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

Observation (CEACR) - adopted 2022, published 111st ILC session (2023)

Articles 1 and 2 of the Convention. Implementation of an active employment policy. Labour trends. The Committee notes the information on trends in employment and unemployment provided by the Government, derived from the Labour Force Surveys conducted by the Statistical Service of Cyprus in 2018, 2019 and 2020. The Government indicates that the labour market situation has deteriorated further in the period since the outbreak of COVID-19. In this context, the Committee notes that, according to the 2020 Labour Force Survey, the unemployment rate increased from 7.1 per cent in 2019 to 7.6 per cent in 2020. The employment rate (for the 20-64 age group) fell from 75.7 per cent to 74.9 per cent during the same period. The Government refers to the implementation of a number of active employment measures, including the Scheme Providing Incentives for the Employment of Unemployed Persons (2020-2024) and the new Subsidy Scheme Providing Incentives for the Employment of Persons with Chronic Diseases (2019-2024). The Government also refers to other employment promotion measures, such as steps taken to strengthen the public employment services and a programme to place Guaranteed Minimum Income (GMI) beneficiaries in employment for 6 months, to provide them with work experience opportunities in the public sector. In addition, the Committee notes the Government’s indication that, from 2014 to 2019, Subsidy Schemes providing incentives to promote the employment of various categories of jobseekers have continued to implemented by the Department of Labour and that the Government also continues to provide incentives to promote employment in the private sector. The Committee requests the Government to continue to provide detailed updated information,including statistical information, disaggregated by sex and age, on the nature, scope and impact of employment measures implemented, including the various Subsidy Schemes in place, in particular on the number of jobs generated and the number of beneficiaries placed into employment. The Government is further requested to describe how the information compiled from the Labour Force Surveys is utilized in the design, implementation, monitoring and review of employment policies at the national level.

Specific categories of workers. The Committee notes the information provided by the Government concerning the development and implementation of targeted employment measures for specific groups of persons in vulnerable situations. In particular, it notes with interest that the Government continues to provide targeted training and incentives to encourage private sector enterprises to employ workers belonging to the disadvantaged target groups, including the long-term unemployed, young persons, older workers, those with chronic diseases, detainees and persons with disabilities. The Committee requests the Government to continue to provide updated information, including statistical data disaggregated by age and sex, as well as by the target groups referenced above, on the nature, scope and impact of the active labour market measures implemented to increase the employability of persons in vulnerable situations and promote their access to sustainable and lasting employment opportunities.

Women’s employment. The Committee notes that, in 2020, the unemployment rate for men increased from 6.3 per cent to 7.6 per cent, whereas the unemployment rate for women decreased, falling from 8 per cent to 7.6 per cent. The Committee nevertheless notes that the Government does not provide information with regard to the measures taken or envisaged to promote women’s employment, particularly women belonging to disadvantaged groups, who frequently face double discrimination. Noting that the rate of unemployment of women declined in 2020, the Committee requests the Government to provide information indicating the reasons for this decline, particularly given that it occurred during the COVID-19 pandemic. The Committee also requests the Government to intensify strengthen its efforts to promote the active participation of women in the labour market and their access to sustainable employment and decent work, particularly for those facing multiple and intersecting discrimination, such as women with disabilities. It requests the Government to provide information on the nature, scope and impact of measures taken in this respect.

Youth employment. The Government refers to subsidy schemes for youth employment, such as the Scheme Providing Incentives for the Employment of Unemployed Young People up to 25 years old, which operated between 2016 and 2019. It also refers to new schemes being implemented (2020-2024), which continue to provide incentives to encourage private sector enterprises to employ young people between 15-29 years old who are not in Employment or Education or Training (NEETs). The Committee also notes the information provided concerning various schemes for youth employment implemented by the Human Resources Development Authority. In particular, the Committee notes that the youth unemployment rate decreased in 2019, falling from 20.2 per cent in 2018 to 16.6 per cent in 2019 and to 18.2 in 2020. At the same time, youth employment increased from 31.3 per cent in 2018 to 32.4 per cent in 2019; however, the youth employment rate subsequently declined to 31.3 per cent in 2020. The Committee requests the Government to continue providing detailed updated information, disaggregated by sex and age, on the nature, scope and impact of incentives and other measures taken to promote the employment and lasting labour market integration of young people, including measures to support young women and men during school to work transitions.

Education and training policies and programmes. The Committee notes the education and training measures implemented by the Human Resources Development Authority, including on-the-job training programmes with companies in Cyprus or abroad, 6-month job placements accompanied by training allowances, job placements with Guaranteed Minimum Income (GMI) for the acquisition of work experience in the public sector, as well as training schemes for specific categories of workers who face difficulties in accessing the labour market, including young people, the long-term unemployed and persons with disabilities. In particular, the Committee notes the Small Units for Entrepreneurship Scheme, which has enabled 48 persons with disabilities to create their own small enterprises, as well as the Vocational Training Scheme for persons with disabilities, which has provided specific vocational skills to 41 applicants to help them keep their jobs or to enhance their employability with a view to improving their access to new employment opportunities. The Committee requests the Government to continue to provide updated detailed information on the impact of the measures taken to promote education and training and on the relation of these measures to prospective employment opportunities, as well as the number of persons placed in employment as a result of such measures.

Article 3. Participation of the social partners. The Committee notes the information provided by the Government in reply to its previous request concerning the application of Article 3.The Government is requested to continue to provide updated information in this respect.

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

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.

Observation (CEACR) - adopted 2014, published 104th ILC session (2015)

Articles 1 and 2 of the Convention. Implementation of an active employment policy. The Government describes in its report the employment measures that have been implemented since 2009, including employment subsidy schemes for targeted groups of jobseekers, such as the long-term unemployed, young people and persons with disabilities. The Government also mentions the laws that were adopted since its last report, including the Private Employment Agency Law No. 126(I)/2012. The Committee notes the substantial increase in the unemployment rate from 7.9 per cent in 2011, to 11.8 per cent in 2012, and 15.9 per cent in 2013. During the same period, the employment rate decreased from 73.4 per cent in 2011, to 70.2 per cent in 2012, and 67.2 per cent in 2013. In 2013, the employment rate was measured at 72.6 per cent for men and 62.2 per cent for women. Moreover, there was an alarming increase in youth unemployment from 22.4 per cent in 2011, to 27.8 per cent in 2012, and 38.9 per cent in 2013. The Committee notes the Memorandum of Understanding on Specific Economic Policy Conditionality, included in the Economic Adjustment Programme document for Cyprus (May 2013), in which it is indicated that labour market reforms can mitigate the impact of the crisis on employment, limit the occurrence of long-term and youth unemployment, facilitate occupational mobility and contribute to improving the future resilience of the Cypriot economy in the face of adverse economic shocks. The Committee expresses its concern at the deterioration of the employment situation since its previous observation made in 2011. The Committee requests the Government to specify how, pursuant to Article 2 of the Convention, it decides on and keeps under review, within the framework of a coordinated economic and social policy, employment policies, measures and labour market reforms to achieve the objectives of full, productive and freely chosen employment. It also requests the Government to include information on the effectiveness of the measures listed in its report and on any new measures taken to overcome the deterioration of the employment situation.

Education and training policies and programmes. The Committee notes the training measures that have been implemented since 2009, including accelerated training programmes, a subsidy scheme for vocational training combined with employment, and other training schemes. The Committee requests the Government to provide information on the impact of the measures taken in the area of education and training and on their relation to prospective employment opportunities.

Article 3. Participation of the social partners. The Committee requests the Government to provide 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, to enable an evaluation of the effective application of the Convention.

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

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.

Direct Request (CEACR) - adopted 2009, published 99th ILC session (2010)

1. Articles 1 and 2 of the Convention. Employment trends and active labour market measures. The Committee takes note of the detailed information provided in the Government’s report received in September 2009. The Government reports that, in 2008, it continued to enjoy near full employment in the labour market, its unemployment rate was 3.7 per cent of the labour force, and employment increased by 2 percentage points in 2008, mainly due to the high growth in service sectors of economic activity and an upswing in employment of foreign labour. The Government further reports that this employment increase was experienced in the tertiary sectors and in the construction sector. It also indicates that the global economic crisis has begun to affect the construction industry, trade and tourism, as of October 2008, and that the global forecast predicts that, in 2009, gross domestic product will slow significantly and unemployment will rise to 5.5 per cent. The Committee notes that, in this regard, the Human Resource Development Authority (HRDA) has put forward a Prevention-Action Plan in order to minimize the effects of the economic crisis on the national labour market. The HRDA’s Plan aims to promote in-company/on-the-job training programmes, training programmes for upgrading the skills of unemployed persons, accelerated initial training programmes for new entrants in the job market and other unemployed persons, and job placement and training of unemployed tertiary education graduates. The Committee invites the Government to continue providing in its next report evaluations on the impact of the economic crisis on its industries, trade and tourism, and its evaluations of HRDA’s measures to reform the national labour market. The Committee also invites the Government to keep it informed of measures to meet the needs of particular categories of workers, such as women, young persons, older workers, and workers with disabilities.

2. Education and training policies. The Government reports that it aims to respond to new occupational needs and future requirements by further developing a vocational qualifications system, and that it will ensure the attractiveness, openness and quality standards of education and training by, inter alia, introducing modern technology in education, ensuring that secondary education teachers will become digitally literate, and upgrading the apprenticeship scheme. The Committee notes that, in 2006, 58,360 participants engaged in training courses, and that this figure has decreased to 56,693 in 2007 and 52,829 in 2008. The Committee invites the Government to continue to provide information on measures taken to promote participation in its training courses. The Government reports that it aims to satisfy the European Union benchmarks of 12.5 per cent lifelong learning in 2010 and early school-leaving ratio of 10 per cent in 2012. The Government additionally reports that its National Strategic Plan for 2007–13 aims to enhance the competitiveness of the economy, promote research and innovation, reinforce social cohesion, upgrade and protect the environment, upgrade the quality of life of its civil society, expand and improve basic infrastructure, develop human capital, and promote balanced regional and rural development. The Committee notes the Government’s aims to increase lifelong learning and improve the early school-leaving ratio, and asks the Government to keep it informed on measures and programmes taken to ensure these goals, as well as its goals set forth in the 2007–13 National Strategic Plan.

3. Article 3. Participation of the social partners. The Government reports that the HRDA is governed by a 13-strong Board of Governors, five of whom are members of the Government, and the other eight members of employers’ and trade union organizations. This tripartite board aims to formulate and implement policies at national, sectoral and enterprise levels to promote training and human resources development. In 2008, the HRDA launched a procedure for selecting external consultants, with the designed task of creating a Comprehensive System for Evaluating HRDA’s Impact on the Cyprus Economy by October 2009. The Committee invites the Government to report on the progress achieved in ensuring the participation of the social partners in the matters covered by the Convention and the results of the system evaluation.

Direct Request (CEACR) - adopted 2007, published 97th ILC session (2008)

The Committee notes the detailed information provided in the Government’s report for the period ending in June 2006, the legislative documents received, including replies to the matters raised in previous comments.

1. Articles 1 and 2 of the Convention. Employment trends and active labour policies. The Government report indicates that, in 2005, GDP increased at a rate of 4.1 per cent which is within its annual average for the period between 1995 and 2004. Inflation was measured at 2.5 per cent in 2005 as compared to 2.3 per cent in 2004. According to the Labour Force Survey, the unemployment rate reached 5.4 per cent in 2005, a slight increase from 5.2 per cent measured in 2004. Employment was measured at 68.7 per cent at the second quarter of 2005 which is above the European Union average. The Government states the existence of almost full employment conditions although the report indicates unemployment of young people reaching 12.7 per cent for the second quarter of 2005. The maintenance of full employment conditions is attributed to the increase in employment in the service sector. Labour productivity improved by 2.1 per cent in 2005 as compared to 1.9 per cent measured in 2004. The report indicates that the Cypriot economy is expected to register further improvements in 2006. The Government’s targets for 2010, in regards to the European Employment Strategy, are to increase the overall employment rate to 71 per cent, to increase the employment rate of women to 63 per cent and to increase the employment rate of older workers to 53 per cent. The Government plans to increase the employment rate of older workers by extending the retirement age of workers in the public sector and of civil servants to 63 years and also by encouraging self-employment. Measures to increase female employment will be addressed by encouraging women’s entrepreneurship, by aiding the balancing of family and professional life for women with young children and by promoting flexible forms of employment. The Committee notes the Government’s goals with interest and asks the Government to indicate in its next report information on further developments in order to achieve these goals, in particular, to receive policy and programme evaluations when they become available. The Committee would also appreciate receiving information on the impact of any policy measures addressing youth employment.

2. Education and training policies. The Government indicates that, under the Strategic Plan of the Human Resource Development Authority of Cyprus (HRDA), more stringent requirements and criteria for approval, monitoring and subsidization of training programmes were implemented. Schemes were implemented to promote the training and employment of young school leavers, the unemployed and the economically inactive women, as well as the provision of consultative, guidance and training services to micro-enterprises (employing
1–4 persons). The Committee requests that the Government continue to provide in its next report information on the measures taken in the area of education and training policies and on their relation to prospective employment opportunities. 

3. Article 3. Participation of the social partners. The Committee notes the information concerning the Labour Advisory Board as to its functions, and as to its members, representatives of both workers and employers. The report also describes other forums in which the Government consults with social partners concerning employment policy such as district labour advisory committees, gender equality committees and a council discussing matters in regards to persons with disabilities. The Government also indicates that they have created the Employment Technical Committee in March 2006 which is formed of members of the Government as well as representatives of employers and workers. This committee’s main responsibilities are to monitor progress of employment policies, to suggest new measures and to submit progress reports. The Committee notes with interest the creation of the Employment Technical Committee and asks the Government to report on the progress achieved for the implementation of the Convention by the new committee. It trusts that the Government will continue to provide information on the consultations held on the matters covered by the Convention with the social partners including details of their contribution to the implementation of an active employment policy. 

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

The Committee notes with regret that the Government’s report has not been received. It hopes that a report will be supplied for examination by the Committee at its next session and that it will contain full information on the matters raised in its 2003 observation, which read as follows:

The Committee notes the detailed information contained in the Government’s report for the period ending 31 May 2002.

1. Articles 1 and 2 of the Convention. The Government indicates that GDP grew for the fourth consecutive year reaching 4 per cent in real terms in 2001. The fiscal records recorded a marginal rise to 2.8 per cent of GDP while the rate of inflation slowed to 2 per cent and the current account deficit was reduced to 4.3 per cent compared to 5.2 per cent in 2000. Despite poor global economic conditions, external demand for goods and services expanded by 4 per cent in real terms. Registered unemployment decreased, going from 3.4 per cent of the economically active population in 2000 to 3 per cent in 2001. The Government states that Cyprus enjoys “full employment” conditions and that unemployment is low even among vulnerable groups, such as women, youth, recent university graduates and older workers. The Committee notes this information with interest and wishes to continue to be informed of developments in employment levels and trends for the population as a whole as well as for specific groups of workers.

2. The Government states that it is pursuing an active employment policy modelled on the European Employment Strategy and has adopted a Strategic Development Plan 1999-2006 that introduces an integral approach to stimulating employment through active and coordinated cooperation among economic, educational and financial partners. The Committee notes the various measures the Government has taken to promote employment, including modernizing the labour market, improving skills match, updating the training system, and establishing targeted programmes for women, young jobseekers, and the long-term unemployed. It also notes the Government’s statement that in conjunction with the European Commission, it is in the process of preparing an employment policy review with conclusions on the outcomes of the various labour market measures and programmes. Please continue to provide information on any further developments in this matter, including copies of the main findings of policy and programme evaluations when they become available.

3. Article 3. With reference to previous comments, the Committee would appreciate receiving more detailed information on the Labour Advisory Board and the functioning of this body in relation to the matters covered by the Convention. Please also continue to provide information on how representatives of workers, employers and other persons affected by the measures taken are consulted concerning employment policies, with a view to taking fully into account their experience and views and securing their full cooperation.

Direct Request (CEACR) - adopted 2005, published 95th ILC session (2006)

The Committee notes that the Government’s report has not been received. It must therefore repeat its previous comment, which read as follows:

The Committee notes the detailed information contained in the Government’s report for the period ending 31 May 2002.

1. Articles 1 and 2 of the Convention. The Government indicates that GDP grew for the fourth consecutive year reaching 4 per cent in real terms in 2001. The fiscal records recorded a marginal rise to 2.8 per cent of GDP while the rate of inflation slowed to 2 per cent and the current account deficit was reduced to 4.3 per cent compared to 5.2 per cent in 2000. Despite poor global economic conditions, external demand for goods and services expanded by 4 per cent in real terms. Registered unemployment decreased, going from 3.4 per cent of the economically active population in 2000 to 3 per cent in 2001. The Government states that Cyprus enjoys "full employment" conditions and that unemployment is low even among vulnerable groups, such as women, youth, recent university graduates and older workers. The Committee notes this information with interest and wishes to continue to be informed of developments in employment levels and trends for the population as a whole as well as for specific groups of workers.

2. The Government states that it is pursuing an active employment policy modelled on the European Employment Strategy and has adopted a Strategic Development Plan 1999-2006 that introduces an integral approach to stimulating employment through active and coordinated cooperation among economic, educational and financial partners. The Committee notes the various measures the Government has taken to promote employment, including modernizing the labour market, improving skills match, updating the training system, and establishing targeted programmes for women, young jobseekers, and the long-term unemployed. It also notes the Government’s statement that in conjunction with the European Commission, it is in the process of preparing an employment policy review with conclusions on the outcomes of the various labour market measures and programmes. Please continue to provide information on any further developments in this matter, including copies of the main findings of policy and programme evaluations when they become available.

3. Article 3. With reference to previous comments, the Committee would appreciate receiving more detailed information on the Labour Advisory Board and the functioning of this body in relation to the matters covered by the Convention. Please also continue to provide information on how representatives of workers, employers and other persons affected by the measures taken are consulted concerning employment policies, with a view to taking fully into account their experience and views and securing their full cooperation.

Observation (CEACR) - adopted 2003, published 92nd ILC session (2004)

The Committee notes the detailed information contained in the Government’s report for the period ending 31 May 2002.

1. Articles 1 and 2 of the Convention. The Government indicates that GDP grew for the fourth consecutive year reaching 4 per cent in real terms in 2001. The fiscal records recorded a marginal rise to 2.8 per cent of GDP while the rate of inflation slowed to 2 per cent and the current account deficit was reduced to 4.3 per cent compared to 5.2 per cent in 2000. Despite poor global economic conditions, external demand for goods and services expanded by 4 per cent in real terms. Registered unemployment decreased, going from 3.4 per cent of the economically active population in 2000 to 3 per cent in 2001. The Government states that Cyprus enjoys "full employment" conditions and that unemployment is low even among vulnerable groups, such as women, youth, recent university graduates and older workers. The Committee notes this information with interest and wishes to continue to be informed of developments in employment levels and trends for the population as a whole as well as for specific groups of workers.

2. The Government states that it is pursuing an active employment policy modelled on the European Employment Strategy and has adopted a Strategic Development Plan 1999-2006 that introduces an integral approach to stimulating employment through active and coordinated cooperation among economic, educational and financial partners. The Committee notes the various measures the Government has taken to promote employment, including modernizing the labour market, improving skills match, updating the training system, and establishing targeted programmes for women, young jobseekers, and the long-term unemployed. It also notes the Government’s statement that in conjunction with the European Commission, it is in the process of preparing an employment policy review with conclusions on the outcomes of the various labour market measures and programmes. Please continue to provide information on any further developments in this matter, including copies of the main findings of policy and programme evaluations when they become available.

3. Article 3. With reference to previous comments, the Committee would appreciate receiving more detailed information on the Labour Advisory Board and the functioning of this body in relation to the matters covered by the Convention. Please also continue to provide information on how representatives of workers, employers and other persons affected by the measures taken are consulted concerning employment policies, with a view to taking fully into account their experience and views and securing their full cooperation.

Direct Request (CEACR) - adopted 2002, published 91st ILC session (2003)

Cyprus (ratification: 1966)

The Committee notes the report supplied by the Government for the period ending in May 2000 and the detailed replies to the 1999 direct request.

1. Articles 1 and 2 of the Convention. The Committee notes the particular efforts made by the Government to conform to the Maastricht criteria and to accede to the European Union. Cyprus shows a record of satisfactory economic performance reflected in rapid growth and macroeconomic stability. Employment policy forms an integral part of the overall development policy and has as its basic long-term objective the mobilization and full utilization of human resources. The employment policy and measures envisaged within the "New Development Plan, 1999 to 2003" are based on the EU Employment Guidelines. Under that Plan, the upgrading and modernization of the Employment Services is planned. The Committee would appreciate receiving further details as the employment measures envisaged by the "New Development Plan" are implemented with regard to particular categories of workers such as women, young persons, older persons and workers affected by the accession to the EU. Please also indicate how the reform of the Public Employment Services has contributed to employment creation and human resources development.

2. The Government mentions in its report the adoption of the Private Employment Agencies (Specification of Type of Application, Type of Permit and Payable Fees) Regulations No. 289/98. The Committee requests that the Government indicate what impact private employment agencies have had on the functioning of the labour market. The Government may deem it useful to consult the instruments on private employment agencies adopted by the Conference at its 85th Session (1997).

3. Article 3. The Committee notes with interest that the Ministry of Labour and Social Insurance derives its proposals from various tripartite committees dealing with specific issues relevant to the elaboration and evaluation of the national employment policy. The social partners as well as other social, political or professional groups, through the various consultative committees (permanent and ad hoc) play an important role in policy formulation, implementation and evaluation. The Committee would appreciate receiving details of the decisions taken by the Labour Advisory Board and the planned Employment Committee in relation to the matters covered by the Convention.

Direct Request (CEACR) - adopted 2000, published 89th ILC session (2001)

The Committee notes that the Government’s report has not been received. It hopes that a report will be supplied for examination by the Committee at its next session and that it will contain full information on the matters raised in its previous direct request, which reads as follows:

The Committee notes the detailed information contained in the Government’s report for the period ending May 1998. According to the Government, GDP grew at 2.5 per cent in 1997 and was projected to grow at 4.5 per cent in 1998. However, investment has been low, and the agricultural sector has suffered a three-year drought. Unemployment was 3.1 per cent in 1996 and 3.4 per cent in 1997. The Committee notes, however, the Government’s statement that labour demand has exceeded labour supply, leading to a labour shortage in some areas, and an excess of tertiary level graduates. The main employment promotion scheme targeted at this group is financial support for becoming self-employed. And the Government is addressing the imbalance between supply and demand for labour through promotion and upgrading of skills, and improving labour productivity through training and technology. The Committee would appreciate receiving further information on the effect of these programmes in achieving the aims of Article 1 of the Convention.

The Government states that it produces an annual labour market analysis to anticipate changes in the labour market and to plan training activities. It has also carried out a more detailed study, entitled Labour Market Prospects of the Industrial Training Authority (ITA), which is not yet completed. The Committee would appreciate receiving a copy when it is available, as requested in the report form under Article 2. The Committee would also appreciate receiving more information on how the measures to be taken in pursuing the objective of full, productive and freely chosen employment are determined and reviewed regularly within the framework of a coordinated economic and social policy in accordance with Article 2.

The Committee notes that the list of examples of consultation with the social partners within the framework of the Labour Advisory Board include only narrow topics. The Committee recalls that representatives of the persons affected by the measures to be taken shall be consulted concerning employment policies, including their review within the framework of a coordinated economic and social policy, as specified in Article 3, in conjunction with Article 2. The Committee requests further information on how this provision is given full effect.

Lastly, the Committee notes that the appendices mentioned in the report were not forwarded to the Office. Hence, a detailed analysis of the application of the Convention was not possible. The Committee requests that statistical data and other information be sent with the report, as requested in Part VI of the report form.

Direct Request (CEACR) - adopted 1999, published 88th ILC session (2000)

The Committee notes the detailed information contained in the Government's report for the period ending May 1998. According to the Government, GDP grew at 2.5 per cent in 1997 and was projected to grow at 4.5 per cent in 1998. However, investment has been low, and the agricultural sector has suffered a three-year drought. Unemployment was 3.1 per cent in 1996 and 3.4 per cent in 1997. The Committee notes, however, the Government's statement that labour demand has exceeded labour supply, leading to a labour shortage in some areas, and an excess of tertiary level graduates. The main employment promotion scheme targeted at this group is financial support for becoming self-employed. And the Government is addressing the imbalance between supply and demand for labour through promotion and upgrading of skills, and improving labour productivity through training and technology. The Committee would appreciate receiving further information on the effect of these programmes in achieving the aims of Article 1 of the Convention.

The Government states that it produces an annual labour market analysis to anticipate changes in the labour market and to plan training activities. It has also carried out a more detailed study, entitled Labour Market Prospects of the Industrial Training Authority (ITA), which is not yet completed. The Committee would appreciate receiving a copy when it is available, as requested in the report form under Article 2. The Committee would also appreciate receiving more information on how the measures to be taken in pursuing the objective of full, productive and freely chosen employment are determined and reviewed regularly within the framework of a coordinated economic and social policy in accordance with Article 2.

The Committee notes that the list of examples of consultation with the social partners within the framework of the Labour Advisory Board include only narrow topics. The Committee recalls that representatives of the persons affected by the measures to be taken shall be consulted concerning employment policies, including their review within the framework of a coordinated economic and social policy, as specified in Article 3, in conjunction with Article 2. The Committee requests further information on how this provision is given full effect.

Lastly, the Committee notes that the appendices mentioned in the report were not forwarded to the Office. Hence, a detailed analysis of the application of the Convention was not possible. The Committee requests that statistical data and other information be sent with the report, as requested in Part VI of the report form.

Direct Request (CEACR) - adopted 1998, published 87th ILC session (1999)

The Committee notes that the Government's report has not been received. It hopes that a report will be supplied for examination by the Committee at its next session and that it will contain full information on the matters raised in its previous direct request, which read as follows:

1. The Committee notes the Government's report covering the period 1994-96 and the information it contains in reply to its previous direct request. It notes that maintenance of a satisfactory economic growth rate during the period has provided continued growth in employment and the stabilization of the unemployment rate at around 3 per cent of the active population which is equivalent, according to the Government, to full employment. The Committee notes that the shortage of unskilled labour leads to increased employment of foreign labour while the supply of qualified labour exceeds demand. The Committee would be grateful if the Government would supplement, in its next report, the valuable statistical information on the evolution of employment by more detailed data on unemployment by sex, age, sector of activity and skill level.

2. The Government indicates that the objectives of economic policies which it described in its previous report remained unchanged during the period. The Committee requests the Government to continue to supply information on how the measures to be taken in pursuing the objectives of full, productive and freely chosen employment are determined and reviewed regularly "within the framework of a coordinated economic and social policy" (Article 2 of the Convention). In particular, please provide information on any new measures which may have been adopted to promote diversification of activities and to cope with increased international competition in exports.

3. With reference to its previous request, the Committee notes that the study on the labour market prospects by the Industrial Training Authority is expected to cover the period 1996-2000 and to be available in 1997. Please supply a copy of this study. The Committee has also been informed of a study published jointly by the Industrial Training Authority and the ILO on the skill development system. Please indicate the follow-up given to the recommendations of this study. Please continue to supply information on programmes, including the assessment of their effectiveness, designed to respond to problems of employment for tertiary education graduates.

4. The Committee notes the information concerning consultations with the representatives of employers and workers held in the Labour Advisory Board during the period. Recalling that the consultations provided by Article 3 should be extended to all aspects of the economic policy having an impact on employment and involve all the persons affected, the Committee requests the Government to continue to supply detailed information on the application of this important provision of the Convention.

Direct Request (CEACR) - adopted 1997, published 86th ILC session (1998)

1. The Committee notes the Government's report covering the period 1994-96 and the information it contains in reply to its previous direct request. It notes that maintenance of a satisfactory economic growth rate during the period has provided continued growth in employment and the stabilization of the unemployment rate at around 3 per cent of the active population which is equivalent, according to the Government, to full employment. The Committee notes that the shortage of unskilled labour leads to increased employment of foreign labour while the supply of qualified labour exceeds demand. The Committee would be grateful if the Government would supplement, in its next report, the valuable statistical information on the evolution of employment by more detailed data on unemployment by sex, age, sector of activity and skill level.

2. The Government indicates that the objectives of economic policies which it described in its previous report remained unchanged during the period. The Committee requests the Government to continue to supply information on how the measures to be taken in pursuing the objectives of full, productive and freely chosen employment are determined and reviewed regularly "within the framework of a coordinated economic and social policy" (Article 2 of the Convention). In particular, please provide information on any new measures which may have been adopted to promote diversification of activities and to cope with increased international competition in exports.

3. With reference to its previous request, the Committee notes that the study on the labour market prospects by the Industrial Training Authority is expected to cover the period 1996-2000 and to be available in 1997. Please supply a copy of this study. The Committee has also been informed of a study published jointly by the Industrial Training Authority and the ILO on the skill development system. Please indicate the follow-up given to the recommendations of this study. Please continue to supply information on programmes, including the assessment of their effectiveness, designed to respond to problems of employment for tertiary education graduates.

4. The Committee notes the information concerning consultations with the representatives of employers and workers held in the Labour Advisory Board during the period. Recalling that the consultations provided by Article 3 should be extended to all aspects of the economic policy having an impact on employment and involve all the persons affected, the Committee requests the Government to continue to supply detailed information on the application of this important provision of the Convention.

Direct Request (CEACR) - adopted 1996, published 85th ILC session (1997)

The Committee notes that the Government's report has not been received. It hopes that a report will be supplied for examination by the Committee at its next session and that it will contain full information on the matters raised in its previous direct request, which read as follows:

1. The Committee notes with interest the Government's report for the period ending June 1994 and the useful information that it contains in reply to its previous request. The Government states that a less favourable trading and financial situation, combined with certain structural rigidities in the economy, have led to a decline in the growth rate and a contraction of the labour market during the reporting period. Despite its rising during the period 1992-94, the unemployment rate is still less than 3 per cent of the active population and the Government considers that in general terms the situation is equivalent to full employment conditions. The Committee notes that the situation still compares favourably with that of most of Cyprus's European trading partners.

2. The Government describes in its report the main features of the Strategic Development Plan for 1994-98, which is designed to prepare the country progressively for integration into the European Union and to achieve the economic convergence criteria established by the Union, as well as to enhance the competitiveness of the economy of Cyprus. In this context, the objectives of the employment policy are to maintain full employment while ensuring a balance between demand and supply in the labour market at the sectoral and regional levels and improving labour productivity and the level of training. The Committee notes in this respect that the Government considers that the dependency on the tourism sector, in which around one quarter of the active population is employed, remains excessive despite the implementation of the New Tourism Policy, aimed at containing the expansion of the sector. The Committee requests the Government to provide detailed information on any new measure adopted to promote the diversification of economic activities in the services sector. Furthermore, it requests the Government to indicate how the employment objectives of the 1994-98 Plan are currently being achieved and to provide any detailed statistics that are available in its next report on labour market trends in the various sectors by sex, age, skills level and type of contract (Part VI of the report form).

3. The Committee notes the information concerning the pursuance of the programme to combat unemployment among graduates. It notes that the employment services have promoted the recruitment of graduates by foreign companies although, at the same time, foreign labour is needed to overcome short-term sectoral shortages. The Committee would be grateful if the Government would indicate whether new measures have been taken or are envisaged to improve the coordination of training policies with prospective employment opportunities, taking into account the provisions of Convention No. 142. In this respect, it requests the Government to supply a copy of the study that is to be undertaken by the Industrial Training Authority on labour market prospects for the period 1993-98.

4. The Committee notes with interest the information provided on the consultations held regularly in several tripartite bodies concerning the various aspects of employment policy. It recalls that the consultations required under Article 3 of the Convention should include, in addition to representatives of employers' and workers' organizations, the representatives of other "persons affected", such as persons working in the rural sector. The Committee requests the Government to continue supplying detailed information on consultations covering the preparation and pursuance of the employment policy.

Direct Request (CEACR) - adopted 1995, published 83rd ILC session (1996)

1. The Committee notes with interest the Government's report for the period ending June 1994 and the useful information that it contains in reply to its previous request. The Government states that a less favourable trading and financial situation, combined with certain structural rigidities in the economy, have led to a decline in the growth rate and a contraction of the labour market during the reporting period. Despite its rising during the period 1992-94, the unemployment rate is still less than 3 per cent of the active population and the Government considers that in general terms the situation is equivalent to full employment conditions. The Committee notes that the situation still compares favourably with that of most of Cyprus's European trading partners.

2. The Government describes in its report the main features of the Strategic Development Plan for 1994-98, which is designed to prepare the country progressively for integration into the European Union and to achieve the economic convergence criteria established by the Union, as well as to enhance the competitiveness of the economy of Cyprus. In this context, the objectives of the employment policy are to maintain full employment while ensuring a balance between demand and supply in the labour market at the sectoral and regional levels and improving labour productivity and the level of training. The Committee notes in this respect that the Government considers that the dependency on the tourism sector, in which around one quarter of the active population is employed, remains excessive despite the implementation of the New Tourism Policy, aimed at containing the expansion of the sector. The Committee requests the Government to provide detailed information on any new measure adopted to promote the diversification of economic activities in the services sector. Furthermore, it requests the Government to indicate how the employment objectives of the 1994-98 Plan are currently being achieved and to provide any detailed statistics that are available in its next report on labour market trends in the various sectors by sex, age, skills level and type of contract (Part VI of the report form).

3. The Committee notes the information concerning the pursuance of the programme to combat unemployment among graduates. It notes that the employment services have promoted the recruitment of graduates by foreign companies although, at the same time, foreign labour is needed to overcome short-term sectoral shortages. The Committee would be grateful if the Government would indicate whether new measures have been taken or are envisaged to improve the coordination of training policies with prospective employment opportunities, taking into account the provisions of Convention No. 142. In this respect, it requests the Government to supply a copy of the study that is to be undertaken by the Industrial Training Authority on labour market prospects for the period 1993-98.

4. The Committee notes with interest the information provided on the consultations held regularly in several tripartite bodies concerning the various aspects of employment policy. It recalls that the consultations required under Article 3 of the Convention should include, in addition to representatives of employers' and workers' organizations, the representatives of other "persons affected", such as persons working in the rural sector. The Committee requests the Government to continue supplying detailed information on consultations covering the preparation and pursuance of the employment policy.

Direct Request (CEACR) - adopted 1995, published 82nd ILC session (1995)

The Committee notes that the Government's report has not been received. It hopes that a report will be supplied for examination by the Committee at its next session and that it will contain full information on the matters raised in its previous direct request, which read as follows:

1. The Committee notes the Government's report for the period ending June 1992. The report shows that the growth in economic activity continued during the period and permitted the maintenance of a situation of almost full employment. The fall in activity following the Gulf crisis was limited and, as a result of a growth rate of nearly 8 per cent in 1992, the unemployment rate which had reached nearly 5 per cent over the first months of 1991 was brought down to less than 2 per cent. The tensions on the labour market, which the Committee noted in its previous request, became more marked in 1992. The Government considers that the shortage of labour, in a context of a high participation rate, is one of the principal obstacles to the achievement of economic growth, to which it intends to respond through the measured use of foreign labour, as well as by promoting the employment of women and encouraging the return of emigrant Cypriots. It also states that a study on labour market perspectives for the period 1993-1998 should make it possible to identify imbalances between the supply and demand for labour, particularly as regards skills. The Committee would be grateful if the Government would indicate the main conclusions of the above study in its next report and indicate the measures taken or envisaged as a consequence. Please also supply any relevant extracts of the new five-year economic development plan.

2. The Government states that measures to combat unemployment among graduates have resulted in a substantial reduction in their unemployment rate. It refers in this respect to the financial support provided for self-employment, retraining for graduates whose qualifications are unsuitable, and the development of regulations to reserve certain jobs for skilled workers. Please continue to supply detailed information on the results obtained by each of these measures.

3. The Committee notes that in the Government's opinion the country is excessively economically dependent on the tourism sector. It notes that the Government has taken measures to gain greater control over the expansion of this sector and to encourage the diversification of activities in the field of services. Please supply information on the results obtained in terms of employment by the implementation of these measures.

4. With reference to its previous requests concerning the effect given to Article 3 of the Convention, the Committee notes the statement that tripartite consultations on economic and social matters are held at all levels, particularly through the Labour Advisory Board and the Economic Advisory Committee. It would be grateful if the Government would specify in its next report the frequency of the meetings of the various bodies through which consultations are held with the representatives of the persons affected concerning employment policies, the items included on their agenda, the opinions which are expressed and the manner in which they are taken into account.

Direct Request (CEACR) - adopted 1994, published 81st ILC session (1994)

1. The Committee notes the Government's report for the period ending June 1992. The report shows that the growth in economic activity continued during the period and permitted the maintenance of a situation of almost full employment. The fall in activity following the Gulf crisis was limited and, as a result of a growth rate of nearly 8 per cent in 1992, the unemployment rate which had reached nearly 5 per cent over the first months of 1991 was brought down to less than 2 per cent. The tensions on the labour market, which the Committee noted in its previous request, became more marked in 1992. The Government considers that the shortage of labour, in a context of a high participation rate, is one of the principal obstacles to the achievement of economic growth, to which it intends to respond through the measured use of foreign labour, as well as by promoting the employment of women and encouraging the return of emigrant Cypriots. It also states that a study on labour market perspectives for the period 1993-1998 should make it possible to identify imbalances between the supply and demand for labour, particularly as regards skills. The Committee would be grateful if the Government would indicate the main conclusions of the above study in its next report and indicate the measures taken or envisaged as a consequence. Please also supply any relevant extracts of the new 5-year economic development plan.

2. The Government states that measures to combat unemployment among graduates have resulted in a substantial reduction in their unemployment rate. It refers in this respect to the financial support provided for self-employment, retraining for graduates whose qualifications are unsuitable, and the development of regulations to reserve certain jobs for skilled workers. Please continue to supply detailed information on the results obtained by each of these measures.

3. The Committee notes that in the Government's opinion the country is excessively economically dependent on the tourism sector. It notes that the Government has taken measures to gain greater control over the expansion of this sector and to encourage the diversification of activities in the field of services. Please supply information on the results obtained in terms of employment by the implementation of these measures.

4. With reference to its previous requests concerning the effect given to Article 3 of the Convention, the Committee notes the statement that tripartite consultations on economic and social matters are held at all levels, particularly through the Labour Advisory Board and the Economic Advisory Committee. It would be grateful if the Government would specify in its next report the frequency of the meetings of the various bodies through which consultations are held with the representatives of the persons affected concerning employment policies, the items included on their agenda, the opinions which are expressed and the manner in which they are taken into account.

Direct Request (CEACR) - adopted 1992, published 79th ILC session (1992)

1. The Committee notes with interest the Government's report and the attached documentation, which includes extracts from the Development Plan 1989-93 relating to measures intended to achieve employment objectives, as well as relevant statistical data. It notes that during the period 1989-90, economic activity continued its sustained growth, resulting in an annual GDP growth rate that was higher than the annual average of 5 per cent set out as the objective in the Plan. The high level of economic activity led to employment growth of around 3 per cent per year and a continued decrease in the unemployment rate, which was estimated at 1.9 per cent in 1990 (first half). According to the Government, unemployment has been virtually eliminated, and pressures on the labour market have resulted in a rapid rise in wages and a moderate rise in inflation.

2. The Government states that the maintenance of full employment remains a major objective of its economic policy. It notes in its report that the existence of labour shortages has led it to emphasise an increased growth rate for the active population, and in particular a rise in the participation of women, by encouraging them to participate in a broader range of occupations and by improving their terms and conditions of employment. The report refers in this respect to the adoption of the Equal Remuneration for Men and Women for Work of Equal Value Law, No. 158/89, and the Maternity Protection (Amendment) Law, No. 66 of 1988. The Committee refers to its comments on the application of Conventions Nos. 100 and 111. Please continue to supply information on the measures that are taken to balance the supply and demand of labour and the results that are achieved.

3. The Committee notes with interest the results of the surveys of 1986-87 on the labour force and migration and on graduating students abroad, which were supplied in response to its direct request. The data provided shows the difficulties encountered by a relatively high proportion of these graduates in integrating into the labour market on their return. The Committee notes the establishment of a programme that is intended to respond in a more general manner to the problem of unemployment among graduates of higher education. Please indicate the measures that have been taken or are envisaged within the framework of this programme and the results that are achieved.

4. The Committee notes, according to the Government's report, that current economic growth is largely due to the growth in tourism and the construction sector, whereas the growth rate of the manufacturing sector has decreased substantially and that of the agriculture sector is lower than the targets set out in the Plan. It notes the preparation of a new industrial strategy intended to modernise the industrial sector and make it more competitive. As it indicated in its previous direct request, the Committee would like to be kept informed of the implementation of this new strategy, its impact on the achievement of employment objectives and the manner in which employers' and workers' representatives are consulted and contribute in this respect (Article 3 of the Convention). Furthermore, it would be grateful if the Government would supply information on development programmes in the agricultural sector that are currently being implemented or are envisaged.

Direct Request (CEACR) - adopted 1990, published 77th ILC session (1990)

1. Further to its 1987 observation, the Committee notes with interest the Government's report for the period ending June 1988 and the helpful documentation attached. The increase in the economic activity, resulting in a real GDP growth in 1987-88 higher than the planned average annual target of 4 per cent, was also reflected in an overall improvement in the employment situation, with the unemployment rate dropping to 3.4 per cent in 1987, the Government expecting a further decline to a rate of 3 per cent in 1988. The Government states that the employment policy under implementation aims at maintaining conditions of full employment, increasing labour force efficiency and eliminating as far as possible imbalances in labour market.

2. The Committee would be grateful if in its future reports the Government would continue to supply information on the employment policy and the extent to which employment objectives of the development plans have been or are being attained. Please describe as far as possible the employment impact of the realisation of overall medium-term objectives as envisaged by the Fifth Emergency Action Plan 1987, and especially the effects of measures taken in the fields of trade policy (considering the necessary structural changes to the new conditions expected to be created by the customs union with the EEC); investment policy; fiscal and monetary policies; prices, incomes and wages policies. Please supply supplementary information on the measures taken to meet the needs of particular categories of population, and especially the measures aimed at alleviating the unemployment problem among tertiary education graduates which is, according to the Government's report, the most serious imbalance in the labour market (see report form under Article 1 of the Convention).

3. The Committee notes the information supplied under Article 2 of the Convention. Please supply information, when available, on the results of the government ad hoc surveys mentioned in the report ("Labour Force and Migration Survey", "Survey on the Return of College/University Graduates").

4. Finally, the Committee notes that it was decided to follow a new industrial strategy based on the principle of flexible specialisation and a new approach towards productivity improvement was adopted, with the assistance of the ILO. It is pointed out that the success of the new approaches depends heavily on tripartite co-operation in the area of productivity improvement, in particular in the manufacturing export-oriented sector. The Committee welcomes any further information that can be given on the implementation of the new approaches, their impact on the promotion of the employment goals and the manner in which employers' and workers' representatives were consulted and co-operated (Article 3 of the Convention).