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

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

1. Adoption and implementation of an active employment policy within the framework of a coordinated economic and social policy. The Committee notes the detailed information provided by the Government in its report received in September 2006. The Committee notes with interest that through Executive Decree No. 30-2006, of 1 May 2006, the Office of the President of the Republic approved the national employment policy noting the incorporation of the principles of international labour standards, and particularly those of Conventions Nos 100, 111 and 122. Among other important statements, it is considered a national priority to formulate a strategy for the generation of high-quality work, together with incentives for national and foreign private investment, and to develop a strategy for economic growth and poverty reduction. Measures will be taken to strengthen the system of public investment with a view to promoting a series of projects with a major impact on the living standards of the population and the economy in general in accordance with the objectives of the National Development Plan and the resources allocated for a more aggressive infrastructure investment programme with a view to promoting economic growth. The Committee asks the Government to provide information in its next report on any difficulties encountered in the achievement of the employment objectives established in the National Development Plan, including updated quantitative information on the implementation and outcome of the programmes implemented to promote growth and economic development, raise living standards, meet the needs of the labour force and resolve the problem of unemployment and underemployment.

2. Coordination of employment policy and poverty reduction. The Committee also notes with interest the Government’s statement in its report that, following a long process of structural adjustment and fiscal discipline, in January 2004, Nicaragua was finally accorded the cancellation of over 80 per cent of its external debt through the Highly Indebted Poor Countries (HIPC) initiative in the context of the Strengthened Growth and Poverty Reduction Strategy (ERCERP 2001). The macroeconomic programme implemented by Nicaragua during the period 2002–05 contributed to national stability, with a growth rate of 5.1 per cent in 2004. Nevertheless, according to the information published by ECLAC in the Preliminary overview of the economies of Latin America and the Caribbean 2006, economic growth in Nicaragua slowed slightly from 4.0 per cent in 2005 to 3.7 per cent in 2006, owing to the decrease of domestic demand, although this was partly offset by a strong increase in exports. Indeed, exports of goods grew by 24 per cent due to a good harvest and improved international prices for some of the main traditional exports and the buoyancy of exports from export processing zones, especially maquila textile products. According to the statistics available in the ILO, the overall unemployment rate has fallen, reaching 7 per cent in 2005. However, informal work has not decreased and in 2005 was at the level of 58.8 per cent. The Committee once again expresses interest in continuing to receive information on the manner in which it is ensured that employment takes on central importance in macroeconomic and social policies through the formulation and implementation of the national strategy for poverty reduction and the promotion of decent work. The Committee asks the Government to continue providing information in its next report on the situation, level and trends of employment, unemployment and underemployment with an indication of the extent to which they affect the most vulnerable categories (women, young persons, older workers, workers with disabilities, workers in rural areas and in the informal economy) and, in particular, of the contribution of export processing zones to the creation of lasting and high-quality employment.

3. Part V of the report form. ILO technical cooperation. The Government provides information in its report on the meetings held in the framework of the Central American Integration System (SICA) with a view to addressing the subject of employment in a consensual and tripartite manner and establishing a closer linkage between social and economic matters. The Committee asks the Government to continue providing information on the subregional initiatives undertaken with ILO support to promote the objectives of the creation of productive employment as set out in the Convention.

4. Article 3. Participation of the social partners in policy formulation and implementation. The Committee notes with interest the indication in the National Employment Plan that “the Government will support the strengthening of unions and employers’ organizations and the development of bipartite and tripartite social dialogue bodies for a concerted approach to labour, employment and decent work policies, both within the spirit of ILO Convention No. 144 on tripartite consultations and in the national constitutional and legal framework”. The Committee welcomes the approach adopted and requests the Government to provide information in its next report on the manner in which matters relating to employment policy have been addressed in the National Labour Council. The Committee also invites the Government to consider the manner in which the consultations required by the Convention may include the representatives of the most vulnerable categories of the population, and particularly representatives of workers in the rural sector and the informal economy, when formulating and seeking support for the implementation of employment policy programmes and measures.