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

1. The Committee notes the information contained in the Government's report for the period ending June 1998. The Government states that private sector employment has increased during this period by 4.9 per cent, 90 per cent of which has been full-time work, while public sector employment decreased by 1.3 per cent. Overall, employment has grown by 1.9 per cent in 1997 and 2.8 per cent in 1998. In 1998, unemployment was at 8.4 per cent, down from 9.7 per cent in 1996. According to the OECD, GDP grew at the rate of 3.8 per cent increase in GDP in 1997 and 3 per cent in 1998, and it is projected to keep growing at above the OECD average in 1999-2000. Long-term unemployment (exceeding 12 months) was around 12.5 per cent of total unemployment in 1997 and 10.1 per cent in 1998. The Committee also notes the information contained in the collection of papers, for a seminar held in 1997, entitled "Incomes and productivity in North America", forwarded by the Government in response to previous comments. It trusts that the Government will continue to monitor the impact of the North American Free Trade Agreement (NAFTA) on the implementation of the Convention, in consultation with representatives of employers' and workers' organizations, and with representatives of other sectors of the economically active population in accordance with Article 3.

2. The Committee notes that youth unemployment decreased from 16.6 per cent to 15.7 per cent during the two-year reporting period, and that numerous programmes have been implemented or strengthened to increase youth employment further. The Committee would appreciate being kept informed of progress made in application of the Convention in this respect.

3. The Committee notes that the Government has set up an employment insurance (EI) reform programme. Under this programme, the federal Government must give provinces the option of participating more directly in all aspects of planning, designing and delivering active labour market policies. The provincial governments can elect to take over all responsibility or none, or to agree to co-management between the provincial and federal levels. According to the Government, most provinces have elected to assume either all responsibility or co-management. The Committee asks to be kept informed of the impact this transfer of responsibility has on the fulfilment of the objectives of the Convention, and to include information on how the consultations required under Article 3 are ensured in this context.