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

Individual Case (CAS) - Discussion: 2025, Publication: 113rd ILC session (2025)

Written information provided by the Government

The Government, through the Ministry of Labour and Workforce Development (MITRADEL), complies with international labour standards in full accordance with the Political Constitution. The Republic of Panama, in accordance with articles 19, 40 and 64 of the Political Constitution, recognizes the freedom of individuals to choose freely the exercise of any occupation or trade, without any type of discrimination on the basis of race, birth, social class, sex, religion or political ideas, and the State, in compliance with this constitutional duty, formulates economic policies designed to promote full employment and guarantee to all workers the conditions necessary for a decent existence.

MITRADEL, in accordance with section 1 of the Labour Code, regulates the relations between capital and labour on the basis of the principles of social justice, ensuring State protection for workers, promoting full employment through the creation of the necessary conditions to guarantee workers a decent existence and to offer capital equitable compensation for investment.

With this objective, the Republic of Panama has established the following programmes:

Focused recruitment, as an innovative approach by the public employment service which gives priority to a more human, dignified and efficient process of seeking work for all citizens of Panama through procedures that are organized and aligned with real opportunities on the labour market, which only call on applicants whose profiles are in line with the available vacancies, thereby ensuring that they have a real chance of obtaining decent work. During the second half of 2024, some 52 recruitment days were organized at the national level, offering 2,021 job vacancies. In the first half of 2025, 60 such days have been organized in regional offices, with a total of 4,685 vacancies offered through the collaboration of over 300 private sector enterprises.

The Mi primer empleo (“My First Job”) programme (Act No. 121 of 2019, Executive Decree No. 27 of 2024, as amended by Executive Decree No. 6 of 2025) is a flagship programme of the current administration. It facilitates the integration of young persons between the ages of 17 and 24 years in the formal labour market through a transparent and flexible process, administered through a digital platform which optimizes labour mediation through the automated matching of the vacancies registered by enterprises and the profiles of the young participants in the programme, thereby facilitating interviews and internships. This tool promotes public–private collaboration, facilitates integration into the formal labour market with decent remuneration and reinforces the commitment of the State to youth employability and economic growth. During its first phase, between July and December 2024, the programme offered 1,058 internships and achieved the integration of 624 young persons in the private sector. In 2025, a further 2,780 internships are envisaged, of which 738 were organized during the first quarter of the year, with the active participation of over 405 private enterprises at the national level. In April 2025, we signed a cooperation agreement with the Private Sector Council for Educational Assistance in support of the Mi primer empleo programme. The agreement provides for training through the CONECTA platform, which is an innovative, flexible and solid tool that optimizes the management of essential activities and resources to promote vocational development and strengthen links with the business world. This training, which is aligned with labour market demand and the skills required by enterprises, includes regular assessments to monitor the progress and involvement of young beneficiaries.

The Programme to Improve the Employability of Persons with Disabilities (Act No. 15 of 2016), through which comprehensive strategies have been developed to raise awareness and provide support for enterprises for the recruitment of this valuable talent pool. Within the context of this transformative vision, the Barrierless Talent Foyer “Anita Correa” has been developed as a fundamental pillar of the model of inclusive recruitment which ensures that each labour market integration process for persons with disabilities is carried out in an effective, decent and sustainable manner, with the promotion of real opportunities for integration. We play a key role by offering comprehensive support to enterprises, ranging from legal guidance to post-recruitment follow-up, and ensuring strict compliance with Act No. 15 of 31 May 2016. On the basis of this inclusive and structured strategy, between July 2024 and the present, a total of 222 persons with disabilities have been integrated into the labour market in the various regions of the country, of whom 127 are men and 98 are women. This progress is a result of the positive impact of the initiative for the development of a more equitable and accessible labour environment for everyone. The State recognizes the labour market inclusion of persons with disabilities as a fundamental right that promotes equity and social cohesion.

The Vocational Guidance and Employment Programme (Decision No. 341 of 24 July 2015) is being consolidated as a strategic tool to bring young persons closer to the real conditions on the labour market. The Programme provides advice on employment trends and academic courses for school-leavers at the bachillerato level with a view to facilitating free and informed decisions on their vocational futures. In 2024, a total of 2,210 young persons were trained at the national level, and in 2025 it is planned to cover 10,000 young persons, who will be assisted by suitable psychologists from the institution, thereby reaffirming the Government’s commitment to the comprehensive training and labour market integration of youth in Panama.

The Government is proposing to make progress towards real electronic administration through the integration of technology as a key tool for the provision of public services. A significant step forward in this respect is the management of the Department for Private Employment Agencies, governed by Executive Decree No. 32 of 15 April 2016, with a total of 108 enterprises registered, of which 81 have currently valid permits. In 2024 and 2025, six new agencies have been registered, both for maritime and land-based employment. During the course of 2025, seven applications have been received for the renewal of permits and one application for a new permit. Of the new applications received, only one was submitted in hard copy, thereby demonstrating the effectiveness of the digital application and the administrative efficiency for employment generation.

The digital platform Empleos Panama (Executive Decree No. 3 of 22 April 2024) continues to be a pillar of employment mediation and facilitates the appropriate and efficient matching of enterprises and jobseekers, with support from MITRADEL. The platform has 2,001 registered enterprises and 234,167 users and is a tool that is making progress towards a comprehensive restructuring based on artificial intelligence, which will make it possible to modernize the service and improve its efficiency, in line with the highest international standards for public employment services. On 5 May 2025, we concluded an agreement with the Ministry of the Interior for the selection of staff for the Community Justice Peace Houses through the Ministry’s employment exchange. With over 2,100 posts available at the national level, the effectiveness of the public employment service is being consolidated as a key tool for the Government to guarantee accessible justice and strengthen local recruitment.

The Government is continuing to strengthen skills training for the labour force through strategic alliances with educational institutions, such as the Higher Specialized Technical Institute (ITSE). A framework cooperation agreement between the ITSE and MITRADEL seeks to extend its training programmes at the national level, using the facilities of the Panama Institute of Labour Studies in the regional departments of MITRADEL. This initiative has promoted the implementation of micro-credentials, especially in the tourism sector, with priority being given to regions with a high demand for labour, thereby reaffirming the State’s commitment to quality technical training that is inclusive and oriented towards economic development and social equity. The ITSE has trained 328 young professionals, with a historically high labour market integration rate of around 60 per cent.

The Republic of Panama, as a country with a high demand in the tourism and logistical services sectors, requires a good level of English as an essential skill to strengthen the labour market and improve employability. In this context, MITRADEL has concluded an agreement with the National Institute of Vocational Training and Human Resource Development (INADEH) for the provision of English courses in classrooms and online with a view to providing jobseekers with the essential tool of a second language. This alliance is strengthening continuous training and quality technical capacity-building with a view to promoting inclusion, equity and better labour market opportunities.

The services of the INADEH are intended to train citizens for employment. In 2024, it provided services for 181,024 beneficiaries, of whom 35.5 per cent were men and 65.5 per cent women. It provided 6,406 courses and programmes physically and online in 28 skills areas intended to address the needs of the various economic sectors. The INADEH is currently developing the initial phase of the Hotel School project, with the principal objective of responding to the needs of beneficiaries who do not have opportunities to engage in vocational practice. The project links theory and real work. It is costing around 30,715,035 balboas and, in addition to beneficiaries in the hotel industry, will also promote the areas of enterprise development, catering, baking and client services, among others, and, for its operation, will require various vocational profiles and the development of an organizational plan for the institution.

The INADEH is also planning the construction of new training centres in local districts with a view to bringing the provision of training closer to remote rural communities, as indicated below:

• (1) The construction of new facilities for the local Ngäbe Buglé vocational training centre, which is planned to cover 212,084 inhabitants of the Ngäbe Buglé indigenous district who, according to the 2023 census, consist of 109,577 women and 102,507 men. It is planned that there will be approximately 6,925 direct beneficiaries each year, through the provision of around 277 courses. The investment will be 4,312,256.16 balboas transferred by the central Government.
• (2) The construction of new facilities in the Guna Yala district, in a project that will benefit 32,016 inhabitants of the Guna Yala indigenous district where, according to the 2023 census, there are 15,308 men and 16,708 women.

It should be emphasized that on 13 and 14 May this year, the Ministers of Labour of Central America and the Dominican Republic and their permanent technical staff held the first ordinary meeting of the Council of Ministers of Central America and the Dominican Republic (CMT-CARD) in the City of Panama. On that occasion, Panama acted as Chair pro tempore, in succession to Honduras, and the CMT-CARD Plan of Action 2025–27 was adopted, which addresses the four fundamental areas of: innovative employment placement in public employment services and labour market observatories; labour inspection with the inclusion of new technologies; the transition to the formal economy, including the development of a regional analysis and a good practices guide; and the strengthening of the governance of the Council and the management of international cooperation.

The Panama Declaration was also adopted, which places emphasis on decent work programmes, the Labour Information and Analysis System (SIALC) of Latin America and the Caribbean and the discussions at the 113rd Session of the International Labour Conference in relation to labour matters in the region. Emphasis was also placed on the positive impact of the design and implementation of comprehensive policies for the transition to formal employment through the adoption of a multisectoral approach and the use of technology. International cooperation and technical assistance are key elements in addressing these challenges through sustainable and effective strategies with a view to ensuring better conditions of work and opportunities for the population.

Finally, we emphasize that the efforts made in Panama are not only a response to structural factors in the labour market, but also to recent events that have affected job conservation and creation, such as the mining contract being found unconstitutional, the prolonged closure of roads at the national level and the calling of unlawful and unjustified strike action, which have had a negative impact on economic activity and labour stability. We are continuing to make firm progress through coherent activities that include the Government, the private sector and the population in order to ensure that every citizen of Panama can have access to real opportunities for decent employment that are freely chosen and are not affected by any form of discrimination, thereby strengthening economic growth and sustainable development.

Discussion by the Committee

Chairperson – I have the honour of giving the floor to the distinguished representative of the Government of Panama, the Director of Employment, Ministry of Labour and Workforce Development.

Government representative – On behalf of the Government, I welcome the opportunity to speak to this distinguished Committee in order to provide information relating to the application of the Convention.

And what have we been asked to do? Among other matters, the Committee of Experts has requested the Government to continue providing information on the nature and impact of the measures adopted to implement an integrated policy aimed at promoting the creation of opportunities for full, productive and freely chosen employment. In this context, we wish to report the following.

The Government, through MITRADEL, complies strictly with the standards of international law and in full accordance with its Political Constitution, and particularly articles 40 and 64, which establish the freedom of all persons to the free choice of their occupation or trade. In compliance with this constitutional mandate, the State of Panama develops and implements economic policies designed to promote full employment while guaranteeing every worker the conditions necessary for a decent existence.

In this context, Panama will provide a brief description of recent action and the commitments assumed for the effective implementation of the Convention. MITRADEL, in accordance with the Labour Code, regulates the relations between capital and labour with a view to promoting full employment and the protection of workers.

I wish to emphasize first that the Government approved, by Cabinet Decision No.124 of 26 December 2024, the Strategic Plan of the Government for the next five years (PEG 2025–29). The Strategic Plan is a key tool for national planning with the principal objective of the coherent articulation of all public policies including, of course, employment policy, with the economic and social objectives of the country. The Strategic Plan is not only a framework for action, but also the outcome of a participatory and inter-institutional process, which ensures the alignment of the various levels of Government and social sectors. In turn, this facilitates more effective coordination between employment policy and other areas of national development.

In terms of implementation, the Strategic Plan 2025–29 establishes financial programming for five years with a public investment plan of US$30,277,000, with a direct impact on key sectors, such as agriculture, logistics, finance, education, health and tourism. This includes major infrastructure works that are planned, and some are already being implemented, such as the Panama-David-Frontera train, the San Miguelito Cable Car, the fourth bridge over the Panama Canal, the modernization of the National Aqueducts and Sewers Institute and the rehabilitation of the historical centre of the Province of Colón. In this context, I would also like to take this opportunity to inform you that in the month of April we recorded an increase of nearly 31 per cent in new employment contracts.

After almost one year of our Government, we have launched and strengthened various programmes, such as focused recruitment, which is an innovative approach by the public employment service that gives priority to a more human, dignified and efficient process of seeking work for all the citizens of Panama through procedures that are organized and aligned with real opportunities on the labour market. Only applicants whose profiles are in line with the available vacancies are called upon, thereby ensuring that they have a real chance of obtaining decent work. Instead of the traditional employment fairs, which brought together great crowds, but offered few specific opportunities, we are implementing this approach which makes people and their aspirations the central focus. This strategy optimizes labour mediation between applicants and real vacancies. By the end of the first quarter of 2025, some 107 focused recruitment procedures had been carried out at the national level, generating 8,401 employment opportunities, in collaboration with over 300 private sector enterprises.

The Mi primer empleo programme is a flagship programme of the current administration which facilitates the integration of young persons between the ages of 17 and 24 years in the formal labour market through a transparent and flexible process, administered through a digital platform which optimizes labour mediation through the automated matching of the vacancies registered by enterprises and the profiles of the young participants, thereby facilitating direct interviews and internships. This tool promotes public–private collaboration, facilitates integration into the formal labour market with decent remuneration and reinforces the commitment of the State to youth employability and economic growth.

During its first phase, between July and December 2024, the programme offered 1,058 internships at the national level and achieved the integration of 624 young persons in the private sector. In the context of economic recovery and policy dynamism throughout the territory, the President of the Republic, José Raúl Mulino, authorized an inter-institutional transfer of responsibilities to reinforce the second phase of the programme, which will integrate an additional 2,000 young persons as a result of the joint efforts of the Government and private enterprise to generate new job opportunities.

In April 2025, we signed a cooperation agreement with the Private Sector Council for Educational Assistance in support of the Mi primer empleo programme. The agreement provides for training through the CONECTA platform, which is an innovative, flexible and solid tool that optimizes the management of essential activities and resources to promote vocational development and strengthen links with the business world. This training, which is aligned with labour market demand and the skills required by enterprises, includes regular assessments to monitor the progress and involvement of young beneficiaries.

We have launched the Programme to Improve the Employability of Persons with Disabilities (Act No. 15 of 2016), through which comprehensive strategies have been developed to raise awareness and provide support for enterprises for the recruitment of this valuable talent pool. Within the context of this transformative vision, the Barrierless Talent Foyer has been established as a fundamental pillar of the model of inclusive recruitment, which ensures that each labour market integration process for persons with disabilities is carried out in an effective, decent and sustainable manner, with the promotion of real opportunities for integration. We play a key role by offering comprehensive support to enterprises, ranging from legal guidance to post-recruitment follow-up, thereby ensuring strict compliance with the Act.

On the basis of this inclusive and structured strategy, between July 2024 and the present, a total of 222 persons with disabilities have been integrated into the labour market in the various regions of the country, of whom 127 are men and 98 are women. This progress reflects the positive impact of the initiative on the development of a more equitable and accessible labour environment for everyone.

The Vocational Guidance and Employment Programme is being consolidated as a strategic tool to bring young persons closer to the real conditions on the labour market. The Programme provides advice on employment trends and academic courses for students at the bachillerato level with a view to facilitating free and informed decisions on their vocational futures. In 2024, a total of 2,210 young persons were trained at the national level, and in 2025 it is planned to cover 10,000 young persons, who will be assisted by suitable psychologists from the institution, thereby reaffirming the Government’s commitment to the comprehensive training and labour market integration of youth in Panama.

The Government is also proposing to make progress towards real electronic administration through the integration of technology as a key tool for the provision of public services. One of the significant steps forward in this digital transition is the management of the Department for Private Employment Agencies, governed by Executive Decree No. 32 of 15 April 2016, with a total of 108 enterprises registered, of which 81 have currently valid permits. In 2024 and 2025, six new agencies have been registered, both for maritime and land-based employment. During the course of 2025, seven applications have been received for the renewal of permits and one application for a new permit. Of the new applications received, only one was submitted in hard copy, thereby demonstrating the effectiveness of the digital application and the administrative efficiency for employment generation.

The digital platform Empleos Panama (established by Executive Decree No. 3 of 2024) continues to be a key pillar of employment mediation and facilitates the appropriate and efficient matching of enterprises and jobseekers, with support from MITRADEL. The platform has 2,001 registered enterprises and 234,167 users and is a tool that is making progress towards a comprehensive restructuring based on artificial intelligence, which will make it possible to modernize the service and improve its efficiency, in line with the highest international standards for public employment services.

On 5 May 2025, we concluded an agreement with the Ministry of the Interior for the selection of staff for the Community Justice Peace Houses through the Ministry’s employment exchange. With over 2,100 posts available at the national level, the effectiveness of the public employment service is being consolidated as a key tool for the Government to guarantee accessible justice and strengthen local recruitment through a transparent system.

The Government is continuing to strengthen skills training for the labour force through strategic alliances with educational institutions, such as the Higher Specialized Technical Institute (ITSE). For example, a framework cooperation agreement between MITRADEL and the ITSE seeks to extend its training programmes at the national level, using the facilities of the Panama Institute of Labour Studies in the regional departments of MITRADEL. This initiative has promoted the implementation of micro-credentials, especially in the tourism sector, with priority being given to regions with a high demand for labour, thereby reaffirming the State’s commitment to quality technical training that is inclusive and oriented towards economic development and social equity. The ITSE has trained 328 young professionals, with a historically high labour market integration rate of above 80 per cent.

The Republic of Panama, as a country with a high demand in the tourism and logistical services sectors, requires a good level of English as an essential skill to strengthen the labour market and improve employability. In this context, MITRADEL has concluded an agreement with the National Institute of Vocational Training and Human Resource Development (INADEH) for the provision of English courses in classrooms and online with a view to providing jobseekers with essential tools, such as a second language. This alliance is strengthening continuous training and quality technical capacity-building with a view to promoting inclusion, equity and better labour market opportunities. In 2024, it provided services for 181,024 beneficiaries, of whom 35.5 per cent were men and 65.5 per cent women.

The INADEH is currently developing the initial phase of the Hotel School project, with the principal objective of responding to the needs of beneficiaries who do not have opportunities to engage in vocational practice. The project links theory and real work. This project, with an approximate cost of US$30,715,035, in addition to beneficiaries in the hotel industry, will also promote the areas of enterprise development, catering, baking and client services, among others, and, for its operation, will require various vocational profiles and the development of an organizational plan for the institution.

The INADEH is also planning the construction of new training centres in local districts with a view to bringing the provision of training closer to remote rural communities, including the construction of new facilities for the local Ngäbe Buglé vocational training centre, which will benefit 212,084 inhabitants of the Ngäbe Buglé indigenous district, and new facilities in the Guna Yala indigenous district.

On 13 and 14 May 2025, the first ordinary meeting was held in Panama City of the Council of Ministers of Labour of Central America and the Dominican Republic (CMT-CARD). On that occasion, Panama acted as Chair pro tempore and the Plan of Action 2025–27 was adopted, which addresses the four fundamental areas of: innovative employment placement in public employment services and labour market observatories; labour inspection with the inclusion of new technologies; the transition to the formal economy with the adoption of a multisectoral approach based on technology; and international cooperation and technical assistance, which are key to addressing these challenges adopting sustainable and effective strategies.

The Panama Declaration was also adopted, which places emphasis on decent work programmes and the Labour Information and Analysis System (SIALC) of Latin America and the Caribbean to which the Government of Panama contributes annually through the significant contribution of US$327,000 and which has existed for almost three decades. I place emphasis on the SIALC because it is an important programme for beneficiary countries in Latin America and the Caribbean. The Panorama Laboral produced by the SIALC is a key tool for Governments, employers, workers and academics interested in the systematic analysis of labour markets in the region. It offers us the opportunity to have access to clear and updated analysis of the labour market situation as a basis for developing action strategies for the years to come, thereby contributing to the strengthening of our labour policies and strategies and ensuring that the information produced has a positive and effective impact on decision-making on labour matters.

The Panorama Laboral 2024 shows that, even though the region has recuperated its economic levels from prior to the pandemic, there remain significant challenges in the labour market. We cannot therefore overlook the effects of the pandemic, which resulted in even deeper informality, unemployment and precarity. It is important to recall that these problems are not exclusive to Panama and are to be found at the global level.

I would like to emphasize that unemployment in Panama is not only a result of structural factors in the labour market, but also of events that have affected the retention and creation of employment, such as the mining contract being found unconstitutional, the prolonged closure of roads at the national level and unlawful strikes, which have had a negative impact on economic activity and labour stability in the country. The unemployment rate continues to be a challenge and informality and precarious work are still a matter of concern. We cannot therefore fail to recognize the efforts made by my country through the implementation of structural reforms to improve the quality of employment and reduce informality and precarious work, thereby enabling workers to have access to decent and sustainable jobs.

Before finishing, on behalf of the Government, we reiterate our commitment to the generation of decent employment and the productive development of the country.

Employer members – Before starting, we would like to thank the Government for the information provided on compliance with the Convention in law and practice. As usual, we would like to give some context to facilitate a better understanding of the case. This is the first time that the Committee has discussed this case. Panama ratified the Convention in 1970 and the Committee of Experts has made observations on it on six occasions, and specifically in 2011, 2012, 2013, 2016, 2018 and, finally, 2024, when it took note of the Government’s reports and the observations of the social partners.

Before turning to the comments of the Committee of Experts, the Employers wish to place emphasis on the importance of the Convention as one of the ILO’s priority governance Conventions, which essentially provides that Member States shall declare and pursue an active employment policy designed to promote full, productive and freely chosen employment.

It is important to bear in mind that, in the present case, we are called upon to discuss the effective implementation of appropriate measures to give effect to the commitments set out specifically in Articles 1, 2 and 3 of the Convention. I will therefore divide my intervention into three sections analysing separately the international commitments deriving from each of these Articles.

First, Article 1 of the Convention establishes as a major goal an active policy designed to promote full, productive and freely chosen employment. In this regard, the Employer members note the tripartite efforts made to subscribe to the Memorandum of Understanding (MoU) on the Decent Work Programme 2024–27. In accordance with the information provided, this Programme was a result of tripartite social dialogue and constitutes a significant step forward in the appropriate direction.

In accordance with Articles 1, 2 and 3 of the Convention, the Decent Work Programme, adopted on a tripartite basis, is intended to ensure that work is productive, strengthen vocational training programmes and establish policies and programmes that place emphasis on vulnerable categories, and particularly young persons, with a gender focus.

The Employer members would like to emphasize the following action deriving from the Decent Work Programme. First, the establishment of the National Labour Observatory with a view to improving the compilation and analysis of labour market data; second, the Youth Employment Promotion Plan; and third, the tripartite round table to follow-up the implementation of the Programme.

Based on the information provided, the Employer members note that, over and above the issues raised by the Committee of Experts concerning the coordination of the employment policy with national social and economic policy, and the scope and outcome of the provisions adopted, Panama does indeed have an employment policy promoted through tripartism and focusing on the reduction of unemployment and informality.

Second, in relation to compliance with Article 2(a) and (b) of the Convention, with reference to the review and monitoring of the measures and implementation of specific programmes, the Employer members note that, as a result of the tripartite agreement on the Decent Work Programme 2024–27, a tripartite follow-up round table has been established responsible for adjustments to the action taken under the Plan of Action, which benefits from the active participation of the most representative social partners.

With reference to the programmes implemented, the Employer members note the implementation of the following action specifically focusing on women and young persons:

• (1) The Policy of Equality of Opportunities for Women, which is structured around fundamental themes such as economic empowerment, labour autonomy, the eradication of violence and socio-cultural transformation.
• (2) The Mi primer empleo programme intended for young persons between the ages of 17 and 24 years, which facilitates their integration into the formal labour market and endeavours to match supply and demand on the labour market.
• (3) The Vocational Guidance and Employment Programme, as a tool to bring young persons closer to the reality of the labour market.

In light of the above, the Employer members recognize the progress and the efforts made by the Government of Panama for the implementation of programmes and projects focusing on the generation of decent work.

With reference to informality, we wish to emphasize that, in accordance with the data of the Office of the Comptroller General of the Republic of Panama, informality in the labour market affects over 47 per cent of the economically active population of the country, and principally in sectors such as commerce, construction, logistics, industry, hotels, restaurants and other service activities. The rise in informality has given rise to unfair competition and has placed at risk the sustainability of the social security system in Panama. It is also one of the main challenges for the economic and social development of the country.

In this context, we call on the Government, with ILO technical assistance, to take measures that contribute to promoting the transition from informality to formality for both enterprises and workers. Such support should include measures designed to simplify labour provisions and make them less bureaucratic and to make administrative procedures more flexible so that legal compliance is more accessible and attractive.

Finally, in relation to Article 3 of the Convention, respecting consultations with the most representative social partners, we invite the Government to continue working through tripartite round tables so that, with the participation of everyone and the experience and knowledge possessed by employers, workers and the Government, progress can continue to be made, both in relation to employability under the concept of decent work, and in the transition from informality to formality.

In this regard, we recommend that the Government, with ILO technical assistance, develop projects and programmes focusing on the strengthening of tripartite social dialogue which protects the independence, parity and constructive participation of the parties. At the same time, it is necessary to reinforce a conducive environment for employers’ and workers’ organizations.

The Employers wish to emphasize that the presence of a conducive environment for the development of sustainable enterprises is the basis for the creation of decent jobs. A conducive enterprise environment is essential to offer legal security and promote investment, innovation and employment. These are fundamental elements for the promotion of public economic, social and employability policies.

In this respect, the Employer members call on the Government to intensify its efforts to continue the implementation, in consultation with the most representative social partners, of projects and programmes both for employment generation and in relation to the transition from informality to formality, for which ILO technical assistance can be requested.

Worker members – The Worker members are taking the floor in the Committee to address the case of Panama in relation to the Convention. We do so with concern and a sense of responsibility because what is at stake is not only compliance with a governance Convention, but also the credibility of the Organization in relation to a serious and current case of the regression of rights which render its genuine and effective application impossible.

We are aware of the rules governing the procedure: we know them and we respect them, but we are talking about a case of a country which goes beyond the Convention.

The report of the Committee of Experts, which we commend for its solidity and balance, emphasizes the lack of a coherent and coordinated national employment policy that can be evaluated and is coordinated with macroeconomic and social strategies. In line with the Preamble to the Convention, productive and freely chosen employment must be considered an essential objective of economic and social policy. However, Panama is not in compliance with this objective.

The Committee of Experts has been clear in its analysis. Despite the plans and announcements described by the Government, there is in Panama no national employment policy that is comprehensive, coherent, sustainable or coordinated with economic and social policies. There is no continuity or focus on the long term. Programmes multiply without evaluation or coordination, with inadequate budgets and without the effective participation of the social partners.

The report indicates that: informality is over 56 per cent; unemployment persists, especially among young persons and women; fewer than 25 per cent of the employment contracts registered are without limit of time and, instead of addressing the structural causes of precarity, the Government has adopted programmes such as Aprender haciendo (“learning by doing”) and Capacítate para el trabajo (“learn work skills”), which are fragmented in their application and do not manage to change the real conditions of employment.

But over and above the technical design of the programmes, there is a central institutional problem: the systematic exclusion of the social partners. Article 3 of the Convention clearly provides that States shall consult the representatives of employers and workers with a view to the formulation and implementation of the policies envisaged. There is no such consultation in Panama.

The trade union movement in Panama has denounced the lack of participation in the design of public employment policies, the weak institutional structure for social dialogue and the absence of a long-term strategy of the State to guarantee decent employment with rights. It has also raised the alarm concerning the geographical concentration of opportunities, persistent gender gaps and the mismatching of the supply of education and the demands of the productive sector.

The Government itself has publicly stated that it will not maintain channels of dialogue with the trade union movement. Instead of institutionalized tripartite dialogue, it refers to listening round tables, without powers of decision, balance or genuine representation. This explicit denial of social dialogue is a direct violation of the core principles of the Convention and the tripartite principles that give the ILO its meaning.

The gravity of this situation is accentuated when it is considered that Panama is part of the troika of the Inter-American Conference of Ministers of Labour (IACML) of the Organization of American States (OAS). The regional responsibility of the troika (Argentina was the Chair, Colombia is now and Panama will be the next Chair) is an ethical and institutional requirement together with the necessity to set an example. It is not possible to take the leadership in regional forums while persecuting unions at the national level. We are convinced that honouring international commitments is not an option, it is a duty.

The report of the Committee of Experts also notes the weakness of the mechanisms for coordination between employment policies and education and production strategies. And here is a critical point: in this climate of institutional hostility towards workers and their organizations, it is absolutely not viable to implement a Decent Work Country Programme which, as we are well aware, can only be developed on the basis of participation between Governments, employers and workers. That is how it is developed. Tripartism cannot be simulated. Either it is respected, or it is violated. And in Panama we believe that today, regrettably, it is violated.

The social and political environment is in crisis and risks are common to the security, freedom and life of persons. As we have heard, the head of the executive authorities declared his intention to the mass media to drown the unions economically. This statement, more than merely a view, is a policy directive that is unacceptable to the Worker members. For this reason, we need to be clear. Full, productive and freely chosen employment cannot be achieved if those who are defending these rights are persecuted. There can be no employment policies without social partners who are at liberty. There can be no sustainable development without social justice, and there can be no social justice without freedom of association.

For the global trade union movement, and especially in the Americas, Panama is today a regional priority. This is because fundamental rights are being violated: freedom of association and the right to organize; the effective recognition of the right to collective bargaining; the elimination of all forms of forced or compulsory labour; the effective abolition of child labour; the elimination of discrimination in employment and occupation; and a safe and healthy working environment.

How has it come to this in Panama which, after being considered a model some years ago due to the presence of tripartite dialogue commissions, is now in its current situation and has been brought before the Committee?

Let us repeat that Panama is identified by the Trade Union Confederation of the Americas (TUCA) and the global trade union movement, because this case is opening a door to backward steps in relation to trade unions in the region, which in turn opens the door to a general retrogression of rights.

In this regard, we inform the Committee that the trade union leaders of Panama, who are present at the Conference, with the support of the TUCA, have met the Director-General of the ILO to request an urgent, direct and visible intervention. A high-level mission is indispensable so that it can observe the seriousness of the situation in situ. The people of Panama have no hope. We cannot look away. It is necessary to comply with ILO Conventions, including Convention No. 122, a governance Convention, and the fundamental Conventions. We urge the ILO, through the Director-General, to engage in an energetic, direct and viable intervention so as to contribute to the reconstruction of spaces for social dialogue and the effective compliance with international labour standards in the country. Panama needs to give guarantees of the safety of trade union leaders so that, with respect for democracy, peace and the rule of law, a process of tripartite dialogue is set in motion with the support of the Office.

We know that technical assistance will not be peripheral or merely symbolic. It will be a priority, strategic and sustained. What is at stake is not only compliance with a Convention. It is the very possibility for the system of ILO standards to continue to be a living tool for social justice.

The serious acts of violence that we have described are not part of the past or taken from a technical report. They are occurring now at the very same time that the Committee is meeting here in Geneva. This is the reality that we are seeing through the mass media, with news arriving minute by minute, with nevertheless a ray of hope for the workers of Panama because of what we are doing today here in the ILO.

As indicated in the Plenary of the Conference by the Secretary-General of the International Federation of Building and Wood Workers, in relation to Panama, the ILO is the house of justice and we must all honour it. We are talking about the overwhelming need for social peace in Panama.

Employer member, Panama – We have come together today to examine the compliance of the Republic of Panama with the Convention on the basis of the observations submitted by the National Council of Organized Workers (CONATO).

It is important to be clear that this is not a case of freedom of association or collective bargaining, nor a case motivated by complaints submitted by a trade union on matters related to freedom of association. It is extremely important to be clear on this point.

The State of Panama, under the administration of the former President, Mr Cortizo, submitted an official response on 6 December 2022, detailing the programmes and plans developed by the country to comply with its obligations under the Convention.

Today, under the new administration of President José Raúl Mulino, these plans have been continued as a matter of State policy, while new initiatives have been launched to generate employment, encourage decent work – particularly for women and young persons – and promote sustainable enterprises to reduce informality.

For reasons of time, I will not refer to each of these plans, as details have been provided by the Director of Employment of MITRADEL. I can confirm with full conviction, and without any reservation, that these policies are real. As Chairperson of the Labour Commission of the National Council of Private Enterprise (CONEP), and as spokesperson and negotiator for the employers, I have participated directly in them, as have workers’ representatives.

The plans and programmes meet the requirements set out by the Convention. Panama is in compliance with the Convention. It has complied 100 per cent. Beyond technical policy design, however, the country is facing serious structural limitations that are affecting the results of the strategies.

In recent years, a pattern of social protest by some groups has developed, and while these groups may have legitimate roots, they have adopted approaches that are deeply disruptive to production and national development. We are referring specifically to the road closures used as a means of exerting pressure and which prevent the normal functioning of the economy, during which workers cannot reach their workplaces, employers cannot open their businesses, producers cannot tend to their crops and citizens in general do not have access to vital services, such as education, food and even medical care.

In 2022, for example, the increase in global fuel prices and alleged inflation triggered protests with widespread blockages, despite the fact that inflation in Panama is minimal, and the country does not produce oil or fuel, and is therefore dependent on global prices. The Government was forced to introduce temporary financial subsidies for fuel for the whole of the population. Those protests caused serious economic losses and forced the closure of many micro, small and medium-sized enterprises, which had barely recovered from the devastating effects of the pandemic, and many of which turned to informality.

There was another example in 2023, after the adoption of Act No. 406 on mining concessions, which led to a wave of protests and road blockages that paralysed the country for more than a month. The subsequent ruling that the Act was unconstitutional resulted in the dismissal of more than 7,300 direct workers and the loss of more than 30,000 indirect jobs. Panama has a very small population, and that was keenly felt. CONEP estimated the economic losses at US$1.7 billion, in addition to the decrease in projected growth of GDP, from 7.4 per cent to 2.9 per cent, and a 7.5 per cent fall in exports.

More recently, in April 2025 the adoption of Act No. 462 reforming the Basic Act on the Social Security Fund, a reform recognized as being urgently needed by all sectors, including the ILO, once again sparked protests, with road closures, the paralysis of the public education for over a month and a half up to now, and unlawful work stoppages.

In the Bocas del Toro province, a banana plantation union called a strike in a company with which it did not have any conflict or claim. As a result, the company lost its crops and closed its operations in the country, leaving more than 7,000 direct workers and 21,000 indirect workers without work. The province’s economy depended on that activity, which collapsed as a consequence of the unlawful strike.

This is a pattern that, worryingly, is being repeated. Social and political issues are met with protests and closures that cause more damage than they claim to rectify.

This is a structural issue. On the one hand, we have employment policies that are well designed, technically appropriate and in line with the principles of the ILO and the Convention. On the other, divisive and unstable social conditions prevent these policies from producing sustainable results. The question is therefore not whether Panama is complying with the Convention in its regulations, planning and execution. It is undoubtedly in compliance. The real question is whether the social context allows all possible results to materialize.

The answer is clear: while this trend of self-destructive protest persists, no employment programme, however robust, will thrive and produce all the desired results. Many efforts are being made.

Today, more than mounting a technical defence, I want to make a human and collective appeal. Panama has enormous competitive advantages: hard-working people, good people, and strategic resources. But we are witnessing an internal erosion caused by our own actions taken by a few small groups.

My country’s situation pains me. That is why I am making a sincere appeal. We need help to strengthen something that historically was our strength: the advantages and opportunities that we have, so that together we can face with maturity the challenges of decent work in sustainable enterprises, harnessing technology, artificial intelligence and robotics, with a vision of the country for all. And in this respect the ILO can help us to strengthen social dialogue.

Panama cannot keep shooting itself in the foot. At times like this we need to come together to keep making progress, as we have always done, with lively social dialogue with a vision for the country.

Worker member, Panama – The Convention was adopted by the Conference in July 1964, at its 48th Session, and came into force on 15 July 1966. It was ratified by Panama on 19 June 1970. Allow me to give an overview of the meaning of “employment policy”. Employment policy comprises the measures adopted by the public authorities to influence the labour market, enhance job quality and reduce unemployment. Such policies can take one of two forms: active and passive. Active policies seek to improve the employability of the unemployed through guidance programmes, vocational training and support for job searches, while passive policies relate to a system geared towards social protection that can guarantee an income for the unemployed while they seek new employment.

In the case of Panama, we must emphasize that the unemployment rate was 9.5 per cent in October 2024, an increase of 2.1 per cent on August 2023. This means that the number of unemployed persons increased from 155,625 to 202,609 over that period. As we have indicated, the unemployment rate rose from 7.4 per cent in August 2023 to 9.5 per cent in 2024. This increase means 46,984 additional unemployed persons. Unemployment among men rose from 4.4 to 5.8 per cent, and the rise among women is more alarming, from 7.7 to 10.5 per cent, with an upward trend.

Labour informality continues to be one of the highest rates in the region. In Panama, around 50 per cent of workers in non-agricultural jobs are in informal work, according to figures from October 2024. In the meantime, during the period from August 2023 to October 2024, the country’s economically active population was 2,126,771 persons. The youth unemployment rate has reached 29 per cent, according to the National Statistics and Census Institute (INDEC), which has become a short-term social problem due to the lack of opportunities for this number of unemployed persons. Sixty per cent of jobs held today by young persons are informal, and those who find formal employment earn less than US$698 per month, which is around US$35.87 less than the average wage of US$734.

In the case of indigenous populations – the Ngöbe Buglé indigenous region has the highest levels of poverty – the lack of job opportunities and neglect by the authorities has caused this population to have the highest level of extreme poverty and malnutrition, reaching over 96 per cent. According to the study, this group lacks sufficient food, drinking water and mains electricity, and access to education is almost non-existent.

This means that, by 2025, Panama had lost approximately 54,107 formal jobs. Between 2023 and 2024, three out of five new jobs created by the economy were informal, necessitating serious discussion of whether the development model being followed by our economy is appropriate in a country with many resources and much potential, but that is failing to create sufficient quality employment.

Although, as workers organized in trade unions, we raised the need to discuss the root causes of the country’s structural problems, our position has been ignored. The situation is worsened by policies intended to reduce public spending, as well as budgetary control measures intended to promote the repayment of public and private debt, which totals more than US$56 billion, while reducing funding allocated to social areas, such as water, health, education, decent work and other claims voiced by trade unions and social organizations in general.

Although Panama has an estimated GDP of around US$63 billion, as well as a consumer price index of over US$13,500, the population faces daily water shortages, with around 250,000 persons without a water supply in Panama City and Colón, the cities at either end of the Panama Canal. Twenty-two per cent of the 3,200 school buildings do not have an internet connection, and 12 per cent do not have an electricity supply, in addition to the deplorable condition of the facilities in a significant number of schools, which hampers the quality of life and the creation of a population with the skills demanded by the labour market.

The public health system is also facing a crisis in the provision of care, drugs and other basic services. In the same way as the so-called “labour market”, it is facing complexities reflected in rapid changes in conditions of stability and security, to the detriment of workers, their representative organizations and leaders, who are facing strong political and economic pressure.

The rapid growth of both open and disguised informal work, estimated to affect 61.2 per cent of the active population, is compounded by the scandalous anti-union policy pursued by the authorities responsible for adopting worker protection measures. Deregulation policies and high levels of labour flexibility have resulted in an unemployment rate of 9.2 per cent, while just 22 per cent of the workforce is in the formal sector, with most of the working population falling outside the protection of the social security system and not enjoying the benefits or rights deriving from the employment relationship, as required by the legislation.

On 1 July 2024, a new Government took office, considered to be on the right-wing libertarian line. The Government identifies fully with the most conservative sector of Panamanian employers, setting a pro-private enterprise course and an attitude of constant attacks on the trade union movement, even in violation of constitutional provisions and disregarding the protective provisions of Panamanian labour law.

Budget cuts, cuts to public spending and investment, particularly in sensitive sectors, such as health, education and housing, the elimination of social assistance programmes, mass dismissals of public officials and the closure of public institutions, among other measures, have become political tools wielded against social movements that demand greater employment and decent wages.

At the same time, the imposition of control mechanisms over social organizations and trade unions through policies of pressure and the use of the courts to silence the voices of leaders who demand job creation has become a daily reality – that is, the criminalization of social protest – in some cases accompanied by open threats, and by pressure tactics in others.

The leaders of teachers’ unions are being prosecuted through rigged cases and investigations. Trade union leaders who, together with other sectors, call for greater employment opportunities and access to the labour market are investigated on suspicion of the crime of “misappropriation of public funds”. Indigenous leaders suffer intimidation, pressure and coercion to change the organizational structures traditionally used for action by indigenous peoples, who have historically been forgotten.

In conclusion, we would like to emphasize that the Decent Work Programme, promoted by the ILO through the National Decent Work Plan, is not working. The previous and current Governments have demonstrably failed to acknowledge the forums created by the ILO, such as the tripartite committee in Panama, which enjoyed support from the Committee of Experts. We therefore demand the establishment of the forums for dialogue required under the Tripartite Consultation (International Labour Standards) Convention, 1976 (No. 144), with reference to the tripartite commissions which in their time strengthened social dialogue mechanisms in Panama and full compliance with and implementation of the Convention.

Government member, Ecuador - I am delivering this statement on behalf of a group of Latin American and Caribbean countries including Chile, Colombia, Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, Mexico, Paraguay, Peru, and my own country, Ecuador. We note the updated information and statistical data reflecting the results of the various active employment promotion programmes, which were provided by the Government of Panama, represented by the Minister of Labour and Workforce Development.

We welcome the continuous efforts made by the Government, with a view to implementing a comprehensive policy aimed at promoting the creation of full, productive and freely chosen employment opportunities.

We also welcome the measures adopted to promote the integration of young people and persons with disabilities into the labour market through public–private partnerships and the participation of women in the labour market. We encourage the Republic of Panama to pursue these efforts.

We also recognize the country’s commitment to the digital transformation of its public employment services and the Labour Market Observatory, the regulation of private employment agencies and the implementation of training and certification in key sectors, such as tourism and logistics, prioritizing areas of vulnerability.

We also emphasize the leadership by the Republic of Panama as Chair pro tempore of the Council of Ministers of Labour of Central America and the Dominican Republic, a subregional forum for dialogue that recently adopted a work plan focusing on the strengthening of public employment services and labour market observatories, as well as the transition to formality through a multisectoral approach harnessing technology, international cooperation and technical assistance.

Finally, we express our solidarity with and support for the Republic of Panama in its efforts to achieve economic recovery and job creation, and recognize the progress made in addressing the challenges arising from the pandemic and other situations that affected the continuity of production.

Employer member, Guatemala – Many thanks to the Government representative for the information provided. The informal economy has reached alarming levels in the countries in our region. Panama is no stranger to this situation, and we therefore welcome the political will demonstrated by the social partners and the Government through the signature of the Memorandum of Understanding of the Decent Work Programme 2024–27. It is within this framework that the course of action must be determined and the follow-up to the employment policies referred to in this important Convention must be ensured. This action must clearly take into account the elements indicated by the Committee of Experts in its report, that is, coordination with the economic and social policy of the country, including the Strategic Plan (PEG 2025–29) to which the Government representative referred, and the compilation of statistics to evaluate the outcome of employment policies.

It is in this forum that a way forward must be sought to address the specific challenges specified by the Committee of Experts, that is, the low labour market participation rate of women and youth unemployment, which are major concerns for us.

Prolonged blockades of national roads and unlawful work stoppages, which have seriously affected labour stability and the operation of enterprises, particularly micro and small enterprises, do nothing to help create and maintain jobs. These are acts that we condemn as violations of the freedom to work, freedom of enterprise and of movement and, ultimately, legal certainty.

Government member, El Salvador – On behalf of the Government of El Salvador, we express our appreciation to the sister Republic of Panama regarding the application of the Convention. We recognize the efforts made by the Government to guarantee the right to decent work through public policies aimed at promoting dialogue and productive and freely chosen employment, in accordance with its Constitution and international labour standards.

As member countries of the Council of Ministers of Labour of Central America and the Dominican Republic, we have had the opportunity to experience first hand Panama’s good practices, which link education with employment policy. In this regard, we welcome the fact that Panama has responsibly taken on the challenge of leading collective efforts for the implementation of modern and innovative active employment policies, the digitalization of public employment services, the promotion of equality of opportunity, and the implementation of comprehensive strategies for the transition from informality to formality.

We wish to emphasize that this commitment is not isolated, but is part of a vision shared by countries in the region, which recognizes the importance of addressing in a coordinated manner structural challenges, such as the digital transformation, the impacts of climate change and the need for sustained investment in education and lifelong vocational training.

The modernization of public employment services and labour market observatories is an objective that we are pursuing mutually to improve outreach to the population. These are indispensable instruments to ensure successful employment policies, decent work, effective social dialogue and the protection of workers.

We welcome with enthusiasm and confidence the role of our neighbouring country, Panama, in the impetus of a human-centred national and regional agenda, and we encourage it to continue making the necessary efforts to ensure effective compliance with international Conventions. We are willing to continue sharing good practices in future regional forums, and look forward to doing so.

Worker member, Canada – I share this statement on behalf of the Canadian Labour Congress. The report of the Committee of Experts on the application of the Convention in Panama clearly states the need for a coherent employment policy, sustained in tripartite social dialogue, which guarantees full, productive and freely chosen employment. However, what we see today in Panama is a profound contradiction between these principles and the national reality. It is impossible to establish an employment policy based on dialogue if freedom of association is not first guaranteed. And in Panama, unfortunately, that guarantee is absent. The Worker members would like to express our deepest concern at the attacks on Panamanian trade union organizations: freezing of accounts, intervention in mutual societies, prosecution of leaders, arbitrary arrests and repression of social protests. All this is happening with the support, and even the pridefulness, of the Government itself, which in public statements has openly stated its refusal to enter into dialogue with the trade union movement. This situation, incompatible with the founding values of this Organization, undermines not only freedom of association, but also any real possibility of formulating a participatory, inclusive and effective employment policy. We therefore urge this Committee to send a clear signal. And we ask the Office to deploy the maximum efforts to offer Panama technical assistance and accompaniment, with the objective of re-establishing minimum conditions of legality, social dialogue and peace. The workers of Panama are not alone. This Committee must contribute to open a path to a solution.

Employer member, Costa Rica – The Costa Rican employers welcome the opportunity to speak at this forum regarding the case of Panama, in the context of following up on the application of the Convention. As part of the mandate of this Organization, active employment policies must be promoted in a comprehensive manner, which takes into consideration both institutional developments and structural challenges. In this regard, we recognize the substantive efforts made by the Republic of Panama to strengthen its national employment strategy under the Decent Work Programme 2024–27. Key initiatives include: the implementation of youth employment policies; the establishment of the National Labour Observatory; the launching of vocational guidance programmes; and a set of specific actions to promote gender equality in the labour market. Furthermore, social dialogue has been strengthened through active tripartite round tables. It is particularly important to emphasize the role of CONEP as a stakeholder committed to the development of the country. Its participation has been technical, constant and proactive, and it has contributed to both the design and follow-up of public labour policies, and has promoted the principles of sustainable economic development and decent work.

However, it is also necessary to point out that the efforts to build an environment conducive to formal and productive employment have been hindered by external factors beyond the control of employers. These include events such as the mining contract being found unconstitutional, the prolonged blockades of national roads and the unlawful work stoppages that have seriously affected labour stability and the operation of enterprises, particularly micro and small enterprises. Such acts, which in many cases were carried out at the margins of social dialogue, are in violation of the right to work, free enterprise and legal certainty. As employers, we cannot ignore the fact that these circumstances represent a serious threat to the creation of formal employment, investment and social peace. Without a predictable environment and full respect for the rule of law, it is not possible to make progress on the issue under examination. The Costa Rican employers express their profound solidarity with their Panamanian counterparts and emphasize the need for the efforts for the implementation of the Convention to be examined in their real context. It is not possible to have productive employment or effective policies if the principles of legality and peaceful coexistence, which underpin development, are violated. We therefore trust that this Committee will be able to recognize the progress made by Panama and the commitment of employers. We consider that the examination of this case should not be confused with a failure to comply with obligations. It should instead be seen as part of a dynamic process requiring the support of all stakeholders, that is, the tripartite system itself.

Worker member, Argentina – I am speaking on behalf of the three Argentine confederations: the General Confederation of Labour of the Argentine Republic (CGT RA), the Confederation of Workers of Argentina (CTA Workers), and my union, the Confederation of Workers of Argentina (CTA Autonomous), and on behalf of the Brazilian confederations. In the case of Panama, the Committee of Experts has made a series of observations that indicate considerable gaps in terms of access to and conditions of employment, noting a high rate of informality, an increase in temporary contracts, youth unemployment and low levels of participation by women in the labour market, which shows the failure of the Government’s Strategic Plan 2020–24, and other plans, such as the national register of own-account workers, which was intended to improve informality rates, and the standstill of the ILO National Decent Work Plan.

As the Committee of Experts recognizes in its report, CONATO has denounced the lack of an employment strategy developed with the social partners, as shown by the high rate of informality, temporary contracts, the strong concentration of the economy in specific sectors and regions, with inequalities by region, ethnicity and gender. As we anticipated, the indicators continue to show that the employment policies designed by the Government have proven to be predictably ineffective and inadequate for the achievement of the objectives set out in Article 1 of the Convention. The Government does not allow criticism or dissent, and endeavours by all means to prevent trade union action that highlights the failure of the Government’s employment programmes. This explains the repressive action, such as the persecution of leaders, the arson committed on union premises and the financial stranglehold, all of which have been denounced by the National Confederation of United Independent Unions (CONUSI) and by the Single National Federation of Construction and Allied Workers (SUNTRACS) to the Committee on Freedom of Association (Case No. 3456). In that Case, reference is made to the murders of four persons who were participating in protests, arbitrary detentions, acts of intimidation against trade union leaders and the closure of their bank accounts, as reprisals against participation in the protests.

This means we are ever farther away from compliance with the employment policies required by Article 3 of the Convention and the obligation to consult with workers’ and employers’ organizations. The Government has unleashed a serious and inadmissible policy of persecution. It is not only in violation of the Convention, the basis of the Committee of Experts’ observation, but the conflict has escalated to constitute a violation of freedom of association and civil liberties. It is no coincidence that the rate of informality has deteriorated, reaching 49 per cent, and that the unemployment rate has risen from 7.4 to 9.5 per cent, according to the National Statistics and Census Institute (INDEC). Employment is generated by complying with the Convention and not by violating civil liberties and freedom of association, with fierce repression such as that used against first nation communities in recent days.

In conclusion, the Government is continuing to be in violation of the Convention. Its economic growth policies are not generating employment or improving the situation of workers. Structural inequalities associated with ethnic, regional and gender issues remain unchanged. The Government is forging ahead with its policy of repression instead of social dialogue and tripartite consultation. We demand an end to the persecution and financial stranglehold and demand the release of the detained union leaders.

Government member, Ecuador – The delegation of Ecuador welcomes the opportunity to intervene in this Committee and does so to express its support for the Government of Panama in the examination of the Convention on employment policy. Ecuador recognizes the progress made by Panama in the formulation and implementation of public policies aimed at promoting full, productive and freely chosen employment, in line with the principles of the Convention. We particularly appreciate the comprehensive approach adopted by Panama that covers education and vocational training, and the strengthening of public employment services through technological transformation, leaving no one behind. The Ministry of Labour of Ecuador notes with great interest the initiatives that Panama has been taking on labour migration policy and circular migration for the purpose of employment, in partnership with other countries in the region. We believe that these experiences represent good practices that contribute not only to safe and orderly labour mobility, but also to the economic development and social cohesion of all our countries. We welcome the country’s undertaking to invest in megaprojects that boost the economy and generate employment, as well as public–private partnerships that strengthen the participation of the productive sector in all labour policies. We also value the development of programmes aimed at the inclusion of persons with disabilities in employment and the initiatives undertaken in coordination with community justice peace centres, which promote access to work opportunities in particularly socially vulnerable contexts, thereby strengthening the link between employment, social cohesion and regional development.

We reiterate our appreciation to Panama for its commitment to the effective application of the Convention, and we call for this examination to be carried out in a constructive spirit, valuing the efforts made and the country’s constant willingness to continue strengthening its employment policies, with the support of the ILO and the participation of all the social partners.

Employer member, Honduras – It is an honour to address you to highlight the significant progress that Panama has made in labour policy, particularly in compliance with the Convention. The Convention urges States to adopt active employment policies with the principal objective of promoting full, productive and freely chosen employment. These are principles that, in our opinion, Panama has integrated into its employment policy seriously and with commitment. We have seen how, in close collaboration with the private sector represented by CONEP, significant progress has been made in consolidating a labour market in Panama based on stability, formality and respect for labour rights. We are pleased to see that, according to information provided by the Government, which has been confirmed by the country’s employer representatives, flagship programmes have been launched, including the employment integration support programme, Aprender haciendo, the “I comply” (Yo sí cumplo) programme for employers, and the vocational training and employment programme (POVE). These programmes, which were in force between 2019 and 2024, have been fundamental in the promotion of training, employability and the recognition of best practices in the field of labour.

In addition, the Strategic Employment Plan 2020–24 and the Decent Work Plan 2024–27 reaffirm the commitment to an inclusive tripartite dialogue, in which the Government, employers and workers actively participate in the development of effective labour policies adapted to the country’s needs. Only in an environment of respect and constructive dialogue can it be ensured that public policies achieve their objectives, benefiting the entire population and strengthening the stability that Panama has generated throughout its history. On this point, it is essential to highlight the importance of respect for the rights and protections of all citizens, particularly in contexts involving demonstrations and road closures, which disrupt freedom of movement and, in turn, the right to work. It should be recalled that no right is absolute, as all rights are limited by the rights of others, the security of the population and the just requirements of general well-being and democratic development.

In conclusion, Panama has openly and confidently shown its efforts to maintain a solid, fair and sustainable labour market through the application of active employment policies, which have been developed in collaboration with the various social partners, highlighting the participation of Panama’s employers. We therefore always encourage these partners to continue complying with the Convention in an inclusive manner.

Worker member, Sweden I am speaking on behalf of the workers of the Nordic region. Today, I wish to raise my voice for those women in Panama who continue to be excluded from the formal labour market in terms of both employment and consultation. As noted by the Committee of Experts, although the Government has indeed adopted plans, the reality is that gender inequality persists, and at an alarming level. In 2023, and according to the data of the ILO Department of Statistics, only 46.1 per cent of women were employed, compared with 70.4 per cent of men. These figures are not only statistics, but they are also a reflection of an economic structure that continues to exclude and be unequal. The high concentration of women in the informal economy therefore shows that the current policies are failing to change the structural conditions that perpetuate inequality in society.

We must be clear. In accordance with Article 3 of the Convention, which the Republic of Panama has ratified, governments are required to consult the social partners in the formulation of employment policies. However, in Panama, these consultations have been limited and, in many cases, symbolic. The lack of adequate social dialogue undermines the legitimacy and efficiency of any public policy for the labour market, including those aimed at strengthening the position of women. Furthermore, we observe with concern the developments in the situation in Panama, where trade union representatives are being persecuted. We wonder how trade unions can be consulted, as required by the Convention, if at the same time their leaders are being persecuted. In conclusion, the Nordic trade unions align themselves with the recommendations and requests made by the Committee of Experts on the labour market participation of women and highlight, in particular, the specific request for information on the consultations held with the social partners.

Government member, Costa Rica – The Government delegation of Costa Rica welcomes the opportunity to speak in this Committee and wishes to express its support for the Republic of Panama in the context of the examination of compliance with the Convention. We appreciate the efforts made by the Government to strengthen its public employment policies, taking into account the structural and economic challenges faced in the region. We have observed Panama’s willingness to provide a space for dialogue at the subregional level, to enrich the vision and approach at the national level, based on the exchange of good practices and experiences in the Council of Ministers of Labour of Central America and the Dominican Republic. Recently, a subregional agreement was concluded on the Plan of Action 2025–27 to focus efforts on strengthening public employment systems, labour inspection and formalization, with the aim of combining efforts to build a fairer, more equal and more resilient labour environment. We draw particular attention to the technical exchange that has taken place and will continue to take place in the coming years regarding public employment services, vocational training, active labour market programmes and formalization strategies, areas in which Panama has demonstrated a willingness to seek continuous improvement.

As part of our close bilateral collaboration, we wish to highlight the work carried out jointly by Costa Rica and Panama through the Agreement on the Coordination Mechanism for Migration Flows for Employment and Occupation, concluded in 2015 by our Ministries of Labour. This Agreement established a bilateral technical committee responsible for examining and promoting good practices and measures to improve the traceability of the migration flows of the Ngäbe Buglé population, who traditionally migrate from Panama to Costa Rica during the coffee harvest season. In this technical forum, both countries have made commitments to ensure safe and orderly labour migration, with emphasis on the protection of human rights.

This initiative reflects a genuine commitment by both States to promote decent work, labour market integration, the promotion of ethical recruitment and the regional coordination of public policies, in accordance with the principles set out in the Convention. In this regard, we call for the examination carried out in this Committee to be based on a balanced and constructive vision, recognizing the achievements. The recommendations issued should contribute to the further strengthening of national capacities to develop and implement effective employment policies. We also highlight the added value of the action developed through tripartite dialogue, with the provision of ILO technical assistance where necessary and appropriate. Costa Rica reiterates its commitment to strengthening decent work in our subregion and its willingness to continue collaborating with Panama and other neighbouring countries to promote comprehensive, resilient and sustainable public policies formulated through social dialogue.

Worker member, Peru – I am speaking on behalf of the trade union confederations of Peru and the TUCA. In view of the lack of a definite employment strategy formulated with the social partners, and of coordination between the programmes implemented to promote employment opportunities, as well as the absence of development plans with continuity, and we are not talking about isolated initiatives, as we have heard in this room, the Committee of Experts noted with interest the conclusion on 8 April 2024 of the Memorandum of Understanding of the Decent Work Country Programme 2024–27 by the Government and the social partners, including representatives of the National Decent Employment Commission (CONED), CONATO and CONUSI, with the participation of the ILO. This is the tripartite forum for the discussion of employment policies. As we see, this initiative was carried out with social dialogue, tripartite consultation and ILO technical cooperation and assistance, which we welcome. However, today we note with regret that a little over a year has gone by and the Government has frozen the implementation of the Decent Work Programme and the functioning of the tripartite follow-up committee. We recall that this Programme constitutes the main framework for the achievement of the four pillars of the Decent Work Agenda: employment, social security, social dialogue and fundamental rights. This is no small matter. We have moved from a climate of social dialogue to one of repression and persecution of trade union leaders for criticism or dissidence in defence of decent work, such as the adoption of a social security reform without consultation and the failure to respect freedom of association.

The situation has progressed from a discourse by the Government delivered by the Minister of Labour who, at the time, advocated public employment and occupation policies from a human rights perspective, and who always called for respect for fundamental rights in labour relations, to actions that do not promote employment, but instead restrict freedom of association, weaken trade unions and criminalize protests. This situation is already known to the ILO through the complaint in Case No. 3456. It is not only this Convention that is affected, but also fundamental Conventions, such as the Freedom of Association and Protection of the Right to Organise Convention, 1948 (No. 87), and Convention No. 144. It is therefore important for the Government to return to the path of social dialogue for the development of employment policies, of course with ILO technical assistance, and with minimum guarantees for the participation of trade unions (including the guarantee that they have facilities for participation and financial resources, through the release of their trade union dues, and to reactivate the tripartite follow-up committee of the Decent Work Programme. For an employment policy to be implemented, it has to be consistent with economic and social policy in a country without social conflict, a country that is open to social dialogue, a country that promotes decent work and its four pillars, including the unrestricted respect of freedom of association. Finally, I wish to emphasize that it grieves the Worker members that the Government is not promoting social dialogue, and it grieves us that Panamanian workers are in the streets and are not working in order to claim their fundamental rights, without being heeded.

Government member, Honduras – We have reviewed the report submitted by Panama, the request for information from the workers and employers and the respective responses during the regular reporting period. As we know, the Convention seeks to promote full, productive and freely chosen employment. In that regard, we acknowledge the efforts that Panama has been making to design and implement an employment policy, in consultation with the social partners and in line with its national development priorities.

We welcome the results obtained by Panama in the field of public employment policies. As part of those policies, 52 recruitment days were organized at the national level in the second half of 2024, offering 2,021 job opportunities. So far in 2025, 60 recruitment days have been held at the regional level, with 4,685 vacancies on offer. Similarly, as part of the Council of Ministers of Labour of Central America and the Dominican Republic we have learned how vocational training and labour market integration strategies, together with labour market data compilation and analysis, are key factors in strengthening public employment systems. We reiterate that employment policies must always be aimed at strengthening stability and the labour rights of the working class.

We recognize that there are challenges in this area, as we are still recovering from the stagnation caused by the COVID-19 pandemic. We therefore welcome all the technical assistance that the ILO can provide to strengthen public employment systems, labour market observatories and forums for tripartite dialogue. The latter represent a key driver in promoting democratic coexistence. To continue making progress, it is important to give priority to social dialogue, together with workers, who provide labour, and employers, who provide capital.

Worker member, Uruguay – I am speaking as a representative of the workers of Uruguay, and particularly from the education sector. The Convention indicates in its Preamble that “productive and freely chosen employment” should be a central objective of any economic and social policy, and Article 3 sets out the requirement for effective consultation with the social partners. In Panama, however, this basic requirement has been breached. Since 23 April 2025, the education sector trade unions, including teachers’ unions, have been on indefinite strike, demanding the repeal of Act No. 462 on social security. Over the past six weeks, thousands of teachers have lost classes and wages while the Government has proceeded to criminalize the protest. The pressure does not stop there, as teachers have been prosecuted, arbitrarily imprisoned and repressed in public demonstrations. The Ministry of Education, with the Government’s support, has announced that it will not negotiate. This situation is incompatible with the effective application of the Convention. There can be no sustainable employment policy or strong education system if the State is persecuting educators and workers’ representatives. Repression instead of dialogue prevents the development of social consensus and undermines public policies. We recall that the strength of a country to promote employment depends on the existence of legitimate, organized and free partners. However, Panama is weakening the third partner of tripartism, the workers.

The political defence put forward by the employers in this room seems to confirm this, even through the use of rash terms, such as “unlawful strikes”, endeavouring through the use of force to establish education as an essential service and the questioning of court rulings that have prevented the violation of the Constitution are all part of the problem. Faced with this situation, the Worker members request the Committee to issue an urgent call to the Government to immediately cease the repression of teachers’ unions, release the teachers who are being prosecuted, provide guarantees for their safety and open a real channel for tripartite social dialogue that complies with the requirements of Article 3 of the Convention. We also call on the ILO to intervene immediately to mediate in the conflict and redirect this process towards a space of social peace, inclusion and development. The credibility of the tripartite system is at stake.

Worker member, France – I would like to express our deep concern at the situation in Panama, which has a direct impact on the provisions of the Convention on employment policy. This Convention emphasizes the importance of an active policy to promote full employment and, above all, the need to consult employers’ and workers’ representatives for that purpose. In Panama, however, the capacity of trade unions to participate in social dialogue is being seriously undermined. The restriction of access to union funds, as in the case of SUNTRACS, is an obstacle to the functioning of trade unions, which in turn limits their capacity to represent workers effectively in consultations on employment policies.

In addition, the action taken against trade union leaders, including arbitrary detention and the failure to approve the establishment of support structures, such as cooperatives, are creating an environment that does not encourage the free and effective participation of workers in social dialogue. The Government has even tightened restrictions on the resources available to trade unions to properly carry out their function of social dialogue. The Government has also limited the access of trade unions to their financial resources by arbitrarily freezing their bank accounts (as in the case of SUNTRACS). As set forth in the Convention, the promotion of full and productive employment requires robust and unrestricted social dialogue. When workers’ organizations are prevented from operating freely, from using their own resources, from participating, the essential basis for the development of equitable employment policies is undermined. For all these reasons, it is fundamental to restore in Panama the conditions to enable the establishment of genuine social dialogue that ensures the full participation of workers’ representatives, in accordance with the provisions of the Convention.

Worker member, Costa Rica – I am speaking on behalf of the workers to express our deep concern at the situation in Panama in relation to the principles of the Convention. I would like to focus on two essential aspects for compliance: the effective application of a comprehensive employment policy that ensures labour market integration, and social dialogue, and the active participation of the tripartite constituents in such a policy.

In the first case, non-compliance is clear and evident. There is neither a national employment plan nor a comprehensive employment policy that meets the needs of the population in general and of young persons in particular. Government programmes are more bureaucratic than robust, without sufficient data or statistics to assess their relevance, real results and meaningful impact on labour market integration. They have frequently been used to lower business costs and make employment and recruitment more precarious. They are programmes without tripartite consultation, unconnected with each other and inconsistent with a comprehensive framework of pro-employment investment policies. Collective bargaining is marginalized in these programmes, which do not cover the transition to formality or adequate gender mainstreaming.

Second, it is undeniable that there is no social dialogue or tripartite consultation in this field. The Decent Work Programme is at a standstill without any progress. Trade unions are excluded from participating in the formulation, adoption and implementation of a comprehensive employment policy. In addition, the lack of freedom of association and the Government attacks on trade unions and their leaders make social dialogue unfeasible. Trade union rights are being severely violated, stripping trade unions of their means of institutional strengthening, as is the case with the suspension of training insurance, which is financed by workers’ contributions, which should therefore be available to trade unions for their training and capacity-building activities, which are vital to address and overcome the problem of decent employment. According to the observations of the Committee of Experts, it is clear that there is no identifiable progress. The employment problem has worsened, causing a further deterioration in workers’ standard of living. The most serious aspect is the absence of dialogue and the exclusion of trade unions from this area, preventing their democratic participation and respect for freedom of association, and with trade union confederations being subjected to constant Government aggression. Finally, we ask the Committee to note this terrible situation and to request the Government to comply with the principles of the Convention, allow the indispensable tripartite participation for the adoption a comprehensive employment policy, immediately cease its arbitrary attacks on trade unions and their leaders, and guarantee freedom of association as a pillar of social dialogue.

Worker member, Mexico – I am speaking on behalf of the National Federation of Workers of Mexico (UNT). The Convention and its accompanying Recommendation are fundamental governance instruments which establish principles for the achievement of sustainable development focused on employment and place emphasis, among other areas, on the promotion of decent employment in the public and private sectors, social protection and social dialogue.

The failure to apply these essential principles in the formulation of coherent, comprehensive and integrated frameworks for employment policies has had serious consequences, as well as the adoption of reforms in the field of social protection. This has included an increase in contribution weeks for entitlement to a pension, and the authorization for 10 per cent of the funding of the invalidity, old-age and survivors’ programme to be managed by private banks, which is threatening the model of social security based on solidarity in Panama. Attacks on the assets of trade unions through the retention of union dues are reducing their economic capacity, which is in turn weakening their capacity to develop their plans of action and therefore restricting freedom of association. Another example is the audits practiced on unions in relation to the Education Insurance Fund, composed solely of the contributions of workers in the public and private sectors and of employers based on the basic wages paid, of which only 5 per cent of the monthly total is assigned to trade union education and training. Other activities are financed, including the administration and staff of the Panamanian Institute of Labour Studies (IPEL), which administers the Fund and forms part of the Ministry of Labour and Workforce Development. It should be emphasized that no audits have been practiced on the IPEL, but they have been carried out on the unions. Under the presumption of the undue use of resources, funding has been unlawfully retained from the training activities approved and carried out. New allocations of funds have been paralysed, in the same way as occurred in Panama over 13 years ago, following the 101st ILO Conference in 2012.

The persecution of the leaders of unions and other organizations is complicating still further the exercise of social dialogue in the country, and accordingly the right to collective bargaining, the founding principle for the formulation of employment policies, which has resulted in workers in various sectors being forced to have recourse to the exercise of the fundamental right to strike. These actions demonstrate the intention to limit and undermine the participation of unions in the formulation of public policies for decent employment. How is it possible to participate in the formulation of effective and coherent public employment creation policies when unions and their leaders are suffering persecution? Accordingly, for the action taken in Panama to be considered effective and coherent in order to give effect to the Convention, it is essential to guarantee tripartism in practice in the formulation, implementation and review of employment policies. Without agreement between the partners, such policies can only be considered to have been formulated in bad faith.

Observer, International Trade Union Confederation (ITUC) – I am addressing this Committee on behalf of the trade unions in Panama which are affiliated to the TUCA. I am doing so with deep concern at the situation that is affecting our country, which is not only failing to comply with the Convention at the structural level, but has also entered an alarming phase of the blatant criminalization of trade union activities. The Convention establishes, in Article 3, the requirement for States to consult the social partners for the formulation and implementation of employment policy. But what social dialogue can exist if the unions are being persecuted as if they were criminals? I want to speak clearly about what is happening to SUNTRACS, one of the most important organizations in our country. Its Secretary-General, Saul Méndez, is currently in isolation in the Embassy of the Plurinational State of Bolivia after receiving death threats and being the subject of a systematic campaign of political and judicial persecution. The ILO must be aware that this is not an isolated denunciation, but rather a critical and verifiable situation.

Another national leader of the union, Genaro López, was imprisoned in a maximum security prison, and is now under house arrest due to his state of health. The real reason for his detention is being a trade unionist and fighting for collective rights. The authorities of Panama have gone as far as offering monetary rewards to citizens for information on the whereabouts of trade union leaders, including Erasmo Cerrud, as if they were dangerous criminals. As if this was not enough, the Government has blocked the bank accounts of the union, which is directly affecting its functioning and its capacity to provide essential services, such as the self-managed mutual fund for health and social welfare that SUNTRACS has built up over decades. This is a direct violation of trade union rights, the right to collective bargaining and freedom of association. With this level of institutionalized repression, there is no room for the application of the Convention. The conditions do not exist for social dialogue. There is no possibility of developing sustainable and participatory employment policies through tripartite cooperation when one of the essential actors – the workers – is being persecuted, silenced and deprived of its resources.

We want to make it very clear that it is not possible to talk of employment policy without freedom of association, and it is not possible to talk of social dialogue when the Government publicly denies any form of negotiation and takes pride in “economically drowning the unions”, as stated by the President of the Republic himself in the media. We therefore call on the Committee to adopt strong recommendations requiring the following of the Government of Panama: the immediate cessation of the repression against SUNTRACS and all trade unions; the restitution of blocked trade union assets; guarantees for the safety and freedom of all persecuted union leaders; and the urgent opening of genuine social dialogue under the supervision of the ILO, as an essential step for the recovery of the democratic institutions of the world of work. We are worried about our return to Panama as we fear for our lives and the high level of repression suffered by trade union leaders in our country.

Observer, Building and Wood Workers’ International (BWI) – Article 3 of the Convention explicitly mandates that representatives of employers and workers must be meaningfully consulted on employment policies, with the objective of incorporating their insights and securing their full cooperation. This requirement is inextricably linked to the full respect for freedom of association and the right to collective bargaining, as enshrined in Convention No. 87 and the Right to Organise and Collective Bargaining Convention, 1949 (No. 98). Regrettably, the current situation in Panama demonstrates a clear and troubling deviation from these obligations. Since November 2023, the BWI affiliate SUNTRACS has been subjected to a sustained campaign of repression in response to its leadership of public protests against mining legislation and proposed social security reforms. This campaign has included arbitrary arrests and acts of intimidation. In recent weeks, the crackdown has intensified: union offices have been raided; bank accounts have been frozen; legal registration has been revoked; and arrest warrants have been issued for the entire leadership. Saúl Méndez has been forced to seek political asylum. Jaime Caballero is detained. Genaro Lopez is under house arrest. Erasmo Cerrud is being hunted down. These actions are occurring in the context of a national strike launched on 28 April. More than 120 SUNTRACS members, including both leadership and rank-and-file members, are facing criminal prosecution simply for exercising their legitimate right to peaceful protest. The BWI recalls the March 2025 recommendations of the Committee on Freedom of Association (Case No. 3456), which urged the Government of Panama to immediately restore SUNTRACS’ access to its financial resources and to provide protective measures for its leadership. To date, these recommendations have not been implemented. We call upon the Government of Panama to fulfil its international obligations, end the persecution of trade unionists, immediately withdraw arrest warrants, release those who are detained and fully restore trade union rights.

Observer, International Union of Food, Agricultural, Hotel, Restaurant, Catering, Tobacco and Allied Workers' Associations (IUF) – The Convention requires Member States to adopt and pursue an active policy designed to promote full, productive and freely chosen employment which aims to stimulate economic growth and development, raise levels of living, meet manpower requirements and overcome unemployment and underemployment. Contrary to the spirit and content of this Convention, the Government of Panama has adopted Act No. 462, which workers fear will reduce social security protection, especially pension provision. The changes will hit hardest health, education, construction and banana workers. For the banana workers, the new Act is placing at risk the gains and provisions of Act No. 45, which recognizes the hardship of the work in banana plantations and gives banana workers the possibility to retire based on years of service rather than at a fixed age.

The workers went on to protest the changes. Since April, the workers’ protest actions and demonstrations have been met with police repression and threats of legal action by the Government. Union leaders fear for their safety and some have been forced into hiding. On 27 May, the Government declared a state of emergency in one of the main banana-producing areas, Bocas del Toro, increasing tension and fears of repression. In the same days, the company responsible for 90 per cent of Panama’s exports suspended 5,000 daily workers. It was followed by a further announcement that it will suspend all its administrative, planting, packing and export operations in Bocas del Toro. This decision will hit Panama’s economy, for which bananas are vital. They are the country’s main export, representing 17 per cent of foreign sales. The Banana Workers’ Union (SITRAIBANA) denounced the sackings, which they believe do not respect the procedures of the law and represent a manoeuvre by the companies in collusion with the Government to eliminate unions. We are aware that the Government has sent an investigative team to Bocas del Toro, and there is a proposal from Archbishop José Domingo Ulloa to introduce a bill, agreed upon with unions, that would restore workers’ benefits, but only if the union blockades end. However, repressive measures against all union leaders, like those that are faced by SUNTRACS, have eroded union confidence in the Government. We urge the Government, as an act of good faith, to move ahead immediately and unconditionally with the bill to protect Act No. 45 and to take immediate measures to restore social peace based on the full respect of freedom of association and collective bargaining.

Government representative – First of all, I would like to express our most sincere appreciation to the social partners for each of their precious interventions. Their comments and contributions are fundamental for the continued construction of a public policy that is genuinely inclusive and effective with a view to the development of all the sectors of our society. May I first briefly address the subjects that have been raised, particularly to place emphasis on the progress that we have achieved in the coordination of employment policy with the economic and social policy of the country. I wish to place special emphasis on the consultations held with the social partners in relation to the formulation, application and follow-up of active labour market measures. In 2022, a technical working round table was established for the formulation of a practical guide on vocational guidance for young students with the participation of various institutions, such as the Ministry of Labour, the Ministry of Social Development, the Ministry of Education, the Chamber of Commerce, the National Competitivity Centre, CONATO and CONEP. This is a clear example of how we are moving forward towards greater collaboration for the development of policies that respond effectively to the needs of the population.

With reference to the issue raised of the labour market participation of women, I would like to emphasize the progress achieved through the Public Policy for the Employability and Labour Market Integration of Young Persons and Women (PEIM). More specifically, I refer to the Impulsa mujer project, which has the objective of promoting equality of opportunity for women, and particularly those who are vulnerable. Since its creation, significant results have been achieved, such as the recognition of 16 legal personalities at the national level, of direct benefit to over 2,500 persons and providing income through cooperatives, which is contributing to the reduction of gender gaps in communities. This project continues to be a fundamental pillar of our strategy to ensure the economic independence of women and their inclusion in enterprises. It consists of three phases intended to create opportunities in communities through the development of cooperatives providing various types of services.

I would also like to underline the recent adoption of the Public Policy for Equality of Opportunities for Women (PPIOM) 2024–34, within a strategic framework intended to make progress in gender equality in Panama over the next decade. This policy addresses key aspects, such as legal equality, economic autonomy, the political participation of women and action to combat discrimination, especially in rural areas. The Economic Agenda for Rural Women in Panama is another important milestone in this process and seeks to reduce gender gaps and ensure the inclusion and empowerment of women throughout the country. In the context of our agenda of institutional modernization, we have taken decisive steps for the transformation of the Labour Market Observatory by aligning it with international standards and better practices. In this process, we have benefited from the valuable technical support of the Labour Market Observatory of Spain, with which we have had important exchanges and strategic dialogues. This technical cooperation has reaffirmed our commitment to the evidence-based management of employment, which makes it possible to take informed decisions and design more effective public policies for the development of skills in Panama. The Labour Market Observatory of Spain, managed by the State Public Employment Service (SEPE), fulfils various key functions for the analysis and improvement of the labour market. We trust that, in view of the progress that has been made by the Observatory in Spain, our own Observatory will improve the effectiveness and efficiency of employment policies, on the basis of which we will be able to facilitate the adequate matching of supply and demand on the labour market.

As part of our efforts to promote the transition from informality to formality, I would like to place emphasis on Act No. 462 of 18 March 2025, which introduces various important reforms to the Social Security Fund (CSS) of Panama. The Act was the subject of a broad citizens consultation process with the participation of all the sectors of the country, as well as a debate in the National Assembly, and benefited from ILO technical assistance for an actuarial evaluation. The objectives of the reforms include promoting the transition from informality to formality, ensuring the sustainability of the invalidity, old-age and survivors’ scheme, and improving the quality of the management of the health system. These measures are necessary to prevent the collapse of the CSS pensions system. However, the reforms do not include an increase in the retirement age, on which there was much speculation. The significant aspects including the establishment of a single solidarity funded system, an increase in employers’ contributions in stages, a rise in the levels of penalties for non-compliance and the introduction of a system of automatic registration through a link with MITRADEL, which should be operational within 24 months of the Act coming into force. These and other plans are being developed, both by MITRADEL and at the national level. For example, in care systems, we are seeking to establish carers certified by the INADEH as potential employers through the public employment service. In parallel, we are developing alliances with UN Women to promote cooperatives of carers and strengthen the valuable work that they perform. The National Directorate of Employment, through the public employment service, provides support to the migrant population resident in the country in order to guarantee their access to formal employment opportunities. This is done through the platform www.empleospanama.gov.pa, through which they can apply for vacancies published by the private sector. The migrant population can also participate in the various focused recruitment projects organized by this Department at the national level. In coordination with the International Organization for Migration (IOM), we are implementing a vocational training and employment programme, which has identified vulnerable young migrants through the Piénsalo dos veces (“think twice”) programme. These young persons are provided with psycho-social support by our team of psychologists and social workers to provide them with tools and guidance with a view to facilitating their integration into the formal labour market while they finish their studies or once they have completed them.

In our commitment to regional cooperation, we have held strategic meetings recently with our counterparts in Costa Rica, within the framework of the existing bilateral agreement, with a view to the traceability of our Ngäbe Buglé nationals in Costa Rica, who migrate to work on coffee plantations during the coffee harvest. We have established a specialized round table where we are developing a circular labour migration protocol which represents significant progress in the orderly exchange of specialized labour and the implementation of good practices in cross-border employment. In this context of the modernization of regulations, we have also adopted Executive Decree No. 6, of 11 March 2025, which establishes a comprehensive framework so that foreign nationals can regularize their migrant status in Panama, thereby facilitating their access to legal work and regular residence, and therefore supplementing the broad range of work permits that we already have.

Over the next year, we have assumed the commitment in relation to the Inter-American Labour Administration Network (OEA) to organize a specialized workshop on the articulation of education and work in our country in the context of the preparatory activities for the XXIIth Inter-American Conference of Ministers of Labour, of which we are part of the Troika. As a State, we express great concern as recently, as a result of unlawful and unjustified strikes, a multinational enterprise engaged in the production, distribution and export of bananas has ceased operations in Panama. That enterprise generated around 5,000 direct jobs and thousands of indirect jobs in the province of Bocas del Toro, where multidimensional poverty is 38.9 per cent, one of the highest rates at the national level. We are bound to express our concern on behalf of MITRADEL, as this constitutes a major socio-labour crisis. Each of the workers affected on average supports between five and six members of their nuclear families, which amplifies the effect on thousands of households. The Government has proclaimed a state of emergency in the Bocas del Toro area in an attempt, first, to establish effective dialogue with productive sectors with a view to preserving sources of employment, persuading the enterprise to rehire the dismissed workers and, at the same time, promote alternatives to allow the families concerned to re-establish their livelihoods and safeguard their dignity.

I take this opportunity to commend the valuable work of the ILO standards supervisory system and, with due respect, we also urge it to consider, in the observations of the Committee of Experts, the significant progress achieved in our region, as described in our reports. We give thanks for the observations and recommendations made to our Government, as they will help us to improve. Before finishing, I would like to express our greatest readiness to request and receive ILO technical assistance, which helps our country improve its strategic action. We will also display the continued commitment to maintain the transparency that decent work merits. We also wish to make it clear that we have 544 unions in Panama, and only one is taking systematic action to destabilize social peace.

Finally, I am bound to point out that, in accordance with the regular reporting schedule for the ILO, this year Panama is due to provide a report on the Convention, in which we will supplement the information that we have provided today, based on tripartite consultation with employers’ and workers’ representatives, as set out in Convention No. 144. We deeply regret that this distinguished Organization is being used to divert attention from the real labour challenges that we are facing as a nation. When workers’ representatives refer to trade union persecution, in reality the leaders of those unions are under trial for common offences, and the cases were in any event reported by workers themselves as fraud. We continue to be committed to constructive dialogue, institutional transparency and the strengthening of public policies for the creation of decent work and real opportunities for all the citizens of Panama, without distinction as to their origin, social condition or political affiliation. Before ending, and without entering into inter-union matters, it is important to emphasize that there are today two confederations that have publicly called on persons to demonstrate in the streets and for the streets to be available to them, which have been suspended from CONATO. However, I reiterate that today’s case does not refer to freedom of association, and we are here solely for Convention No. 122.

Worker members – The Worker members wish to close this examination by reaffirming, with the same force as when we opened the discussion, our deep concern at the situation experienced by the people of Panama and the repression suffered by the trade union movement in the country, It is very important to clarify that we are not interested in thinking as they think: on the contrary, we are able to think differently. We said it at the beginning of the discussion, and we repeat it even more firmly at its conclusion: what is at stake is not only compliance with a governance Convention, but also democratic coexistence within a framework of real freedom of association, social dialogue and the fundamental pillars on which this Organization is built. There can be no decent work without democracy based on the guarantee of the rule of law.

We want to specify that the comments of the Committee of Experts came before the strike was called, the repression by the State and the whole situation of social upheaval that is happening in Panama. Consequently, the criticisms and observations that we are able to make on the application of the Convention are earlier and show that there were already sufficient issues and problems. The report of the Committee of Experts is focused on that. I have therefore listened carefully to the Director of Employment, who indicated that it is important for the Committee of Experts to have knowledge of these facts for its replies and observations. We have said it from the beginning, and it was confirmed by all the interventions by Worker members: in Panama, there is no coordinated and sustainable employment policy. The Committee of Experts is clear and forceful in its report, indicating that the programmes described are not structural, are not evaluated and do not have an adequate budget or participation by the social partners.

What is most serious is that there is no dialogue. No consultation. No tripartism, which is also aggravated by the systematic exclusion and delegitimization which, from what I have heard, only applies to the trade union sector that we represent, and which is compounded by an exacerbated discourse of confrontation that is related to a specific political line, as we indicated in our opening intervention. Various Worker members have described this in detail and have provided specific evidence that there is no tripartite social dialogue and that the State is engaging in persecution in violation of the rule of law.

I repeat: we are not interested in thinking differently; on the contrary, there has to be more respect for us. The criminalization of social protest does not create the conditions for social peace, and there can be no tripartite social dialogue if the unions are weakened. In this context, how can it be claimed that effect is being given to the Convention? How can we speak of full and freely chosen employment in a context in which the defenders of labour rights are being persecuted? We believe that it is difficult and indeed almost impossible to ensure compliance with the Convention under these conditions. It is also impossible to ensure compliance with fundamental rights, or to maintain and guarantee a democratic society and sustainable economy with social justice.

There can be no solutions without diagnosis. There can be no dialogue without the recognition of others and there is no way forward if we deny the existence of the conflict. We therefore repeat that an intervention is urgently needed by the Director-General of the Organization. A direct, visible and firm high-level mission. General recommendations are not enough, even when all the requests that we have made, and those made by the Government and employers, are taken into account. Calls for good faith do not suffice. Specific action is needed to send a clear signal to the workers of Panama that they are not alone.

We repeat that technical assistance must not be peripheral or symbolic. It is very important to focus on re-establishing respect for social dialogue, guaranteeing the conditions for freedom of association and re-establishing respect for fundamental standards. It will not be possible to create and maintain employment without robustly calling on the Government of Panama to guarantee and respect freedom of association. We reiterate that, in our view, Panama is a regional priority, as what is happening in the country is a threat to the whole region. We welcome the position of the Government, as conveyed by the Director of Employment, because it is true that there will be an event in Panama, as I am the Chairperson of the Trade Union Technical Advisory Council (COSATE) of the Inter-American Conference of Ministers of Labour (IACML) of the Organization of American States (OAS), and I joined with the Ministers in issuing a statement in Bogotá which recognizes our status and with which it is necessary to comply, not only in this Committee, but also in the next American Regional Meeting, where we will issue a tripartite statement based on tripartite social dialogue. What we do not want to see is the consolidation of models of repression, models of violence against freedom of association and the denial of tripartism. What is at risk is not only the country, but also the ILO’s national and international system.

We are not confronted with a technical problem. We have before us a fairly deep-rooted conflict. It is affecting public freedoms and the very visibility of the system of tripartite governance represented by the ILO. Reference has been made here to outlining a model. If there is a model, it is that of Governments which attack socio-labour rights in our region. And we do not want this model. The generation of productive, decent and freely chosen employment, with the essential objective of social and economic policy, has to include the people, and never leave them outside. We obviously wish to thank the Committee. This is the last case concerning our region and we are looking forward attentively to hearing its conclusions. Panama is our priority. We have to strengthen tripartism. As it was a model at a different period with its tripartite dialogue commissions, it can be once again. Political will is needed to do so, which would be for the good of everyone.

Employer members – The Employer members wish to thank the various speakers who have taken the floor and expressed their views on this issue, including the Government representative. The Employers wish to recall that the Standing Orders of the Conference, in article 10(1)(b), provide that this Committee has the function of considering individual cases relating to the measures taken by Members to give effect to the Conventions to which they are parties. In this regard, we wish to reiterate that it is very important, in order to ensure the relevance of the discussion of cases by the Committee, for us to confine ourselves to the case under examination and to refer to the comments of the Committee of Experts.

We trust that the Committee will take into account the comments made during the discussion, and particularly those that referred specifically to compliance in both law and practice with Convention No. 122, which is the Convention that we are examining today. In light of the comments made and the discussions held today, the Employer members would like to recommend the following to the Government: first, with ILO technical assistance, establish projects and programmes that are focused on strengthening tripartite social dialogue and which protect the independence, parity and, in particular, constructive participation of the social partners. Second, it should continue working through tripartite round tables so that, with the involvement of everyone, and with the experience and knowledge of employers, workers and the Government, progress can continue to be made in relation to employment, with the objective of decent work, and in the transition from informality to formality. We wish to emphasize that the protests that are carried out must take into account and respect the fundamental rights of citizens and cannot endanger the life, health or safety of citizens. We recall that, in line with the comments of the ILO supervisory bodies, a climate of generalized violence affects industrial relations, and in particular the generation of decent work and sustainable enterprises. Finally, the Employers reiterate the importance of the existence of forums for tripartite social dialogue which allow the development of a more solid democracy and a path of greater consensus.

Conclusions of the Committee

The Committee took note of the written and oral information provided by the Government and the discussion that followed.

The Committee noted with concern the lack of effective and genuine consultation with representatives of workers’ and employers’ organizations regarding employment policies.

Taking into account the discussion, the Committee urged the Government to take, in consultation with the social partners, effective and time-bound measures to:

• ensure that employment policy promotes full, productive and freely chosen employment based on an economic and social policy that stimulates sustainable economic growth and development, raises levels of living and overcomes unemployment and underemployment including labour market access for young persons, especially young women;
• continue its efforts to combat persistent gender-based vertical and horizontal segregation in employment, the low labour market participation rate of women, and their high concentration in the informal economy and in that regard implement fully the Decent Work Country Programme 2024–27 and by using the guidance provided by the Transition from the Informal to the Formal Economy Recommendation, 2015 (No. 204);
• ensure effective consultation with the most representative workers’ and employers’ organizations concerning employment policies;
• formulate, implement, monitor and review active labour market measures adopted in the context of employment policy taking into account the groups targeted.

The Committee requested the Government to avail itself of technical assistance from the ILO.

The Committee also requested the Government to provide a detailed report on the measures taken to implement the above recommendations by 1 September 2025.

Chairperson – I have the honour of giving the floor to the distinguished representative of the Government of Panama, the Director of Employment, Ministry of Labour and Workforce Development.

Government representative – On behalf of the delegation of the Republic of Panama, we note the conclusions of this Committee.

The Government of Panama notes with attention the conclusions that have been read out and, expressing our deep respect for the mandate of the ILO supervisory bodies, we welcome the opportunity to describe the progress achieved in the implementation of the Convention. We have provided specific information on the progress made in relation to employment policy, among which we emphasize:

• public investment in various economic sectors, including major infrastructure works, which are contributing to employment generation;
• various employment programmes, such as focused recruitment, Mi primer empleo and the labour market integration of persons with disabilities, with all these programmes being carried out within the framework of solid public–private collaboration, which increases their scope and impact;
• the vocational guidance programme for young middle-level students to promote informed decisions on their future careers;
• promotion of the digitalization of public employment services;
• the conclusion of agreements with the education sector to strengthen technical training for students:
• the implementation of public employment generation policies focusing on gender; and
• the reforms of the Social Security Fund (CSS).

We reiterate that unemployment in Panama is not only a result of structural labour market factors, but also of events that have had a direct impact on economic activity and labour stability, such as the ruling that the mining contract is not constitutional, the prolonged closure of roads at the national level and, in particular, unlawful strikes, which have had a negative impact on the conservation and generation of employment throughout the country.

Finally, we reaffirm our commitment to constructive dialogue, institutional transparency and the strengthening of public policies to promote decent work and create genuine opportunities for all the citizens of Panama. It is essential to emphasize that the responsible behaviour of the social partners also forms part of this national commitment. The maintenance of labour peace, respect for the law and the readiness to reach agreement are fundamental pillars in making progress towards genuinely inclusive and sustainable development.

We also welcome the ILO technical assistance that has been provided and we reiterate our commitment to providing regular information on the progress achieved in future in this respect.

Direct Request (CEACR) - adopted 2025, published 114th ILC session (2026)

The Committee notes the joint observations of the National Confederation of United Independent Unions (CONUSI) and the National Council of Organized Workers (CONATO), received on 30 August 2025; as well as the observations of CONUSI, received on 29 August 2025. The Committee also notes the observations of the International Organisation of Employers (IOE), received on 1 September 2025, which reiterate the comments made by the employer members during the debate on the application of the Convention, adopted in June 2024 at the Conference Committee on the Application of Standards (hereafter the Conference Committee). The Committee also notes the observations of the International Trade Union Confederation (ITUC), received on 2 September 2025. The Committee requests the Government to submit its comments in this regard.

Article 1 of the Convention. Implementation of an active policy of employment. Measures to promote full employment. Infrastructure development. Commercial policy. The Committee notes that, in response to its previous comments, the Government refers to the continuing implementation of the “Community Employability Axis” labour intermediation program, which aims to hire local jobseekers in order to provide employment opportunities in communities where infrastructure projects are under development, with the goal of improving their employability and labour reconversion. In the course of this program, 47 projects were implemented in 2023, through which 967 persons received training, and 2,200 job placements were achieved, of which only 72 were women. The Committee also notes that, in its observations, the CONUSI claims “the substantial investments in infrastructure and the community employability programs did not have a significant and verifiable impact on the creation of decent jobs; and (ii) the Government repeatedly omits to provide concrete and disaggregated data on the impact of these measures on job creation. Finally, the Committee observes that the Government does not provide information on the nature and impact of the specific measures adopted within all the infrastructure development and commercial policy projects signalled mentioned in its previous report. In light of the above, the Committee once again requests the Government to submit detailed information on the nature and impact of the specific measures adopted to generate employment within infrastructure development projects and commercial policy, including statistical data disaggregated by sex, age and region, on the number of jobs created.

Contribution of employment services to the promotion of employment. The Committee notes that CONUSI maintains that the public employment service and the “Empleos Panamá” portal show clear inefficiency in labour intermediation, as only 504 people managed to access employment out of a total of 24,689 intermediation attempts. CONUSI considers that this is evidence of a structural deficiency in employment services, and a critical shortage of quality vacancies that are compatible with workers’ aspirations and qualifications. The Committee observes that the Government does not respond to its previous comments. Consequently, the Committee once again requests the Government to provide information on the nature of the programs and measures implemented by employment services with a view to promoting employment, including in rural areas, as well as statistical information, disaggregated by age, sex, and province, on the number of persons registered, vacancies, and placements achieved.

Coordination between training and employment policies. In its observations CONUSI highlights that: (i) education, technical training plans, and the National Qualifications Framework, lack substantial investment as well as the contextual relevance necessary to have an impact on the majority of workers; and (ii) the chronic disconnect between the National Institute of Professional Training and Human Development (INADEH) training offer, and the real and changing demands of the productive sector persist, which leads to a workforce with outdated skills and therefore underutilized. The Committee notes that the Government does not respond to its previous comments. In light of the preoccupations expressed by the CONUSI and of the lack of information in this regard, the Committee once more requests the Government to provide detailed information on the nature and impact of the measures taken, in consultation with social partners, with a view to coordinate the education and professional training policies with employment policies, specifically, on how the training offer aligns with changes in the demand for knowledge and skills and the needs of the job market.

Micro, small and medium enterprise (MSMEs)s.In light of the lack of information in this respect, the Committee once again requests the Government to provide statistical information, disaggregated by sex, on the number and type of enterprises created, as well as the number of jobs generated by the micro, small, and medium enterprises (MSMEs).

Employment promotion for persons facing situations of poverty and extreme poverty. In light of the lack of information in this respect, the Committee once again requests the Government to provide information on the measures adopted with a view to improving the employability of persons facing situations of poverty and extreme poverty, including indigenous communities and rural-area populations. It requests the Government once again to send comparable statistical information, disaggregated by sex, on the results obtained by these measures to achieve durable integration into the labour market for persons facing situations of poverty and extreme poverty.

Persons with disabilities. The Committee notes the information included in the Government’s report regarding targeted recruitment initiatives aimed towards people with disabilities, carried out by the Department for Socioeconomic Integration of Persons with Disabilities. The Government further indicates that, between 2024 and March of 2024, 44 enterprises were the subject of inspections in order to verify their compliance with Law No. 15 of 31 May 2016, concerning equal opportunities for persons with disabilities. The Committee also takes note that, according to information published on 25 November 2025 on the Presidency’s website, the Ministry of Social Development presented to the Cabinet Council the results of the Second National Disability Survey, which indicated that 781,478 people in the country live some form of disability (1 out of 6 Panamanians). Finally, the Committee recalls that, in its previous comments, it noted that, under the Government’s previous Strategic Plan, the elaboration of the first national study on labour accessibility was established, with the aim to assist stakeholders involved in labour market integration. The Committee observes, however, that the Government does not provide information on the status of this study’s adoption, and that once again it does not provide information on the situation of persons with disabilities in the regular labour market, information which would facilitate the evaluation of the impact of the implemented measures. As a consequence, the Committee once again requests the Government to provide information on the nature and impact of the measures adopted in the goal of promoting access of persons with disabilities to the open labour market, including statistical information, disaggregated by sex and age, on the trends of employment of persons with disabilities. The Committee also once again requests the Government to provide a copy of the first national study on access to the job market, once it is finalized.

Observation (CEACR) - adopted 2025, published 114th ILC session (2026)

The Committee takes note of the joint observations of the National Confederation of United Independent Unions (CONUSI) and the National Council of Organized Workers (CONATO), received on 30 August 2025, as well as the observations of CONUSI, received on 29 August 2025. The Committee also takes note of the comments of the International Organisation of Employers (IOE), received on 1 September 2025, reiterating the comments made by Employer members during the discussion on the 2025 application of the Convention held in June 2025 in the Conference Committee on the Application of Standards (hereinafter the Conference Committee). The Committee also takes note of the observations of the International Trade Union Confederation (ITUC), received on 2 September 2025. The Committee requests the Government to provide its comments in this regard.

Follow-up to the conclusions of the Committee on the Application of Standards (International Labour Conference, 113th Session, June 2025)

The Conference Committee noted with concern the lack of effective and genuine consultation with representatives of workers’ and employers’ organizations regarding employment policies. Taking into account the discussion, the Conference Committee urged the Government to take, in consultation with the social partners, effective and time-bound measures to: (i) ensure that employment policy promotes full, productive and freely chosen employment based on an economic and social policy that stimulates sustainable economic growth and development, raises levels of living and overcomes unemployment and underemployment including labour market access for young persons, especially young women; (ii) continue its efforts to combat persistent gender-based vertical and horizontal segregation in employment, the low labour market participation rate of women, and their high concentration in the informal economy and in that regard implement fully the Decent Work Country Programme 2024–27 by using the guidance provided by the Transition from the Informal to the Formal Economy Recommendation, 2015 (No. 204); (iii) ensure effective consultation with the most representative workers’ and employers’ organizations concerning employment policies; and (iv) formulate, implement, monitor and review active labour market measures adopted in the context of employment policy taking into account the groups targeted. The Conference Committee requested the Government to avail itself of technical assistance from the ILO and to provide a detailed report on the measures taken to implement the above recommendations by 1 September 2025.

Articles 1, 2 and 3 of the Convention. Implementation of an active employment policy. Participation of the social partners. The Committee notes the information provided by the Government on the continuity of the policies and programmes mentioned in its previous report, such as the Vocational Guidance Programme (POVE) and “My First Job”, with a differentiated approach for each population group (young persons, women, persons with disabilities and those in rural areas). It also takes note of the Government’s indication that, on 26 December 2024, the Government Strategic Plan (PEG) 2024–29 was approved, which includes measures aimed at promoting economic recovery with a focus on equity, generating formal jobs, strengthening productive entrepreneurship and promoting the development of job skills, especially among young people and women. Among other measures, the PEG provides for major public works and an investment of 30,277 million balboas until 2029, with a direct impact on key sectors such as agriculture, logistics, finance, industry, education, health and tourism. The Government adds that, within the framework of the PEG, procedures have been adopted to consider the effects on employment of measures aimed at economic and social development. The Government also indicates that the design of the PEG was the result of a participatory inter-institutional process, ensuring effective coordination between the employment policy and other areas of national development. The Government also indicates that, following the entry of the new Government in July 2024, the implementation of the Decent Work Country Programme (DWCP) 2024–27 is under review in order to assess the current conditions and priorities that will enable its proper implementation in the near future.

The Committee notes that, in its observations, CONUSI highlights: (i) the absence of a defined employment strategy agreed with the social partners; (ii) the lack of coordination between employment measures and economic and social policy; (iii) the lack of continuity and long-term vision in the programmes implemented to promote employment, vocational training and entrepreneurship, as they are implemented in a fragmented manner without evaluation or coordination, with insufficient budgets and without the effective participation of the social partners; and (iv) the aggravation of systemic problems, such as gender gaps, the disconnect between educational supply and productive demand, and the geographical concentration of opportunities (65 per cent of the economy is concentrated in the provinces of Panama, West Panama and Colon).

CONATO and CONUSI also highlight: (i) the absence of a continuous employment strategy that transcends the Government’s term of office; on the contrary, there are numerous five-year institutional strategic plans with short-term visions; (ii) the implementation of immediate and discontinuous actions without sustainable long-term goals, which respond to the Government’s short-term priorities rather than to a structured national plan; (iii) the lack of an institutional monitoring and evaluation system that includes indicators to assess long-term employment trends; (iv) the lack of an independent labour observatory that produces systematic data and periodic evaluations; and (v) poor inter-institutional coordination.

CONUSI reports that the labour market faces the following structural problems: (i) unemployment and underemployment, which has been exacerbated among the most vulnerable population groups; and (ii) increasing job insecurity, as evidenced by the alarming number of fixed-term and project-based contracts (78 per cent of registered contracts according to a 2019 report by the Institute for Labour Studies (INETRA) prepared by the Specialised University of the Americas (UDELAS) and the low number of permanent contracts (22 per cent), which constitutes a flagrant violation of the right to job stability and negatively impacts access to rights (such as maternity leave and maternity protection) and social benefits, and limits professional development. CONUSI points out that the main factors that have prevented or delayed transformative action are: (i) the persistent lack of real political will on the part of the Government to prioritize decent employment and labour rights over business interests and short-term profitability; (ii) endemic corruption and lack of transparency in the management of public resources allocated to employment programmes; and (iii) an alarming weakness in the enforcement of labour laws and workers’ rights. Finally, CONUSI refers to the technical assistance provided by the ILO in areas such as the signing of the Decent Work Country Programme (DWCP) 2024–27 and expresses the hope that this will translate into real change and will not remain mere action plans without effective implementation and tangible results.

In light of the above, the Committee notes with interest that, on 7 July 2025, the Government formally requested technical assistance from the Office in relation to the formulation, implementation, monitoring and review of active labour market measures with a view to ensuring their effectiveness, sustainability and alignment with international standards. The Committee hopes that this assistance will help to overcome the challenges in coordination that have been identified.

In view of the concerns expressed by the Conference Committee and workers’ organizations in their observations, the Committee urges the Government to take all necessary measures, in consultation with the representatives of the persons concerned, and in particular with the social partners, to: (i) ensure that employment policy promotes full, productive and freely chosen employment, based on an economic and social policy that stimulates sustainable economic growth and development, raises living standards and eliminates unemployment and underemployment, and effectively coordinates the economic investments of the PEG with the generation of quality employment; (ii) ensure the coordination of such employment policy with the country’s economic and social policy; (iii) formulate, implement, monitor and review active labour market measures adopted in the context of employment policy, taking into account the target groups; (iv) address the problem of labour market duality and contractual precariousness by promoting job stability as a means of ensuring predictable income and social protection; (v) establish a robust system for monitoring and evaluating active labour market policies, including a labour observatory with tripartite participation; and (vi) ensure that the current review of the Decent Work Country Programme (DWCP) is carried out through full and effective consultation with the social partners, ensuring that their views are taken into account in the definition of new priorities.

The Committee requests the Government to provide detailed information on the nature and impact of such measures, including statistics, disaggregated by sex, age and province, on labour market developments, particularly on labour force participation, employment, unemployment and underemployment rates.

Informal economy. The Committee notes the Government’s indication that, although the country has seen a significant recovery in employment following the COVID-19 pandemic, this has taken place in a context of high and persistent levels of informality, which particularly affects the most vulnerable sectors of the population. The Government adds that the high rate of informality: (i) represents a structural challenge to economic development; (ii) limits access of a significant portion of the workforce to fundamental rights, such as social security, contractual stability and various benefits; and (iii) has not been effectively reversed by the public policies implemented, highlighting the need to adopt more integrated, sustainable and coordinated strategies. To address this situation, the PEG includes, among its objectives, tackling the structural causes of informality through inter-institutional and multi-sectoral coordination, integrating the efforts of the State, the private sector and civil society, with a view to designing and implementing inclusive and sustainable solutions. The Government indicates that, with this approach, it is expected to achieve significant progress in reducing labour informality. The Committee also notes that CONUSI reports that excessive informality is one of the main structural problems facing the labour market. In this regard, CONUSI emphasizes that: (i) workers in the informal economy do not contribute to social security and are not protected in case of illness, old age or maternity; and (ii) the measures adopted by the Government, such as the creation of a register of self-employed workers, are insufficient and do not address the structural magnitude of the problem.

In this context, the Committee notes with concern the alarming and persistent levels of informality in the country, especially among young people. According to statistical information from ILOSTAT, the informal employment rate in 2024 was 58.7 per cent (60.7 per cent among men and 55.9 per cent among women), reaching 69.4 per cent among young people. In this regard, the Committee recalls once again that, in order to combat informality effectively, the Government may refer to the guidance provided by the Transition from the Informal to the Formal Economy Recommendation, 2015 (No. 204). Recommendation No. 204 sets out the strategic vision developed by the ILO’s tripartite constituents to ensure the transition to the formal economy through the creation and implementation of integrated policy frameworks that include labour, tax and social security laws. These integrated policies are essential to promoting sustainable growth that generates jobs, and benefits people living in poverty. In view of the persistent and alarming levels of informality, especially among young people,the Committee urges the Government to provide information on the measures taken within the framework of employment policy to promote the transition from the informal to the formal economy, in coordination with other public policies, including, for example, social protection, education, budgetary and rural development policies. The Committee invites the Government to indicate whether such measures include, for example, any of the following actions: (i) strengthening the legal framework to ensure that laws promote formalization and are effectively enforced; (ii) developing social dialogue with employers and workers’ organizations with a view to designing and implementing formalization strategies, while promoting gender parity in the labour market to ensure that women have the same opportunities to transition to the formal economy; (iii) supporting entrepreneurship, together with improving access to microfinance, with a view to providing the necessary resources for small businesses to grow and become part of the formal economy; (iv) investing in skills development and vocational training to equip workers with the skills needed in the formal economy, as well as extending social protection to provide a safety net for informal workers; (v) promoting private sector-led growth to create formal employment opportunities, while implementing specific programmes to reduce informality; and (vi) strengthening labour inspection mechanisms.

The Committee also draws the Government’s attention to the possibility of strengthening its operational framework by using technical tools specifically designed and developed by the ILO to facilitate these transitions. In this regard, the Committee highlights the potential usefulness of the “Formalize Your Business” (FYB) training module to complement current national efforts to develop the administrative capacity of microentrepreneurs. Furthermore, with regard to the challenges of extending social protection and inspection to uncovered sectors, the Committee encourages the Government to consult the Methodological Note: Diagnosis of Informality to refine its identification of the determinants of informality in specific sectors, such as domestic work and agriculture.

Article 3. Consultations. The Committee notes the Government’s indication that Executive Decree No. 3 of 22 April 2024, which establishes the public employment service, creates the Employment Service Advisory Committee. This tripartite Advisory Committee is responsible for suggesting and coordinating employability actions implemented by the employment service, including active labour market policies, plans and projects to generate employment. The Government indicates that it is expected to be activated to carry out effective tripartite consultations. It also notes that the powers of this Committee are assumed by the Labour Foundation (FUNTRAB), a non-profit non-governmental organization that promotes social dialogue and tripartism in the country. FUNTRAB is composed of CONEP, CONATO and since 2012, MITRADEL, becoming a tripartite institution. The Government also refers to the National Institute for Vocational Training and Human Development (INADEH) and the Higher Specialized Technical Institute (ITSE), whose advisory councils include representatives of the social partners and academia, ensuring that their programmes respond to the needs of the labour market. Furthermore, the Government refers to the holding of regional consultations to design specific policies, such as the Economic Agenda for Rural Women, in which more than 300 rural women leaders from various regions participated to ensure an inclusive and representative policy. The Committee notes, however, that the Government has not responded to its previous comments or to the conclusions of the Conference Committee regarding effective consultations with representatives of the social partners on employment policies.

The Committee notes that CONUSI denounces that the conditions for effective social dialogue and full cooperation of workers’ organizations, which are fundamental pillars for the implementation of the Convention, are seriously compromised by flagrant and continuous violations of freedom of association and the persecution of trade union leaders. CONUSI emphasizes that consultation with the social partners must be genuine, effective and carried out from an early stage, ensuring the full participation of workers’ organizations in the formulation, implementation and mandatory monitoring of employment policies. CONUSI points out, however, that workers’ opinions are often not taken into account in a comprehensive manner, but are merely heard without their contributions being reflected in concrete decisions.

Finally, the Committee notes that CONATO and CONUSI emphasize that the report on the implementation of the Convention was not discussed in a tripartite manner. They indicate that CONATO received a copy of the report on 12 August 2025, while CONUSI did not, in contravention of article 23(2) of the ILO Constitution. In this regard, CONUSI emphasizes that this omission demonstrates a lack of transparency, and a disregard for tripartite social dialogue, and undermines effective participation in the formulation and monitoring of employment policies by denying workers’ organizations access to official information.

Recalling that Article 3 of the Convention requires consultations not only to exchange information but also to take full account of the experiences and opinions of the social partners, and to obtain their full cooperation, the Committee urges the Government to take the necessary measures to ensure effective and genuine consultations. The Committee requests the Government to: (i) clarify the relationship between the new Consultative Committee and FUNTRAB to ensure that there is a permanent and effective forum for the design of employment policies; (ii) provide specific examples of how the opinions expressed by CONEP, CONATO and CONUSI have been taken into account in the formulation of recent policies; and (iii) indicate the mechanisms established to consult the representatives of those affected by the measures who work in the informal economy and the rural sector, beyond the specific consultations mentioned.

Participation of women in the labour market. The Committee notes that the Government refers to the continued implementation of the following policies with a view to promoting the participation of women in the labour market: (i) the Public Policy on Employability and Labour Market Integration of Young People and Women (PEIM), which includes projects such as Empowering Women (Impulso Mujer), benefiting more than 2,500 people, which aims to strengthen entrepreneurship, economic autonomy and the inclusion of women in sectors that traditionally have a higher representation of men; (ii) the Public Policy on Equal Opportunities for Women 2024–34 (PPIOM), which seeks to guarantee substantive equality for women by establishing clear goals in economic autonomy, access to education, health, political participation and rural empowerment; and (iii) the Gender Parity Initiative (IPG), which trains the private sector in gender perspectives, improving organizational culture and reducing economic gaps. In this regard, the Committee notes that CONATO and CONUSI state that: (i) the above-mentioned government policies have not reversed structural gender segregation and inequality in the labour market, or the high concentration of women in the informal sector and in low-productivity, low-wage sectors; and (iii) there is no system for monitoring the measures adopted with indicators relating to women’s employment (such as formalization rates, wage gaps or access to management positions) and no further surveys on time use have been conducted.

The Committee notes that, according to ILOSTAT, in 2024, the labour force participation rate among men over 15 years of age was 74.4 per cent and only 51.8 per cent among women, and the unemployment rate among women reached 11.3 per cent compared to 6.6 per cent among men. The Committee also notes that the scope of programmes such as Empowering Women (Impulso Mujer) appears limited in relation to the magnitude of the observed participation gap. The Committee further notes that the Government does not provide specific information in its report on the nature and impact of the measures taken under the aforementioned programmes or on the consultations held with the social partners in this regard. Given the persistence of labour market segregation and structural barriers,the Committee encourages the Government to continue its efforts to combat persistent vertical and horizontal gender segregation in the labour market, the low labour market participation rate of women, and their high concentration in the informal sector of the economy.The Committee once again requests the Government to provide specific information on: (i) the quantitative and qualitative results of the measures taken under the PEIM 2030 and the PPIOM 2024-34, specifying how many women have managed to transition to formal and sustainable employment; (ii) the measures taken to promote a more equitable distribution of family responsibilities and improve care infrastructure, in light of the need to update time use surveys, as pointed out by the social partners; and (iii) the content and outcome of the consultations held with the social partners on this issue.

Youth employment. The Committee notes the information provided by the Government on the various programmes and measures implemented to promote youth employment: (i) the “My First Job” programme, which has enabled 624 young people to enter the labour market (out of 1,058 internships offered) and through which it is envisaged to generate 2,780 additional opportunities by 2025; (ii) the “Learning by Doing” (Aprender Haciendo) programme, which facilitates access to a first work experience for young people between the ages of 17 and 24, in collaboration with various government and business organizations; (iii) the signing of a cooperation agreement with the Private Sector Council for Educational Assistance, which provides training through the online platform conecta, aligned with labour market demands and including periodic evaluations to monitor participants’ progress; and (iv) the continuation until December 2024 of the “Solidarity Employment” programme to encourage the hiring of people in vulnerable situations who lost their jobs during the COVID-19 pandemic. The Committee also notes that, in its observations, CONUSI highlights the high rate of youth unemployment and denounces the fact that government programmes such as “Business Mentor” (Padrino Empresario) or “Learning by Doing” (Aprender Haciendo) have no real impact and are sometimes used by companies to fill vacancies with temporary internships, without stable employment or decent pay. Likewise, CONATO and CONUSI maintain that the Mi Primer Empleo programme has had a limited impact on reducing youth unemployment, as it has very limited coverage (only 600 young people have been placed) and also has a short-term welfare approach and provides remuneration below the established minimum wage. They also point out that no audit of the programme’s impact has been carried out.

While taking note of the above, the Committee observes that, according to ILOSTAT, in 2024 the youth unemployment rate was 19.7 per cent (26.7 per cent among women and 15 per cent among men). The Committee also notes that the information provided by the Government does not address all the issues on youth employment raised in its previous comments. Therefore, in view of the high unemployment rate among young people, especially young women, the Committee once again requests the Government to provide detailed information on: (i) the nature and impact of actions taken to integrate into employment policy measures aimed at promoting access to the labour market and self-employment for young people, including statistics disaggregated by age and sex on employment, unemployment and underemployment among young people; (ii) how coordination is ensured between the various programmes and projects implemented to promote youth employment; and (iii) the consultations held with the social partners on these measures.

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

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

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.

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

The Committee notes the observations of the National Council of Organized Workers (CONATO), received on 6 September 2022, and the Government’s reply, received on 6 December 2022. The Committee also notes the Government’s reply to the 2018 observations of CONATO, which are incorporated in its report.

Articles 1, 2 and 3 of the Convention.Implementation of an active employment policy. Participation of the social partners. The Committee notes the detailed information provided by the Government on the measures taken to achieve the objectives of the Convention. In this regard, the Government reports the adoption on 30 December 2019 of the Strategic Governance Plan (PEG) 2020–24, which contains various components relating to a competitive economy for creating employment and reducing poverty and inequality. With regard to employment, the PEG sets out the following main activities: (i) strengthening fast-track technical training programmes for integration in the labour market, to enable young persons with limited resources to find and maintain decent employment; (ii) coordinating employment policies with policies relating to vocational training and education; (iii) creating opportunities for entrepreneurs, facilitating business incubators; (iv) facilitating the integration of own-account workers into the social security system; (v) enhancing the quality of training and education programmes for workers; and (vi) establishing an analysis unit to align the education and training system to the requirements of the labour market. The Committee also notes the various measures taken to align education with labour market demands, notably through the Prepárate Panama programme, developed in response to the recommendations of the High Commission for Public Employment Policy in 2014. In this regard, the Government provides information on the measures taken with ILO technical assistance, the Inter-American Centre for Knowledge Development in Vocational Training (CINTERFOR), and the Latin American Development Bank (CAF), with a view to establishing a national qualifications framework (MNC), which establishes levels of education and certification for workers (examined in the direct request). The Committee also notes the Government’s indication that, in order to address the situation of informality in the country, the national register of own-account workers was set up as an identification platform to cater for and direct independent workers in the formalization of their ventures in order to provide them with social security protection.

The Committee also notes the information provided by the Government regarding the tripartite consultations held on employment during the period covered by the report (Article 3 of the Convention), including with regard to the measures taken to tackle the impact of the COVID-19 pandemic on employment. In this regard, the Government reports the adoption of Decision No. 150 of 27 April 2020 establishing the tripartite dialogue committee for the economy and labour development in Panama, within which numerous agreements have been concluded with the aim of maintaining employment, enterprises and economic recovery.

Lastly, the Committee notes the vast amount of statistical information provided by the Government on labour market trends up to 2022. The Committee observes from ILOSTAT data that in 2023 labour force participation stood at 61.9 per cent, the employment rate was 57.7 per cent, and the unemployment rate was 6.7 per cent. The Committee also notes the high rate of informality (56.1 per cent). According to the 2022 multi-purpose survey, 48 per cent of persons in non-agricultural employment had informal jobs, representing an 8.9 per cent increase over 2021. The Government also indicates that, as of May 2022, of 99,090 contracts registered, only 20,295 were of unlimited duration.

The Committee notes that in its concluding observations of 31 March 2023, the United Nations Committee on Economic, Social and Cultural Rights (CESCR), while noting the gradual reduction in unemployment over the last ten years, regretted that insufficient measures had been taken to address job losses triggered by the COVID-19 pandemic, as seen in the significant rise in unemployment and the increase of informal employment to above 40 per cent (E/C.12/PAN/CO/3, paragraph 24). The Committee also notes that CONATO emphasizes in its observations that, as a result of the pandemic, three out of four Panamanians lost their jobs and informality increased significantly. CONATO asserts that even though employment should be the cornerstone of the economic recovery after the pandemic, the Government’s reply has focused on financial assistance or subsidies with transfers and as a result almost half a million people depend on this income, doubling the number of unemployed persons. In its reply the Government indicates that even though the pandemic had a negative impact on employment in the country, it has been possible, through programmes and projects implemented to improve employability and protect jobs, to increase employability and reduce unemployment.

With regard to the employment measures taken by the Government, CONATO criticizes: (i) the lack of a definite employment strategy in conjunction with the social partners, which hampers efforts to promote new strategic sectors or reinforce existing ones without this leading to a reduction of rights and the liberalization of termination of employment – which aggravates the high rate of informality and the low quality of employment – as is the case in the free zones; (ii) the lack of coordination between programmes implemented to promote employment opportunities, vocational training and entrepreneurship and their lack of connection with economic and social policy, as well as the reduced budget allocation for them; (iii) the lack of development plans with continuity that go beyond the Government’s term of office; on the contrary, there are numerous five-year institutional strategic plans with a short-term vision; and (iv) the doubtful effectiveness of various employment programmes which have been implemented, such as the Labour market integration support programme (PAIL) and the programmes for learning on the job (Aprender Haciendo, Empleo Solidario 2022) and for skills-building for jobs (Capacítate para el Trabajo). Lastly, the Committee notes that CONATO in its observations denounces: (i) the inadequacy of measures to tackle the high rate of informality; (ii) the large number of temporary employment contracts; (iii) the high concentration of the economy in specific sectors and regions (65 per cent in the provinces of Panamá, Panama Oeste and Colón), which results in public policies with greater coverage and quality in urban areas, creating inequalities in terms of regions, ethnicity and gender; this highlights the need for measures to promote the development of the rest of the country in order to ensure a more inclusive and sustainable economy; and (iv) the fact that the level of investment has not had a proportionate impact on job creation.

In this context, the Committee notes with interest the signature on 8 April 2024 of the Memorandum of understanding for the Decent Work Country Programme (DWCP) 2024-27 by the Government, the social partners, including representatives of the National Council for Private Enterprise (CONEP), CONATO, the National Confederation of United Independent Unions (CONUSI), and the ILO. The DWCP, which is the result of a participatory process, includes the following strategic areas: (i) the promotion of coherent, comprehensive, inclusive and equitable public policies for job creation which provide social and economic guarantees, under fair conditions and catering for categories of the population in situations of vulnerability, with the focus on young persons and gender mainstreaming; (ii) extending, in a comprehensive and sustainable manner, the coverage and adequacy of social and labour protection for women workers and their dependants; and (iii) strengthening social dialogue with a view to effective observance of any tripartite and bipartite agreements concluded between workers and employers. The DWCP has a tripartite follow-up mechanism the responsibilities of which include ensuring the implementation of the programme and providing policy guidance with a view to ensuring the success of the proposed outcomes and adopting relevant adjustments. In light of the foregoing, the Committee requests the Government to continue sending information on the nature and impact of measures adopted to implement an integrated policy aimed at promoting the creation of opportunities for full, productive and freely chosen employment, including those implemented in the context of the Decent Work Country Programme (DWCP) 2024–27.

In this regard, the Committee also requests the Government to provide information on: (i) how it is ensured that employment policy is coordinated with the country’s economic and social policy; (ii) the consultations held with the representatives of the social partners, and the representatives of the persons affected by these measures with regard to the formulation, implementation, monitoring and review of active labour market measures adopted in the context of employment policy, in accordance with Article 3 of the Convention; and (iii) statistics, disaggregated by sex, age and province, on labour market trends, particularly regarding the active population rate and employment, unemployment and underemployment rates.

Furthermore, in view of the high rate of informality, the Committee requests the Government to provide information on the scale of the informal economy and on the steps taken, in coordination with the national employment policy, to facilitate the transition to the formal economy. In this regard, the Committee draws the Government’s attention to the guidance provided by the Transition from the Informal to the Formal Economy Recommendation, 2015 (No. 204).

Participation of women in the labour market. The Committee notes the Government’s indication that on 4 October 2021 official approval was given to the Public policy on the employability and labour market integration of young women and women in situations of socio-economic vulnerability in Panama (PEIM) 2030 and its plan of action for 2021–24, the revision of which is planned with a view to formulating, on the basis of the results achieved, the new plan of action for 2025–30. The PEIM establishes a series of cross-cutting strategic objectives such as: (i) improving the employability of women, particularly those most affected by situations of vulnerability with respect to employment; (ii) ensuring their access to available education, especially in the area of vocational technical education, linked to the sectors offering the most opportunities at present (logistics, agro-industry, tourism and commerce) and in the future (energy, environment, science and innovation, technology and culture); (iii) guiding and promoting their access to these sectors; and (iv) encouraging formalization processes among women workers and enterprises in sectors where high concentrations of women are employed. The PEIM includes targeted objectives for young women, rural women, women domestic workers, indigenous women, Afro-Panamanian women and women with disabilities. The Committee also notes the Government’s indication that the PEIM is linked to other strategies aimed at strengthening women’s economic empowerment and improving their economic and employment opportunities, namely: (i) the National strategy for the integration of girls and young women in STEM disciplines and jobs; (ii) the National entrepreneurship strategy for women; (iii) the Plan for the economic empowerment of indigenous women; and (iv) the National strategy for the provision of care.

The Committee also notes that CONATO highlights the lack of inclusiveness of the workings of the economy with respect to women. In this regard, the Committee notes with concern the significant gap between the labour force participation rate and the employment-to-population ratio for men and women. According to available ILOSTAT data, in 2023 the labour force participation rate was 74.3 per cent for men and 50.4 per cent for women. As for the employment rate, this was 70.4 per cent for men and only 46.1 per cent for women, while the unemployment rate was 5.3 per cent for men and 8.6 per cent for women. The Committee also notes that CESCR, in its concluding observations of 31 March 2023, noted with concern the persistence of vertical and horizontal gender-based employment segregation, the low labour participation rate of women and their high concentration in the informal economy, especially in unpaid or domestic work (E/C.12/PAN/CO/3, paragraph 22). The Committee further notes that the United Nations Committee on the Elimination of Discrimination against Women (CEDAW) also expressed its concern in this regard in its concluding observations of 1 March 2022 (CEDAW/C/PAN/CO/8, paragraph 35).

In this context, the Committee notes with interest the adoption in May 2024 of the Public policy on equal opportunities for women (PPIOM) 2024–34, which provides for the adoption of numerous measures to promote women’s participation in the labour market and their employability, including: (i) employment policies and programmes, aimed at increasing the participation of women; (ii) an employability and labour market integration policy for young women and other women in situations of socio-economic vulnerability; (iii) vocational, technical and short-cycle training programmes, to enable immediate linkage for women belonging to population groups in situations of vulnerability (young women, older women, Afro-Panamanian women and women with disabilities); (iv) microcredit programmes and projects to support women entrepreneurs and artisans, and also women’s associations and cooperatives; and (v) measures to promote equal opportunities for women in access to technical and vocational education and higher education with gender mainstreaming, in urban, rural and district areas, emphasizing non-traditional technical and university careers. While welcoming the measures taken to promote the participation of women in the labour market, the Committee encourages the Government to continue its efforts to combat persistent gender-based vertical and horizontal segregation in employment, the low labour market participation rate of women, and their high concentration in the informal economy. The Committee requests the Government to provide information on: (i) the nature and impact of measures taken in this regard, including those adopted in the context of the Public policy on the employability and labour market integration of young women and women in situations of socio-economic vulnerability in Panama (PEIM) 2030 and the Public policy on equal opportunities for women (PPIOM) 2024–34; and (ii) the consultations held with the social partners in this regard.

Youth employment. The Committee notes the information provided by the Government on various projects implemented to promote youth employment, including: (i) National Youth Coordinating Committee (CNJ) projects for building life skills (Habilidades para la Vida) and for supporting young persons (Juventud somos la Fuerza), providing guidance to 300 and 90 young persons, respectively, on various related topics such as communication, leadership and entrepreneurship; (ii) the Padrino Empresario programme, which offers internships with bursaries of 180 to 270 balboas per month (about US$180 to 270) in the private sector to young persons between 15 and 17 years of age in situations of vulnerability; (iii) the Aprender Haciendo project, which facilitates access to a first work experience for young people between 17 and 24 years of age, in collaboration with various government and business organizations; (iv) the Orienta Panamá programme, which provided vocational guidance to 9,085 pre-middle and middle school students; and (v) the signing of a memorandum of understanding between the Ministry of Labour and Employment Development (Ministry of Labour) and the Panama Shipowners Association (ARPA) regarding the provision of training to young people in the maritime sphere aimed at creating new employment opportunities.

While noting the implementation of various projects and programmes to promote youth employment, the Committee notes that CONATO in its observations criticizes the high youth unemployment rate and affirms the need for a tripartite consensus on youth employment policy. CONATO emphasizes that youth employment programmes are often used to fill vacancies through internships, which are necessarily for a limited period of time. The Committee notes, on the basis of ILOSTAT data, that in 2023, although the unemployment rate among the general public was 6.7 per cent, among young people it was as much as 16.7 per cent (13.5 per cent for men and 22 per cent for women), and the rate of young persons neither working nor in education or training was 15.1 per cent (9.2 per cent for men and 21.4 per cent for women). In view of the high rate of youth unemployment, especially among young women, the Committee requests the Government to provide detailed information on: (i) the nature and impact of actions taken to incorporate measures into employment policy, aimed at promoting labour market access and self-employment for young persons, including statistics, disaggregated by age and sex, on youth employment, unemployment and underemployment; (ii) the manner in which coordination is ensured among the various projects and programmes implemented to promote youth employment; and (iii) the consultations held with the social partners on these measures.

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

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.