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

Employment Policy Convention, 1964 (No. 122) - Portugal (Ratification: 1981)

1. The Committee took note of the Government's report for the period ending June 1996 which contains detailed information in reply to its previous observation. Basing itself also on data published by OECD, the Committee notes that the slight employment growth since 1996 was insufficient to compensate for its earlier drop while the unemployment rate continued to rise, from 6.9 per cent in 1994 to 7.3 per cent in 1996. In addition, the characteristics of the spread of unemployment continue to cause concern. Unemployment has increased particularly strongly in industry and regional discrepancies have become more marked. There has been a net drop in the activity rates of young people more of whom continue in education. However, those under 25 still suffer an unemployment rate more than twice the overall rate. Equally significantly the incidence of long-term unemployment has worsened with over half of registered unemployed being out of work for more than a year.

2. The Government indicates that the main objectives in its medium-term social and economic development strategy include obtaining a higher level of economic growth so permitting the creation of skilled, well-paid jobs, and strengthening the competitiveness of the economy whilst reducing state intervention. The Committee notes that in the framework of the convergence programme aimed at accession to the economic and monetary union, emphasis has been placed on price and exchange rate stability and on the control of public expenditure. In this respect, the Committee notes that the results obtained in terms of reducing inflation and decreasing the budget deficit have been accompanied by moderate growth but with a stagnation of employment. The Government refers, furthermore, to the conclusion in January 1996 of the Short-term Social Consensus Agreement in which the social partners have agreed on the principles which should regulate salary policy, employment policy and industrial relations. The Committee also notes the objectives of the 1994-99 Regional Development Plan designed to promote the creation of jobs in the sectors most exposed to international competition by improving workers' initial and further training. The Committee would be grateful if the Government would continue to supply detailed information on how the measures to be adopted for attaining the employment objectives are determined and reviewed regularly, within the framework of a coordinated economic and social policy and in consultation with the social partners, in accordance with Articles 2 and 3 of the Convention.

3. With reference to its previous observation, the Committee notes the data regarding the number of beneficiaries of vocational integration and training programmes for employment, as well as local job-creation initiatives. It would be grateful if the Government would supply any existing assessment of the results obtained by these various programmes in terms of effective and lasting integration of those concerned in employment, particularly with regard to young people and the long-term unemployed.