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

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

Article 1 of the Convention. Measures to promote full employment. Infrastructure development. Trade policy. The National Council of Organized Workers (CONATO) and the National Confederation of United Independent Unions (CONUSI) indicate that, although the megaprojects implemented (including the expansion of the Panama Canal) have been a source of employment for thousands of nationals of Panama in the services and construction sectors, employment generation may turn out to be ephemeral as several of the projects will be completed soon. CONATO and CONUSI consider that seeking foreign investment is the sole means of promoting employment. The Government indicates in its report that there is relative economic and social stability, which is promoting both local and international investment with a view to generating quality jobs. With regard to the employment resulting from the expansion of the Panama Canal, the Government indicates that, according to the Panama Canal Authority (ACP), over 30,000 jobs have been created since the expansion of the Canal began in September 2007. The ACP considers that, during the period 2012–15, some 18,099 direct jobs were created (benefiting 17,332 men and 767 women workers). With reference to employment creation resulting from the construction of the metro, the Government indicates that the construction of line 1 generated 12,490 jobs (5,444 during the period 2013–15). It is envisaged that the construction of line 2 will create around 4,000 jobs. The Government adds that the Panama Pacific Special Economic Area project, according to the data provided by the Panama Pacific Agency (APP), has employed over 15,000 people (8,920 direct jobs and 6,211 indirect jobs). The Committee requests the Government to continue providing information on the creation of jobs resulting from the execution of infrastructure development projects.

Employment promotion for persons in a situation of extreme poverty. The Committee notes the information provided by the Government concerning the promotion of social inclusion and employability. The Opportunities Network is a conditional financial transfer programme which, between 2013 and the first quarter of 2015, benefited an average of 70,578 households in extreme poverty each year. The Committee requests the Government to continue providing information on measures intended to improve the employability of persons in a situation of extreme poverty and the results achieved in terms of their lasting integration into the labour market.

Youth employment. The Government indicates that in March 2015 the youth unemployment rate was 12.5 per cent for young persons between 15 and 19 years of age, and 11.5 per cent for those aged 20 to 24, while the figures for young women were 17.4 and 15.4 per cent, respectively. The Government explains that the major difficulties faced by youth to enter the labour market are related to the quality and relevance of education, and the scarcity of opportunities in the rural sector. The Committee notes the information provided by the Government concerning the implementation of the Support Programme for Labour Integration (PAIL), the Vocational Guidance and Employment Programme (POVE), the My First Opportunity programme and the Panama Pro-Youth project. The Government explains that since 2012 the PAIL programme has mainly targeted young persons without work experience, and particularly women. The programme has benefited 2,550 persons (including 1,777 young women) with grants through 417 participating enterprises. The POVE programme is a joint initiative of the Ministry of Labour and Employment Development (MITRADEL) and the Ministry of Education, with the objective of the provision of vocational guidance to young persons, and is a result of the recommendations of the High Commission on Public Employment Policy. In the context of the POVE programme, 1,276 students in public colleges received training on employment aptitude. The My First Opportunity programme, implemented by the Small and Medium-Sized Enterprise Authority, benefited a total of 10,564 young persons between 2012 and 2013. The Government emphasizes that the Panama Pro-Youth project will be strengthened as an employment intermediation initiative targeting young persons who have recently completed public schooling and who have technical and vocational skills, but are without work experience. The Committee requests the Government to continue providing information on the impact of programmes and projects intended to promote youth employment.

Coordination of training and employment policies. The Committee notes the information provided by the Government on the lack of continuity of the activities planned in the context of the mutual cooperation and assistance agreement concluded between the National Vocational Training and Human Development Skills Institute (INADEH) and MITRADEL. The Government explains that there is close coordination between training and employment initiatives. The Committee notes that the training shortfall in the agricultural, construction, tourism and logistical sectors in the professional and technical occupational categories for the period 2015–20 is estimated at 67,569 persons. The Committee requests the Government to continue providing information on the impact of the measures adopted to promote vocational education and training policies. It further requests the Government to include information on the coordination of vocational education and training policies with employment policies and, specifically, on how the supply of training is coordinated with the demand for knowledge and skills and the requirements of the labour market.