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

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

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.

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

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.

Articles 1, 2 and 3 of the Convention. Implementation of an active employment policy. Participation of the social partners. The Committee notes with interest the series of measures adopted by the Government in collaboration with the social partners to achieve the objectives established in the Convention. The Government refers to the adoption, on 30 March 2017, of the National Strategic Plan with the “Panama 2030” State Vision, achieved through the active participation of stakeholders such as the National Council of Organized Workers (CONATO) and the National Council of Private Enterprise (CONEPC). The Plan brings the Government Strategic Plan 2015–19 and the priorities of the National Development Dialogue (CND) into line with the United Nations Sustainable Development Goals (SDGs). Its objectives include inclusive and sustainable growth, full and productive employment, and decent work for all, as well as the promotion of inclusive and equitable quality education. Furthermore, in December 2016, a cooperation and technical assistance agreement was signed between the ILO and the Ministry of Labour, with the aim of implementing the recommendations of the High Commission on Employment, in particular, strengthening the technical training system in Panama and guaranteeing better quality and more informed labour market access, thus creating skilled and sustainable employment. In this regard, the action plan on technical education and vocational training entitled the “Preparing Panama Programme” was established with a view to accelerating the implementation of the initiatives required to address the causes of the growing skills gap in the country’s labour market. The Programme is based on two interlinked lines of action (employment and training), in which employers’ and workers’ organizations are participating. The priorities of the action plan for this Programme include the linking of education and vocational training, the establishment of a national qualifications framework, and the identification and dissemination of trends and skills requirements in the labour market. In this regard, the Government refers to the creation, with the participation of the social partners, of the Labour Market Intelligence Unit (UNIMEL), to provide up-to-date, timely and relevant information on the situation in the labour market in Panama, with a view to designing, monitoring and improving employment policies. With reference to labour market trends, the Committee observes that, according to the Labour Market Survey of the National Statistical and Census Institute (INEC), between August 2016 and August 2017, the number of people in employment aged over 15 years increased from 1,770,711 to 1,785,849, while the unemployment rate increased from 5.5 per cent to 6.1 per cent. CONUSI maintains that the statistical information on the labour market was scattered and did not allow for an accurate evaluation of the impact of the measures adopted to promote employment. In this regard, the Committee observes that the Government does not provide any up-to-date statistical information on the employment situation in the informal economy. Lastly, the Committee notes the detailed information provided by the Government on the consultations held with the social partners on employment and technical training. The Committee requests the Government to provide information on the impact of the measures adopted to achieve the objectives of the Convention, including those adopted under the National Strategic Plan with the “Panama 2030” State Vision, and the action plan on technical education and vocational training entitled the “Preparing Panama Programme”. The Committee also requests the Government to continue to provide up-to-date statistical information on developments in the labour market, particularly the rates of labour force participation, employment, unemployment and underemployment, in both the formal and informal economy, disaggregated by sex and age. The Committee also requests the Government to continue to provide information on the consultations held with the social partners on the matters covered by the Convention.

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

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.

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

The Committee notes the observations made by the National Council of Organized Workers (CONATO) and the National Confederation of United Independent Unions (CONUSI), received on 31 August 2015, and the Government’s reply, received on 1 December 2015.

Articles 1, 2 and 3 of the Convention. Implementation of an active employment policy. Participation of the social partners. CONATO and CONUSI declare that there is no employment policy in the country. These organizations indicate that the growth in the tourism, export, agriculture and industrial sectors has fallen. The Government accepts that the country does not have an employment policy which includes all of the subjects that should be addressed by such a policy. The Committee notes the detailed information provided by the Government in its report and the adoption of the Government’s Strategic Plan “A single country” (2015–18), the basic elements of which include an economic and social strategy, a five-year investment plan and a financial programme. The economic and social strategy 2015–18 identifies the relationship between employment, construction and trade, sectors in which the capacity to maintain the rhythm of growth could be affected by changes in the regional and global situation. The strategy also identifies three sectors with a high employment creation potential: logistics and transport; agriculture, forestry and fishing; and tourism. The Committee observes that the Panamanian economy has undergone sustained expansion at a rate of slightly higher than 6 per cent a year (6.2 per cent in 2014), which is one of the highest growth rates in the region. Nevertheless, growth could fall due to the slower pace of investment in residential and commercial projects, and the completion of the work on the extension of the Panama Canal. At the national level, the rates of total unemployment and open unemployment increased from 4.1 to 4.8 per cent and from 3.1 to 3.5 per cent, respectively, in 2015. The Committee notes the establishment in August 2014, with ILO technical assistance, of the High Commission on Public Employment Policy, a tripartite body for the sharing of initiatives and strategies to enable the Government to implement and consolidate an employment policy. The Government indicates that in November 2014 the High Commission submitted a document to the President of the Republic entitled “Increasing employment, productivity and social inclusion through more and better technical and vocational training”, which includes an assessment of the Panamanian labour market. In November 2014, the Government, the National Council of Private Enterprise (CONEP), CONATO, CONUSI and the ILO concluded a Memorandum of Understanding for the initiation of the ILO technical cooperation framework: the Decent Work Programme for the Republic of Panama 2015–19, the priorities of which include the creation of greater opportunities for women, men and young persons, so that they can have access to decent jobs, and the strengthening of tripartism and social dialogue. The Committee requests the Government to provide information on the impact of the measures adopted to promote full employment. Please continue to provide up-to-date statistical data on the situation, level and trends of the labour market. The Committee also requests the Government to provide information on the consultations held with the representatives of employers’ and workers’ organizations on the subjects covered by the Convention and, in particular, on the formulation of an active employment policy. Furthermore, please indicate the manner in which the representatives of the most vulnerable categories of the population, and particularly representatives of rural and informal economy workers, have participated in the formulation of employment policies and programmes. In this respect, the Government may consider it useful to consult the Transition from the Informal to the Formal Economy Recommendation, 2015 (No. 204).

The Committee is raising other matters in a request addressed directly to the Government.

Direct Request (CEACR) - adopted 2013, published 103rd ILC session (2014)

Expansion of the Panama Canal and employment creation. The Committee refers to its observation on the application of the Convention and notes that during the five-year period (2007–12) of the execution of the various projects for the expansion of the Canal, 27,000 direct jobs were generated. The Government considers that this number of jobs has a multiplier effect on the economy, as the workers have the opportunity to obtain qualifications and consume more, giving greater dynamism to commerce and improving the living standards of workers. The Government adds that the Panama Canal Authority and the National Vocational Training and Human Development Skills Institute (INADEH) collaborated closely in developing training initiatives for adequate technical staff to meet the labour needs of the project for the expansion of the Canal and other infrastructure projects implemented in the country. The Committee invites the Government to continue providing information in its next report on direct and indirect employment creation resulting from the expansion of the Canal, Line No. 1 of the Panama Metro and other infrastructure investments.

International trade and its impact on the labour market. With reference to the comments made in 2011, the Government indicates in its report that the country has concluded free trade agreements with a view to promoting growth and employment through the opportunities that such agreements generate. As a consequence of these agreements, direct foreign investment increased by 19 per cent and almost 70 multinational enterprises were established. It has also been found that the most dynamic economic sectors in terms of employment generation are those with the greatest international involvement. The Committee requests the Government to provide information in its next report on the impact of trade policy on the development of productive investment and to provide examples of the manner in which trade policy contributes to the promotion of full, productive and freely chosen employment in the country.

Employment promotion and vulnerable categories of workers. The Committee notes the detailed information provided by the Government concerning the projects and programmes implemented by the Ministry of Labour (MITRADEL), INADEH and the Ministry of Social Development with a view to increasing the employability of vulnerable sectors and meeting the needs of persons in situations of poverty and extreme poverty. Among these projects and programmes, it notes in particular: the Support Programme for Labour Insertion (PAIL), which provides jobseekers with the opportunity to acquire suitable theoretical and practical knowledge and skills in enterprises to gain access to the labour market; the Project for the Improvement of the Employability of Persons with Disabilities; the Opportunities Network Programme, which seeks to help families in situations of extreme poverty to break out of the poverty cycle through conditional cash transfers, the provision of basic health and education services, family support to promote social inclusion and the development of skills to encourage income generation; and the Territorial Networks Programme, which is intended to identify and support existing community organizations and their resources, articulate social investment at the local level and promote the planning of participatory collective projects. The Committee refers to the comment that it is making on the Employment Service Convention, 1948 (No. 88) and hopes that the Government will provide detailed information in its next report on Convention No. 122 concerning the plans and measures adopted to promote social inclusion and employability for vulnerable sectors of society, and the results achieved.

Youth employment. The Committee notes that, according to the statistics provided by the Government, between 2011 and May 2012 a total of 6,236 young persons between 18 and 29 years of age registered with the Department of Labour, of whom 1,362 found jobs. The Committee also notes that, as from 2012, the “My First Opportunity” Programme has been implemented by the Micro-, Small and Medium-Sized Enterprise Authority. The Government indicates that this Programme is intended to promote the inclusion of groups at social risk and vulnerable groups into the productive sector through a systematic vision of the improvement of human resources and enterprise management skills with a view to self-employment and own-account work. The Committee invites the Government to provide information in its next report on the results achieved as a result of the implementation of the “My First Opportunity” Programme and other measures adopted with a view to meeting the employment needs of young persons.

Coordination of training and employment policies. The Government indicates that the INADEH and the MITRADEL engage in coordination in the definition of vocational skills and training strategies in accordance with the needs of the economic sectors in the country. In particular, the INADEH, through its national training centres, mobile classrooms and teaching barns, provides training courses intended to improve the socio-economic level of rural communities. In September 2010, both institutions concluded a mutual cooperation and assistance agreement intended to establish a framework for the implementation of programmes for jobseekers. Eight areas of cooperation were agreed upon, including the joint development of technical skills projects and action at the national level, the exchange of information on labour market demand with a view to focusing training and coordinating efforts so that students leaving the INADEH can register with the public employment service. The Committee requests the Government to provide information in its next report on the results of the implementation of the Mutual Cooperation and Assistance Agreement concluded by the INADEH and the MITRADEL, and on any other action intended to strengthen coordination between education and training policies and employment policy.

Observation (CEACR) - adopted 2013, published 103rd ILC session (2014)

Articles 1 and 2 of the Convention. Coordination of employment policy with social and economic policy objectives. The Committee notes the Government’s report received in December 2012 containing detailed information in connection with its earlier comments. The Government describes the impact that the National Strategic Plan 2010–14 is having on the country, whose economy grew steadily between 2010 and the first half of 2012. The Committee draws attention also to a dramatic increase in investment. The Government believes that this growth was largely attributable to broad bank financing and fiscal discipline and to the infrastructural megaprojects currently under way, such as the extension of the Canal and the construction of Linea 1 of Panama’s metro system. The Government adds that, reflecting the high economic growth rate, employment increased significantly by 82,416 additional jobs in the two years 2010 and 2011. According to the 2011 household survey, the participation rate rose from the previous year to 61.8 per cent, with a participation rate of 45.6 per cent for women and 79.2 per cent for men. Unemployment, which dropped from 6.5 per cent in 2010 to 4.5 per cent in 2011, stood at 4.6 per cent in March 2012. The Committee takes note with interest that open unemployment fell from 4.7 per cent in 2010, to 2.9 per cent in 2011, close to full employment. According to a multi purpose survey conducted in March 2012, some 1,553,187 people were employed in the first quarter of that year. The Government considers the country’s labour market prospects to be conducive to a further decline in unemployment in 2012 and 2013 due to new foreign and domestic investment and to the public and private projects that are to be undertaken in Panama over the next few years. The Committee invites the Government to continue to provide in its next report details of the policies and measures adopted in order to achieve the Convention’s objectives. The Committee also requests the Government in its next report to continue including statistical data on the situation, level and trend of employment, unemployment and underemployment.

Article 3. Participation of the social partners. The Committee takes note of the decision to reactivate the Tripartite National Committee on Decent Work in Panama. The Government also notes that, with the support of the ILO Office for Central America, Haiti, Panama and Dominican Republic in the first half of 2012, the Ministry of Labour (MITRADEL) held a meeting with the social partners to agree on a draft decent work programme for 2012–15 and that the tripartite Memorandum of Understanding on the implementation of the programme is awaiting signature. The Committee requests the Government in its next report to include elements that might allow it to evaluate the activities of the Tripartite National Committee on Decent Work and the participation of the social partners in the formulation and implementation of employment policies.

The Committee is raising other points, including the impact on the labour market of the infrastructure projects and free trade treaties, the steps taken to promote youth employment and facilitate the insertion in the labour market of vulnerable categories of workers and the coordination of Panama’s training policies with its employment policies, in a request addressed directly to the Government.

Observation (CEACR) - adopted 2012, published 102nd ILC session (2013)

The Committee notes that the Government’s report has not been received. It must therefore repeat its 2011 observation which read as follows:

Repetition

The Committee notes the detailed information and full documentation provided by the Government in October 2010 in reply to the comments made in 2009.

Articles 1 and 2 of the Convention. Coordination of employment policy with social and economic policy objectives. The Committee notes the National Strategic Plan for the period 2010–14, approved in December 2009, which contains a programme for economic growth and social development, accompanied by a financial programming and public investment plan. The National Strategic Plan focuses on four high-priority sectors: high added-value logistical services, tourism, high-margin agriculture and non-traditional financial services. Significant investment is envisaged in public infrastructure projects, such as the construction of the Metro in the city of Panama and the launching of private electricity generation projects. Up to May 2010, the economy had grown by 5.5 per cent under the stimulus of an increase in investment in public infrastructure and the dynamism of sectors such as construction, trade and transport, storage and telecommunications. The Committee invites the Government to include detailed information in its next report on the impact that the National Strategic Plan 2010–14 is having on the achievement of the objectives of the Convention.

Labour market trends. According to the data published by the ILO in Panorama Laboral 2010, the participation rate as of October 2010 was 63.5 per cent, the occupation rate was 59.4 per cent and the unemployment rate was 6.5 per cent. The Committee observes that women’s unemployment fell to 8.5 per cent, while men’s unemployment rose slightly to 5.3 per cent. The sectors in which there was net job creation in 2009 include, in particular, construction under the effect of hotel and tourism projects, and various public infrastructure works. These projects helped to mitigate the effects of the financial crisis on employment. The Government envisaged the creation of 500,000 new jobs by 2010 and the creation of 500,000 additional jobs, with a view to achieving full employment by the end of 2020. The Committee invites the Government to continue providing statistical information in its next report on the situation, level and trends of employment, unemployment and underemployment.

Panama Canal extension and employment creation. The Government considers that the Canal Extension Project will generate as many technical and artisanal jobs as professional posts connected with the planning, coordination and implementation of the various phases of the work. It is envisaged that the extension work will lead to the indirect creation of jobs in areas such as logistics, messaging, purchasing and supplies, financial services, customs procedures, security, housing, transport and food. The National Vocational Training and Human Development Skills Institute (INADEH) has launched training programmes in such areas as information and communication technologies, enterprise management, English, gastronomy, hotels and tourism. The Committee notes that, as of March 2010, a total of 6,274 jobs had been created derived from the Canal Extension Project. The Government envisages a greater impact on employment generation in the medium and long term as a result of the economic growth induced by the additional income generated by the extended canal and the economic activities generated by the increase in cargo and vessels transiting the canal. The Committee invites the Government to continue providing information on the results that are being achieved in terms of direct and indirect employment creation through the Canal Extension Project and other infrastructure investments.

International trade and its labour market impact. With regard to the impact of the free trade treaties in terms of the improvement of the labour market, the Government indicates that the conclusion of free trade treaties has a positive impact on legal regulations and international cooperation in terms of the exchange of information and support for human resources development. The Committee invites the Government to provide more specific information in its next report on the impact of trade policy on the demand for employment.

Employment promotion and vulnerable categories of workers. The Government indicates that 14 per cent of the population is in a situation of extreme poverty and that the authorities have formulated a Strategic Social Plan with a view to reducing poverty and social exclusion and creating opportunities for everyone, with particular emphasis on training and social inclusion. The Plan is focused on the provision of high-quality education and vocational training to improve the skills of workers in priority development sectors. The Committee invites the Government to provide information on the measures adopted to meet the needs of persons who are below the poverty line and to promote the development of income-generating opportunities.

Youth employment. The Government indicates in its report that youth unemployment is an alarming problem which has given rise to much attention in the public sector. The youth unemployment rate was 15.2 per cent in 2009. The Government adds that an analysis is being undertaken of the occupational situation and difficulties encountered by young persons in integrating the labour market. The programme “My First Job”, launched in July 2009, envisages the provision of training to over 20,000 young persons between the ages of 18 and 29 who lack the skills to compete on the labour market, including in the most vulnerable areas of the country. By the end of 2010, some 2,213 young persons who had been unemployed and were without work experience had entered into the labour market. The General Directorate of Employment is implementing the Labour Assistance and Integration Programme (PAIL), which offers grants for periods of up to three months of vocational adaptation in enterprises. As of July 2009, agreements had been concluded with 104 enterprises at the national level to hire 860 persons. The Committee requests the Government to provide data in its next report on the impact of the measures adopted in improving youth employability and in supporting and promoting the entrepreneurship initiatives of young persons.

Coordination of vocational training and employment policies. The Government indicates that 6 per cent of GDP is invested in education. It recognizes that educational results, over and above quantitative progress in access to education and average schooling (94 per cent of the population have completed primary education) are still not satisfactory, particularly with regard to quality and equality of opportunity. In this respect, the Committee notes a considerable increase in the number of students enrolled in the INADEH, which offered 991 courses during the period between January and May 2010. Total enrolment rose to 21,217 students, of whom 6,576 obtained certificates. Furthermore, collaboration with other institutions at the national level resulted in the creation of new careers and university programmes in critical areas for the implementation of the Canal Extension Project. The number of universities and training institutes increased. The Committee notes that the Strategic Social Plan proposes the establishment of coordination machinery between the INADEH and the Ministry of Labour (MITRADEL) and their institutional strengthening with a view to the development of a system for the identification of demand for vocational training and employment services. The Committee requests the Government to include information in its next report on the manner in which INADEH and MITRADEL coordinate so as to ensure that education and training policies are in coherence with employment policy.

Participation of the social partners. The Committee notes that the Government is continuing to examine the possibility of reactivating the Tripartite Decent Work Commission. The Committee recalls the essential role played by social dialogue in employment policy and in the promotion of decent work. The Committee requests the Government to include detailed information in its next report on the progress achieved in the reactivation of the Tripartite Decent Work Commission and reiterates its interest in examining concrete information on the manner in which the social partners participate in the process of designing, formulating, implementing and reviewing employment policies, as required by Article 3 of the Convention.

The Committee hopes that the Government will make every effort to take the necessary action in the near future.

Observation (CEACR) - adopted 2011, published 101st ILC session (2012)

The Committee notes the detailed information and full documentation provided by the Government in October 2010 in reply to the comments made in 2009.

Articles 1 and 2 of the Convention. Coordination of employment policy with social and economic policy objectives. The Committee notes the National Strategic Plan for the period 2010–14, approved in December 2009, which contains a programme for economic growth and social development, accompanied by a financial programming and public investment plan. The National Strategic Plan focuses on four high-priority sectors: high added-value logistical services, tourism, high-margin agriculture and non-traditional financial services. Significant investment is envisaged in public infrastructure projects, such as the construction of the Metro in the city of Panama and the launching of private electricity generation projects. Up to May 2010, the economy had grown by 5.5 per cent under the stimulus of an increase in investment in public infrastructure and the dynamism of sectors such as construction, trade and transport, storage and telecommunications. The Committee invites the Government to include detailed information in its next report on the impact that the National Strategic Plan 2010–14 is having on the achievement of the objectives of the Convention.

Labour market trends. According to the data published by the ILO in Panorama Laboral 2010, the participation rate as of October 2010 was 63.5 per cent, the occupation rate was 59.4 per cent and the unemployment rate was 6.5 per cent. The Committee observes that women’s unemployment fell to 8.5 per cent, while men’s unemployment rose slightly to 5.3 per cent. The sectors in which there was net job creation in 2009 include, in particular, construction under the effect of hotel and tourism projects, and various public infrastructure works. These projects helped to mitigate the effects of the financial crisis on employment. The Government envisaged the creation of 500,000 new jobs by 2010 and the creation of 500,000 additional jobs, with a view to achieving full employment by the end of 2020. The Committee invites the Government to continue providing statistical information in its next report on the situation, level and trends of employment, unemployment and underemployment.

Panama Canal extension and employment creation. The Government considers that the Canal Extension Project will generate as many technical and artisanal jobs as professional posts connected with the planning, coordination and implementation of the various phases of the work. It is envisaged that the extension work will lead to the indirect creation of jobs in areas such as logistics, messaging, purchasing and supplies, financial services, customs procedures, security, housing, transport and food. The National Vocational Training and Human Development Skills Institute (INADEH) has launched training programmes in such areas as information and communication technologies, enterprise management, English, gastronomy, hotels and tourism. The Committee notes that, as of March 2010, a total of 6,274 jobs had been created derived from the Canal Extension Project. The Government envisages a greater impact on employment generation in the medium and long term as a result of the economic growth induced by the additional income generated by the extended canal and the economic activities generated by the increase in cargo and vessels transiting the canal. The Committee invites the Government to continue providing information on the results that are being achieved in terms of direct and indirect employment creation through the Canal Extension Project and other infrastructure investments.

International trade and its labour market impact. With regard to the impact of the free trade treaties in terms of the improvement of the labour market, the Government indicates that the conclusion of free trade treaties has a positive impact on legal regulations and international cooperation in terms of the exchange of information and support for human resources development. The Committee invites the Government to provide more specific information in its next report on the impact of trade policy on the demand for employment.

Employment promotion and vulnerable categories of workers. The Government indicates that 14 per cent of the population is in a situation of extreme poverty and that the authorities have formulated a Strategic Social Plan with a view to reducing poverty and social exclusion and creating opportunities for everyone, with particular emphasis on training and social inclusion. The Plan is focused on the provision of high-quality education and vocational training to improve the skills of workers in priority development sectors. The Committee invites the Government to provide information on the measures adopted to meet the needs of persons who are below the poverty line and to promote the development of income-generating opportunities.

Youth employment. The Government indicates in its report that youth unemployment is an alarming problem which has given rise to much attention in the public sector. The youth unemployment rate was 15.2 per cent in 2009. The Government adds that an analysis is being undertaken of the occupational situation and difficulties encountered by young persons in integrating the labour market. The programme “My First Job”, launched in July 2009, envisages the provision of training to over 20,000 young persons between the ages of 18 and 29 who lack the skills to compete on the labour market, including in the most vulnerable areas of the country. By the end of 2010, some 2,213 young persons who had been unemployed and were without work experience had entered into the labour market. The General Directorate of Employment is implementing the Labour Assistance and Integration Programme (PAIL), which offers grants for periods of up to three months of vocational adaptation in enterprises. As of July 2009, agreements had been concluded with 104 enterprises at the national level to hire 860 persons. The Committee requests the Government to provide data in its next report on the impact of the measures adopted in improving youth employability and in supporting and promoting the entrepreneurship initiatives of young persons.

Coordination of training and employment policies. The Government indicates that 6 per cent of GDP is invested in education. It recognizes that educational results, over and above quantitative progress in access to education and average schooling (94 per cent of the population have completed primary education) are still not satisfactory, particularly with regard to quality and equality of opportunity. In this respect, the Committee notes a considerable increase in the number of students enrolled in the INADEH, which offered 991 courses during the period between January and May 2010. Total enrolment rose to 21,217 students, of whom 6,576 obtained certificates. Furthermore, collaboration with other institutions at the national level resulted in the creation of new careers and university programmes in critical areas for the implementation of the Canal Extension Project. The number of universities and training institutes increased. The Committee notes that the Strategic Social Plan proposes the establishment of coordination machinery between the INADEH and the Ministry of Labour (MITRADEL) and their institutional strengthening with a view to the development of a system for the identification of demand for vocational training and employment services. The Committee requests the Government to include information in its next report on the manner in which INADEH and MITRADEL coordinate so as to ensure that education and training policies are in coherence with employment policy.

Participation of the social partners. The Committee notes that the Government is continuing to examine the possibility of reactivating the Tripartite Decent Work Commission. The Committee recalls the essential role played by social dialogue in employment policy and in the promotion of decent work. The Committee requests the Government to include detailed information in its next report on the progress achieved in the reactivation of the Tripartite Decent Work Commission and reiterates its interest in examining concrete information on the manner in which the social partners participate in the process of designing, formulating, implementing and reviewing employment policies, as required by Article 3 of the Convention.

Direct Request (CEACR) - adopted 2009, published 99th ILC session (2010)

The Committee notes the report and attachments to it received in June 2009 in reply to its previous comments and the complementary report received in November 2009. The Committee expresses appreciation of the global vision of employment policies adopted by the Government in the information provided.

1. Articles 1 and 2 of the Convention. Coordination of employment policy with social and economic policy objectives. The Government provides information on the progress achieved between 2004 and 2008 in the implementation of the five pillars of the Strategic Vision of Economic and Employment Growth. This progress included sustained growth of the economy (11.5 per cent in 2007) and the creation of almost 150,000 new jobs, resulting in a reduction of 50 percentage points in overall unemployment, placing Panama among the countries with the greatest fall in the unemployment rate in 2008. According to the data published by the ILO in Panorama Laboral 2008, this fall was greater in relation to women’s unemployment. Positive results were also achieved in the generation of current savings and the fiscal deficit of the Social Security Fund was converted into a surplus, which made it possible to increase investment in social expenditure and in infrastructure. These investments in turn benefited vulnerable categories of the population and resulted in a fall in poverty indicators. The Government states that it has initiated the 2009–14 Five-year Programme based on development axes that include the reduction of poverty and unemployment. The Committee requests the Government to provide with its next report the policy documents adopted ensuring the continued stimulation of growth and economic development through an active policy designed to promote full and productive employment.

2. The Committee notes the training measures adopted in the context of the work for the expansion of the Panama Canal, carried out by the National Vocational Training and Human Development Skills Institute (INADEH) and the Panama Canal Authority (ACP). The Committee invites the Government to include information in its report on the employment generated by the work for the expansion of the Canal and the impact achieved by the training measures promoted by the INADEH and the ACP.

3. International trade and its labour market impact. The Government reports the essential role played by trade treaties in the development strategy adopted by Panama. The Committee notes the information provided by the Government on the tariff measures and investment schemes introduced by trade treaties. The Panama–Taiwan Free Trade Agreement has resulted in the creation of 450 new jobs and has contributed to the training of students and the transfer of technology. The Government also provides a detailed description of the Labour Cooperation Agreement concluded between Panama and Chile and of the labour chapter of the United States–Panama Trade Promotion Agreement (TPC), which includes a mechanism for labour cooperation and skills development. The Committee invites the Government to expand in its next report the information provided concerning the impact of free trade treaties on improvements in the labour market, and on the manner in which the implementation of their labour chapters contribute to the vocational and technical training of the Panamanian labour force.

4. Employment promotion and vulnerable groups. The Committee notes the transversal and inter-ministerial action taken with a view to promoting youth employment in the framework of the Youth Employment Plan and the “My First Job” programme. The Government also provides detailed information in its report on the results of the measures for the integration of persons with disabilities into the labour market through awareness raising, guidance, training and employment placement measures adopted by MITRADEL. The Committee invites the Government to provide information with its next report on the results achieved in terms of the integration into the labour market of vulnerable groups by the programmes undertaken by MITRADEL. Please also indicate whether the representatives of these categories were consulted in the design and implementation of the measures carried out.

5. Training policy and the promotion of full employment. In reply to its comments, the Committee notes the information provided on the results of the National Training Plan, 2007, in the context of which 9,286 courses were provided in the agricultural and stock-raising, industrial, commercial and service sectors, with the participation of 188,789 workers, the majority of whom were women. During the course of 2008, follow-up measures were taken for those who had completed training in priority areas. The Committee invites the Government to continue providing information on the measures adopted by the INADEH and the manner in which education and training policies are coordinated with employment policy.

6. In reply to the previous comments, the Committee notes the activities undertaken by the Labour Market Observatory (OML) with a view to identifying skill needs in the country, as well as the strategic alliances of the Observatory with other government agencies in Panama with a view to establishing an information network on future labour market trends in the country. The Committee requests the Government to provide information in its next report on the manner in which the data compiled covering the labour market has contributed to reviewing the employment policy measures adopted. Please also indicate the manner in which, “within the framework of a coordinated economic and social policy”, the social partners also participate in the process of reviewing employment policy measures.

7. Article 3. Participation of the social partners. The Committee notes the conclusion of the Tripartite Agreement for the Adoption of the Decent Work Programme in Panama, as well as the establishment of the Tripartite National Committee of the Panama Decent Work Programme and the preparation of a draft text to modernize the Basic Act respecting MITRADEL. The Committee requests the Government to provide information in its next report on the progress achieved by the Decent Work Programme in relation to employment policy. The Committee reiterates its interest in receiving information on the inclusion of representatives of the most vulnerable categories (such as those working in the rural sector and in the informal economy) in consultations on employment policy, as required by the Convention.

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

The Committee notes that the Government’s report has not been received. It hopes that a report will be supplied for examination by the Committee at its next session and that it will contain full information on the matters raised in its previous direct request, which read as follows:

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.

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

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.

Direct Request (CEACR) - adopted 2006, published 96th ILC session (2007)

The Committee notes that the Government’s report has not been received. It hopes that a report will be supplied for examination by the Committee at its next session and that it will contain full information on the matters raised in its 2005 direct request, which read as follows:

1. The Committee notes the Government’s report for the period ending in October 2004. In its direct request of 2003, the Committee observed that the unemployment rate had reached 13.7 per cent in 2001: in 2003, the unemployment rate fell to 12.7 per cent (13.5 per cent in 2002) thanks to an increase in employment, while the percentage of the economically active population of working age had remained constant. The unemployment rate fell more rapidly in urban areas than in rural areas. The new Government, which came into power on 1 September 2004, aims, inter alia, to achieve sustained economic growth in order to reduce the high level of unemployment, consolidate public finances, modernize the State, promote the competitiveness and development of the private sector and modernize basic infrastructure. The Committee is pleased that the new Government has decided to take advantage of ILO technical cooperation as the Government endeavours to update the proposals in the employment policies revision exercise. The Committee requests that the Government, in its next report, indicate the results, in terms of employment creation, that have been achieved by organizing and integrating in a coherent manner the work and training programmes and services of the Ministry of Labour with other public programmes such as those of the National Vocational Training Institute (INAFORP) and other non-governmental sector programmes (Labour Foundation, Private Sector Council for Educational Assistance). The Committee reiterates that it would like detailed information on the measures adopted to develop infrastructure and their impact on the creation of employment, and on the manner in which negotiated trade agreements influence the labour market (Article 1 of the Convention).

2. The Committee notes the information provided on the programmes implemented by the General Employment Directorate and the Job Training Bureau. The Government has provided detailed information on the activities carried out within the employers’ self-management programme. The Committee reiterates the importance of including in the report information on the results of programmes implemented to create productive and high-quality work. The Committee would also welcome information on the manner in which the most vulnerable groups – women heads of household, young persons entering the labour market, older workers, workers in the informal sector, rural and indigenous populations – have benefited from such programmes. In this regard, the Committee asks that the Government include in its report information on the impact on employment of the measures adopted to promote economic development and describe the manner in which it ensures that the principal employment policy measures decided on are kept under review within the framework of a coordinated economic and social policy, as required under Article 2 of the Convention.

3. The Committee notes with interest the progress made by a pilot project to support the development of labour skills in Panama and hopes that the Government will continue to include information in its report on the programmes and projects that are carried out by the General Employment Directorate and the National Vocational Training Institute (INAFORP) to ensure the coordination of education and vocational training policies with employment policy. Such coordination is vital if each worker is to have the opportunity to acquire the training needed to take up a suitable job and use the training and skills that he possesses in that job.

4. Article 3. The Committee requests that the Government include in its next report updated information on the consultations held within the framework of the Labour Foundation and the initiatives taken with the social partners to contribute to the formulation and implementation of the employment policy. The Government could also consider including representatives of the most vulnerable groups, referred to in paragraph 2 of this direct request, in the consultations required by the Convention when formulating and seeking support for the implementation of employment policy programmes and measures.

Direct Request (CEACR) - adopted 2005, published 95th ILC session (2006)

1. The Committee notes the Government’s report for the period ending in October 2004. In its direct request of 2003, the Committee observed that the unemployment rate had reached 13.7 per cent in 2001: in 2003, the unemployment rate fell to 12.7 per cent (13.5 per cent in 2002) thanks to an increase in employment, while the percentage of the economically active population of working age had remained constant. The unemployment rate fell more rapidly in urban areas than in rural areas. The new Government, which came into power on 1 September 2004, aims, inter alia, to achieve sustained economic growth in order to reduce the high level of unemployment, consolidate public finances, modernize the State, promote the competitiveness and development of the private sector and modernize basic infrastructure. The Committee is pleased that the new Government has decided to take advantage of ILO technical cooperation as the Government endeavours to update the proposals in the employment policies revision exercise. The Committee requests that the Government, in its next report, indicate the results, in terms of employment creation, that have been achieved by organizing and integrating in a coherent manner the work and training programmes and services of the Ministry of Labour with other public programmes such as those of the National Vocational Training Institute (INAFORP) and other non-governmental sector programmes (Labour Foundation, Private Sector Council for Educational Assistance). The Committee reiterates that it would like detailed information on the measures adopted to develop infrastructure and their impact on the creation of employment, and on the manner in which negotiated trade agreements influence the labour market (Article 1 of the Convention).

2. The Committee notes the information provided on the programmes implemented by the General Employment Directorate and the Job Training Bureau. The Government has provided detailed information on the activities carried out within the employers’ self-management programme. The Committee reiterates the importance of including in the report information on the results of programmes implemented to create productive and high-quality work. The Committee would also welcome information on the manner in which the most vulnerable groups - women heads of household, young persons entering the labour market, older workers, workers in the informal sector, rural and indigenous populations - have benefited from such programmes. In this regard, the Committee asks that the Government include in its report information on the impact on employment of the measures adopted to promote economic development and describe the manner in which it ensures that the principal employment policy measures decided on are kept under review within the framework of a coordinated economic and social policy, as required under Article 2 of the Convention.

3. The Committee notes with interest the progress made by a pilot project to support the development of labour skills in Panama and hopes that the Government will continue to include information in its report on the programmes and projects that are carried out by the General Employment Directorate and the National Vocational Training Institute (INAFORP) to ensure the coordination of education and vocational training policies with employment policy. Such coordination is vital if each worker is to have the opportunity to acquire the training needed to take up a suitable job and use the training and skills that he possesses in that job.

4. Article 3. The Committee requests that the Government include in its next report updated information on the consultations held within the framework of the Labour Foundation and the initiatives taken with the social partners to contribute to the formulation and implementation of the employment policy. The Government could also consider including representatives of the most vulnerable groups, referred to in paragraph 2 of this direct request, in the consultations required by the Convention when formulating and seeking support for the implementation of employment policy programmes and measures.

Direct Request (CEACR) - adopted 2004, published 93rd ILC session (2005)

The Committee notes that the Government’s report has not been received. It hopes that a report will be supplied for examination by the Committee at its next session and that it will contain full information on the matters raised in its 2003 direct request, which read as follows:

1. The Committee notes with interest the detailed and complete information provided by the Government in reply to the direct request of 2001 and the documentation that once again adds much information to the report. The Government pursues a policy and strategy of social development to promote sustainable human development and achieve a systematic and lasting reduction in poverty, with the integration of groups that are excluded from development, and a more equitable distribution of wealth. In 2001, the labour market was not very dynamic (the unemployment rate reached 13.7 per cent) and the sectors worst affected were those which generate employment (commerce, the banana industry and construction). The report refers to proposals to implement macro projects which could generate employment (a third set of canal locks, for example) or to promote increased exports, for example, through the negotiation of free trade agreements. The Committee requests that the Government continue to provide information on the results achieved in the creation of employment through the social development policy and strategy in accordance with the priorities set for the period 2000-04. Please also provide information on the measures adopted to develop infrastructure and their impact on employment creation, and on the manner in which trade agreements influence the labour market (Article 1 of the Convention).

2. The Government indicates that the National Dialogue for Economic Recovery, initiated in October 2001, facilitated the adoption of Act No. 20 of 7 May 2002, which establishes measures for economic recovery and fiscal responsibility. The Committee would be grateful if the Government would continue to provide information on the impact on employment of the measures adopted to promote economic development. In this respect, the Committee would be grateful if the Government would describe the manner in which it ensures that the principal employment policy measures decided on are kept under review within the framework of a coordinated economic and social policy, as required by Article 2 of the Convention.

3. The Committee also notes with interest that the recommendations resulting from the analysis and revision of employment policies (ARPE) were debated in the round-table meetings on social insurance funds, economic recovery and education. Furthermore, efforts were made to modernize and update the public employment service in collaboration with ILO projects (Modernizing the Labour Administrations in Central America - MATAC) and the Latin American Labour Information and Analyses System (SIAL)). The Committee would be grateful if the Government would continue to provide information on ILO technical assistance relating to the formulation and implementation of policies and measures to promote employment.

4. In this respect, the Committee also trusts that the Government will continue to include information in its report on the programmes and projects carried out by the General Employment Directorate and by the National Vocational Training Institute, with an indication of the impact of these programmes on the creation of productive and high-quality employment. The Committee would also be grateful to be provided with information on the manner in which the most vulnerable groups - women heads of household, young persons entering the labour market, older workers, workers in the informal sector, rural and indigenous populations - have benefited from such programmes.

5. Article 3. The Committee notes with interest the bipartite consultations held in the framework of the Labour Foundation and the initiatives taken to contribute to the formulation and implementation of the employment policy. The Government could also consider including representatives of the most vulnerable groups referred to above in the consultations on employment policy when formulating and seeking support for the implementation of the programmes and measures required by the Convention.

Direct Request (CEACR) - adopted 2003, published 92nd ILC session (2004)

1. The Committee notes with interest the detailed and complete information provided by the Government in reply to the direct request of 2001 and the documentation that once again adds much information to the report. The Government pursues a policy and strategy of social development to promote sustainable human development and achieve a systematic and lasting reduction in poverty, with the integration of groups that are excluded from development, and a more equitable distribution of wealth. In 2001, the labour market was not very dynamic (the unemployment rate reached 13.7 per cent) and the sectors worst affected were those which generate employment (commerce, the banana industry and construction). The report refers to proposals to implement macro projects which could generate employment (a third set of canal locks, for example) or to promote increased exports, for example, through the negotiation of free trade agreements. The Committee requests that the Government continue to provide information on the results achieved in the creation of employment through the social development policy and strategy in accordance with the priorities set for the period 2000-04. Please also provide information on the measures adopted to develop infrastructure and their impact on employment creation, and on the manner in which trade agreements influence the labour market (Article 1 of the Convention).

2. The Government indicates that the National Dialogue for Economic Recovery, initiated in October 2001, facilitated the adoption of Act No. 20 of 7 May 2002, which establishes measures for economic recovery and fiscal responsibility. The Committee would be grateful if the Government would continue to provide information on the impact on employment of the measures adopted to promote economic development. In this respect, the Committee would be grateful if the Government would describe the manner in which it ensures that the principal employment policy measures decided on are kept under review within the framework of a coordinated economic and social policy, as required by Article 2 of the Convention.

3. The Committee also notes with interest that the recommendations resulting from the analysis and revision of employment policies (ARPE) were debated in the round-table meetings on social insurance funds, economic recovery and education. Furthermore, efforts were made to modernize and update the public employment service in collaboration with ILO projects (Modernizing the Labour Administrations in Central America - MATAC) and the Latin American Labour Information and Analyses System (SIAL)). The Committee would be grateful if the Government would continue to provide information on ILO technical assistance relating to the formulation and implementation of policies and measures to promote employment.

4. In this respect, the Committee also trusts that the Government will continue to include information in its report on the programmes and projects carried out by the General Employment Directorate and by the National Vocational Training Institute, with an indication of the impact of these programmes on the creation of productive and high-quality employment. The Committee would also be grateful to be provided with information on the manner in which the most vulnerable groups - women heads of household, young persons entering the labour market, older workers, workers in the informal sector, rural and indigenous populations - have benefited from such programmes.

5. Article 3. The Committee notes with interest the bipartite consultations held in the framework of the Labour Foundation and the initiatives taken to contribute to the formulation and implementation of the employment policy. The Government could also consider including representatives of the most vulnerable groups referred to above in the consultations on employment policy when formulating and seeking support for the implementation of the programmes and measures required by the Convention.

Direct Request (CEACR) - adopted 2001, published 90th ILC session (2002)

1. Further to the direct request of 1998, the Government has submitted a detailed and full report for the period ending 15 October 2000. The Committee notes with interest the information contained in the report, as well as the relevant and timely documentation attached. The Committee notes in particular the National Government’s document "Social Development Policy and Strategy 2000 04", which explains that the first strategic approach to correcting the structural and cyclical causes of poverty in Panama is massive generation of productive jobs so that Panamanian families have access to a stable and adequate income. According to the statistics sent by the Government, the unemployment rate dropped from 13.5 per cent to 11.6 per cent between August 1998 and August 1999, but rose again to 13.3 per cent in August 2000. The Committee would be grateful if in its next report the Government would state whether particular difficulties have arisen in reaching the employment objectives set in the Social Development Policy and Strategy, 2000 2004, and the Plan for economic, social and financial development with investment in human capital (Articles 1 and 2 of the Convention).

2. The Government indicates in its report that two track development has emerged in Panama in which the good national averages hide vast disparities in well being and access to opportunities. The Committee notes that urban poverty accounts for 23 per cent of total poverty (230,000 persons), non indigenous rural poverty accounts for 58 per cent (590,000 thousand persons), and indigenous poverty for 19 per cent (197,000 persons). The Committee welcomes the fact that, in October 2000, the ILO embarked on an analysis and revision of employment policies (ARPE), the aim of which is to help Panama with a substantive evaluation of the achievements and effectiveness of its economic and social policies and their impact on the labour market. The Committee trusts that in its next report the Government will be in a position to indicate the measures taken as a result of the recommendations and proposals of the ARPE to promote decent work, improve conditions for employability and alleviate poverty.

3. The Committee requests that the Government also provide information on the measures adopted to take account of the difficulties of certain categories of workers in finding lasting employment (women, young people, elderly workers, workers in precarious employment and the informal sector, indigenous people).

4. The Committee notes the various programmes and projects being implemented under the auspices of the General Directorate of Employment of the Ministry of Labour (Employment Fair Project, Employers Self management Programme, Micro enterprise Credit Programme, Electronic Labour Exchange). It requests that the Government include in its next report an evaluation on the lasting employment generated as a result of the implementation of the above programmes.

5. With regard to the Labour Training Management programmes and projects designed to train the unemployed, the Committee would be grateful if the Government would indicate the results achieved, in terms of labour market integration of the trainees, by the various projects mentioned in the report. The Committee notes with interest the document of the National Vocational Training Institute (INAFORP) "Measures and actions implemented in the framework of the Employment Policy Convention, 1997 2000" and would be grateful if the Government would continue to send similar documents. Please give further details of the coordination planned between the activities of INAFORP and those of the Panamanian Training and Employment System. The Committee would once again suggest considering the Human Resources Development Convention, 1975 (No. 142), which contains appropriate provisions and guidelines for the formulation and application of employment policy measures such that all workers have access to requisite training for a suitable job in which they can use their training and skills.

6. The Committee notes that in 1999 three export processing zones were approved which would provide 352 direct and 40 indirect jobs. The Committee requests once again information on how productive and lasting employment is created in the multi sectoral export zones.

7. Article 3. The Committee notes the agreement on cooperation between the Ministry of Labour and Employment Development and the Labour Foundation concluded on 14 September 2000 with a view to promoting a strategic plan and strengthening and promoting the development of workers and employers. The Committee hopes that in its next report the Government will be in a position to provide examples of the manner in which the representatives of employers and workers have been consulted and in which their support has been enlisted in the implementation of the policies and strategies cited above, particularly in the context of the ARPE. Please also provide information on the consultations held with representatives of other sectors of the economically active population such as workers in the rural sector and the informal sector.

Direct Request (CEACR) - adopted 1998, published 87th ILC session (1999)

1. The Committee notes the Government's detailed report for the period March 1995 to February 1998. The Government states that it has not formulated a specific employment policy of the type referred to in Articles 1 and 2 of the Convention. In describing its strategy with regard to social policy, the Government refers to: the strengthening of market elements aimed at creating sustained and broadly based growth; the development of activities aimed at improving the efficiency of social expenditure in order to improve the quality of the social services provided by the State; the concentration of social expenditure and investment on the groups most in need of it; and improved coordination of social policies and collaboration between the Government and civil institutions (Cabinet Resolution No. 222 of 19 September 1997 concerning social development with economic efficiency). The Committee would be grateful if the Government in its future reports would continue to provide copies of the documents used to formulate employment policy. According to the Convention, employment policy must be pursued as a major goal, an active policy designed to promote full, productive and freely chosen employment. To that end, the methods used in pursuance of the employment policy must be part of a coordinated economic and social policy in such a way that the impact on employment of other measures adopted to promote economic development must be taken into consideration (Articles 1 and 2). In this regard, the Committee would be grateful if the Government in its next report would also indicate whether its main employment policy measures -- for example, measures aimed at promoting employment as part of a programme of public policies, investment policy, fiscal policy -- have been subjected to regular review and coordinated with other economic and social policy measures.

2. The Committee notes that according to the preliminary results of the survey shown in the Government's report, the unemployment rate for August 1997 was 13.2 per cent following a period of gradual decline (from 14.3 per cent in August 1996). The Government states that as the economic reforms continue to produce benefits, the economy will become more dynamic and the expansion of employment will have a positive impact on the reduction of open unemployment. In this context, the Committee trusts that the difficulties experienced by certain categories of workers in finding stable employment will be taken into account (for example, women, young people, older workers, the long-term unemployed, migrant workers and workers affected by restructuring). The Government is asked to provide information in its next report on the situation in the labour market for the above-mentioned categories. At the same time, it is asked to continue to provide information on the results of current or future programmes of the Ministry of Labour and Social Development.

3. The Committee notes Legislative Decree No. 4 of 1997 concerning the dual vocational training system, the purpose of which is to set up training initiatives for occupations of importance to national development. It also notes with interest the training activities of the National Institute of Vocational Training (INAFORP) and the efforts to coordinate teaching and training policies with a view to improving employment opportunities. The Government is asked to indicate in its future reports if there have been any difficulties in achieving the objectives set out in the Ten-year strategy for the modernization of education in Panama (1997-2006). It is also asked to indicate the results achieved, in terms of integration of the beneficiaries in employment, by the following programmes: the System of training and employment based on market requirements; the System of demand-oriented training and employment; the Programme of labour training (implemented in collaboration with the Inter-American Development Bank); and the School for enterprises (implemented by the Ministry of Labour with the help of the Andalusia Assembly). The Committee again draws the Government's attention to the Human Resources Development Convention, 1975 (No. 142), and Recommendation (No. 150) which contain suitable provisions and guidelines concerning the formulation and application of employment policy measures to allow all workers to acquire the necessary training needed for their chosen employment and to make use of their training and aptitudes in their employment (see also the Committee's General Survey of 1991).

4. The Committee notes the employment possibilities opened up by the development of multisectoral export processing zones. Recalling its concern for the application of Conventions by undertakings in export processing zones, the Committee trusts that the Government will, if it considers it appropriate, have recourse to the experience acquired in the field by the competent services of the ILO and that its next report will continue to include information on conditions for the creation of productive and lasting employment in multisectoral export zones.

5. In reply to earlier comments, the Government states that consultation and dialogue with the country's productive sectors constitute the principle means for ensuring that the possible impact on employment of these measures is taken into account. It has provided documentation on the activities of the Labour Foundation which include the creation on a bipartite basis of an electronic labour exchange and the launch of vocational and technical training programmes. The Committee would be grateful if the Government would continue to provide information on its consultations on employment policy with representatives of employers' and workers' organizations. The Government is also asked to furnish information on consultations undertaken by the Government with representatives of other sectors of the economically active population such as those working in the rural sector and the informal sector and to provide information on any other progress that may have been made with regard to consultations as required under the terms of Article 3 of the Convention.

Direct Request (CEACR) - adopted 1997, published 86th ILC session (1998)

The Committee notes with regret that the Government's report has not been received. It hopes that a report will be supplied for examination by the Committee at its next session and that it will contain full information on the matters raised in its previous direct request, which read as follows:

1. The Committee notes the Government's detailed report in reply to the comments it made in 1994, relating to the period between July 1992 and March 1995.

2. The Government confirms -- in the light of statistical data compiled and sent -- that unemployment in Panama is caused by structural factors rather than by the current economic situation. It also recognizes that the business sector has given priority to adjusting profit margins, improving productivity and using existing capacity to increase employment levels. In 1994, the unemployment level reached 13.8 per cent and was somewhat lower than the average unemployment rate for the 1990s (which is situated at 14.2 per cent). On this matter, the Committee takes note that in formulating the new economic and social policy, the growing problem of poverty has been recognized and the role which employment plays in overcoming it. The Government considers that the highest level of job creation must come from the private sector, especially in activities involving high productivity and technological development as is clear from the document "Public policies for integral development: Social development with economic efficiency" (September 1994), sent by the Government with its report. The Committee requests the Government to continue sending it documents formulating its employment policy, in accordance with the wider concept of such a policy required by Articles 1 and 2 of the Convention, specifying if there have been particular difficulties in developing the approaches proposed. It would be grateful if the Government would indicate whether the main measures in employment policy have been the subject of some kind of regular and coordinated review with the other economic and social policy measures.

3. The Government lists the measures for global and sectoral development (among which it mentions the promotion of investment in the system of multisectoral export zones) and action directed at helping the most vulnerable groups. The Committee notes with interest the support given by the ILO in instituting a programme to assist the integration into the labour market of disabled persons, the Business Sponsors' Programme (for young people and minors in difficult circumstances), in favour of training women to improve their opportunities in the labour market, and the projects aimed at establishing micro-enterprises in communities. The Committee requests the Government to continue sending information on the results achieved by projects in progress or planned and to indicate, in particular, actions undertaken as a consequence of them.

4. The Committee notes with interest the ratification of Convention No. 159 concerning Vocational Rehabilitation and Employment (Disabled Persons), 1983, and hopes that the Government will include in its first report on the application of this Convention indications on the measures designed to meet the needs of disabled workers.

5. With reference to its previous comments, the Committee notes the detailed information on the activities of the National Vocational Training Institute (INAFORP), which will be responsible for formulating a plan directed at medium-term policies and strategies for integration with the community. Similarly, it notes the indications on the results produced by the training fellowships programme. The Committee would be grateful if the Government would include in its next report indications on the manner in which the plan has been implemented and the results obtained to coordinate the education and occupational training policies -- as described in the document of September 1994 -- with prospective employment opportunities. The Committee suggests once again that consideration be given to the 1975 instruments on human resources development, which contain provisions and appropriate guidelines for the formulation and application of employment policy measures so that all workers can acquire the necessary training to occupy a job which suits them, and to use in their work the training and faculties they possess (see also the General Survey presented by the Committee in 1991).

6. In reply to previous requests, the Government states that the "dialogue on labour" which has concluded is not exclusively on labour but that, in view of the serious internal social and economic problems which are confronting the country with great external challenges stemming from the transformation and reordering of the world economy, the new Government has extended the dialogue and the number of those participating in it to national level. The Committee notes that the Development Objectives Pact of 6 December 1994, of which a copy is attached to the Government's report, has provided specific measures designed, among other important objectives, to promote employment and to formulate a new educational system which prepares for the challenges of globalization and sustainable development, to establish a fund for agricultural and industrial modernization and transformation, and to support effectively the employment training programme. The Committee can but observe with interest the decision to broaden the scope of the dialogue, as stated by the Government in its report, to include topics connected with the country's economic and social policy, which falls closely in line with the requirements of Article 3 of the Convention. Dialogue in the social and labour spheres, as in this case, can also cover fields allowing the inclusion of employers' and workers' representatives in the advisory commission of the Ministry of Trade and Industry for the accession of Panama to the GATT and the participation of the Labour Foundation in the process of negotiating the Panamanian external debt. For their part, the business sector and the trade unions support the Development Objectives Pact, and participate with the Government in programmes aimed at obtaining new investment for the purpose of creating productive employment sources. The Committee requests the Government to send, with its next report, detailed information on the progress made in the framework of the Development Objectives Pact, and of institutions such as the Labour Foundation, as then it can ascertain the manner in which the consultations required under Article 3 of the Convention are conducted.

7. With regard to a point which the Committee has been making for several years on the impact on productive and freely chosen employment of the measures adopted to promote the establishment of multisectoral export zones, the Government states that the effects have not yet reached the hoped-for levels since the zones are at the organization stage. The Government adds that the effect will be more obvious when the Labour Code becomes more flexible. The Committee requests the Government to refer on this point to its previous comments on the application of labour legislation and ratified Conventions in the export free zones. It trusts that the Government will resort, if considered appropriate, to the experience of the Office in this matter and that its next report will include indications on the conditions of job creation in the multisectoral export zones.

Direct Request (CEACR) - adopted 1996, published 85th ILC session (1997)

The Committee notes that the Government's report has not been received. It hopes that a report will be supplied for examination by the Committee at its next session and that it will contain full information on the matters raised in its previous direct request, which read as follows:

1. The Committee notes the Government's detailed report in reply to the comments it made in 1994, relating to the period between July 1992 and March 1995.

2. The Government confirms - in the light of statistical data compiled and sent - that unemployment in Panama is caused by structural factors rather than by the current economic situation. It also recognizes that the business sector has given priority to adjusting profit margins, improving productivity and using existing capacity to increase employment levels. In 1994, the unemployment level reached 13.8 per cent and was somewhat lower than the average unemployment rate for the 1990s (which is situated at 14.2 per cent). On this matter, the Committee takes note that in formulating the new economic and social policy, the growing problem of poverty has been recognized and the role which employment plays in overcoming it. The Government considers that the highest level of job creation must come from the private sector, especially in activities involving high productivity and technological development as is clear from the document "Public policies for integral development: Social development with economic efficiency" (September 1994), sent by the Government with its report. The Committee requests the Government to continue sending it documents formulating its employment policy, in accordance with the wider concept of such a policy required by Articles 1 and 2 of the Convention, specifying if there have been particular difficulties in developing the approaches proposed. It would be grateful if the Government would indicate whether the main measures in employment policy have been the subject of some kind of regular and coordinated review with the other economic and social policy measures.

3. The Government lists the measures for global and sectoral development (among which it mentions the promotion of investment in the system of multisectoral export zones) and action directed at helping the most vulnerable groups. The Committee notes with interest the support given by the ILO in instituting a programme to assist the integration into the labour market of disabled persons, the Business Sponsors' Programme (for young people and minors in difficult circumstances), in favour of training women to improve their opportunities in the labour market, and the projects aimed at establishing micro-enterprises in communities. The Committee requests the Government to continue sending information on the results achieved by projects in progress or planned and to indicate, in particular, actions undertaken as a consequence of them.

4. The Committee notes with interest the ratification of Convention No. 159 concerning Vocational Rehabilitation and Employment (Disabled Persons), 1983, and hopes that the Government will include in its first report on the application of this Convention indications on the measures designed to meet the needs of disabled workers.

5. With reference to its previous comments, the Committee notes the detailed information on the activities of the National Vocational Training Institute (INAFORP), which will be responsible for formulating a plan directed at medium-term policies and strategies for integration with the community. Similarly, it notes the indications on the results produced by the training fellowships programme. The Committee would be grateful if the Government would include in its next report indications on the manner in which the plan has been implemented and the results obtained to coordinate the education and occupational training policies - as described in the document of September 1994 - with prospective employment opportunities. The Committee suggests once again that consideration be given to the 1975 instruments on human resources development, which contain provisions and appropriate guidelines for the formulation and application of employment policy measures so that all workers can acquire the necessary training to occupy a job which suits them, and to use in their work the training and faculties they possess (see also the General Survey presented by the Committee in 1991).

6. In reply to previous requests, the Government states that the "dialogue on labour" which has concluded is not exclusively on labour but that, in view of the serious internal social and economic problems which are confronting the country with great external challenges stemming from the transformation and reordering of the world economy, the new Government has extended the dialogue and the number of those participating in it to national level. The Committee notes that the Development Objectives Pact of 6 December 1994, of which a copy is attached to the Government's report, has provided specific measures designed, among other important objectives, to promote employment and to formulate a new educational system which prepares for the challenges of globalization and sustainable development, to establish a fund for agricultural and industrial modernization and transformation, and to support effectively the employment training programme. The Committee can but observe with interest the decision to broaden the scope of the dialogue, as stated by the Government in its report, to include topics connected with the country's economic and social policy, which falls closely in line with the requirements of Article 3 of the Convention. Dialogue in the social and labour spheres, as in this case, can also cover fields allowing the inclusion of employers' and workers' representatives in the advisory commission of the Ministry of Trade and Industry for the accession of Panama to the GATT and the participation of the Labour Foundation in the process of negotiating the Panamanian external debt. For their part, the business sector and the trade unions support the Development Objectives Pact, and participate with the Government in programmes aimed at obtaining new investment for the purpose of creating productive employment sources. The Committee requests the Government to send, with its next report, detailed information on the progress made in the framework of the Development Objectives Pact, and of institutions such as the Labour Foundation, as then it can ascertain the manner in which the consultations required under Article 3 of the Convention are conducted.

7. With regard to a point which the Committee has been making for several years on the impact on productive and freely chosen employment of the measures adopted to promote the establishment of multisectoral export zones, the Government states that the effects have not yet reached the hoped-for levels since the zones are at the organization stage. The Government adds that the effect will be more obvious when the Labour Code becomes more flexible. The Committee requests the Government to refer on this point to its previous comments on the application of labour legislation and ratified Conventions in the export free zones. It trusts that the Government will resort, if considered appropriate, to the experience of the Office in this matter and that its next report will include indications on the conditions of job creation in the multisectoral export zones.

Direct Request (CEACR) - adopted 1995, published 83rd ILC session (1996)

1. The Committee notes the Government's detailed report in reply to the comments it made in 1994, relating to the period between July 1992 and March 1995.

2. The Government confirms - in the light of statistical data compiled and sent - that unemployment in Panama is caused by structural factors rather than by the current economic situation. It also recognizes that the business sector has given priority to adjusting profit margins, improving productivity and using existing capacity to increase employment levels. In 1994, the unemployment level reached 13.8 per cent and was somewhat lower than the average unemployment rate for the 1990s (which is situated at 14.2 per cent). On this matter, the Committee takes note that in formulating the new economic and social policy, the growing problem of poverty has been recognized and the role which employment plays in overcoming it. The Government considers that the highest level of job creation must come from the private sector, especially in activities involving high productivity and technological development as is clear from the document "Public policies for integral development: Social development with economic efficiency" (September 1994), sent by the Government with its report. The Committee requests the Government to continue sending it documents formulating its employment policy, in accordance with the wider concept of such a policy required by Articles 1 and 2 of the Convention, specifying if there have been particular difficulties in developing the approaches proposed. It would be grateful if the Government would indicate whether the main measures in employment policy have been the subject of some kind of regular and coordinated review with the other economic and social policy measures.

3. The Government lists the measures for global and sectoral development (among which it mentions the promotion of investment in the system of multisectoral export zones) and action directed at helping the most vulnerable groups. The Committee notes with interest the support given by the ILO in instituting a programme to assist the integration into the labour market of disabled persons, the Business Sponsors' Programme (for young people and minors in difficult circumstances), in favour of training women to improve their opportunities in the labour market, and the projects aimed at establishing micro-enterprises in communities. The Committee requests the Government to continue sending information on the results achieved by projects in progress or planned and to indicate, in particular, actions undertaken as a consequence of them.

4. The Committee notes with interest the ratification of Convention No. 159 concerning Vocational Rehabilitation and Employment (Disabled Persons), 1983, and hopes that the Government will include in its first report on the application of this Convention indications on the measures designed to meet the needs of disabled workers.

5. With reference to its previous comments, the Committee notes the detailed information on the activities of the National Vocational Training Institute (INAFORP), which will be responsible for formulating a plan directed at medium-term policies and strategies for integration with the community. Similarly, it notes the indications on the results produced by the training fellowships programme. The Committee would be grateful if the Government would include in its next report indications on the manner in which the plan has been implemented and the results obtained to coordinate the education and occupational training policies - as described in the document of September 1994 - with prospective employment opportunities. The Committee suggests once again that consideration be given to the 1975 instruments on human resources development, which contain provisions and appropriate guidelines for the formulation and application of employment policy measures so that all workers can acquire the necessary training to occupy a job which suits them, and to use in their work the training and faculties they possess (see also the General Survey presented by the Committee in 1991).

6. In reply to previous requests, the Government states that the "dialogue on labour" which has concluded is not exclusively on labour but that, in view of the serious internal social and economic problems which are confronting the country with great external challenges stemming from the transformation and reordering of the world economy, the new Government has extended the dialogue and the number of those participating in it to national level. The Committee notes that the Development Objectives Pact of 6 December 1994, of which a copy is attached to the Government's report, has provided specific measures designed, among other important objectives, to promote employment and to formulate a new educational system which prepares for the challenges of globalization and sustainable development, to establish a fund for agricultural and industrial modernization and transformation, and to support effectively the employment training programme. The Committee can but observe with interest the decision to broaden the scope of the dialogue, as stated by the Government in its report, to include topics connected with the country's economic and social policy, which falls closely in line with the requirements of Article 3 of the Convention. Dialogue in the social and labour spheres, as in this case, can also cover fields allowing the inclusion of employers' and workers' representatives in the advisory commission of the Ministry of Trade and Industry for the accession of Panama to the GATT and the participation of the Labour Foundation in the process of negotiating the Panamanian external debt. For their part, the business sector and the trade unions support the Development Objectives Pact, and participate with the Government in programmes aimed at obtaining new investment for the purpose of creating productive employment sources. The Committee requests the Government to send, with its next report, detailed information on the progress made in the framework of the Development Objectives Pact, and of institutions such as the Labour Foundation, as then it can ascertain the manner in which the consultations required under Article 3 of the Convention are conducted.

7. With regard to a point which the Committee has been making for several years on the impact on productive and freely chosen employment of the measures adopted to promote the establishment of multisectoral export zones, the Government states that the effects have not yet reached the hoped-for levels since the zones are at the organization stage. The Government adds that the effect will be more obvious when the Labour Code becomes more flexible. The Committee requests the Government to refer on this point to its previous comments on the application of labour legislation and ratified Conventions in the export free zones. It trusts that the Government will resort, if considered appropriate, to the experience of the Office in this matter and that its next report will include indications on the conditions of job creation in the multisectoral export zones.

Direct Request (CEACR) - adopted 1995, published 82nd ILC session (1995)

The Committee notes that the Government's report has not been received. It hopes that a report will be supplied for examination by the Committee at its next session and that it will contain full information on the matters raised in its previous direct request, which read as follows:

1. The Committee notes the Government's report for the period ending July 1992. It notes the statistics supplied by the Government (which are being revised) according to which the open unemployment rate, which was 16 per cent in 1991, was tending to decrease in 1992. In relation to the comments made by the Committee, the Government has supplied detailed information concerning the activities of the Social Emergency Fund and their outcome, including statistics on the creation of jobs, which are mainly of a precarious nature. The Government has also supplied a document concerning the special project to generate employment through public works (dated January 1993) with a view to reducing rural underemployment and open urban unemployment, as well as limiting the rural exodus. The Government is currently seeking financing for the above project. The Committee takes due note of the programmes which are currently being undertaken or are envisaged to promote short-term employment for the most vulnerable categories of the population and requests the Government to continue to supply detailed information in its next report on their development. It would be grateful if the Government would indicate, in accordance with the broader concept of employment policy set out in the Convention (Articles 1 and 2 of the Convention), the manner in which it has declared and pursued an active policy designed to promote full, productive and freely chosen employmet within the context of a coordinated economic and social policy (see in this context the points in the report form under the above Articles of the Convention).

2. Article 3. The Committee notes that the Government, through the Ministry of Labour and Social Welfare, in December 1990 made a formal call for dialogue in the social and labour fields, including discussions on employment policy. Although representatives of agricultural producers were fully incorporated into the discussions, the Government states that it was not able to call upon representatives of rural workers nor of the informal sector. The Committee requests the Government to supply fuller details in its next report on the consultations which were held concerning employment policy within the framework of the dialogue concerning labour matters. The Committee trusts that the Government will continue to endeavour to include in the consultations required by this important provision of the Convention the representatives of the persons affected in the rural and informal sectors. The Committee recalls that the objective of these consultations must be to take fully into account the experience and views of the representatives, as well as to secure their full cooperation in formulating and enlisting support for the employment policy.

3. Part V of the report form. The Committee notes with interest from the Government's report that the project PAN/86/010, "Employment policies and programmes", in which the ILO, PREALC and UNDP participated, constituted one of the pillars of the active employment policy implemented by the national Government. The Committee requests the Government to continue to supply detailed information on the action taken as a result of the assistance provided by the ILO and PREALC in the field of employment policy.

4. The Committee notes, from the information supplied by the representative of PREALC for Central America and Panama, that the Government carried out a special employment programme in 1992 through the National Vocational Training Institute (INAFORP). In 1993, a programme of vocational training fellowships was implemented with the aim of providing skills and generating work for 12,000 unemployed persons throughout the Republic. The Committee would be grateful if the Government would supply information on this programme in its next report and, more generally, on the measures which are envisaged to coordinate training policies with prospective employment opportunities. In this context, the Government may wish to consider the instruments adopted in 1975 on the development of human resources and to refer to the General Survey on this subject undertaken by the Committee in 1991.

5. In its direct request of 1992, the Committee commented on the impact on employment of multisectoral export zones. It once again expresses interest in being supplied with information in the next report on the impact on productive and freely chosen employment of the measures taken to encourage the establishment of the above zones. The Committee also refers to the comments which it is making in the general part of its report on the application of labour legislation and ratified Conventions in the above zones.

Direct Request (CEACR) - adopted 1994, published 81st ILC session (1994)

1. The Committee notes the Government's report for the period ending July 1992. It notes the statistics supplied by the Government (which are being revised) according to which the open unemployment rate, which was 16 per cent in 1991, was tending to decrease in 1992. In relation to the comments made by the Committee, the Government has supplied detailed information concerning the activities of the Social Emergency Fund and their outcome, including statistics on the creation of jobs, which are mainly of a precarious nature. The Government has also supplied a document concerning the special project to generate employment through public works (dated January 1993) with a view to reducing rural underemployment and open urban unemployment, as well as limiting the rural exodus. The Government is currently seeking financing for the above project. The Committee takes due note of the programmes which are currently being undertaken or are envisaged to promote short-term employment for the most vulnerable categories of the population and requests the Government to continue to supply detailed information in its next report on their development. It would be grateful if the Government would indicate, in accordance with the broader concept of employment policy set out in the Convention (Articles 1 and 2 of the Convention), the manner in which it has declared and pursued an active policy designed to promote full, productive and freely chosen employmet within the context of a coordinated economic and social policy (see in this context the points in the report form under the above Articles of the Convention).

2. Article 3. The Committee notes that the Government, through the Ministry of Labour and Social Welfare, in December 1990 made a formal call for dialogue in the social and labour fields, including discussions on employment policy. Although representatives of agricultural producers were fully incorporated into the discussions, the Government states that it was not able to call upon representatives of rural workers nor of the informal sector. The Committee requests the Government to supply fuller details in its next report on the consultations which were held concerning employment policy within the framework of the dialogue concerning labour matters. The Committee trusts that the Government will continue to endeavour to include in the consultations required by this important provision of the Convention the representatives of the persons affected in the rural and informal sectors. The Committee recalls that the objective of these consultations must be to take fully into account the experience and views of the representatives, as well as to secure their full cooperation in formulating and enlisting support for the employment policy.

3. Part V of the report form. The Committee notes with interest from the Government's report that the project PAN/86/010, "Employment policies and programmes", in which the ILO, PREALC and UNDP participated, constituted one of the pillars of the active employment policy implemented by the national Government. The Committee requests the Government to continue to supply detailed information on the action taken as a result of the assistance provided by the ILO and PREALC in the field of employment policy.

4. The Committee notes, from the information supplied by the representative of PREALC for Central America and Panama, that the Government carried out a special employment programme in 1992 through the National Vocational Training Institute (INAFORP). In 1993, a programme of vocational training fellowships was implemented with the aim of providing skills and generating work for 12,000 unemployed persons throughout the Republic. The Committee would be grateful if the Government would supply information on this programme in its next report and, more generally, on the measures which are envisaged to coordinate training policies with prospective employment opportunities. In this context, the Government may wish to consider the instruments adopted in 1975 on the development of human resources and to refer to the General Survey on this subject undertaken by the Committee in 1991.

5. In its direct request of 1992, the Committee commented on the impact on employment of multisectoral export zones. It once again expresses interest in being supplied with information in the next report on the impact on productive and freely chosen employment of the measures taken to encourage the establishment of the above zones. The Committee also refers to the comments which it is making in the general part of its report on the application of labour legislation and ratified Conventions in the above zones.

Direct Request (CEACR) - adopted 1992, published 79th ILC session (1992)

1. The Committee takes note of the Government's report for the period October 1989 to June 1990. According to the report, the Government is giving top priority to employment, as is reflected in the fact that a National Strategy for Development and the Modernisation of the Economy and a Social Emergency Fund (FES) have been created, both of which are designed to achieve greater harmonisation between labour supply and demand. The National Strategy includes labour legislation reforms and new regulations to achieve a greater labour flexibility, the creation of multi-sectoral areas for the production of exports, the modernisation of transport, a review of the tax system and changes in the education system. The Government considers that achieving the objectives of employment and economic recovery depends not on a direct policy or direct action of the initial State but on the functioning of the economic system. None the less, in order to protect the sectors that are most vulnerable to the adjustments required by the new development strategy - which has medium and long-term objectives - a social action programme has been created to establish rules and implement measures designed to provide employment and income opportunities and satisfy the basic needs of the population. The FES is responsible for achieving the objectives of the social action plan, which include the generation of employment (Presidential Decree No. 146 of 20 May 1990). Temporary employment programmes are also being implemented by civic associations responsible for repairing streets, schools, community facilities, etc. The Government points out that the open unemployment rate stood at 17 per cent in June 1990 (exceeding the highest rates of the previous decade - 12.3 per cent, 10.5 per cent and 11.6 per cent in 1985, 1986 and 1987 respectively - noted by the Committee in its observation of 1989).

2. The Committee hopes that the Government will continue its efforts to declare and pursue, "as a major goal", an active policy designed to promote full, productive and freely chosen employment. It trusts that account will be taken of the effects on employment of measures to promote economic development and achieve other economic and social objectives (Articles 1 and 2 of the Convention). In this connection, it would be grateful of the Government would continue to transmit detailed reports on the application of the Convention including, in particular, information on the results obtained by the measures implemented in the framework of the FES and the temporary employment programmes, and on the effects on productive and freely chosen employment of measures to encourage the creation of multi-sectoral areas for the production of exports.

3. Article 3. The Committee notes that the Government's report contains no information on the manner in which the representatives of the persons affected are consulted concerning employment policy. It hopes that in its next report, the Government will provide information on the consultations with the representatives of employers' and workers' organisations, and consultations with representatives of other sectors of the economically active population, such as those working in the rural and informal sectors, concerning the employment policy measures to be implemented.

4. Part V of the report form. The Committee notes with interest the report and final evaluation of project PAN/86/010, executed between 1987 and 1990 by the Ministry of Labour and Social Welfare, the UNDP and PREALC, concerning "employment policies and programmes". The Committee hopes that the regular development of activities in the framework of the project will contribute to the development of an "active" employment policy. It trusts that action will be taken on the recommendations of the report and final evaluation of the project, particularly with regard to making appropriate use of the human resources involved in the implementation of the project. The Committee would be grateful if, in its next report, the Government would provide information on any factors that have prevented or delayed action undertaken in the context of project PAN/86/010, and on other action undertaken as a result of technical assistance provided by the Office in the area of employment policy.

Direct Request (CEACR) - adopted 1991, published 78th ILC session (1991)

The Committee notes that the Government's report has not been received. It hopes that a report will be supplied for examination by the Committee at its next session and that it will contain full information on the matters raised in its previous direct request, which read as follows:

The Committee takes note of the detailed information provided by the Government following the observation made in 1989. The recent information reveals in particular that the employment situation has deteriorated seriously, the rate having risen from 11.8 per cent to 16 per cent between 1987 and 1988 overall and from 14 per cent to about 21 per cent in the metropolitan area. The Committee has also received a later report stressing the difficulties and disruption recently encountered. As the Committee is due to re-examine the position in detail on receipt of a report due in 1990, it proposes to deter consideration of the issues until its next meeting when a report of developments up to 30 June 1990 will have been received and can be studied. In particular, it hopes to receive information as to the impact of the implementation of various employment programmes and policies, e.g. the "labour bank" project and as to the action taken as a result of the ILO/UNDP technical assistance.

Direct Request (CEACR) - adopted 1990, published 77th ILC session (1990)

The Committee takes note of the detailed information provided by the Government following the observation made in 1989. The recent information reveals in particular that the employment situation has deteriorated seriously, the rate having risen from 11.8 per cent to 16 per cent between 1987 and 1988 overall and from 14 per cent to about 21 per cent in the metropolitan area. The Committee has also received a later report stressing the difficulties and disruption recently encountered. As the Committee is due to re-examine the position in detail on receipt of a report due in 1990, it proposes to deter consideration of the issues until its next meeting when a report of developments up to 30 June 1990 will have been received and can be studied. In particular, it hopes to receive information as to the impact of the implementation of various employment programmes and policies, e.g. the "labour bank" project and consequences following the ILO/UNDP technical assistance.