Direct Request (CEACR) - adopted 2024, published 113rd ILC session (2025)

Employment Policy Convention, 1964 (No. 122) - North Macedonia (Ratification: 1991)

Articles 1 and 3 of the Convention. Implementation of an active employment policy. Consultation with the social partners. The Committee previously requested the Government to provide updated information on the impact of the COVID-19 pandemic on the labour market and measures taken to address it in line with the Convention’s objectives. The Government indicates in this regard that the National Employment Strategy and the National Action Plan for Employment eased eligibility criteria for access to passive labour market measures to protect individuals and households from poverty until the pandemic ended. Active labour market measures aimed at reducing worker inactivity included retaining simplified eligibility for the Guaranteed Minimum Assistance (GMA). The Government further indicates that the National programme for subsidizing jobs was expanded, offering 14,500 Macedonian denars per worker for those at risk of job loss in 2021. This included training programmes and support for social enterprises targeting low-skilled individuals, the long-term unemployed, and GMA beneficiaries, along with monetary compensation for those losing jobs due to COVID-19. Three wage subsidy measures were introduced to preserve jobs post-pandemic. In addition, the Committee notes from the OECD Report, “Western Balkans Competitiveness Outlook 2024: North Macedonia, Competitiveness and Private Sector Development”, that in recent years, North Macedonia has experienced steady improvements in its employment outcomes, although relatively low activity and employment rates still characterise its labour market. In 2022, the economy’s employment rate was around 56.7 per cent, which marked a notable increase of around six percentage points since 2017. Despite the gains, there remains a significant disparity between these figures and those observed in the European Union. The Government also points out that the social partners are regularly consulted in creating strategic employment documents, including the Youth Guarantee Plan 2023–2026. Social partners are also involved in the process of reviewing and approving strategic employment documents and Operational Employment Plans through the Economic and Social Council. Noting the low employment rate in the country, the Committee requests the Government to provide information on the specific measures taken to address labour market participation, including those targeting more vulnerable groups of workers. It also requests the Government to provide results of the measures implemented, including within the framework of the Operational Plans for Active Employment Programmes and Measures, and updated statistical information on trends in the labour market, especially in relation to the economically active population, employment and unemployment, disaggregated by sex and age. Additionally, the Committee once again requests the Government to provide detailed information on the consultations held with the social partners during the design, implementation and evaluation of the employment policies. The Committee wishes to draw the Government’s attention in this respect to the ILO Policy Design Lab which offers a variety of resources to support policymakers in developing effective employment policies and to offer insights and practical tools for creating inclusive and sustainable employment opportunities. The Lab includes resources on policy innovation areas that focus on pro-employment macroeconomic policies, structural transformation, green recovery, youth employment strategies, digitalization, gender-responsive employment policies, and employment services to support transitions. Additionally, the lab also provides key resources such as reports from the Recurrent Discussion of the International Labour Conference’s Committee on Employment, a guide for reviewing employment-related public expenditures, and applications to pilot countries.

Informal economy. The Government highlights its focus on addressing the informal economy, one of the main challenges to the country’s economic growth, competitiveness, and citizens’ quality of life. The Action Plan for Formalization of the Informal Economy 2021–22 included 75 measures divided into four strategic goals: enhancement of measuring, monitoring and detecting the informal economy; improving the business environment for the establishment, growth and development of businesses; encouraging and supporting the formalization of informal economic activities; and strengthening the tax morale while reducing the tolerance for the informal economy. The Committee notes from the 2024 OECD Report on North Macedonia, that informality remains a persistent challenge, accounting for approximately 30 per cent of national GDP. The economy must expand its efforts in this area, particularly through strengthened roles for labour inspectorates. The recent adoption of the new Strategy for the Formalization of the Informal Economy (2023–25) is a step in the right direction. Referring to the Transition from the Informal to the Formal Economy Recommendation, 2015 (No. 204), the Committee welcomes the focus placed by the Government on promoting the transition from the informal to the formal economy and requests the Government to provide detailed information on the implementation of the 2023–25 Strategy for the Formalization of the Informal Economy, as well as on the impact of the specific measures taken to integrate informal economy workers into the formal labour market, particularly young workers, women and the long-term unemployed. It also requests the Government to include information on the consultations held with the social partners and with the representative of informal economy workers. The Committee wishes to draw the Government’s attention in this respect to the fact that, aside from Recommendation No. 204 which sets the strategic vision as regards facilitating the transition of workers and economic units from the informal to the formal economy, the ILO has developed many other tools relevant in this regard, including : statistical resources offering estimates on the size of the informal economy and a statistical profile of informality; a policy resource guide supporting transitions to formality which brings together knowledge, policy innovations and good practices in addressing the informal economy and facilitating the transition to formality; an e-platform for learning about Recommendation No. 204, which provides a theory of change and the main pathways for the transition to formality of workers and enterprises; or a Methodological note on Diagnosis of informality.

Small and medium-sized enterprises (SMEs). The Committee notes that no information was provided concerning SMEs in the Government’s report. The Committee wishes to stress that employment creation by SMEs is crucial for economic growth and development since SMEs are often the backbone of economies as they provide the majority of jobs and contribute significantly to GDP. They are key drivers of innovation and competition, and they play a vital role in income generation and poverty reduction. In this regard, the Job Creation in Small and Medium-Sized Enterprises Recommendation, 1998 (No. 189) offers valuable guidance on measures to support SMEs in their role as job creators. It emphasizes the need for an enabling environment that includes access to finance, markets, and business development services, as well as the importance of entrepreneurship education and training. By following the measures outlined in Recommendation No. 189, policymakers can foster a conducive environment for SMEs to thrive and create sustainable employment opportunities. In view of the above, the Committee refers to its previous comments and once again requests the Government to provide updated detailed information on the impact of the Strategy for Development of Small and Medium-size Enterprises and its accompanying Action Plan. In particular, it requests the Government to provide statistical information on the number and type of enterprises established and the number of jobs created by such enterprises. Additionally, the Committee once again requests the Government to provide information on the status of the draft law on SMEs, and to provide a copy once it is adopted.

Education and training. The Committee notes from the report that most employment measures are designed to ensure that unemployed individuals are directly employed through these measures or through training in real working conditions. This approach aims to make them competitive in the labour market and increase their chances of employment. Analysis shows that over 70 per cent of the unemployed persons who participated in the employment measures from the 2021 Operational Employment Plan have remain employed. The Government indicates that, as for the 2022 Operational Employment Plan, it is still too early to assess the long-term employment outcomes. In addition, the Committee notes, from the 2024 OECD Report on North Macedonia, that substantial improvements have been made toward promoting the development of digital skills, as evidenced by the inauguration of the “MladiHUB-Digital Youth” initiative and a voucher programme for co-financing digital skills training. However, further advances appear limited by the absence of a comprehensive digital skills strategic framework. The Committee requests the Government to provide information on the impact of the measures taken in the area of education and training, including on their relation to prospective employment opportunities. It also requests the Government to include information on the development of digital skills training and its impact on employment. The Committee also refers to its previous comments and once again requests the Government to provide information on progress made in the establishment and functioning of the Skills Observatory.

Specific categories of workers in a vulnerable situation. Women. In response to the Committee’s previous comments, the Government indicates that women’s participation in the labour market is demonstrated by their involvement in employment measures implemented through the Operational Plan for Active Employment Programmes and Measures. In 2021, the total participation of women in all employment measures was 44.1 per cent, and in 2022, the figure was 44.8 per cent. The Government indicates that it is encouraging that over 40 per cent of women in the reporting period participated in measures leading to direct employment, especially through initiatives to start their businesses through the self-employment measure, which includes the allocation of grant funds and employment with other employers. In addition, the Committee notes from the 2024 OECD Report on North Macedonia, that recent initiatives, including the new Strategy for Gender Equality (2022–27) and a new project on developing a roadmap to support female entrepreneurship, have sought to increase women’s employment rates in North Macedonia. Despite these efforts, the economy’s women’s employment rate stood at 49.2 per cent in 2022, lagging behind the EU average (67.7 per cent) by 18.5 percentage points. The Committee requests the Government to provide updated detailed information on the nature and impact of measures adopted to increase the participation of women in the labour market, including statistical data disaggregated by sex and age. It also requests the Government to provide information on the implementation of the Strategy for Gender Equality 2022–27 and results concerning matters covered by the Convention.

Young persons. The Committee notes the various measures adopted to promote youth employment, including active employment programmes through the Operational Plan for Active Employment Programmes and Measures, and the introduction of the Youth Guarantee. In 2021, the total coverage of persons engaged in employment measures from the Operational Plan amounted to 11,933 unemployed persons, with 66 per cent of these being young people up to 29 years of age, which shows the commitment of engaging youth in the labour market. In 2023, the Operational Plan aimed to cover a total of 14,685 unemployed persons, of which at least 30 per cent are expected to be young people up to 29 years of age. Regarding the Youth Guarantee, which is part of the European support initiatives, it aims to ensure that young people (aged 15–29) receive a quality employment offer within four months of registering with the Employment Agency, including options for continuing education, training, or internships. The goal for the Youth Guarantee is to achieve a successful outcome (employment, education or employment measures) of 30 per cent of participants within a period of four months. In 2021, of the total number of people who entered the Youth Guarantee process, 8,064 young people, or 41 per cent were either employed or involved in active employment measures aimed at increasing their employability. In 2022, this number increased to 8,706 young people. The Government indicates that the new Youth Guarantee Implementation Plan will cover the 2023–26 period. It further indicates that the Law on Youth Allowance was adopted in 2020, introducing an allowance for young people up to age of 23 that are employed in production activities, after completing secondary education. The Committee requests the Government to provide updated information on the measures taken with a view to assisting young persons in finding, advancing and retaining lasting employment, particularly with regard to increasing employment opportunities for young people, and on the impact of these measures, including statistical data disaggregated by sex and age. It also requests that the Government provide details on the implementation of the 2023-26 Youth Guarantee Implementation Plan.

Persons with disabilities. The Committee notes the Government’s brief information indicating that the annual operational employment plans include a measure titled “Support for the employment of persons with disabilities”. Through this measure, 157 persons with disabilities were employed in 2021, and 84 in 2022. The Committee refers to its previous comment where it noted that, in its concluding observations of 29 October 2018, the Committee on the Rights of Persons with Disabilities (CRPD) expressed concerns with regard to: (a) discrimination against and inequalities in employment and working conditions for persons with disabilities, particularly women, notably in several provisions of the Law on Civil Servants; (b) the fact that the Law on Labour Relations does not specifically require employers to provide reasonable accommodation to persons with disabilities; and (c) the fact that persons with disabilities and public and private employers are not fully aware of the rights of and opportunities for employment in the open labour market (document CRPD/C/MKD/CO/1, paragraph 45). The Committee once again requests the Government to provide detailed and updated information on the measures taken or envisaged to promote employment opportunities for persons with disabilities, especially women, in the open labour market, including measures to raise public awareness of the rights and capacities of persons with disabilities, and on the impact of these measures.

Older workers. In response to the Committee’s previous comments, the Government reports that within the framework of the annual operational employment plans, most measures include adults over the age of 50 as a target group. The Government adds, however, that the participation of this target group in employment measures is not currently measured. Recalling the importance of collecting, compiling and analysing statistics on employment, including data measuring the impact of employment measures taken, the Committee once again requests the Government to provide detailed updated information on the nature and the impact of the measures taken to facilitate the integration of older workers into the labour market.

The Roma minority. The Committee notes the brief information provided in response to its previous comments. The Government indicates that the participation of members of the Roma community is assessed through the employment measures contained in the annual operational employment plans. In 2021, a total of 4.3 per cent or 488 Roma were included, and in 2022, 4.3 per cent or 481 Roma were included in these measures. The Committee requests the Government to continue to provide updated and detailed information on the nature and impact of measures taken to increase full, productive and freely chosen employment of members of the Roma community, including statistical data, disaggregated by age and sex.