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

Employment Policy Convention, 1964 (No. 122) - Nicaragua (Ratification: 1981)

Other comments on C122

Observation

Direct Request

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Articles 1 and 2 of the Convention. Adoption and implementation of an active employment policy within the framework of a coordinated economic and social policy. The Committee notes the information sent by the Government in the detailed report received in August 2010. With regard to the observation made in 2009, the Government indicates that in 2009 the rate of economic growth declined to -1.5 per cent, due to the international financial crisis. A fiscal reform was undertaken in December 2009 to reorganize public accounting and promote a climate of confidence to boost private investment. According to data from the National Household Survey (ECH) conducted in February 2010, the labour force participation rate stood at 31.1 per cent, with men outnumbering women (84.3 per cent and 54 per cent, respectively). The Committee notes the recovery in women’s participation in the labour force, increasing from 49.9 per cent in February 2009 to 54 per cent in February 2010. This growth is particularly visible in rural areas as a result of the social programmes which have been promoted. According to the National Development Information Institute (INIDE), in February 2010, the unemployment rate stood at 8 per cent and 43 per cent of the working population were underemployed in terms of insufficient hours of work or low wages. The rate showed a 2.5 per cent increase in 2010 over the previous year. Income from family remittances fell by 6.1 per cent owing to the downturn in the main countries employing Nicaraguan workers. According to the Statistical Yearbook of the Ministry of Labour, in 2009, job applications submitted to the public employment service tripled and, despite the fact that job offers doubled compared to the previous year, only one third of jobseekers were placed in employment. The Government indicates that between February 2009 and February 2010 a total of 178,000 jobs were created (94,000 for women and 84,000 for men). The Committee requests the Government to include information in its next report on the steps taken to formulate an active policy designed to promote full, productive and freely chosen employment. The Committee requests the Government to include information on the results achieved in terms of job creation within the framework of the Decent Work Country Programme.

Export processing zones. The Committee notes that in 2009 the Export Processing Zone (EPZ) Tripartite Labour Committee, the Nicaraguan Textile and Clothing Industry Association (ANITEC), the National EPZ Committee and the Ministry of Labour signed an “Emergency economic and labour agreement”. With the aim of preserving investment and jobs for the 2010–13 period, another agreement was signed in January 2010 in the context of the EPZ Tripartite Labour Committee, in which the parties undertook to promote social policies geared towards the comprehensive development of workers in the sector and to maintaining labour stability. Moreover, a training strategy was formulated with the National Institute of Technology (INATEC) to improve the productivity of workers in EPZ enterprises. The sector performed well in 2010, recording average growth rates above 3 per cent and providing work for more than 80,000 workers, reaching pre-crisis levels. The Committee requests the Government to include information in its next report on employment trends in the export processing zones and the impact of tripartite agreements on the provision of lasting, high-quality employment by the EPZs.

Coordination of employment policy and poverty reduction. The Committee recalls that the objectives of the “Programme for micro-, small and medium-sized enterprises” (PROMIPYME) included giving priority to actions that would result in the establishment of mechanisms and incentives that promoted the formalization of the informal economy. According to ECLAC, the proportion of persons working in the informal economy increased by 1.4 percentage points to 64.9 per cent. Moreover, INIDE indicates that the rate of informal employment in rural areas is 88.7 per cent. The Committee requests the Government to continue to supply information on the steps taken to enable a gradual transfer of workers from the informal to the formal sector, including statistics on the impact of programmes relating to microcredit, training and the promotion of micro- and small enterprises.

Promotion of small and medium-sized enterprises for job creation. The Committee observes that the first phase of the “Programme for micro-, small and medium-sized enterprises” (PROMIPYME) (2007–17) is coming to an end. In March 2010 the National Council for Micro-, Small and Medium-Sized Enterprises (CONAMIPYME) was set up as a body for consultation and cooperation between the Government and the trade unions in micro-, small and medium-sized enterprises (MSMEs). The Committee requests the Government to include in its next report an evaluation of the implementation of the operational plans for PROMIPYME and CONAMIPYME, including information on their impact in areas where there are high concentrations of people living in extreme poverty.

Youth employment. The Committee observes that the demand for labour continues to be substantially greater for young people between 20 and 29 years of age. According to data published by the ILO in the Panorama Laboral 2010, youth unemployment stands at 9.6 per cent, three points above the unemployment rate. The Government states that it is implementing the “Programme of opportunities for youth, employment and migration” with the collaboration of the Spanish Agency for International Development Cooperation (AECID) to establish networks and associations of young micro-entrepreneurs, and to promote community tourism and access to technical training. The Committee requests the Government to include information in its next report on the steps taken and the results achieved to improve access to decent employment for young people living in precarious social conditions in both urban and rural areas.

Article 3. Participation of the social partners in policy formulation and implementation. The Committee notes that in March 2010 the National Labour Council was established as a forum for tripartite social dialogue in which subjects such as employment, wages, gender equality, equal employment opportunities, restitution of the right to decent work and observance of labour legislation could be discussed. The Committee hopes that the Government will include more detailed information in its next report on the activities undertaken within the Council to formulate employment policies and programmes for generating decent work and contributing to poverty reduction and national economic and social development.