Direct Request (CEACR) - adopted 2007, published 97th ILC session (2008)

Employment Policy Convention, 1964 (No. 122) - Panama (Ratification: 1970)

1. The Committee notes the detailed information and the very complete annexes supplied by the Government in reply to the comments made in its direct request in 2005.

2. Articles 1 and 2 of the Convention. Coordination of employment policy with social and economic policy objectives. The Committee notes with interest the progress that has been achieved in recent years in the field of economic and social policy, including the tax reforms that have strengthened public finance, the substantive reforms of the social security and the achievement of economic growth with a significant reduction in open unemployment. The state budget redistributes resources through investments designed to result in long-term growth and to stimulate the economy in the short term through higher rates of employment generation. In 2006, for the third consecutive year, the economy experienced considerable growth and unemployment levels fell to a rate of 8.6 per cent in August 2006. Despite this progress, according to the data of the General Inspectorate of the Republic of Panama, in August 2006 visible underemployment was at a rate of 4.9 per cent and invisible underemployment at 16.0 per cent. According to the data published by the ILO in Panorama Laboral 2006: América Latina y el Caribe, unemployment among women continued to be considerably higher than for men, with a rate of 15 per cent for women compared with 10 per cent for men. Youth unemployment also continues to be a cause for concern as it affects 26.3 per cent of young persons. The Committee welcomes the fact that economic growth has resulted in better outcomes in practice in the labour market and that the objectives of decent work that are set out in the Government’s report are important objectives of government policy. The Committee encourages the Government to continue providing information in its next report on the manner in which the objectives of full employment have been taken into account in formulating economic and social policy and to indicate the results achieved in terms of the creation of productive employment.

3. In this respect, the Committee notes with interest the information provided concerning forecasts for the generation of direct and indirect employment through the work that is being undertaken to widen the Panama Canal. The Government hopes that this work will have an impact in the medium and long term, based on the economic growth promoted by the additional income that is generated by the widened Canal and through the economic activities generated by the increased traffic in goods and vessels. The new employment opportunities will reduce the existing rate of unemployment and will absorb part of the non-active or under‑occupied population through opportunities for the participation of women and better opportunities for finding first jobs. The Committee requests the Government to provide information on the progress achieved in the decent work programme, with specific reference to the widening of the Panama Canal, which is based, according to the indications provided by the Government in its report, on productivity, efficiency, respect for fundamental labour principles and rights, access to social security and satisfactory occupational safety and health conditions.

4. In reply to its previous comments, the Committee notes the information provided on the bilateral trade agreements concluded by Panama with various countries in specific fields: the diversification of export products, financial operations and investment in shipbuilding, the maritime sector and aviation. The Committee asks the Government to continue providing information in its report on the manner in which trade agreements have contributed to improving the labour market situation. Please also indicate the manner in which the above agreements have promoted assistance in the fields of vocational and technical training which may offer benefits for the labour force in Panama.

5. Employment promotion and vulnerable groups. The Committee notes the information provided on the practical measures adopted by the General Employment Directorate for the integration of persons with disabilities. With reference to training projects, the Committee notes that the general budget allocates resources directly to strengthen programmes for vulnerable groups. Mobile units provide training to population groups located in marginal urban areas, remote rural areas and regions with a high density of indigenous people. The Committee would be grateful to continue receiving information on integrated regional development policies to guarantee a balanced distribution of economic activity throughout the country, the generation of productive employment in rural areas and the measures adopted to meet the needs of categories of persons who frequently encounter problems in finding lasting employment. In particular, the Committee asks for information to be provided in the next report of the results achieved through the National Plan for Youth Employment in terms of integrating young persons into the labour market under decent conditions and developing their entrepreneurial capacity.

6. Training policy and the promotion of full employment. The Committee notes that one of the pillars of the Government’s strategic vision and of its action plan is the development of human resources. The report contains an enumeration of the training projects implemented by the National Vocational Training and Human Development Skills Institute (INADEH) and the MITRADEL Support Programme for the Development of the Panamanian Training and Employment System. The Committee requests the Government to continue providing information on the training programmes that are implemented to ensure that the skills and capacities of the labour force are adapted to the requirements of the labour market. In particular, please provide information on the results of the National Skills Plan for 2007 and related future plans.

7. Article 3. Participation of the social partners. The Committee notes that social dialogue has been initiated to seek a national concerted agreement with a view to updating national objectives and goals through the incorporation of the resources derived from the Panama Canal and to formulate a national development plan. The Committee requests the Government to provide information in its next report on the progress achieved in social dialogue on the measures envisaged to promote productive employment. With regard to the Labour Observatory, the objective of which is to obtain data with updated economic and social indicators outlining the situation, level and trends of the labour market, the Committee asks the Government to continue providing information on the manner in which the Government and the social partners make use of the available information for the establishment of employment programmes and policies and the restructuring of the vocational education and training system. The Committee also requests the Government to provide information on the inclusion in the consultations held on employment policy of representatives of the most vulnerable categories when formulating and seeking the support of the social partners for the implementation of the programmes and measures required by the Convention.