Direct Request (CEACR) - adopted 2018, published 108th ILC session (2019)

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

The Committee notes the observations of the National Confederation of United Independent Unions (CONUSI), received on 31 August 2018. The Committee requests the Government to provide its comments in this respect.

Article 1 of the Convention. Implementation of an active employment policy. Measures to promote full employment. Development of infrastructure. Trade policy. In reply to its previous comments, the Government indicates that, according to the Labour Perspectives Journal of 2017 entitled “Short-term Outlook and Youth Employment Challenges”, in 2017, there was a visible upturn in the growth of the economy as a whole, which had shown signs of slowdown in previous years. CONUSI maintains that the economy continues to grow, albeit at a slower pace than when it was being driven by the implementation of infrastructure projects in previous years, as demonstrated by the increase in the unemployment rate from 4.4 per cent in the period 2011–14 to 6 per cent in 2016. The Government indicates that the works to widen the Panama Canal created 41,168 posts (of which 28,870 were occupied by men and 2,298 by women). The Government adds that more jobs are expected to be created as a result of the implementation of new infrastructure development projects, such as the construction of several metro lines (31,670 people are expected to be hired both directly and indirectly) and of the fourth bridge over the Panama Canal. The Government also indicates that there are currently 180 enterprises in the Panama-Pacific Special Economic Area, in which 3,972 men and 2,624 women work. The Government provides information on the conclusion of a trade agreement with China, which will promote Panama as the entry point to the Americas for major Chinese enterprises. The Committee notes the detailed statistical information provided by the Government on the jobs created in the different regions by the 53 enterprises registered in the National Industry Register (RIN). The Committee requests the Government to continue to provide updated information on the creation of jobs resulting from the implementation of infrastructure development projects and trade policy.

Employment promotion for persons in a situation of extreme poverty. In reply to the Committee’s previous comments, the Government refers to the implementation of various activities to increase the employability of persons in a situation of extreme poverty within the framework of, among other programmes, the Opportunity Network Programme, which aims to reduce extreme poverty through the payment of incentives to households, on the condition that the adults members of such households fulfil their co-responsibilities regarding the health and education of their children. The Committee observes that the number of participants in this Programme declined considerably from 72,831 in 2014 to 49,115 in 2018. The Government also refers to the implementation, in cooperation with the European Union, of the Programme to Strengthen Social Cohesion (COHESAL), the main achievements of which include the improvement of the living conditions of persons in groups in vulnerable situations through the generation of income by means of initiatives such as: employment training programmes; agricultural production and marketing activities; and handicraft production and marketing activities. With regard to indigenous communities, the Government indicates that, according to the Ministry of the Economy and Finance report entitled “Updated Poverty Lines” of March 2015, while the level of poverty in the country was 23 per cent, in indigenous communities it amounted to 84.6 per cent. The Government indicates that measures have been adopted with a view to adapting the various programmes of the Ministry of Labour to the needs of indigenous communities by means of consultations with such communities. Lastly, the Government indicates that, between 2010 and 2016, overall poverty decreased from 29.8 per cent to 22 per cent, while extreme poverty fell from 12.26 per cent to 9.9 per cent. However, CONUSI maintains that it is not possible to confirm that poverty levels in the country have decreased, as methodology used to measure them was not the same and is not ongoing. The Committee requests the Government to continue to provide detailed information on the measures taken or contemplated to increase the employability of persons in a situation of poverty or extreme poverty, including indigenous communities. The Committee also requests the Government to provide comparable statistical information, disaggregated by sex, on the results achieved by such measures in terms of the lasting integration into the labour market of persons in a situation of poverty or extreme poverty.

Youth employment. In its previous comments, the Committee requested the Government to provide information on the impact of programmes and projects intended to promote youth employment. The Government indicates that the unemployment rate for young people aged between 19 and 24 years has increased, and is higher among women than men. The Government adds that the causes of youth unemployment include a lack of the qualifications and skills required by the labour market, the continuous search of young people for a job that meets their work and wage expectations, and a lack of experience. The Committee notes the information provided by the Government on the implementation of various programmes to promote the integration of young people into the labour market, such as the Programme to Support Labour Market Integration, the Vocational Guidance and Employment Programme, the First Opportunity Programme, and the Pro Youth Programme. The Government indicates that, between November 2016 and October 2017, 471 women and 269 men benefited from the Programme to Support Labour Market Integration. The Government adds that, following an evaluation of the First Opportunity Programme, it was decided that the initiative would not be continued, as the Programme to Support Labour Market Integration and the Pro Youth Programme already met the same objectives. The Committee notes, however, that in its observations, CONUSI indicates that there is no statistical information on the impact of these programmes on employment. The Government refers to the introduction, on 8 May 2016, of Bill No. 149 which promotes decent work for young people, and the lines of action of the Inter-institutional Youth Strategic Plan with regard to youth employment. Furthermore, in 2017, the Young Entrepreneur Programme was adopted, which is aimed at young people aged between 18 and 29 years, and which seeks to provide new entrepreneurs of microenterprises with customized training with a view to promoting the development of their business ideas and ensure that these ideas lead to the establishment of sustainable, productive and job-creating enterprises. The Government indicates that, since its implementation in 2017, 250 people have participated in the Programme. The Committee requests the Government to continue to provide information on the impact of the programmes and projects intended to promote youth employment, particularly the employment of young women. The Committee also requests the Government to provide information on the status of the adoption of Bill No. 149 which promotes decent work for young people, and the Inter-institutional Youth Strategic Plan, and to provide a copy of the Bill and the Plan following their adoption.

Persons with disabilities. The Government indicates that, in accordance with Act No. 42 regarding the inclusion of persons with disabilities, 100 per cent of the costs of grants for persons with disabilities was covered under the Programme to Support Labour Market Integration, in which 31 persons with disabilities participated (ten women and 21 men) between November 2016 and October 2017. Furthermore, through the Programme to Increase the Employability of Persons with Disabilities, 729 persons with disabilities have been integrated into the labour market. The Committee requests the Government to continue to provide updated and detailed information on the impact of the employment measures, including measures of reasonable accommodation, that have been adopted to help persons with disabilities obtain sustainable jobs in the regular labour market.

Coordination of training and employment policies. In reply to its previous comments, the Committee notes the numerous measures adopted with the participation of the social partners and enterprises, with a view to adapting the provision of training to the demands of the labour market. The Government refers, among other measures, to the sessions of the Employment and Technical Training Roundtables of the Higher Specialized Technical Institute (ITSE) held in various sectors, as permanent public–private forums on dialogue, exchanges, updates, monitoring, follow-up and evaluation, in which employers and trainers participate in order to continually improve the relevance of technical training content based on the skills required by employers. In the framework of the Permanent Consultative Council for Technical and Vocational Occupations, a number of commissions have been created with the aim of: (i) bringing the vocational training system into line with the needs of the production sector and the country’s economic and education policies; (ii) generating and disseminating information on the labour market; and (iii) increasing the social value of technical careers. In this regard, the Committee notes the different measures adopted in these commissions with a view to establishing a link between vocational training and the labour market. Furthermore, numerous studies have been conducted to identify the demands for knowledge and skills, and the needs of the labour market. The Government adds that the number of graduates increased from 56,111 in 2013 to 75,028 in 2017. The Committee notes CONUSI’s indication that these technical and vocational training programmes do not appear to have an impact on the recruitment of technicians, as greater dynamism is required in the private sector. The Committee requests the Government to continue to provide detailed information on the impact of the measures taken to promote education and vocational training policies. It also requests the Government to continue to provide information on the coordination of education and vocational training policies with employment policies, and specifically on the manner in which the provision of training is adapted in accordance with the changes in the demand for knowledge and skills and the needs of the labour market.

Micro, small and medium-sized enterprises (MSMEs). The Committee notes the Government’s indication in its report that efforts have been made to include entrepreneurship on the national development agenda through the signing of the National Entrepreneurship Pact in 2016 and the adoption of the National Entrepreneurship Policy entitled “Entrepreneurship and Growth in Panama” in 2017. The Government also refers to the establishment of the National Entrepreneurship Council in November 2017, which is responsible for coordinating, steering, monitoring and evaluating the activities carried out under the Pact, and which comprises workers’ and employers’ organizations such as the Panamanian Association of Young Entrepreneurs (AJOEM). The Global Entrepreneurship Monitor was also set up in Panama as an instrument to measure entrepreneurial activity in the country. The Committee requests the Government to provide statistical information, disaggregated by sex, number and type of enterprises created, and number of jobs created by MSMEs.