Observation (CEACR) - adopted 2009, published 99th ILC session (2010)

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

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 Government indicates that, in accordance with Decree No. 30-2006 establishing the national employment policy, macroeconomic, wage-related, fiscal, financial and public expenditure measures have been taken into account to generate productive and stable employment. Furthermore, the Government supports the creation of productive and decent employment through the strengthening of the domestic market and the promotion of policies which provide an attractive environment for national and direct foreign investment in traditional and non-traditional sectors. The Committee notes the adoption of the Decent Work Country Programme 2008–11 which aims to contribute to the economic and social development of Nicaragua through the generation of employment and decent work in a sustained manner within a framework of efficiency, productivity, competitiveness and social justice. The Committee notes that programmes have been adopted under the National Employment and Decent Work Policy (PNETD) to generate employment, provide vocational training and support the integration of women into the labour market. The Committee also notes that in view of the international economic crisis, in January 2009, the Government adopted the Plan for the protection of production, growth and employment, the five central components of which include maintaining financial stability, public investment in infrastructure projects, encouraging private investment and production, the protection of solidary employment through consensus on wages policy and the promotion of local jobs, and fiscal austerity. The Committee once again notes with interest the manner in which the Government has proposed that the Convention be applied and requests that it provide information in its next report on how the measures taken under the programmes implemented as part of the National Employment Policy and the Plan for the protection of production, growth and employment have contributed to generating productive, stable and high-quality employment. In this regard, the Government has indicated that the economic crisis has had a considerable impact on employment in the export processing zones and that the Plan for the protection of production, growth and employment includes measures to facilitate exports. The Committee requests the Government to continue providing information on developments relating to employment in export processing zones and on the measures taken to ensure that these zones offer lasting and high-quality employment.

Coordination of employment policy and poverty reduction. According to the estimates available, in 2007, poverty affected 46 per cent of the total population, while 15 per cent were living in extreme poverty. In November 2007, unemployment in Nicaragua stood at 5.2 per cent, while underemployment stood at 34.1 per cent. A total of 62.7 per cent of employed persons were working in the informal economy, which represents an increase of 3.9 percentage points since 2005. According to the statistics included in the Government’s report, women accounted for only 37.2 per cent of the total employed population. The Committee also notes that under the Zero Hunger programme productive vouchers are offered to help those living on limited resources. The Committee requests the Government to continue providing information in its next report on the situation, level and trends of employment, unemployment and underemployment, indicating the extent to which they effect the most vulnerable sectors and the results achieved by the measures taken to combat poverty. The Committee also requests the Government to continue providing information on the steps that it is taking to increase employment opportunities and improve working conditions in the informal economy.

Promotion of small and medium-sized enterprises for job creation. The Committee notes with interest that in January 2008, Act No. 645 on the promotion and development of micro, small and medium-sized enterprises (MSMEs) was adopted, which aims to formalize MSMEs through the creation of support centres and a single decentralized register. A National Council for Micro-, Small and Medium-sized Enterprises (CONAMYPE) was established as an advisory body for dialogue and consensus, tasked with determining national priorities, programmes, measures and activities aimed at promoting the sector. The Committee requests the Government to provide information in its next report on the results of the measures taken to develop the productivity and competitiveness of MSMEs and the progress made in achieving the objective of turning MSMEs into sources of sustainable, high-quality employment and income.

Article 3. Participation of the social partners. The Committee notes that the priorities defined in the Decent Work Country Programme include, in particular, strengthening the National Labour Council (CNT) so that it contributes to devising and implementing employment and decent work policies and programmes. The Committee requests the Government to continue including information on the experience of the social partners in applying the Convention and specifically on the consultations held with representatives of the rural sector, the informal economy and those working in exports processing zones.