Technical Note 1: Instrument Concerning Unemployment Policy and Services

FIFTH MEETING OF THE SRM TWG

(23-27 SEPTEMBER 2019)

EXAMINATION OF INSTRUMENTS CONCERNING EMPLOYMENT POLICY AND PROMOTION

Technical Note 1: Instrument concerning unemployment policy and services

 The Unemployment Convention, 1919 (No. 2) was the first international labour standard adopted on the topic of employment policy and promotion.

 Current status of instrument: interim, on the recommendation of the Cartier Working Party

 Possible action to be considered: classification of Convention No. 2 as outdated

16 August 2019

2018

ILO regulation of employment policy : Chronology of developments

1 2 3 4 5 7

C.2 & C.118 C.122 C.168 R.1 C.88 C.160 adopted adopted adopted adopted adopted adopted

6 8 9

1919 1948 1962 1964 1985 Ventejol 1988 Cartier SRM TWG 1979 & 1987 1997 2019

Examination by SRM TWG of status of C.2 instruments in C.2 classified as the initial classified as “other programme of status quo work instrument” concerning employment policy and promotion ILO regulatory approach to unemployment

The Preamble to the ILO Constitution refers to the prevention of unemployment and the Declaration of Philadelphia refers to the achievement of full employment and the raising of standards of living. From its beginnings, the ILO understood this to involve complementary measures to protect the unemployed and to promote employment.1 The first session of the Conference addressed the “question of preventing or providing against unemployment”, leading to the adoption of the Unemployment Recommendation, 1919 (No. 1), which concerned unemployment insurance,2 and the Unemployment Convention, 1919 (No. 2) concerning statistics, free public employment agencies and equality of treatment for foreign workers in relation to unemployment benefit.

Over time, regulation has developed along two largely distinct and complementary lines: instruments such as the Social Security (Minimum Standards) Convention, 1952 (No. 102) (Part IV) and the Employment Promotion and Protection against Unemployment Convention, 1988 (No. 168) concerning unemployment benefit;3 and instruments regulating public and private employment agencies such as the Employment Service Convention, 1948 (No. 88) and the Private Employment Agencies Convention, 1997 (No. 181).4 The regulatory approach to employment has evolved to emphasise a comprehensive and coordinated national employment policy, epitomised by the Employment Policy Convention, 1964 (No. 122). Within that context, later instruments regulate in more detail the subject matter of Convention No. 2 and Recommendation No 1.

ILO developments since adoption of the instruments

1. 1919: ILC adopted Convention No. 2 In considering the “remedy for unemployment”, the 1919 session of the Conference wished to give an impetus to the development of free public employment institutions. Convention No. 2 provides for: regular communication to the ILO of information concerning unemployment (art. 1); the establishment of a national system of free public employment agencies (art. 2); and the extension to workers from other ratifying States of benefits under any existing system of unemployment insurance (art. 3). 5 Recommendation No. 1, the first ILO instrument concerning

1 ILO, Employment Promotion and Social Security, (International Labour Conference, 73rd Session, 1987, Report IV(1)), p.3. 2 There are three successive generations of ILO standards concerning unemployment benefit. See further: ILO, Follow-up to consultations regarding social security instruments (Governing Body, 272nd Session, 2001, Geneva, GB.282/LILS/WP/PRS/3), paras 7-10 and SRM TWG 2016/technical note 2.8. 3 The SRM TWG will review instruments concerning unemployment benefit at a later date yet to be determined. 4 See SRM TWG 2019/technical note 3 on instruments concerning private employment agencies. 5 As was explained at the time of the Cartier Working Party’s examination of the social security instruments, the main objective of Convention No. 2 is the establishment of systems of free public employment agencies in member States (Article 2). The Convention does not contain provisions concerning the granting of unemployment benefit, but provides only that ratifying States with systems of insurance should make arrangements with other States to ensure equality of treatment between nationals in the area of unemployment benefit (Article 3), (Follow-up to consultations regarding social security instruments 2001, GB.282/LILS/WP/PRS/3, p.63, footnote 129). Fifth meeting of the SRM TWG (23-27 September 2019) TECHNICAL NOTE 1 the need for an effective system of unemployment insurance, was withdrawn by the Conference in 2000.

See: Convention No. 2; preparatory documents 1919 Conference, p.132-133.

2. 1948: ILC adopted Convention No. 88, regulating public employment services

Convention No. 88 concerns the establishment and maintenance of adequate free public employment services, the subject matter of article 2 of Convention No. 2.

See: Convention No. 88

3. 1962: ILC adopted Convention No. 118, regulating equality of treatment

The Equality of Treatment (Social Security) Convention, 1962 (No. 118) requires equality in unemployment benefits for national and foreign workers, the subject matter of article 3 of Convention No. 2. Article 68 of Convention No. 102 includes a similar requirement, which applies in relation to unemployment benefit as set out in the optional Part IV.

See: Convention No. 118; Convention No. 102

4. 1964: ILC adopted Convention No. 122, regulating national employment policy

Convention No. 122 requires ratifying states to declare and pursue an active national policy designed to promote full, productive and freely chosen employment. The Conference identified Convention No. 122 as one of the four Conventions that are “most significant from the viewpoint of governance” in the 2008 Social Justice Declaration. The emphasis on achieving widespread ratification and effective implementation of these governance Conventions led to the adoption by the Governing Body of a plan of action for a promotional campaign in 2009.

See: Convention No. 122; Social Justice Declaration, 2008, Section II(B)(iii); GB.306/LILS/6

5. 1985: ILC adopted Convention No. 160, regulating labour statistics

The Labour Statistics Convention, 1985 (No. 160) requires statistics to be gathered on employment, unemployment and underemployment. This extends the subject matter of article 1 of Convention No. 2.

See: Convention No. 160

6. 1987: Governing Body categorised Convention No. 2 as an “other instrument”

The Governing Body, upon the recommendation of the Ventejol Working Party, placed Convention No. 2 in the category of “other instruments” which should neither be promoted nor

Fifth meeting of the SRM TWG (23-27 September 2019) TECHNICAL NOTE 1 revised in view of the large number of States that had not ratified the recent Conventions dealing with the subjects it covered.

See: GB.235/12/8 (1987); GB.209/PFA/5/3 (1979), Appendix I; GB.194/PFA/12/5, (1974), pp 57-8

7. 1988: ILC adopted Convention No. 168, regulating protection against unemployment

Convention No. 168 aims to consolidate the system for the protection of the unemployed and the promotion of productive employment through the provision of benefits and the implementation of appropriate measures such as employment services, vocational training and vocational guidance. Equality of treatment guarantees apply and it includes provisions on the promotion of productive employment, in addition to provisions on social security.6

See: Convention No. 168

8. 1997: Governing Body decided to maintain the status quo with regard to Convention No. 2

The Governing Body, upon the recommendation of the Cartier Working Party, placed Convention No. 2 in the category of “other instruments”, which are no longer fully up to date but which remain relevant in certain aspects. The high number of ratifications of the Convention was again noted.

See: GB.268/LILS/WP/PRS/1; GB.268/LILS/5(Rev.1); GB.268/8/2; GB.283/LILS/WP/PRS/1/2

Analysis of Convention No. 2

Convention No. 2 contains three substantive provisions, the subject matter of which has been the focus of more detailed international regulation in later instruments.

ANALYSIS OF SUBSTANTIVE PROVISIONS OF CONVENTION NO. 2

 Objective: Ratifying States should communicate statistical and other information concerning unemployment “to the International Labour Office, at intervals as short as possible and not exceeding three months.”

 Comparison with later Conventions: C.160 requires ratifying States to compile Article 1 current statistics of: the economically active population; employment; where relevant, unemployment; and where possible visible underemployment (art. 7)

 Current relevance: Substance encapsulated in C.160, the most up-to-date Convention on labour statistics

6 Convention No. 168 and Recommendation No. 176 are included in the SRM TWG’s initial programme of work.

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 Objective: Ratifying States should establish a national system of free public employment agencies, under the control of a central authority; advisory committees will include representatives of employers and workers

 Comparison with later Conventions: C.88 requires the maintenance of a free public Article 2(1) employment service (art. 1), under the direction of a national authority (art. 2); advisory committees will ensure the cooperation of representatives of employers and workers (see especially arts 4, 5 & 10)

 Current relevance: Substance encapsulated in C.88, the most up-to-date Convention on public employment agencies  Objective: the operations of public and private free employment agencies, where they exist, should be coordinated by the State

 Comparison with later Conventions: C.88 requires effective cooperation between public employment services and private employment agencies not conducted with Article 2(2) a view to profit (art. 11); C.181, which applies to all private employment agencies, requires conditions to promote cooperation between public employment services and private employment agencies (art. 13)

 Current relevance: Substance encapsulated in Conventions Nos 88 and 181, the most up-to-date Conventions on public and private employment agencies  Objective: Operations of national systems shall be coordinated by the International Labour Office in agreement with the countries concerned

 Comparison with later Conventions: C.181 provides for supervision of its implementation by the labour inspectorate or other competent public authorities Article 2(3) (art. 14). C.88 provides that the national system of employment offices will be under the direction of a national authority (art. 2).

 Current relevance: The modern approach would favour coordination of national systems within the member State, rather than by the Office  Objective: where systems of unemployment insurance exist, arrangements should be made for migrant workers to receive the same rate of benefit as workers in the destination country

 Comparison with later Conventions: C.102 (Pt IV) and C.168 extend this protection, containing provisions guaranteeing unemployment benefits, as well as requiring equality of treatment for foreign nationals (art. 68 of C.102 and art. 6(1) of C.168). Article 3 C.118 requires ratifying States to grant equality of treatment with its own nationals to nationals of other ratifying States, in respect of social security coverage and benefits.

 Current relevance: Substance encapsulated in C.118, C.102 and C.168; and protection extended in C.102 (Pt IV) and C.168, the most up-to-date Conventions concerning unemployment benefit

The instrument in 2019

A Policy context

Since the last global economic and financial crisis hit one decade ago, economic and employment progress has been unsteady with employment creation being insufficient to revert unemployment levels. In 2018, the global unemployment rate stood at 5.0 per cent and affected

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172 million jobless people, along with their families.7 ILO forecasts a lacklustre economic scenario with a 2 million people more falling in unemployment by 2020.8

As an indicator of labour market performance, the unemployment rate is most relevant in high- income countries, where there is a strong interconnection between social protection policies of income support, unemployment benefits and the programmes to maintain and expand employment opportunities. In low-income countries, however, social safety nets and unemployment insurance are often absent pushing workers to take available jobs regardless of quality. On this basis, unemployment rates in 2018 were lowest in low-income countries, at 3.3 per cent on average, followed by lower-middle-income countries, at 4.0 per cent. In upper- middle countries this rate stood at 6.0, while high income countries recorded a rate of 5.1 per cent.9

Labour market challenges and conditions vary between countries and regions, as do the definitions and availability of data on unemployment. In the last decade, and in particular in the aftermath of the global crisis, there is an emerging trend where countries adopt more coherent and coordinated approach to address unemployment and underemployment. Following the 2010 and 2014 recurrent discussions on employment, the ILO adopted the Comprehensive Employment Policy Framework which has provided guidance and assistance in developing country customized employment policies. Policy combinations encompass macroeconomic and sectoral policy, stimulus packages for enterprises to increase investment and hiring, policies promoting labour market participation and speeding up job matching, training, up-skilling and life-long learning interventions. The policy mix and approaches are context-sensitive.

Across regions, countries are placing great importance to improving job outcomes and tackling unemployment. Policy strategies have reconfigured around the delivery of active labour market policies (ALMPs) to increase labour market participation, enhance employability and support job creation and retention. Public employment services are often the main entry door for the unemployed to a range of job searching and placement services often including referral to other ALMPs (e.g. training and up skilling programmes, public works, employment subsidies, self- employment and micro-enterprise creation). Many public employment services also administer unemployment insurance programmes as a means of providing temporary financial support to workers while they focus on re-entering the labour market.

While often linked to activation policies and welfare-to-work schemes in developed countries, ALMPs are also used to support the placement of jobseekers not in receipt of benefits. In emerging and developing countries, where unemployment benefits may not be offered, ALMPs are used solely as tools to achieve employment outcomes.10 Investment in ALMPs often

7 ILO, World Employment and Social Outlook: Trends 2019, 2019, Geneva, p.2. 8 Ibid. 9 Ibid. 10 Powers, T., Partnerships and contractors in the delivery of employment services and ALMPs: a literature review, 2017, Geneva, p. 11.

Fifth meeting of the SRM TWG (23-27 September 2019) TECHNICAL NOTE 1 outpaces other types of passive labour market spending, including unemployment benefits, given the persistence of larger gaps in ensuring access to a form of income protection in the event of job loss or inability to work. As a result in coverage deficits, only 21.8 per cent of unemployed workers worldwide enjoys access to unemployment insurance benefits.11

B International labour standards context

(1) Information relating to the ratification of Convention No. 2

Of the 54 member States for which Convention No. 2 is in force:  12 member States have also ratified later Conventions that regulate in more detail all of the subjects that the earlier Convention covers;12  26 member States have ratified later Conventions that encapsulate two of its three provisions;13  five States have ratified Conventions covering one of its provisions;14 and  11 member States have not ratified any later Conventions covering the subject matter of Convention No. 2’s three provisions.15

Figure 1 illustrates the ratifications required so that the subjects of the three articles of Convention No. 2 are fully covered by newer Conventions in the member States in which Convention No. 2 is in force. The ratification of later instruments regulating the subject matter of Convention No. 2 will not lead to its automatic denunciation; explicit denunciation is required to end a member State’s obligations under Convention No. 2.

Effective Convention Further information ratifications: Convention 54 effective ratifications  Most recent ratification: 2011 (Republic of Korea) No. 2 (3 denunciations)

11 ILO, World Social Protection Report 2017–19: Universal social protection to achieve the Sustainable Development Goals, 2017, Geneva, p. 48. 12 Austria, Cyprus, Denmark, Finland, Germany, Greece, Ireland, Netherlands, Norway, Spain, Sweden and Switzerland. 13 Australia, Colombia, Hungary, Mauritius, Republic of Korea and New Zealand have ratified Conventions Nos 160 and 88, which cover the obligations in arts 1 and 2 of Convention No. 2, but have not ratified any of the Conventions that cover the obligations in its art. 3. Belgium, Bosnia and Herzegovina, Central African Republic, Ecuador, Egypt, France, Japan, Kenya, Luxembourg, Montenegro, Romania, Serbia, Slovenia, Syrian Arab Republic, North Macedonia, Turkey and Bolivarian Republic of Venezuela have ratified Conventions that cover the obligations in arts 2 and 3 of Convention No. 2, but not the Convention that covers the obligations in its art. 1. Italy, Ukraine and United Kingdom have ratified Conventions that cover the obligations in arts 1 and 3 of Convention No. 2, but not the Convention that covers the obligations in its art. 2. 14 Argentina, Djibouti, Malta and Nicaragua have ratified Convention No. 88, which covers the obligation in art. 2 of Convention No. 2, but none of the Conventions that cover its other provisions. Poland has ratified Convention No. 160, which covers the obligation in art. 1 of Convention No. 2, but none of the Conventions that cover its other provisions. 15 Chile, Estonia, Ethiopia, Guyana, Iceland, Morocco, Myanmar, Papua New Guinea, Seychelles, South Africa and Sudan.

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 Ratification by dates:16 1919-1939: 31 ratifications; 1940- 1959: 5 ratifications; 1960-1979: 14 ratifications; 1980-1999: 4 ratifications; 2000-2019: 3 ratifications  Ratification by region: Europe and Central Asia: 30 ratifications;17 Africa: 10 ratifications;18 Americas: 7 ratifications;19 Asia and the Pacific: 6 ratifications;20 Arab States: 1 ratification.21  C.88 regulates the subject matter of Art. 2 of C.2  Most recent ratification: 2016 (Mali)  Ratification by dates: 1948-1969: 49 ratifications; 1970- Convention 88 effective 1989: 20 ratifications; 1990-2009: 20 ratifications; 2010- ratifications 2019: 2 ratifications No. 88 (3 denunciations)  Ratification by region: Europe and Central Asia: 36 ratifications;22 Africa: 20 ratifications;23 Americas: 18 ratifications;24 Asia and the Pacific: 11 ratifications;25 Arab States: 3 ratifications.26  C.160 regulates the subject matter of Art. 1 of C.2  Most recent ratification: 2016 (Côte d’Ivoire)  Ratification by dates: 1985-1998: 41 ratifications; 1999- 50 effective Convention 2019: 9 ratifications ratifications No. 160 (0 denunciations)  Ratification by region: Europe and Central Asia: 31 ratifications;27 Africa: 4 ratifications;28 Americas: 10 ratifications;29 Asia and the Pacific: 5 ratifications;30 Arab States: 0 ratifications.

16 Note that figures include member States that subsequently denounced the Convention. 17 Austria, Belgium, Bosnia and Herzegovina, Cyprus, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Luxembourg, Malta, Montenegro, Netherlands, Norway, Poland, Romania, Serbia, Slovenia, Spain, Sweden, Switzerland, North Macedonia, Turkey, Ukraine and United Kingdom. 18 Central African Republic, Djibouti, Egypt, Ethiopia, Kenya, Mauritius, Morocco, Seychelles, South Africa and Sudan. 19 Argentina, Chile, Colombia, Ecuador, Guyana, Nicaragua and Bolivarian Republic of Venezuela. 20 Australia, Japan, Republic of Korea, Myanmar, New Zealand and Papua New Guinea. 21 Syrian Arab Republic. 22 Albania, Austria, Azerbaijan, Belarus, Belgium, Bosnia and Herzegovina, Cyprus, Czech Republic, Denmark, Finland, France, Georgia, Germany, Greece, Hungary, Ireland, Israel, Kazakhstan, Lithuania, Luxembourg, Malta, Republic of Moldova, Montenegro, Netherlands, Norway, Portugal, Romania, San Marino, Serbia, Slovakia, Slovenia, Spin, Sweden, Switzerland, North Macedonia and Turkey. 23 Algeria, Angola, Central African Republic, Democratic Republic of the Congo, Djibouti, Egypt, Ethiopia, Ghana, Guinea-Bissau, Kenya, Libya, Madagascar, Mali, Mauritius, Mozambique, Nigeria, Sao Tome and Principe, Sierra Leone, Tanzania. Tanganyika and Tunisia. 24 Argentina, Bahamas, Belize, Plurinational State of Bolivia, Brazil, Canada, Colombia, Costa Rica, Cuba, Dominican Republic, Ecuador, El Salvador, Guatemala, Nicaragua, Panama, Peru, Suriname and Bolivarian Republic of Venezuela . 25 Australia, India, Indonesia, Japan, Republic of Korea, Malaysia, Mongolia, New Zealand, Philippines, Singapore and Thailand. 26 Iraq, Lebanon and Syrian Arab Republic. 27 Armenia, Austria, Azerbaijan, Belarus, Cyprus, Czech Republic, Denmark, Finland, Germany, Greece, Hungary, Ireland, Israel, Italy, Kyrgyzstan, Latvia, Lithuania, Republic of Moldova, Netherlands, Norway, Poland, Portugal, Russian Federation, San Marino, Slovakia, Spain, Sweden, Switzerland, Tajikistan, Ukraine, United Kingdom. 28 Benin, Côte d’Ivoire, Mauritius, Swaziland. 29 Plurinational State of Bolivia, Brazil, Canada, Colombia, Costa Rica, El Salvador, Guatemala, Mexico, Panama, United States. 30 Australia, India, Korea, New Zealand, Sri Lanka.

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 C.102 (Pt IV) regulates the subject matter of Art. 3 of C.2  Most recent ratification: 2016 (Ukraine) Convention  Ratification by dates: 1952-1969: 11 ratifications; 1970- No. 102 27 effective 1989: 4 ratifications; 1990-2009: 10 ratifications; 2010-2019: ratifications31 2 ratifications (Pt IV) (0 denunciations)  Ratification by region: Europe and Central Asia: 23 ratifications;32 Africa: 1 ratifications;33 Americas: 2 ratifications;34 Asia and the Pacific: 1 ratifications;35 Arab States: 0 ratifications.  C.168 regulates the subject matter of Art. 3 of C.2  Most recent ratification: 2011 (Belgium)  Ratification by dates: 1988-1999: 6 ratifications; 2000-2019: 8 effective Convention 2 ratifications ratifications No.168 (0 denunciations)  Ratification by region: Europe and Central Asia: 7 ratifications;36 Africa: 0 ratifications; Americas: 1 ratification;37 Asia and the Pacific: 0 ratifications; Arab States: 0 ratifications.

As Convention No. 2 has not been formally revised by any later Convention, it is still open to ratification and was last ratified in 2011 by Korea. As at April 2019, the Office is not aware of any interest among member States to ratify the Convention.

(2) Information concerning the implementation of Convention No. 2

The Committee of Experts actively supervises the application of Convention No. 2. In relation to the fifteen comments current pending:

 A number of comments are substantive in nature, concerning issues including the need for updated statistics;38 measures taken or envisaged to combat unemployment,39 establishing a system of insurance against unemployment,40 and the coordination of public and private employment services;41 and, referring to the 2010 General Survey,

31 Fifty-eight member States have ratified Convention No. 102. The figures presented in this table include only those member States that have accepted the obligations under Part IV concerning unemployment benefit. 32 Albania, Austria, Belgium, Bosnia and Herzegovina, Croatia, Cyprus, Denmark, France, Germany, Greece, Ireland, Luxembourg, Montenegro, Netherlands, Norway, Portugal, Serbia, Slovenia, Spain, Sweden, North Macedonia, Ukraine and United Kingdom. 33 Libya. 34 Brazil and Uruguay. 35 Japan. 36 Albania, Belgium, Finland, Norway, Romania, Sweden and Switzerland. 37 Brazil. 38 Guyana and Malta, direct requests, published in 2018; Egypt and Seychelles, direct requests, published in 2016; Morocco, direct request, published in 2015. 39 Argentina, Iceland, and Sudan, direct requests, published in 2016. Colombia, observation, published in 2016. Morocco and Myanmar, direct requests, published in 2015. 40 Guyana, direct request, published in 2018; Morocco, direct request, published in 2015 41 Kenya, Montenegro, Poland, Seychelles, South Africa and Sudan, direct requests, published in 2016; Myanmar, direct request, published in 2015.

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inviting ratification of more recent instruments regarding the issues covered by the Convention.42  In a direct request published in 2016, the Committee noted with interest legislative developments in Colombia with regard to measures to combat unemployment and to establish a system of unemployment insurance.  Workers’ organizations in Argentina, Colombia and Poland, and an employers’ organization in Sudan, submitted observations to the Committee concerning the application of the Convention, that were discussed in its comments published in 2016.

Figure 1: Abrogating Convention No. 2 would result in a gap in legal protection unless the countries in which it is in force ratify later Conventions regulating the subject matter of its provisions

31 countries should ratify 14 countries should ratify 22 countries should ratify C.118, Convention No. 160 on labour Convention No. 88 on public C.102 (Pt. IV) or C.168 on equal statistics: employment services: treatment in unemployment Argentina; Belgium; Bosnia & Chile; Estonia; Guyana; Iceland; insurance: Herzegovina; Central African Italy; Morocco; Myanmar; Papua Argentina; Australia; Chile; Republic; Chile; Djibouti; Ecuador; New Guinea; Poland; Seychelles; Colombia; Djibouti; Estonia; Egypt; Estonia; Ethiopia; France; South Africa; Sudan; Ukraine; Ethiopia; Guyana; Hungary; Guyana; Iceland; Kenya; United Kingdom Iceland; Republic of Korea; Malta; Luxembourg; Malta; Montenegro; This would ensure that the subject Mauritius; Morocco; Myanmar; Morocco; Myanmar; Nicaragua; matter of art. 2 of Convention No. 2 New Zealand; Nicaragua; Papua Papua New Guinea; Romania; was regulated in those countries by New Guinea; Poland; Seychelles; Serbia; Seychelles; Slovenia; South the later instrument. South Africa; Sudan Africa; Sudan; Syria; North This would ensure that the subject Macedonia; Turkey; Bolivarian matter of art. 3 of Convention No. 2 Republic of Venezuela was regulated in those countries by This would ensure that the subject one of the later instruments. matter of art. 1 of Convention No. 2 was regulated in those countries by the later instrument.

Key considerations

In examining Convention No. 2 for the purpose of determining its status, the following considerations are particularly relevant:

 The Convention is currently in force for 54 member States. It has been denounced by three member States.

42 Guyana and Malta, direct requests, published in 2018; Egypt, Kenya, Montenegro, Seychelles, South Africa and Sudan, direct requests, published in 2016; and Myanmar, direct request, published in 2015.

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 Convention No. 2 was classified by the Cartier Working Party as an instrument that was no longer fully up to date but which remained relevant in certain aspects.  Its application is actively supervised by the Committee of Experts, which in recent years has taken into account observations submitted by employers’ and workers’ organizations and has noted with interest progress in terms of compliance.  The subject matter of all three substantive provisions in Convention No. 2 has been the focus of later and more detailed ILO regulation.  To ensure that there would be no gap in legal protection in member States if Convention No. 2 were abrogated or withdrawn, 42 of the 54 countries for which Convention No. 2 is in force would need to ratify one or more of the newer instruments that encapsulate its provisions (see figure 1 above).

Possible action to be considered in relation to Convention No. 2

Preventing and protecting against unemployment remains a crucially important goal.43 Globally, 172 million people are unemployed, of whom 64.8 million are youth. The objective of Convention No. 2 is as valid now as it was when the instrument was adopted.

While its purpose is still valid, the issues that Convention No. 2 regulates have been subsequently addressed in later ILO Conventions. Further, the World Commission employs a broader approach to the topic of unemployment than that taken in the instrument, encouraging governments to take a more proactive role in the reduction of unemployment. In that context, given the new regulatory approach that has resulted in more recent instruments addressing the subject matter of its provisions, the SRM TWG could consider whether Convention No. 2 has continued or future relevance.

Following its review of Convention No. 2, and tailoring lessons learnt through the SRM TWG process to the specificities of this review, the SRM TWG will take decisions concerning the three elements within its mandate and make corresponding recommendations to the Governing Body:

1. STATUS OF CONVENTION NO. 2: The SRM TWG could consider whether, within its current legal status as an active instrument, Convention No. 2 should be classified as an outdated instrument. 2. IDENTIFICATION OF GAPS IN COVERAGE: In determining whether or not a gap in coverage exists, the SRM TWG should consider all relevant elements, including that: i. the provisions contained in Convention No. 2 are regulated in more detail by, variously, Conventions Nos 88, 102 (Part IV), 118, 160 and 168; ii. 12 of the 54 member States for which Convention No. 2 is still in force have ratified later Conventions regulating the subject matters of all three of its

43 ILO, Global Commission on the Future of Work: Work for a brighter future, 2019, Geneva, pp. 11, 31 and 33.

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provisions, while a further 26 of those 54 member States have ratified later Conventions regulating the subject matters of two of its three provisions; iii. Convention No. 2 is still in force in many member States which have not ratified later Conventions covering the subject matters of its provisions.

3. FOLLOW-UP ACTION AS APPROPRIATE: Considering past practices of the SRM TWG and the specificities of the instrument under review, the SRM TWG could decide what follow-up action should be taken: i. The SRM TWG could recognize that the aim of avoiding gaps in legal protection in member States, as well as ensuring the application of the most up to date international regulation on unemployment, requires the promotion of ratification of relevant up-to-date Conventions. The SRM TWG could stress that this involves concerted and committed attention by governments and the social partners, supported by the Office. Accordingly, the SRM TWG could recommend that: a) the tripartite constituents should collaborate to take active steps towards ratifications of Conventions Nos 88, 102 (Part IV), 118, 160 and 168, as relevant, by member States in which Convention No. 2 is currently in force; and b) the Office should support the tripartite constituents in taking steps to ensure ratification of Conventions Nos 88, 102 (Part IV), 118, 160 and 168, as relevant, by implementing a proactive and intensive plan of action tailored to each member State concerned. ii. The SRM TWG could recognize that a decision to abrogate or withdraw Convention No. 2 by the Conference should take into account the need for a transition by ratifying States from ratifications of Convention No. 2 to ratifications of the later instruments regulating its subject matter. In that context, the SRM TWG could decide to recommend that abrogation be considered either: a) At a particular session of the Conference as it determines; or b) At a time when all of the 54 member States currently bound by Convention No. 2 have ratified later Conventions regulating the subject matters of at least one of its three provisions; or c) At a time when all of the 54 member States currently bound by Convention No. 2 have ratified later Conventions regulating the subject matters of at least two of its three provisions; or d) At an undetermined date that ensures there is no gap in legal protection in member States in which Convention No. 2 is currently in force.

Appendix: Some countries have ratified both Convention No. 2 and later Conventions regulating the subjects of one or more of its three articles

Ratified later Conventions Ratified later Convention covering Arts 1, 2 & 3: covering Art. 1: Austria; Cyprus; Denmark; Poland Finland; Germany; Greece; Ireland; Netherlands; Norway; Spain; Sweden; Switzerland

Art. 1 on labour statistics Ratified later Conventions (subject matter covered by C.160) covering Arts 1 & 2: Australia; Colombia; Hungary; Mauritius; Korea; New Zealand

Ratified later Convention Art. 3 on equal covering Art. 2: treatment in In comparison, other Art. 2 on employment Argentina; Djibouti; unemployment services Malta; Nicaragua countries in which insurance (subject matter covered by Convention No. 2 is in force (subject matter covered by C.88) have not ratified any of the C.118, C.102(Pt. IV) and C.168) later Conventions covering the three articles of Ratified later Conventions covering Convention No. 2… Arts 2 & 3: Ratified later Belgium; Bosnia & Herzegovina; Chile; Estonia; Ethiopia; Guyana; Conventions Central African Republic; Ecuador; Iceland; Morocco; Myanmar; Papua covering Arts 1 & 3: Egypt; France; Japan; Kenya; New Guinea; Seychelles; South Italy; Ukraine; Luxembourg; Montenegro; Romania; Africa; Sudan United Kingdom Serbia; Slovenia; Syrian Arab Republic; North Macedonia; Turkey; Bolivarian Republic of Venezuela