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

Employment Policy Convention, 1964 (No. 122) - Costa Rica (Ratification: 1966)

1. Adoption and application of an active employment policy in the framework of a coordinated economic and social policy. The Committee notes the detailed answers to its observation of 2006, which were forwarded in a complete report prepared by the National Employment Administration and the General Administration for Work Planning in September 2007. The key element of the employment policy involves the creation of quality jobs. In order to increase people’s employability, the Government proposes to attract quality foreign investment, support small and medium-sized enterprises, train a competitive labour force and formalize the informal sector (that is, allow enterprises that finance labour costs and generate quality jobs). In 2006, the National Employment Programme had a budget of 150 million colones, which were allocated to the areas with the highest levels of unemployment and poverty (Chorotega, Central Pacific, Brunca and Huetar). Most of the projects were aimed at improving infrastructure, such as local roads, building of bridges, aqueducts and schools. The Committee requests the Government to continue to provide information in its next report on the manner in which it has taken into account the objectives of full employment in formulating the economic and social policies and to indicate the results achieved in creating productive employment in the framework of the National Employment Programme.

2. Employment promotion and vulnerable groups. The information provided by the Government indicates an increase in the economically active population in 2006 of approximately 1.83 million workers, including 10,138 unemployed persons. The official unemployment rate in 2006 reached 6 per cent of the population. The participation of women increased but their participation rate is around 30.1 per cent, while that of men is around 71.8 per cent. Most of the paid work performed by women is concentrated in the domestic sector or as self‑employed persons. Furthermore, young persons have higher unemployment rates than the rest of the population, with an unemployment rate of 13.8 per cent for young persons under 25 years of age. The Committee requests the Government to describe in its next report the measures adopted to create sustainable employment for women and young persons. The Committee asks that it also include detailed information on the situation, levels and trends of employment, unemployment and underemployment, indicating the manner in which the most vulnerable sectors (women, young workers, older workers, rural workers and workers in the informal economy) have overcome the difficulties encountered in the labour market.

3. Small enterprises and the informal sector. In its report, the Government indicated that, according to data from 2002, some 275,000 non-agricultural micro-businesses and 66,000 micro-enterprises existed, while pointing out the need to update the data, particularly with respect to activities in the informal sector whose growth increased significantly in the tourism and construction sectors. The Committee asks the Government to indicate in its next report whether the tasks of updating the information on small and micro-enterprises have been carried out so that new measures can be adopted with a view to increasing employment opportunities, improving working conditions in the informal sector and facilitating the gradual integration of this sector in the national economy.

4. Export processing zones. In response to previous comments, the Government indicates that the creation of jobs through direct foreign investment had been continuous. Most of such investments were concentrated in the export processing zones. These zones had generated approximately 36,000 jobs, twice as many as existed a decade ago. At the end of July 2006, the Coalition for Development Initiatives (CINDE) had stated that in the last four years, enterprises in the export processing zones had created some 9,000 new jobs. The Committee requests the Government to continue to provide information on the contribution of export processing zones to the creation of lasting and quality employment.

5. Coordination of education and training policies with employment opportunities. The Committee notes with interest the information provided on the initiation of an electronic work platform, coordinated jointly by the Ministry of Labour, the National Training Institute and a network of technical colleges and municipal employment offices. The Government also mentioned the National System for Professional Training. The Committee reiterates the importance of continuing to provide information on the coordination of education and vocational training policies with employment policies. The Committee particularly requests information on the concrete results achieved by the provision of guidance and training services for young persons, migrants and persons with disabilities.

6. Article 3. Participation of the social partners. The Committee notes that the Higher Labour Council had been elected as a forum for discussion and improvement of the National Employment Plan. The Union of Private Sector Enterprises had forwarded its comments in March 2007, and the opinion of the trade union sector was awaited. The Government indicates that in order to carry out such activities it hoped to continue to have the participation and collaboration of the ILO. The Committee requests that the next report include more detailed information on the tripartite consensus reached in the framework of the Higher Labour Council with regard to employment policy. Please also indicate the initiatives supported by the ILO to promote the Convention’s objectives for the generation of productive employment (Part V of the report form).