Observación (CEACR) - Adopción: 2024, Publicación: 113ª reunión CIT (2025)

Convenio sobre la política del empleo, 1964 (núm. 122) - Panamá (Ratificación : 1970)

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.