Direct Request (CEACR) - adopted 2024, published 113rd ILC session (2025)

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

Article 1 of the Convention.Implementation of an active employment policy. Measures to promote full employment. Development of infrastructure. Trade policy. The Committee notes the information provided by the Government on public infrastructure investment during the period covered by the report, including in road projects such as the widening of the Arraiján-La Chorrera highway, 58 education infrastructure projects, the construction of Metro Line 3 (for which the creation of over 5,000 jobs was expected). The Government also indicates that job brokerage services (under the “community employability” heading) are provided to residents of communities where infrastructure projects are being implemented in order to improve their employability and provide retraining for employment. In this regard, the Government reports that 3,073 persons were placed in employment and 2,190 persons were trained. The Committee also notes the Government’s indication that the following legislative measures were adopted with a view to promoting national development: (i) Act No. 159 of 31 August 2020, establishing a special regime for the establishment and operation of multinational companies for the provision of manufacturing-related services with the aim of attracting and promoting investment in productive processes, job creation and technology transfer; and (ii) Act No. 412 of 21 November 2020, reorganizing the Colón Free Zone, which introduces new permitted activities, such as logistics services, high-technology manufacturing, and services for aviation and airports, and introduces a series of tax benefits. However, the Committee notes that the Government does not provide any information enabling an assessment of the impact of these regulations on job creation. Lastly, the Committee notes, on the basis of the “Latin American Economic Outlook 2023: Investing in Sustainable Development” report of the Organisation for Economic Co-operation and Development (OECD), that Panama has signed a cooperation agreement for cross-border development with Costa Rica, with the goal of deepening cooperation relations through socio-economic, environmental and political improvements in the border region. Under this cooperation agreement, the “Atlantic Road Corridor” was built in the Sixaola/Guabito border area, promoting road integration between the two countries through an efficient, economical and safe transportation system. This is expected to promote the economic and social development of the Atlantic region, while reducing vehicle operating costs. In light of the foregoing, the Committee requests the Government to provide detailed information on the nature and impact of specific measures adopted to create employment in the context of development and infrastructure projects, and also of trade policy, including statistical information, disaggregated by sex, age and region, on the number of jobs created.

Contribution of employment services to the promotion of employment. The Committee notes with interest the adoption of Executive Decree No. 3 of 22 April 2024 regulating the public employment service, which aims to provide effective job brokerage, through regionalized in-person and digital registration, in response to the labour needs of enterprises, to promote decent work and formal self-employment, to produce official statistical reports on the needs of the labour market, and to design policies to cater for user needs. The Committee also notes that the Government refers to the implementation of various job brokerage programmes, such as: (i) the creation of a “single window for opportunities” through which various entities provide services aimed at promoting cooperatives and entrepreneurship, as well as measures to prepare for employment; and (ii) the creation of the Empleos Panamá portal (www. empleospanama.gob.pa), through which direct job brokerage services are offered between jobseekers and enterprises with job vacancies. The Government reports that the employment brokerage department effected 24,689 face-to-face and digital job placements, advertised 3,132 vacancies and facilitated access to the labour market for 504 people. The Government also refers to the “Labour market integration support programme (PAIL)”, which offers opportunities to jobseekers to acquire skills to improve their employability through theoretical and practical activities in enterprises (in 2022, people in situations of vulnerability, such as women, persons with disabilities and individuals from indigenous communities, were included as beneficiaries of the programme). The Committee also notes the statistical information, disaggregated by sex, provided by the Government on the number of participants in the various employment programmes between 2019 and May 2022. Lastly, the Committee notes the Government’s indication that, in collaboration with the ILO, it has been proposed to set up a labour market intelligence network (REDIMEL), leading to the creation of a statistical information system on labour supply and demand by province.

With respect to private employment agencies, the Committee notes that Executive Decree No. 3 of 2 April 2024 establishes the procedure to be followed for private agencies to issue certification for reports of vacancies, contracts and placements so that employers who hire their services report these to the employment service. The Committee notes the information in the Government’s report on the actions carried out in the area of oversight, certification and training of private employment agencies, including the setting up of: (i) a database to enable inspection of the agencies and require production of their licence; (ii) a platform for the submission and processing of applications for an employment agency licence; and (iii) a module enabling online consultation of private employment agencies that allows jobseekers to check whether job vacancies published online are backed by a registered private agency. The Committee notes the above measures and wishes to emphasize in this regard that public and private employment services represent one of the fundamental pillars on which employment policy can rely to achieve its objectives. Their integration constitutes an important lever for promoting quality, sustainable, inclusive employment, geared to the needs of the labour market. These services represent a means of both implementing employment policies and feeding information into successive reviews of these policies. The Committee requests the Government to continue providing information on the nature of the programmes and measures implemented by employment services to promote employment, including in rural areas, and also statistical information, disaggregated by age, sex and province, on the number of registered persons, vacancies and job placements effected.

Coordination of training and employment policies. The Government indicates that the “Strategic Governance Plan (PEG) 2020–2024” incorporates the Estrella (star) strategic pillar relating to education, with the goal of achieving quality education. In order to achieve this goal, the “Strategic Education Plan 2019–24: From education policies to action” is being implemented, which seeks to ensure inclusive, equitable, quality education in line with the Sustainable Development Goals (SDGs). This Plan has five components: quality of education, educational equality, teacher training, education management and investment in education. The Committee notes the detailed information provided by the Government on the steps taken to set up a national qualifications framework (MNC) which establishes levels of education and certification for workers, including an analysis of the linkages between education and work, and the challenges and possible measures to be taken. In this regard, the Government indicates that the ILO, the Inter-American Centre for Knowledge Development in Vocational Training (CINTERFOR), and the Latin American Development Bank (CAF) have provided technical assistance to define a road map for the establishment of the MNC, design the MNC governing body and make progress in boosting the information and communication technologies (ICTs) sector.

The Committee also notes the implementation, due from 15 November 2022 to 31 March 2026, of the ILO project for providing technical assistance to the National Institute of Vocational Training and Human Resource Development (INADEH), which aims to align INADEH’s training courses to the demands of the country’s productive sector. The Government also indicates that, during the meetings of the Standing Advisory Council on Technical and Professional Occupations (CCP), reports are produced regarding progress made on vocational training services and their linkage with the needs of the productive sector. Lastly, the Government reports the implementation of: (i) the Muévete por Panamá national literacy project, through which 1,372 people became literate; and (ii) the “Training centre for young people (CEFODE)” programme, which aims to reintegrate young persons between 14 and 17 years of age at risk in social terms into the school environment so that they can continue their general basic education studies and learn a vocational occupation (welding, sheet metal work, IT, beautician work, cooking and carpentry) to ensure their entry into the labour market. While noting the Government’s efforts, including with ILO technical assistance, the Committee encourages the Government to continue its efforts to ensure that training and education are aligned to the requirements of the labour market, and to ensure the quality and accessibility of both the former, including in rural areas. In this regard, the Committee requests the Government to provide detailed information on the nature and impact of the measures taken in consultation with the social partners to coordinate education and vocational training policies with employment policies and, specifically, on how the provision of training is coordinated with changes in demand for knowledge and skills and the requirements of the labour market.

Micro, small and medium-sized enterprises (MSMEs). The Committee notes the Government’s indication that MSMEs account for 90 per cent of enterprises in the country and 70 per cent of the nation’s jobs. Under the “Economic and Social Recovery Plan” adopted to tackle the effects of the COVID-19 pandemic, programmes have been implemented for granting loans to entrepreneurs in various sectors of the economy (such as the Banca de oportunidades (bank of opportunities), Apoyo a la Micro, Pequeña y Medianas (support for MSMEs) and Panamá Agro Solidario (solidarity in agriculture) programmes). The Committee also notes the adoption of Act No. 189 of 17 December 2020, establishing a special income tax regime applicable to MSMEs, employers and entrepreneurs. However, the Committee notes that the Government’s report does not include any information on the number and type of enterprises created and the number of jobs created by MSMEs. The Committee therefore once again requests the Government to provide statistical information, disaggregated by sex, on the number and type of enterprises established, and the number of jobs created by micro, small and medium-sized enterprises (MSMEs).

Promotion of employment for persons in situations of poverty and extreme poverty. The Committee notes the Government’s indication that the pillars of the PEG 2020–2024 include action against poverty and inequality, with the declared mission of promoting social justice, fairness and opportunities, and aiming to leave no-one behind. In this context, the “Colmena Plan” national strategy is being implemented (adopted by Act No. 297 of 28 April 2022), designed with technical assistance from the United Nations Development Programme (UNDP). The Government states that the Colmena Plan is a multisectoral strategy that seeks to promote regional development processes by strengthening public policy and state institutions in areas of poverty and vulnerability in the country’s 300 administrative districts. The Government adds that 8 June 2022 saw the launch of the “Colmena Action Plan for Panamá Province”, which is expected to benefit 1,102,496 residents. The strategy provides for action in various areas of development, including education, as well as income-generating activities and entrepreneurship. The Committee notes the information in the Government’s report on the various projects implemented under the Colmena Plan in different districts of the country, such as the Huertas Sustentables (sustainable fruit and vegetable gardens) project. The Committee notes that, according to the December 2022 report of the Ministry of the Economy and Finance on poverty and destitution, overall poverty in the country in 2021 stood at 21.8 per cent and 9.5 per cent of the population was in a situation of extreme poverty. By area, 13.8 per cent of the urban population was in poverty and 3.2 per cent in extreme poverty, while in rural areas 40.5 per cent of the population was in poverty and 24.1 per cent in extreme poverty. In view of the high proportion of the population in situations of poverty or extreme poverty, especially in rural areas, the Committee encourages the Government to continue its efforts to reduce poverty in the country. In this regard, the Committee requests the Government to continue providing information on the measures taken to improve the employability of persons in situations of poverty and extreme poverty, including among indigenous communities and the rural population. The Committee also requests the Government to provide comparable statistical information, disaggregated by sex, on the results achieved by these measures to ensure the sustainable integration into the labour market of persons living in situations of poverty or extreme poverty.

Persons with disabilities. The Committee notes that the PEG 2020–2024 provides for the implementation of measures aimed at promoting the training, employment and social inclusion of persons with disabilities, such as: (i) the design of strategies for access to decent work and equal opportunities; (ii) the strengthening and implementation of strategies for access to inclusive education for persons with disabilities; and (iii) the promotion of non-discrimination with regard to disability from a human rights perspective, in order to address the issue in all areas of society. The Committee also notes the Government’s indication that, through the Department for the Socio-Economic Integration of Persons with Disabilities, guidance is provided to enterprises and persons with disabilities and awareness campaigns are implemented to promote an inclusive work environment. During the period covered by the report, 74 labour inspections were carried out to identify spaces and opportunities for persons with disabilities in the labour market, awareness-raising measures were carried out in 134 enterprises, and 307 persons with disabilities were integrated into the labour market. However, the Committee notes that the Government does not provide any information on the situation of persons with disabilities in the regular labour market which would enable an evaluation of the impact of the measures implemented. In this regard, the Committee notes that the PEG provides for the preparation of the second national survey on disability (ENDIS-2) and the first national study on the accessibility of work, with the aim of helping actors involved in labour market integration to understand the various problems associated with it and to identify measures to eliminate physical and cultural obstacles which prevent persons with disabilities from accessing the labour market. The Committee requests the Government to provide information on the nature and impact of the measures taken to promote access for persons with disabilities to the open labour market, including statistical information, disaggregated by sex and age, on employment trends for persons with disabilities. In this regard, the Committee requests the Government to send a copy of the first national study on the accessibility of work, once it has been finalized.