Direct Request (CEACR) - adopted 2023, published 112nd ILC session (2024)

Observation (CEACR) - adopted 2023, published 112nd ILC session (2024)

Direct Request (CEACR) - adopted 2019, published 109th ILC session (2021)

Observation (CEACR) - adopted 2019, published 109th ILC session (2021)

Direct Request (CEACR) - adopted 2016, published 106th ILC session (2017)

Observation (CEACR) - adopted 2013, published 103rd ILC session (2014)

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

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

The Committee notes the detailed document prepared by the National Employment Service, received in September 2009, in reply to its previous comments.

Articles 1, 2 and 3 of the Convention. Implementation of an active employment policy. The Government provides detailed statistics on employment characteristics and developments in Paraguay. In 2008, the period of relative economic growth continued, while both the economically active population and the rate of unemployment remained at similar levels to those of 2007 (69.5 per cent and 5.6 per cent respectively). The population of working age registered sustained growth between 2003 and 2008 (increasing from 62.9 per cent to 66.2 per cent) and unemployment among young persons aged between 15 and 19 years (13.6 per cent) and between 20 and 24 years (10.2 per cent) is considerably higher than in other groups, confirming the trend of previous years. The Government indicates that since August 2008, based on the new guidelines of the government plan, the generation of permanent employment has been considered as a means of reducing extreme poverty. A National Employment Plan has been drawn up with advice from the Inter-American Development Bank and efforts are being made to strengthen the National Employment Service (SNE), which devises, implements and oversees employment policy. A new organizational structure for the SNE has been proposed to provide it with a network of employment offices, a section responsible for vocational training, a labour observatory and a planning division. The Committee notes the Decent Work Country Programme, approved by tripartite agreement in February 2009, which includes the priorities of formulating and implementing an employment strategy and generating employment through public investment. The Committee also notes that the Ministry of Justice and Labour’s Strategic Plan for 2008–13 includes decent work as one of the areas to be addressed. The Committee requests the Government to include information in its next report on the results achieved through the implementation of the National Employment Plan and the Decent Work Country Programme in achieving the objective of full and productive employment set out in the Convention. The Committee also requests the Government to include quantitive information in its report on the activities of the National Employment Service. Please also indicate the manner in which it has been ensured that the social partners and the representatives of other groups concerned, such as workers in the rural sector and the informal economy, participate in the formulation and implementation of employment policies.

Regional dimension of employment policy. The Committee notes the information included in the report concerning the agreement reached by the Ministers of Labour of the MERCOSUR countries during Paraguay’s Presidency. At the 98th Session of the Conference (June 2009), MERCOSUR expressed its support for the Global Jobs Pact agreeing to maintain the MERCOSUR Employment Growth Strategy (GAN Empleo) as devised by the High-level Employment Group. The Committee notes with interest the declaration signed on 17 June 2009 by the Ministers of Labour of the MERCOSUR countries on the protection of employment against the crisis, which asserts “the right to work as a fundamental human right generating both social and economic wealth in harmony with productive capital”. The MERCOSUR initiatives include proposals to expand unemployment protection systems; link the extension of social protection to employment with training activities; develop measures to protect and formalize jobs with the agreement of employers and trade unions to prevent the crisis from having a negative impact on workers; strengthen the institutional framework of public employment services by promoting their coordination in the region; support and strengthen employment programmes for vulnerable groups, especially young persons; and support the operation of micro and small enterprises and individual undertakings. The Committee requests the Government to continue providing information on the manner in which the MERCOSUR initiatives aimed at promoting active employment policies within the meaning of the Convention have been implemented.

Youth employment. The Committee also notes that, with ILO assistance, the National Round Table for the Generation of Youth Employment has been established. The Round Table is an inter-institutional tripartite body encompassing various legislative and policy initiatives aimed at increasing job opportunities for young persons. The initiatives include the establishment of departmental committees in all regions, the proposal for a comprehensive labour integration system, the identification of vulnerable groups and the establishment of tripartite bodies to ensure the implementation of the policies. The National Committee drew up a bill on the integration of young persons into the labour market which provides for the integration into employment of young persons aged between 18 and 29 years through training, work placements, work scholarships, starter employment contracts and part-time contracts. The Committee requests the Government to include information in its next report on the impact of the decisions of the National Committee for the Generation of Youth Employment, including information on the adoption of the draft legislation designed to promote the productive employment of young persons.

Coordination of employment policy with education and vocational training policies. The Committee notes with interest the participation of the Ministry of Education and Culture in the National Committee for the Generation of Youth Employment, which has in turn established a vocational training, education and labour committee. The working group on rules relating to vocational training has received support from the ILO. The Committee notes that the working group refers to the overlap between the efforts of the bodies under the Ministry of Justice and Labour responsible for training (the National Vocational Promotion Service and the National Vocational Training System). The working group also mentions the lack of coordination of both bodies with the Ministry of Education and Culture. The Committee reiterates its interest in receiving information on the efforts made to improve the coordination of education and vocational training policies with employment policy.

Direct Request (CEACR) - adopted 2008, published 98th ILC session (2009)

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. Implementation of an active employment policy. The Committee notes the Government’s report received in March 2006 indicating that in July and August 2005 technical tripartite meetings were held to discuss the text of the proposed employment policy formulated by the Government. The agreed text of the principal elements of the employment policy appear to be consistent with the objectives set out in the Convention. The Committee refers to its previous comments and requests the Government to provide information in its next report on the results achieved in terms of the generation of productive employment through the policies agreed by the social partners. The Committee also requests the Government to provide information in its next report on the manner in which the objectives of full employment were taken into account in the formulation of the economic and social policy. Furthermore, the Committee would be grateful to continue receiving information on the experience of the social partners in Paraguay with regard to the application of the Convention, in particular where representatives of the rural sector and the informal economy have been included in the consultations required by the Convention (Articles 1, 2 and 3 of the Convention).

2. The Committee notes the information on the situation, level and trends of employment provided by the Government in its report: the labour participation rate was 63 per cent in 2004, and the open unemployment rate amounted to 7.3 per cent of the population (8.1 per cent in 2003). Underemployment affects 24 per cent of the population, with underemployment in the country being augmented by badly paid jobs. Open unemployment affects in particular the population category between 15 and 19 years of age, and especially young women (22.1 per cent of the young female population is actively seeking employment). The Government indicates that these proportions remain high until the age of 29 years, when eight out of every 100 persons is unemployed. The Committee would be grateful to be able to continue examining in the Government’s next report statistical data such as those required by the report form for the Convention through which it is possible to assess the manner in which the measures adopted under the agreed employment policy orientations have improved the employment prospects of women and young persons seeking productive employment.

3. Coordination of employment policy with education and vocational training policies. The Committee notes the information provided on the training activities for micro-entrepreneurs carried out in 2004–05 by the National Vocational Training System and the National Vocational Promotion Service. The Government also provided information in its report on the initiatives taken to promote dual apprenticeship for young persons. The Committee requests the Government to continue providing information in its next report on the programmes and projects undertaken to ensure the coordination of education and vocational training policies with employment policy, which is essential if each worker is to have every opportunity to acquire the necessary training to find suitable employment and to use their training and skills in such employment.

4. ILO technical cooperation. The Committee notes with interest that, in the context of a project for the harmonization and comparability of labour indicators in MERCOSUR, implemented with ILO support, a conceptual and methodological revision has been undertaken of the measurement of labour indicators in MERCOSUR countries with a view to defining a set of harmonized labour market indicators. The Committee would be grateful if the Government would provide information in its next report on the initiatives supported by the ILO to promote, at both the national and subregional levels, the objectives of reducing poverty and creating productive employment (Part V of the report form).

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

1. Implementation of an active employment policy. The Committee notes the Government’s report received in March 2006 indicating that in July and August 2005 technical tripartite meetings were held to discuss the text of the proposed employment policy formulated by the Government. The agreed text of the principal elements of the employment policy appear to be consistent with the objectives set out in the Convention. The Committee refers to its previous comments and requests the Government to provide information in its next report on the results achieved in terms of the generation of productive employment through the policies agreed by the social partners. The Committee also requests the Government to provide information in its next report on the manner in which the objectives of full employment were taken into account in the formulation of the economic and social policy. Furthermore, the Committee would be grateful to continue receiving information on the experience of the social partners in Paraguay with regard to the application of the Convention, in particular where representatives of the rural sector and the informal economy have been included in the consultations required by the Convention (Articles 1, 2 and 3 of the Convention).

2. The Committee notes the information on the situation, level and trends of employment provided by the Government in its report: the labour participation rate was 63 per cent in 2004, and the open unemployment rate amounted to 7.3 per cent of the population (8.1 per cent in 2003). Underemployment affects 24 per cent of the population, with underemployment in the country being augmented by badly paid jobs. Open unemployment affects in particular the population category between 15 and 19 years of age, and especially young women (22.1 per cent of the young female population is actively seeking employment). The Government indicates that these proportions remain high until the age of 29 years, when eight out of every 100 persons is unemployed. The Committee would be grateful to be able to continue examining in the Government’s next report statistical data such as those required by the report form for the Convention through which it is possible to assess the manner in which the measures adopted under the agreed employment policy orientations have improved the employment prospects of women and young persons seeking productive employment.

3. Coordination of employment policy with education and vocational training policies. The Committee notes the information provided on the training activities for micro-entrepreneurs carried out in 2004-05 by the National Vocational Training System and the National Vocational Promotion Service. The Government also provided information in its report on the initiatives taken to promote dual apprenticeship for young persons. The Committee requests the Government to continue providing information in its next report on the programmes and projects undertaken to ensure the coordination of education and vocational training policies with employment policy, which is essential if each worker is to have every opportunity to acquire the necessary training to find suitable employment and to use their training and skills in such employment.

4. ILO technical cooperation. The Committee notes with interest that, in the context of a project for the harmonization and comparability of labour indicators in MERCOSUR, implemented with ILO support, a conceptual and methodological revision has been undertaken of the measurement of labour indicators in MERCOSUR countries with a view to defining a set of harmonized labour market indicators. The Committee would be grateful if the Government would provide information in its next report on the initiatives supported by the ILO to promote, at both the national and subregional levels, the objectives of reducing poverty and creating productive employment (Part V of the report form).

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

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 2002 direct request, which read as follows:

1. Articles 1 and 2 of the Convention. The Committee notes the Government’s report in which it recognizes the need to establish conditions for the creation of good quality jobs and productive activities which guarantee the population improved income and social protection. The Government also refers to an occupational training programme carried out by the Ministry of Justice and Labour (with the support of the Inter-American Development Bank) and the restructuring of the National Vocational Promotion Service, with the establishment of a National System of Vocational Training. The Committee hopes that in its next report the Government will provide information on the results achieved in terms of the creation of productive employment by the above programmes, as well as the results of the training programme for micro-entrepreneurs and the employment programme for young persons seeking their first job.

2. The Committee recalls that the compilation and analysis of statistical information has to serve as a basis for the adoption of employment policy measures. The Committee once again requests information on the situation, level and trends of employment, unemployment and underemployment throughout the country and the extent to which they affect the most vulnerable categories of workers (such as women, young persons and rural workers), who often encounter the greatest difficulties in finding lasting employment.

3. Article 3. The Committee notes with interest that, within the context of the Tripartite Council for Social Dialogue, committees have been set up (on state reform, employment and wages, investment and financial policy, social policy) in areas directly related to the application of the Convention. The Committee hopes that in its next report the Government will supply information on the manner in which the work of the Tripartite Council for Social Dialogue has contributed to the declaration and perusal of an active policy designed to promote full and productive employment, as required by the Convention.

4. Part V of the report form. The Committee notes that the ILO is participating in a support programme for the development of a national strategy to reduce poverty in the social and labour field. According to the information available for 1999, some 33.7 per cent of the population live in poverty and 15.5 per cent are in conditions of extreme poverty. The Committee hopes that the Government will also include information in its next report on the action taken as a result of the assistance received from the Office with a view to reducing poverty and creating productive employment.

Direct Request (CEACR) - adopted 2004, published 93rd ILC session (2005)

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 2002 direct request, which read as follows:

1. Articles 1 and 2 of the Convention. The Committee notes the Government’s report in which it recognizes the need to establish conditions for the creation of good quality jobs and productive activities which guarantee the population improved income and social protection. The Government also refers to an occupational training programme carried out by the Ministry of Justice and Labour (with the support of the Inter-American Development Bank) and the restructuring of the National Vocational Promotion Service, with the establishment of a National System of Vocational Training. The Committee hopes that in its next report the Government will provide information on the results achieved in terms of the creation of productive employment by the above programmes, as well as the results of the training programme for micro-entrepreneurs and the employment programme for young persons seeking their first job.

2. The Committee recalls that the compilation and analysis of statistical information has to serve as a basis for the adoption of employment policy measures. The Committee once again requests information on the situation, level and trends of employment, unemployment and underemployment throughout the country and the extent to which they affect the most vulnerable categories of workers (such as women, young persons and rural workers), who often encounter the greatest difficulties in finding lasting employment.

3. Article 3. The Committee notes with interest that, within the context of the Tripartite Council for Social Dialogue, committees have been set up (on state reform, employment and wages, investment and financial policy, social policy) in areas directly related to the application of the Convention. The Committee hopes that in its next report the Government will supply information on the manner in which the work of the Tripartite Council for Social Dialogue has contributed to the declaration and perusal of an active policy designed to promote full and productive employment, as required by the Convention.

4. Part V of the report form. The Committee notes that the ILO is participating in a support programme for the development of a national strategy to reduce poverty in the social and labour field. According to the information available for 1999, some 33.7 per cent of the population live in poverty and 15.5 per cent are in conditions of extreme poverty. The Committee hopes that the Government will also include information in its next report on the action taken as a result of the assistance received from the Office with a view to reducing poverty and creating productive employment.

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

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 2002 direct request, which read as follows.

1. Articles 1 and 2 of the Convention. The Committee notes the Government’s report in which it recognizes the need to establish conditions for the creation of good quality jobs and productive activities which guarantee the population improved income and social protection. The Government also refers to an occupational training programme carried out by the Ministry of Justice and Labour (with the support of the Inter-American Development Bank) and the restructuring of the National Vocational Promotion Service, with the establishment of a National System of Vocational Training. The Committee hopes that in its next report the Government will provide information on the results achieved in terms of the creation of productive employment by the above programmes, as well as the results of the training programme for micro-entrepreneurs and the employment programme for young persons seeking their first job.

2. The Committee recalls that the compilation and analysis of statistical information has to serve as a basis for the adoption of employment policy measures. The Committee once again requests information on the situation, level and trends of employment, unemployment and underemployment throughout the country and the extent to which they affect the most vulnerable categories of workers (such as women, young persons and rural workers), who often encounter the greatest difficulties in finding lasting employment.

3. Article 3. The Committee notes with interest that, within the context of the Tripartite Council for Social Dialogue, committees have been set up (on state reform, employment and wages, investment and financial policy, social policy) in areas directly related to the application of the Convention. The Committee hopes that in its next report the Government will supply information on the manner in which the work of the Tripartite Council for Social Dialogue has contributed to the declaration and pursual of an active policy designed to promote full and productive employment, as required by the Convention.

4. Part V of the report form. The Committee notes that the ILO is participating in a support programme for the development of a national strategy to reduce poverty in the social and labour field. According to the information available for 1999, some 33.7 per cent of the population live in poverty and 15.5 per cent are in conditions of extreme poverty. The Committee hopes that the Government will also include information in its next report on the action taken as a result of the assistance received from the Office with a view to reducing poverty and creating productive employment.

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

1. Articles 1 and 2 of the Convention. The Committee notes the Government’s report in which it recognizes the need to establish conditions for the creation of good quality jobs and productive activities which guarantee the population improved income and social protection. The Government also refers to an occupational training programme carried out by the Ministry of Justice and Labour (with the support of the Inter-American Development Bank) and the restructuring of the National Vocational Promotion Service, with the establishment of a National System of Vocational Training. The Committee hopes that in its next report the Government will provide information on the results achieved in terms of the creation of productive employment by the above programmes, as well as the results of the training programme for micro-entrepreneurs and the employment programme for young persons seeking their first job.

2. The Committee recalls that the compilation and analysis of statistical information has to serve as a basis for the adoption of employment policy measures. The Committee once again requests information on the situation, level and trends of employment, unemployment and underemployment throughout the country and the extent to which they affect the most vulnerable categories of workers (such as women, young persons and rural workers), who often encounter the greatest difficulties in finding lasting employment.

3. Article 3. The Committee notes with interest that, within the context of the Tripartite Council for Social Dialogue, committees have been set up (on state reform, employment and wages, investment and financial policy, social policy) in areas directly related to the application of the Convention. The Committee hopes that in its next report the Government will supply information on the manner in which the work of the Tripartite Council for Social Dialogue has contributed to the declaration and pursual of an active policy designed to promote full and productive employment, as required by the Convention.

4. Part V of the report form. The Committee notes that the ILO is participating in a support programme for the development of a national strategy to reduce poverty in the social and labour field. According to the information available for 1999, some 33.7 per cent of the population live in poverty and 15.5 per cent are in conditions of extreme poverty. The Committee hopes that the Government will also include information in its next report on the action taken as a result of the assistance received from the Office with a view to reducing poverty and creating productive employment.

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

The Committee notes that the Government's report has not been received. It must therefore once again take up the following points which it raised in its earlier comments:

1. The Committee would be grateful if the Government would specify in its next report if there have been particular difficulties in reaching the employment objectives set out in the development programme for 1994-98, and indicate to what extent these difficulties have been overcome. It would greatly appreciate information on the situation, level and trends in employment, unemployment and underemployment in the country as a whole and on the extent to which it affects particular categories of workers such as women, young people, indigenous people and rural workers, and how those workers were affected by industrial restructuring processes.

2. The Committee previously noted with interest the progress made in applying Article 3 of the Convention which lays down that representatives of the persons affected should be consulted concerning the measures to be taken to promote the objectives of full, productive and freely chosen employment. It would be particularly useful in labour markets such as that of Paraguay if the consultations required under the Convention took place with representatives of workers from the informal and rural sectors and if their participation were envisaged in the formal consultation machinery. The Committee would be grateful if the Government would include indications on any progress made in this matter in its next report.

3. The Committee asks the Government to provide information on specific developments in the activities of the National Employment Service, the Programme of Associated Young Persons Enterprises and the National Service for Vocational Promotion in order to ensure that workers who have benefited from the programmes can gain access to the labour market and find lasting employment.

4. The Committee refers to the report form for Article 2 of the Convention which requests information on the measures taken to collect and analyse statistical and other data concerning the size and distribution of the labour force, the nature and extent of unemployment and trends therein. Given that the collection and analysis of statistical data must be the basis of any employment policy measures, the Committee trusts that the Government will make every effort to obtain the employment data required for the development and implementation of an employment policy within the meaning of the Convention.

5. The Committee would be grateful if the Government would include in its report comprehensive data on any employment promotion measures adopted by the Institute of Rural Welfare which would allow it to assess the manner in which the Convention is being applied in the rural sector and with regard to the indigenous peoples.

6. The Committee would be grateful if the Government would also provide data on the role of the informal sector in the creation of productive and lasting employment, as well as information on the progress made in including independent and self-employed workers in the modern sector of the economy.

The Committee trusts that the Government will provide a detailed report containing the information requested above and any other information which the Government may consider useful. At the same time, the Committee takes note of the communication of the American Secretariat of the World Federation of Trade Unions (WFTU) containing the views of the Paraguay Union of Journalists on dismissals that jeopardize employment. The Office in November 1998 transmitted these observations to the Government. The Committee hopes that the Government in its next report will provide its own comments on the questions raised by the WFTU and their impact on employment policy.

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

Referring to its observation, the Committee would be grateful if the Government would include information on the following points in its next detailed report on the application of the Convention.

1. The Committee notes that most of the data on employment sent by the Government in its report concerns the Central Department and the metropolitan area of Asunción. Furthermore, the unemployment rate estimated from the study carried out by the Department of Social and Economic Research of the Faculty of Economy is only 8.6 per cent compared with 14.4 per cent estimated by PREALC on the basis of econometric projections. The Committee refers to the report form for Article 2 of the Convention which calls for indications on the measures taken to collect and analyse statistical and other data concerning the size and distribution of the labour force, the nature and extent of unemployment and underemployment and trends therein. Given that the collection and analysis of statistical information must serve as the basis for adopting measures on employment policy, the Committee trusts that the Government will make every effort in its power to provide this information on employment which is required in order to formulate and implement an employment policy within the meaning of the Convention.

2. The Committee notes that an aggressive agrarian reform policy is being carried out through the Institute for Rural Welfare which grants and regularizes land holding in the rural sector. Small rural holdings are also being financed. The Government is requested to include complete data on this matter enabling the Committee to assess the manner in which application of the Convention in the rural sector and with respect to indigenous peoples is promoted.

3. The Government indicates that, like other Latin American countries, the trend already observed more than a decade ago is accentuating: micro-enterprises in the informal sector and small and medium-sized enterprises in the formal sector absorb the greater part of the labour force. The Government adds that the role of the small enterprise as a generator of income and a source of employment for the labour force is both important and traditional. The Committee would be grateful if the Government would continue to supply data on the participation of the informal sector in the generation of productive and lasting employment and the results achieved in integrating independent and self-employed workers in the modern sector of the economy.

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

The Committee notes with regret that the Government's report has not been received. It must therefore repeat its previous observation which read as follows:

1. The Committee notes the Government's report received in January 1995. The Government indicates that the labour market has been gradually modernizing at a slow but steady pace which is reflected positively in the reduction of self-employed workers and an increase in the number of wage-earners. The national level of unemployment is relatively low but underemployment affects some 48 per cent of the labour force and constitutes "the main problem on the labour market". The reasons for underemployment are demographic and economic, since the economic infrastructure of the formal sector cannot satisfy job demands adequately and the informal sector serves as a refuge for a large percentage of the labour force. Since underemployment has a greater effect on workers in the rural sector, the Government's efforts are concentrated in this area. An economic and social development programme for 1994-98 has the target of creating jobs in more productive activities, increasing productivity and income in backward activities (small urban businesses and micro-businesses and small rural producers), and the broadening of the job security network. The Committee would be grateful if the Government would specify in its next report if there have been particular difficulties in reaching the employment objectives set out in this programme and indicate to what extent these difficulties have been overcome. It would greatly appreciate information on the situation, level and trends in employment, unemployment and underemployment in the country as a whole and on the extent to which it affects particular categories of workers such as women, young people, indigenous people and rural workers who have difficulty in finding lasting employment and how those workers are affected by industrial restructuring processes.

2. With reference to the comments its has been making for several years, the Committee notes that information has been included in the report on a policy of dialogue and consultation promoted by the Ministry of Justice and Labour. A tripartite negotiating board has been set up whose central themes are wages, the formulation and proposal of employment programmes, and social security. The Committee welcomes this progress in the application of Article 3 of the Convention which lays down that representatives of the persons affected shall be consulted concerning the measures to be taken to promote the objectives of full, productive and freely chosen employment. It would be particularly useful for a labour market such as that described by the Government that the consultations required under the Convention should also take place with representatives of workers from the informal and rural sectors and that their participation might be envisaged in the formal consultation machinery mentioned in the report. The Committee would be grateful if the Government would include indications on any new progress made in this matter.

3. In reply to previous comments, the Government states that its prime objective is the development of human resources through training and improvement of employment opportunities. Workers are offered free vocational guidance and training services by the National Employment Service, the Programme of Associated Young Persons Enterprises and the National Service for Vocational Promotion. The Government states that these efforts claim not only to coordinate occupational training policies and activities with real employment prospects but also to ensure that young people in particular and workers in general achieve effective integration into the labour market with a lasting job and/or full productive activity where they can develop to the maximum their potential, as required in Convention No. 122, Convention No. 142 and Recommendation No. 150 on the development of human resources, 1975. The Committee requests the Government to continue supplying information on specific developments in the activities mentioned above in order to ensure that workers who have benefited from the programmes can access the labour market and find lasting employment.

4. In a direct request, the Committee is asking the Government certain questions on other aspects of the application of the Convention related to compilation and analysis of statistics, rural employment and employment in the informal sector.

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

Referring to its observation, the Committee would be grateful if the Government would include information on the following points in its next detailed report on the application of the Convention.

1. The Committee notes that most of the data on employment sent by the Government in its report concerns the Central Department and the metropolitan area of Asunción. Furthermore, the unemployment rate estimated from the study carried out by the Department of Social and Economic Research of the Faculty of Economy is only 8.6 per cent compared with 14.4 per cent estimated by PREALC on the basis of econometric projections. The Committee refers to the report form for Article 2 of the Convention which calls for indications on the measures taken to collect and analyse statistical and other data concerning the size and distribution of the labour force, the nature and extent of unemployment and underemployment and trends therein. Given that the collection and analysis of statistical information must serve as the basis for adopting measures on employment policy, the Committee trusts that the Government will make every effort in its power to provide this information on employment which is required in order to formulate and implement an employment policy within the meaning of the Convention.

2. The Committee notes that an aggressive agrarian reform policy is being carried out through the Institute for Rural Welfare which grants and regularizes land holding in the rural sector. Small rural holdings are also being financed. The Government is requested to include complete data on this matter enabling the Committee to assess the manner in which application of the Convention in the rural sector and with respect to indigenous peoples is promoted.

3. The Government indicates that, like other Latin American countries, the trend already observed more than a decade ago is accentuating: micro-enterprises in the informal sector and small and medium-sized enterprises in the formal sector absorb the greater part of the labour force. The Government adds that the role of the small enterprise as a generator of income and a source of employment for the labour force is both important and traditional. The Committee would be grateful if the Government would continue to supply data on the participation of the informal sector in the generation of productive and lasting employment and the results achieved in integrating independent and self-employed workers in the modern sector of the economy.

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

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

1. The Committee notes the Government's report received in January 1995. The Government indicates that the labour market has been gradually modernizing at a slow but steady pace which is reflected positively in the reduction of self-employed workers and an increase in the number of wage-earners. The national level of unemployment is relatively low but underemployment affects some 48 per cent of the labour force and constitutes "the main problem on the labour market". The reasons for underemployment are demographic and economic, since the economic infrastructure of the formal sector cannot satisfy job demands adequately and the informal sector serves as a refuge for a large percentage of the labour force. Since underemployment has a greater effect on workers in the rural sector, the Government's efforts are concentrated in this area. An economic and social development programme for 1994-98 has the target of creating jobs in more productive activities, increasing productivity and income in backward activities (small urban businesses and micro-businesses and small rural producers), and the broadening of the job security network. The Committee would be grateful if the Government would specify in its next report if there have been particular difficulties in reaching the employment objectives set out in this programme and indicate to what extent these difficulties have been overcome. It would greatly appreciate information on the situation, level and trends in employment, unemployment and underemployment in the country as a whole and on the extent to which it affects particular categories of workers such as women, young people, indigenous people and rural workers who have difficulty in finding lasting employment and how those workers are affected by industrial restructuring processes.

2. With reference to the comments its has been making for several years, the Committee notes that information has been included in the report on a policy of dialogue and consultation promoted by the Ministry of Justice and Labour. A tripartite negotiating board has been set up whose central themes are wages, the formulation and proposal of employment programmes, and social security. The Committee welcomes this progress in the application of Article 3 of the Convention which lays down that representatives of the persons affected shall be consulted concerning the measures to be taken to promote the objectives of full, productive and freely chosen employment. It would be particularly useful for a labour market such as that described by the Government that the consultations required under the Convention should also take place with representatives of workers from the informal and rural sectors and that their participation might be envisaged in the formal consultation machinery mentioned in the report. The Committee would be grateful if the Government would include indications on any new progress made in this matter.

3. In reply to previous comments, the Government states that its prime objective is the development of human resources through training and improvement of employment opportunities. Workers are offered free vocational guidance and training services by the National Employment Service, the Programme of Associated Young Persons Enterprises and the National Service for Vocational Promotion. The Government states that these efforts claim not only to coordinate occupational training policies and activities with real employment prospects but also to ensure that young people in particular and workers in general achieve effective integration into the labour market with a lasting job and/or full productive activity where they can develop to the maximum their potential, as required in Convention No. 122, Convention No. 142 and Recommendation No. 150 on the development of human resources, 1975. The Committee requests the Government to continue supplying information on specific developments in the activities mentioned above in order to ensure that workers who have benefited from the programmes can access the labour market and find lasting employment.

4. In a direct request, the Committee is asking the Government certain questions on other aspects of the application of the Convention related to compilation and analysis of statistics, rural employment and employment in the informal sector.

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

Referring to its observation, the Committee would be grateful if the Government would include information on the following points in its next detailed report on the application of the Convention.

1. The Committee notes that most of the data on employment sent by the Government in its report concerns the Central Department and the metropolitan area of Asunción. Furthermore, the unemployment rate estimated from the study carried out by the Department of Social and Economic Research of the Faculty of Economy is only 8.6 per cent compared with 14.4 per cent estimated by PREALC on the basis of econometric projections. The Committee refers to the report form for Article 2 of the Convention which calls for indications on the measures taken to collect and analyse statistical and other data concerning the size and distribution of the labour force, the nature and extent of unemployment and underemployment and trends therein. Given that the collection and analysis of statistical information must serve as the basis for adopting measures on employment policy, the Committee trusts that the Government will make every effort in its power to provide this information on employment which is required in order to formulate and implement an employment policy within the meaning of the Convention.

2. The Committee notes that an aggressive agrarian reform policy is being carried out through the Institute for Rural Welfare which grants and regularizes land holding in the rural sector. Small rural holdings are also being financed. The Government is requested to include complete data on this matter enabling the Committee to assess the manner in which application of the Convention in the rural sector and with respect to indigenous peoples is promoted.

3. The Government indicates that, like other Latin American countries, the trend already observed more than a decade ago is accentuating: micro-enterprises in the informal sector and small and medium-sized enterprises in the formal sector absorb the greater part of the labour force. The Government adds that the role of the small enterprise as a generator of income and a source of employment for the labour force is both important and traditional. The Committee would be grateful if the Government would continue to supply data on the participation of the informal sector in the generation of productive and lasting employment and the results achieved in integrating independent and self-employed workers in the modern sector of the economy.

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

1. The Committee notes the Government's report received in January 1995. The Government indicates that the labour market has been gradually modernizing at a slow but steady pace which is reflected positively in the reduction of self-employed workers and an increase in the number of wage-earners. The national level of unemployment is relatively low but underemployment affects some 48 per cent of the labour force and constitutes "the main problem on the labour market". The reasons for underemployment are demographic and economic, since the economic infrastructure of the formal sector cannot satisfy job demands adequately and the informal sector serves as a refuge for a large percentage of the labour force. Since underemployment has a greater effect on workers in the rural sector, the Government's efforts are concentrated in this area. An economic and social development programme for 1994-98 has the target of creating jobs in more productive activities, increasing productivity and income in backward activities (small urban businesses and micro-businesses and small rural producers), and the broadening of the job security network. The Committee would be grateful if the Government would specify in its next report if there have been particular difficulties in reaching the employment objectives set out in this programme and indicate to what extent these difficulties have been overcome. It would greatly appreciate information on the situation, level and trends in employment, unemployment and underemployment in the country as a whole and on the extent to which it affects particular categories of workers such as women, young people, indigenous people and rural workers who have difficulty in finding lasting employment and how those workers are affected by industrial restructuring processes.

2. With reference to the comments its has been making for several years, the Committee notes that information has been included in the report on a policy of dialogue and consultation promoted by the Ministry of Justice and Labour. A tripartite negotiating board has been set up whose central themes are wages, the formulation and proposal of employment programmes, and social security. The Committee welcomes this progress in the application of Article 3 of the Convention which lays down that representatives of the persons affected shall be consulted concerning the measures to be taken to promote the objectives of full, productive and freely chosen employment. It would be particularly useful for a labour market such as that described by the Government that the consultations required under the Convention should also take place with representatives of workers from the informal and rural sectors and that their participation might be envisaged in the formal consultation machinery mentioned in the report. The Committee would be grateful if the Government would include indications on any new progress made in this matter.

3. In reply to previous comments, the Government states that its prime objective is the development of human resources through training and improvement of employment opportunities. Workers are offered free vocational guidance and training services by the National Employment Service, the Programme of Associated Young Persons Enterprises and the National Service for Vocational Promotion. The Government states that these efforts claim not only to coordinate occupational training policies and activities with real employment prospects but also to ensure that young people in particular and workers in general achieve effective integration into the labour market with a lasting job and/or full productive activity where they can develop to the maximum their potential, as required in Convention No. 122, Convention No. 142 and Recommendation No. 150 on the development of human resources, 1975. The Committee requests the Government to continue supplying information on specific developments in the activities mentioned above in order to ensure that workers who have benefited from the programmes can access the labour market and find lasting employment.

4. In a direct request, the Committee is asking the Government certain questions on other aspects of the application of the Convention related to compilation and analysis of statistics, rural employment and employment in the informal sector.

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

1. The Committee notes the Government's report and its communication of June 1993. The Government states in the communication that the problem of developing countries such as Paraguay is principally related to external debt (to which a solution is being found in Paraguay, which is the Latin American country with the lowest rate of external debt per capita), the protectionist policies pursued by the industrialized countries and, above all, their traditions of authoritarianism. These unfavourable conditions, in the Government's opinion, have undoubtedly had a negative influence on the implementation of an employment policy, which is nevertheless imperative for the State under the terms of the new Constitution. The Committee notes in this connection that sections 85 and 86 of the new national Constitution, which was adopted in June 1992, provide that "all the inhabitants of the Republic are entitled to lawful and freely chosen work and to personal development in conditions of dignity and justice" and that "the State shall promote policies for full employment and the vocational training of human resources, giving preference to nationals". The Committee trusts that the Government will indicate in its next report the measures which have been adopted under these important provisions of the Constitution.

2. The information supplied by the Government indicates that the open unemployment rate at the national level reached 10.4 per cent in 1991, which was a marked increase in relation to 1989 (6.7 per cent). The rise in unemployment is linked to the fall in economic activity and exports, and to a general situation of recession. The open unemployment rate in the metropolitan area of Asuncion is 5.1 per cent of the active population, with women accounting for 41 per cent of the unemployed and men for 59 per cent; the underemployment rate, which bears witness to the rapid development of the informal sector and which is the principal problem on the labour market, is estimated at around 9.5 per cent (and affected around 50,000 precarious workers in 1991). The Government refers in its report to various programmes and measures such as: the loans granted by the National Development Bank for producers in the agricultural, industrial and artisanal sectors; the creation of new jobs in the public sector (as the State is one of the principal providers of jobs for the unemployed); the extension of the network for the provision of energy and the distribution of drinking-water; and rural development projects (in the Caazapa region and for rural establishments in the framework of the agrarian reform). The Committee would be grateful if the Government would indicate the extent to which these programmes contribute in practice to the promotion of employment objectives, in accordance with the national Constitution and the Convention. It hopes that the Government will supply information in its next report on the measures which have been taken, based on data concerning the nature and level of unemployment, to ensure that the principal measures of employment policy are decided on and kept under periodical review within the framework of a coordinated economic and social policy (Articles 1 and 2 of the Convention).

3. In its previous comments, the Committee referred to the programmes undertaken to coordinate education and training policies with prospective employment opportunities. It notes with interest in this respect the annual report of the activities of the National Vocational Training Board, which reports an increase in the number of participants and courses provided. It also notes the report of the General Directorate for Human Resources describing the results, up to 31 October 1992, of the programme to promote enterpreneurship among young persons, implemented on the basis of an ILO technical cooperation project. The Committee would be grateful if the Government would continue to supply information on the development of these programmes, with an indication of the measures which have been adopted or are envisaged so that the workers who benefit from these programmes manage to enter the labour market and find lasting employment. With regard to vocational guidance and training policies, in relation with employment policy, the Committee recalls the relevance of the instruments adopted in 1975 on the development of human resources (Convention No. 142 and Recommendation No. 150), as well as the 1991 General Survey on that subject.

4. For several years, the Committee has been raising the question of the application of Article 3 of the Convention, which requires consultation with the representatives of the persons affected by the measures to be taken, and in particular the representatives of employers' and workers' organizations, "with a view to taking fully into account their experience and views and securing their full cooperation in formulating and enlisting support for such policies". The Committee notes that the Government has not supplied precise information on this subject in its report. It notes that the Government describes in its communication the prospects for establishing renewed dialogue following the arrival in power of the new authorities, on 15 August 1993, with a view to the formulation of policies and strategies constituting an employment policy. The Committee is bound to renew its hope that the Government's next report will contain the information called for in the report form concerning the consultations which have to be undertaken in the field of employment policy with the representatives of the persons concerned (including those working in the rural sector and the informal sector).

Direct Request (CEACR) - adopted 1993, published 80th ILC session (1993)

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:

The Committee refers to its observation and would be grateful if the Government would supply information in its next report on the following points:

1. The Committee notes with interest the information on the follow-up of persons trained under the National Service for Vocational Advancement. Please continue to supply up-to-date information showing whether workers who have benefited from the activities of the National Service for Vocational Advancement can use the training that they receive. The Government could refer in this context to the 1975 instruments on human resources development (Convention No. 142 and Recommendation No. 150), as well as the Committee's 1991 General Survey on that subject.

2. The Government states that public works constitute replacement employment measures. Please supply information on the impact on the labour market of the public works that have been undertaken. The Government may consider it useful to refer to the provisions of the Employment Policy (Supplementary Provisions) Recommendation, 1984 (No. 169), which is attached to the report form for this Convention, with regard to public investment programmes and special public works programmes.

3. The Government considers that the unemployment rate is in the order of 4 per cent, but that one of the principal problems in the country is underemployment. Please continue to supply information on the situation, level and trends of employment, unemployment and underemployment, and in particular the extent to which urban and rural workers are affected, as well as particular categories of workers such as women, disabled workers, older workers, the long-term unemployed, migrant workers and workers affected by restructuring measures.

4. Please supply the available information on the activities that have been undertaken and the impact of measures to promote the employment of young persons adopted by the Youth Promotion Board. In particular, please indicate any action taken as a result of project PAR/85/005, which was carried out by the ILO, on "the participation of young persons in development".

5. Please continue to supply information on the activities undertaken by the Paraguayan Cooperation and Development Foundation in relation to employment, and in particular to support micro-enterprises.

Observation (CEACR) - adopted 1993, published 80th ILC session (1993)

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

1. The Committee notes the Government's report. The Government states that, since the move towards a democratic system, a national economic and social development plan for the biennium 1989-90 has been formulated. The Committee notes with interest that the primary objective in relation to employment and human resources is that of "maintaining the growth rate of the absorption of the labour force, seeking to bring the national economy to a situation of full employment". The other objectives concern the relationship between the formal and informal sectors, achieving a progressive increase in real wages, increasing the level of technical, managerial and vocational skills of the workforce, improving worker-management relations, strengthening the machinery for the collection and interpretation of labour market data and achieving greater coordination between labour institutions. The Government adds in its report that, in order to achieve these objectives, various measures are being taken in both the public and private sectors and that these involve the revision of various laws such as the legislation respecting investments, the Labour Code, the tax legislation and much other legislation that is related directly or indirectly to employment. There has been strong employment growth in the informal sector, and even if this employment is not reflected in current statistics it is one of the major reasons for the decrease in the unemployment figures, although it has given rise to greater underemployment (estimated at around 40 per cent) in informal work that brings in little remuneration. In view of the predominance of young people in the population, which is growing and becoming very significantly concentrated in urban areas, the Government accords special importance to the development of youth employment, in connection with which it is expecting technical assistance from the Office. Furthermore, as laid down in Articles 1 and 2 of the Convention, measures have been taken to coordinate vocational training measures with prospective employment opportunities and to collect and analyse information on the labour market as a basis for the adoption of employment policy measures. The Committee hopes that in its next report the Government will indicate the extent to which the objectives set out in the national economic and social development plan of 1989-90 (45,000 new jobs per year) have been achieved and that it will also be able to supply information on the measures that have been adopted under the "policy guidelines for employment and human resources" as set out in the plan. Please indicate any difficulties that have been encountered in pursuing an active policy designed to achieve full employment.

2. With reference to the comments that the Committee has been making for a number of years on the application of Article 3, the Government states in its report that the representatives of workers and employers participate fully in the councils on which they sit, but that employment policy measures are not covered in full in such bodies (such as the Social Welfare Institute, the National Service for Vocational Advancement, the National Workers' Bank, the National Council on Minimum Wages, and the Permanent Board of Conciliation and Arbitration). The Government adds that, since the new authorities took power, there has been greater openness and interest both by the national authorities and the other social partners who are active in the field of employment. The Committee trusts that the Government will be able to supply information in its next report on the progress that has been achieved in relation to the consultations concerning employment policies that are to be held with representatives of the persons affected (representatives of employers' and workers' organizations and representatives of other sectors of the economically active population, such as those working in the rural sector and the informal sector). The Committee points out, in relation to the objective of the consultations, that Article 3 of the Convention provides that such consultations shall be held "with a view to taking fully into account their experience and views and securing their full cooperation in formulating and enlisting support" for the policies in question.

3. In a direct request, the Committee is requesting information on certain aspects of the application of the Convention (the impact of the activities of the National Service for Vocational Advancement and of current public works, as well as statistical data on the labour market and the situation of certain categories of workers, together with information on the employment of young persons and programmes to support micro-enterprises).

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

The Committee refers to its observation and would be grateful if the Government would supply information in its next report on the following points:

1. The Committee notes with interest the information on the follow-up of persons trained under the National Service for Vocational Advancement. Please continue to supply up-to-date information showing whether workers who have benefited from the activities of the National Service for Vocational Advancement can use the training that they receive. The Government could refer in this context to the 1975 instruments on human resources development (Convention No. 142 and Recommendation No. 150), as well as the Committee's 1991 General Survey on that subject.

2. The Government states that public works constitute replacement employment measures. Please supply information on the impact on the labour market of the public works that have been undertaken. The Government may consider it useful to refer to the provisions of the Employment Policy (Supplementary Provisions) Recommendation, 1984 (No. 169), which is attached to the report form for this Convention, with regard to public investment programmes and special public works programmes.

3. The Government considers that the unemployment rate is in the order of 4 per cent, but that one of the principal problems in the country is underemployment. Please continue to supply information on the situation, level and trends of employment, unemployment and underemployment, and in particular the extent to which urban and rural workers are affected, as well as particular categories of workers such as women, disabled workers, older workers, the long-term unemployed, migrant workers and workers affected by restructuring measures.

4. Please supply the available information on the activities that have been undertaken and the impact of measures to promote the employment of young persons adopted by the Youth Promotion Board. In particular, please indicate any action taken as a result of project PAR/85/005, which was carried out by the ILO, on "the participation of young persons in development".

5. Please continue to supply information on the activities undertaken by the Paraguayan Cooperation and Development Foundation in relation to employment, and in particular to support micro-enterprises.

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

1. The Committee notes the Government's report. The Government states that, since the move towards a democratic system, a national economic and social development plan for the biennium 1989-90 has been formulated. The Committee notes with interest that the primary objective in relation to employment and human resources is that of "maintaining the growth rate of the absorption of the labour force, seeking to bring the national economy to a situation of full employment". The other objectives concern the relationship between the formal and informal sectors, achieving a progressive increase in real wages, increasing the level of technical, managerial and vocational skills of the workforce, improving worker-management relations, strengthening the machinery for the collection and interpretation of labour market data and achieving greater coordination between labour institutions. The Government adds in its report that, in order to achieve these objectives, various measures are being taken in both the public and private sectors and that these involve the revision of various laws such as the legislation respecting investments, the Labour Code, the tax legislation and much other legislation that is related directly or indirectly to employment. There has been strong employment growth in the informal sector, and even if this employment is not reflected in current statistics it is one of the major reasons for the decrease in the unemployment figures, although it has given rise to greater underemployment (estimated at around 40 per cent) in informal work that brings in little remuneration. In view of the predominance of young people in the population, which is growing and becoming very significantly concentrated in urban areas, the Government accords special importance to the development of youth employment, in connection with which it is expecting technical assistance from the Office. Furthermore, as laid down in Articles 1 and 2 of the Convention, measures have been taken to coordinate vocational training measures with prospective employment opportunities and to collect and analyse information on the labour market as a basis for the adoption of employment policy measures. The Committee hopes that in its next report the Government will indicate the extent to which the objectives set out in the national economic and social development plan of 1989-90 (45,000 new jobs per year) have been achieved and that it will also be able to supply information on the measures that have been adopted under the "policy guidelines for employment and human resources" as set out in the plan. Please indicate any difficulties that have been encountered in pursuing an active policy designed to achieve full employment.

2. With reference to the comments that the Committee has been making for a number of years on the application of Article 3, the Government states in its report that the representatives of workers and employers participate fully in the councils on which they sit, but that employment policy measures are not covered in full in such bodies (such as the Social Welfare Institute, the National Service for Vocational Advancement, the National Workers' Bank, the National Council on Minimum Wages, and the Permanent Board of Conciliation and Arbitration). The Government adds that, since the new authorities took power, there has been greater openness and interest both by the national authorities and the other social partners who are active in the field of employment. The Committee trusts that the Government will be able to supply information in its next report on the progress that has been achieved in relation to the consultations concerning employment policies that are to be held with representatives of the persons affected (representatives of employers' and workers' organisations and representatives of other sectors of the economically active population, such as those working in the rural sector and the informal sector). The Committee points out, in relation to the objective of the consultations, that Article 3 of the Convention provides that such consultations shall be held "with a view to taking fully into account their experience and views and securing their full cooperation in formulating and enlisting support" for the policies in question.

3. In a direct request, the Committee is requesting information on certain aspects of the application of the Convention (the impact of the activities of the National Service for Vocational Advancement and of current public works, as well as statistical data on the labour market and the situation of certain categories of workers, together with information on the employment of young persons and programmes to support micro-enterprises).

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

The Committee refers to its observation and to its previous comments. It would be grateful if, in its next report, the Government would provide information on the following points.

1. The Committee notes with interest that during the period 1985-88, a number of technical training schools were set up; 50 per cent of them are in the interior of the country and a total of 11,745 persons have registered (1986). In addition, a new Act respecting the National Service for the Promotion of Vocational Training has been adopted. Please provide a copy of the Act, adopted in 1987, along with data of the results obtained by the National Service for the Promotion of Vocational Training in ensuring that the graduates obtain employment in which they can make use of the training received.

2. The Committee notes with interest the information on the public investment projects and the data concerning public works which have been completed or are nearing completion. Please continue to provide information on jobs created as a result of the activities of the Municipal Development Institute (IDM). Please indicate the measures that are envisaged to offset any job dislocation that may occur as a result of completion of public works.

3. The Committee takes note of the data on employment and unemployment trends in Asunción and the Metropolitan Area. According to data available in the Office, the open unemployment rate in the rest of the country is 11 per cent (estimate of the Central Bank of Paraguay, published by the ECLAC in the Economic Survey of Latin America and the Caribbean (1988). Please continue to provide statistics of labour market trends, particularly in the rural sector, indicating the extent to which such data are used as the basis for employment policy measures adopted.

4. Please indicate the action undertaken with regard to employment policy, as a result of the project PAR/85/005 "Youth participation in development", and continue to provide information on the "youth joint production ventures" (empresas asociativas juveniles de producción), referred to by the Government in its report.

5. Part V of the report form. Please indicate the action undertaken as a result of the technical assistance project being implemented in the context of the World Employment Programme, PAR/88/003 "Diagnosis of the urban informal sector and support for the micro-enterprise", or any factors which may have prevented or delayed it.

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

1. The Committee takes note of the Government's report. In a previous observation, the Committee requested information on the application of Articles 1, 2 and 3 of the Convention. In particular, it requested information on the extent to which employment objectives included in development plans and programmes were being attained, particularly those in the 1985-89 National Economic and Social Development Plan; the measures adopted to co-ordinate education and vocational training policies with employment prospects and opportunities; statistics on the labour market situation and on the consequences for job creation of measures such as major public works programmes and the main rural and agricultural settlement programmes. It also requested detailed information on the way in which consultation and collaboration is ensured with the representatives of the persons affected by employment policy.

2. In its reply, the Government describes recent trends in the economy, showing that the economic recovery process which began in 1984 continued in 1987 and 1988. GDP rose by 4.3 per cent and 6.2 per cent in 1987 and 1988 respectively. The data on the employment situation for 1986 and 1987 show a drop in the number of unemployed despite the increase in the active population. In its analysis of the external factors obstructing production and employment growth, the report refers in particular to the terms of trade, the increase in interest rates and the foreign debt burden. In this connection, it provides detailed information on the amount, composition and trends of the external debt, whose balance represented 48.3 per cent of GDP in 1987; debt servicing as a proportion of the value of exports is estimated at approximately 70 per cent. The Government warns that if Paraguay has to service its external debt regularly in the years to come, it will undoubtedly be at the cost of reducing its economic growth rate to a minimum. The Government adds that the foregoing shows the need to propose a new policy on regular external debt servicing to the international co-operation organisations and external creditors. According to the Government, a sizeable reduction in external debt servicing will enable the country to return to former levels of economic growth.

3. The Committee takes note of the foregoing information and would be grateful if, in its next report, the Government could also include the information required by the report form for Articles 1 and 2 of the Convention. It would be useful for example if it stated the employment objectives included in development plans and programmes currently being implemented and described the main employment policy measures as well as the procedures adopted to ensure that the effects on employment of measures taken to promote economic development or other economic and social objectives receive due consideration.

4. The Committee notes that consultation and collaboration with employers and workers is ensured by their permanent participation in bodies such as the Council of State, the Social Welfare Institute, the National Service for the Promotion of Vocational Training, the National Workers' Bank, the National Council on Minimum Wages and the Permanent Board of Conciliation and Arbitration. The Committee would be grateful if, in its next report, the Government would include indications on employment policy measures that have been dealt with by the above bodies and on the consultations held with representatives of other sectors of the economically active population, such as workers in the rural and informal sectors. With regard to the purpose of consultations, the Committee recalls that Article 3 of the Convention provides that representatives of the persons affected should be consulted "with a view to taking fully into account their experience and views and securing their full co-operation in formulating and enlisting support for such policies".

5. In a direct request, the Committee asks for information on other questions related to the application of the Convention.