemented by the Government since 2014 to tackle unemployment, including subsidized employment schemes aiming to create new jobs, training and work experience schemes aiming to promote job retention and enhance employability. The Government indicates that employment policies and measures and labour market reforms are designed and regularly reviewed, taking into account the Government’s goals and the country’s National Reform Programme, the basic vehicle guiding implementation of the “Europe 2020” Strategy at the national level. The Government adds that the effectiveness of some of the measures taken was assessed in evaluation studies conducted by external experts. The Committee notes that the unemployment rate, after a substantial increase from 2011 to 2014, began to decline in 2015, when the effects of the global economic recession on the labour market began to diminish. According to available Labour Force Survey data, the unemployment rate decreased from 16.1 per cent in 2014 to 13 per cent in 2016. According to the latest ILOSTAT data, the unemployment rate declined further, reaching to 11.1 per cent in 2017. The employment rate increased during the same period, from 67.6 per cent in 2014, to 68.8 per cent in 2016. In addition, according to the European Commission Country Report Cyprus 2018, the employment rate increased further, reaching to 71 per cent in 2017. The Committee requests the Government to continue to provide information on the manner in which it determines and keeps under review, within the framework of a coordinated economic and social policy, active labour market policies and measures to achieve the objectives of full, productive and freely chosen employment. It further requests the Government to include information on the measures taken or envisaged to address the national employment situation. It also requests the Government to provide updated information, including statistics disaggregated by sex and age, with respect to labour market trends, specifically employment, unemployment and visible unemployment.

Specific categories of workers. The Committee notes the information provided by the Government concerning targeted employment measures for specific groups of persons vulnerable to decent work deficits. In this respect, the Government is implementing a series of schemes that provide incentives to encourage enterprises in the private sector to employ members of the targeted groups, including the long-term unemployed, young persons, older workers, those with chronic diseases and persons with disabilities. The Committee notes that 60 per cent of the persons that took part in the “Scheme providing incentives for hiring disadvantaged individuals” remained in employment six months after completing the Scheme. The Committee requests the Government to continue to provide updated detailed information, including statistical data disaggregated by age and sex, on the nature and impact of active labour market measures implemented to enhance the employability and promote the employment of specific categories of disadvantaged workers, including but not limited to the long-term unemployed, young people, older persons, those with chronic diseases and persons with disabilities in terms of creating productive and lasting employment opportunities.

Women’s employment. The Committee notes that the employment rate for women is markedly lower than for men. Moreover, unemployment rates continue to be slightly higher for women than for men. For example, in 2016, the employment rate stood at 64.1 per cent for women, compared to 73.9 per cent for men. According to ILOSTAT data, in 2017, the unemployment rate stood at 11.3 per cent for women, compared to 10.9 per cent for men. Regarding measures taken to increase the employment of women, the Committee notes the Government’s indication that the evaluation studies conducted by external experts found that 97 per cent of the women that took part in the Scheme for the Improvement of the Employability of Economically Inactive Women were still in the labour market six months after participating in the Scheme. Noting the measures taken by the Government to promote the employment of specific categories of workers, the Committee recalls that, in its General Survey of 1998 on the Vocational Rehabilitation and Employment (Disabled Persons), it highlighted the employment barriers for women with disabilities. Recalling the 2003 ILO Global Report Time for equality at work, which notes that the “interplay of identities results in experiences of exclusion and disadvantage that are unique to those with multiple identities”, the Committee notes that women who also belong to disadvantaged groups face double discrimination. The Committee requests the Government to provide information on the nature and impact of measures adopted with a view to promoting the employment of women, including economically inactive women, particularly women who belong to disadvantaged groups, promoting their access to decent and lasting employment at all levels and across all economic sectors.

Youth employment. The Committee notes that the youth unemployment rate decreased, falling from 36 per cent in 2014 to 29.1 per cent in 2016 and, according to ILOSTAT, decreased further to 24.7 per cent in 2017. At the same time, youth employment increased from 25.8 per cent in 2014 to 26.1 per cent in 2016. The Government refers to a series of schemes that provide incentives to encourage enterprises in the private sector to employ young persons. The Committee takes note of the training subsidy schemes offering job placements for unemployed young secondary and tertiary graduates to enable them to acquire work experience, with the aim of enhancing their employability and facilitating their smooth integration into the labour market. According to the evaluation studies referenced in the Government’s report, these job placement schemes significantly improved the employability of young persons, since the vast majority of the participants were employed after completing their participation and continued to work in the same enterprise or organization that employed them during their participation in the scheme. The Committee requests the Government to continue providing information on the measures adopted to facilitate the labour market integration of young persons and the impact of these programmes. The Committee also requests the Government to continue to provide statistical information on trends in youth employment, disaggregated by gender and age.

Education and training policies and programmes. The Committee notes the training measures being implemented since 2014, including accelerated training programmes, subsidy schemes for vocational training combined with employment, as well as training schemes for the long-term unemployed, young people and persons with disabilities. It also notes that subsidy schemes offering job placement and job training were planned for the provision of care services for guaranteed minimum income recipients and for the provision of care services for persons with paraplegia and quadriplegia. The Committee requests the Government to provide updated information on the nature and impact of the measures taken to provide and promote education and training, including job placement schemes for graduates, and on the relation of these measures to prospective employment opportunities.

Article 3. Participation of the social partners. The Government indicates that consultations with the social partners and other stakeholders on the formulation and implementation of employment policy measures take place in tripartite social dialogue bodies functioning under the auspices of the Ministry of Labour and Social Insurance. The Labour Advisory Board is the principal tripartite body; however, the Committee notes that issues pertaining to employment policy are discussed by the tripartite social dialogue bodies and specialized issues are also discussed in ad hoc Tripartite Technical Committees. The Committee requests the Government to provide more detailed information on the manner in which the experience and views of the social partners have been taken into account in the formulation and implementation of employment policy measures. The Government is also requested to indicate to what extent consultations have been held with representatives of the persons affected by the measures taken, such as young people, older persons and persons with disabilities, in relation to the formulation and implementation of active employment policies and programmes as contemplated under the Convention.