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Employment Policy Convention, 1964 (No. 122) - El Salvador (RATIFICATION: 1995)

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Articles 1 and 3 of the Convention. Active policy to promote full employment. Consultations with the social partners. The Committee notes the adoption of the Institutional Strategic Plan 2020–24, which contemplates the design and implementation of the National Strategy for the Generation of Decent Employment (ENGED), which provides for specific actions to promote the transition from informality to formality in coordination with the various bodies linked to the area. In this regard, the Committee refers to its comments of 2022 concerning the implementation of the Tripartite Consultation (International Labour Standards) Convention, 1976 (No. 144), in which it noted the tripartite construction of the ENGED, for which the Higher Labour Council (CST) requested technical assistance from the ILO. The Committee also noted that the Government indicated that several meetings had been held with representatives of the ILO Regional Office with a view to reaching a consensus on a road map for the construction of the Strategy. Lastly, the Committee notes that, with regard to consultations on the employment policy, the Government indicates that complementary consultations were held with labour and business associations and that an open consultation was held with the public. In 2017, the employment policy was submitted to the CST, but at that time the CST was inactive. The Government further reports that the consultation period with the employer sector was short. On the other hand, the Government indicates that in order to bring employment services closer to the population and facilitate access to decent employment, it designed a strategy for the territorialization of public employment services, which includes: (i) the creation of meetings for employment and business meetings; (ii) the implementation of employment guidance, skills development and entrepreneurship promotion programmes; (iii) the development of a new employment system that will allow efficient, agile and user-friendly registration; (iii) the establishment of an Inter-institutional Coordination Table between different local actors, linked to employment, employability and entrepreneurship, in order to implement programmes or projects, prioritizing young people, women, persons with disabilities and returned migrants. The Commission welcomes the creation in 2021 of the Institute for Labour Studies, considered as a space for the generation of knowledge and academic meetings with workers, universities, business associations and the Government, in order to strengthen the management of public policies on labour issues. Finally, the Government also refers to the signing, in 2020, of a memorandum of understanding between El Salvador and the United States of America to strengthen the participation of Salvadoran labour in the temporary worker programme in the United States, the objective of which is that people with experience in the agricultural sector can access temporary jobs in the United States. The Government indicates in this regard that a systematic increase in visa issuance is expected each year in the interest of contributing to economic development and fostering mechanisms for legal and safe migration to the United States. The Committee requests the Government to provide detailed information on whether an evaluation of theStrategic Plan for the period 2020–24 has been carried out, with a view to measuring progress made under each of its objectives andto feed into the next Employment Strategy. The Committee also requests the Government to indicate how the new strategy for the period after 2024 will promote as a key objective the creation of decent and productive work in the formal economy taking into account that, according to ILOSTAT, the informal economy accounted for 68 per cent of total employment in the country in 2022. It also requests the Government to indicate whether such an evaluation has been carried out with the participation of or in consultation with representatives of the social partners and representatives of other persons affected by the strategy.Furthermore, the Committee requests the Government to continue to provide detailed information on the manner in which it ensures that the social partners, as well as representatives of all sectors of the economically active population concerned – including representatives of rural and informal economy workers – can actively participate in the design, implementation, evaluation and review of national employment policies. In addition, it requests the Government to continue to provide information on the implementation of the temporary worker programme in the United States in generating full, productive and freely chosen employment.

Article 2. Employment trends. Labour market information. The Committee notes with interest the creation of the Labour Market Information System (SIMEL), a platform developed with the assistance of the ILO, aimed at standardizing statistical information on key labour market indicators and facilitating decision-making on employment policy. The Committee notes that the Government indicates that the Market Intelligence Unit (UIMEL) was created within the MTPS in 2019 to oversee the implementation of SIMEL. The Committee notes that, according to the data available on the SIMEL website, between 2021 and 2022, the number of employed persons in the country increased from 2,746,864 to 2,845,750 (42 per cent women and 58 per cent men); while the number of unemployed persons decreased from 185,808 to 151,352 (42.5 per cent women and 57.5 per cent men). The labour force increased slightly from 2,932,673 to 2,997,102 persons (42 per cent female and 58 per cent male) and the population outside the labour force decreased from 1,817,450 to 1,779,743 persons (76.5 per cent female and 23.5 per cent male). The Committee notes that, according to statistical information from the Central Reserve Bank of El Salvador (BCR), in 2022, the unemployment rate was 4.8 per cent, and the underemployment rate was 40.6 per cent. The unemployment rate differed among the country’s departments. The department with the lowest unemployment rate was La Paz (4.2 per cent), while the department with the highest unemployment rate was San Vicente (8.2 per cent). The urban underemployment rate was 40.6 per cent, of which 6.1 per cent are classified as visible or insufficient hours underemployed and 34.5 per cent as invisible or income underemployed. Furthermore, the BCR report indicates that, in 2022, 64.6 per cent of the economically active population was in urban areas, while 35.4 per cent was in rural areas. For every 100 persons belonging to the urban economically active population, 51 were fully employed, 40 were underemployed, five were unemployed and four were employed in domestic service. The report also highlights that the unemployed population consisted mainly of urban residents (61.5 per cent), mostly men (57.0 per cent). While noting the labour force participation gap between men and women, as well as the high percentage of women outside the labour force, the Committee requests the Government to indicate the measures and policies taken or envisaged to address these inequalities and to promote the employment of women at all levels and in all sectors, including decision-making positions. The Committee also requests the Government to continue to provide updated and clear statistics, disaggregated by age and sex, on the situation, level and trends of employment, unemployment and underemployment in both the urban and rural sectors of the country.

Distribution of employment by economic sector. The Committee takes note of the information provided by the Government regarding the contribution of export-oriented productive sectors to the creation of lasting and quality employment. The Government reports that according to statistical information from the BCR, in 2020 the manufacturing sector accounted for 96.3 per cent of the country’s exports; and that 221,912 formal jobs were created in 2021, of which 95,819 for women and 126,093 for men. In 2020, 439,122 people worked in the manufacturing sector (232,705 men and 206,417 women), of which 49.3 per cent were in formal employment (154,139 men and 124,047 women). The Committee notes that, according to ILOSTAT, the share of employment in industry in El Salvador remains lower than in agriculture and the services sector, where half of the employed are found. It therefore requests the Government to indicate the types of measures taken or envisaged with a view to promoting access to qualitative and productive employment also in the agricultural and services sectors.

Micro and small enterprises (MSEs). The Committee notes the information provided by the Government regarding the impact of the measures adopted to promote enterprise development and foster the competitiveness and sustainability of MSEs: in 2020 and 2021, 35,054 advisory services were provided on business management issues, 888 technical assistance services on business management and specialized topics to improve productivity, quality and market participation. The government also refers to various programmes and projects aimed at supporting entrepreneurship, through which seed capital and training were provided. These measures generated, among others, 4 815 jobs and produced 340 registrations for the formalization of MSEs. In its previous comment, the Committee noted that the CNTS maintained that the Special Law on Self-Employed Workers had not yet been adopted. In this respect, the Government reports that the National Commission for Micro and Small Enterprises (CONAMYPE) has not participated in a project for the elaboration of such a law, but that in conjunction with the Ministry of Finance and the Salvadoran Social Security Institute (ISSS) the draft Law on Economic Integration has been prepared, with the aim of establishing a simplified tax regime for three years, which would allow the formalization of entrepreneurs in the microenterprise segment, with minimum requirements to be met, in addition to benefits such as social security and savings quota. The Committee wishes to emphasize that the creation of an enabling environment for the emergence of sustainable micro, small and medium-sized enterprises represents a key component for the effectiveness of formalization strategies and the creation of decent work and productive employment, and requests the Government to continue to provide detailed and updated information on the impact of the measures implemented to promote business development and foster the competitiveness and sustainability of micro, small and medium-sized enterprises. The Committee also requests the Government to provide information on the status of the draft Law on Economic Integration and to send a copy of it once it has been adopted.

Education and vocational training. The Committee notes that the Government indicates that measures aimed at promoting the employability of the population in conditions of vulnerability include: various training programmes of the Salvadoran Institute for Technical Vocational Training (INSAFORP), such as the Permanent Technical Skill Programme (HTP), aimed at the unemployed or underemployed population, which seeks to contribute to improving the living conditions of the beneficiaries of training through the purchase of participation in technical courses. Under this programme, between 2019 and 2021, 65,671 participations were made, of which 37,794 for women. The Government also refers to the adoption, in May 2019, of the Policy for the Articulation of Technical Education, Vocational Training and the Productive Apparatus, which creates the Council for the Coordination of Technical Education and Vocational Training, whose main objective is to improve the quality of education and better adjust the supply of human resources to the demand of the labour market. The Committee refers to its comments on the application of the Human Resources Development Convention, 1975 (No. 142), and requests the Government to continue to provide information on the results of the measures taken to ensure the linkage between education, vocational training and employment policies, particularly on the mechanisms put in place to promote the employability of groups in vulnerable situations.

Youth employment. In its previous comments, the Committee noted that the National Confederation of Salvadoran Workers (CNTS) stated that the minimum standards of labour rights did not apply to young people participating in the entrepreneurship activities carried out by the National Youth Institute (INJUVE), and requested the Government to provide information in this respect. In this regard, the Government indicates that the way in which it guarantees the labour rights of young people is by providing them with training to legalize their entrepreneurial business plans and register their trademark in order to gain access to new markets. The Committee notes that with regard to the measures taken or envisaged to encourage the participation of persons with disabilities and LGBTI persons in the “Youth with Everything” Employment and Employability Programme, the Government refers to the selection process of participants, but does not indicate the measures taken or envisaged to encourage their participation in this programme. With regard to measures taken or planned with a view to promoting access to the labour market or self-employment for young people, the Government reports that, through INJUVE, in the framework of the employability programme, work internships have been carried out for young people and several placements have been made in public and private institutions. INJUVE has also entered into agreements with institutions to support young entrepreneurs. Moreover, the Committee notes that the Government reports that the reform of the Law on Incentives for the Creation of the First Employment of Young Persons in the Private Sector has not yet been adopted. It also reports that in 2020, it began developing the “Apprenticeship Contracts” project with the United Nations High Commissioner for Refugees (UNHCR), which aims to strengthen the business sector in certain departments of the country by placing skilled or semi-skilled personnel (young persons aged 18–29) in apprenticeships, thereby reducing the risk to which they are exposed and facilitating the acquisition of work experience. It notes that 324 six-month work placements were made in 2021. The Committee welcomes the creation, in 2020, of the Youth Employment Unit, which aims to boost the placement of young people and enable them to access decent employment. The Committee notes that according to statistical information available from the ILO Department of Statistics (ILOSTAT), in 2022, the employment rate for young people aged 15–24 was 43.6 per cent (30 per cent for women and 58.1 per cent for men), while the unemployment rate for this category was 7.7 per cent (11.2 per cent for women and 5.7 per cent for men). The participation force rate was 47.3 per cent (33.8 per cent women and 61.6 per cent men). While noting that the Government does not indicate the measures taken or envisaged to encourage the participation of the number of persons with disabilities and LGTBI persons in the “Youth with Everything” Employment and Employability Programme, the Committee requests the Government to take the necessary measures to this end. Noting the significant gap in employment and unemployment rates and participation strength between men and women, the Committee requests the Government to indicate the measures taken or envisaged to address these inequalities and to promote the employment of women aged 15 and 24 at all levels and in all sectors, and to continue to provide updated statistical information on youth employment trends, disaggregated by age and sex, in particular on employment, unemployment and underemployment. Furthermore, the Committee requests the Government to continue to provide detailed and updated information on the measures taken or envisaged to promote access to the labour market or self-employment for young persons, as well as on their impact. The Committee also requests the Government to continue to provide information on the status of the reform of the Law on Incentives for the Creation of the First Employment of Young Persons in the Private Sector, and to send a copy of it once it has been adopted.

Women’s employment. The Committee notes that the Government reports that among the measures adopted with a view to ensuring that women are incorporated into the labour market under conditions of equality and non-discrimination, the MTPS has updated the instructions for the preparation of internal labour regulations in order to ensure the incorporation of the principles of equality and non-discrimination in the work instructions of enterprises. The Government also reports that it is adopting inter-institutional measures and alliances for the empowerment and economic autonomy of women, among which the Salvadoran Institute for the Development of Women (ISDEMU), currently negotiating the signing of agreements with different institutions, with the aim of providing training and credit to women. The Committee notes the statistical information provided by the Government, according to which the labour force participation rate from 2009 to 2019 has remained stable at 52 per cent for women and 88.68 per cent for men. As regards the gender pay gap, the Government reports that between 2018 and 2019, the rate increased slightly from 8.20 per cent to 9.12 per cent, and that challenges persist in terms of wage equality between men and women. The Committee notes that this wage gap rate reached its lowest point in 2010 at 4.48 per cent and its highest point in 2013 at 14.31 per cent. The Government also reports on the employed population by branch of occupation according to sex in 2019, including: agriculture, livestock, forestry and fishing with 8.6 per cent women and 91.4 per cent men; transport and storage with 9.0 per cent women and 91.0 per cent men; accommodation and food service activities with 74.9 per cent women and 25.1 per cent men; information and communication with 29.2 per cent women and 70.8 per cent men. It also indicates that between 2014 and 2019, the proportion of employed women working as an employer or self-employed was higher by 10 per cent on average each year. The Committee notes that this share increased slightly from 37.70 per cent in 2014 to 40.9 per cent in 2019. While noting the gaps in labour force participation and remuneration between women and men, as well as their different participation by sector and occupation, the Committee requests the Government to take the necessary measures to promote women’s participation in the labour force and to combat vertical and horizontal occupational segregation. The Committee also requests the Government to provide updated statistical information, disaggregated by occupation, sector of activity and occupational category. The Committee also refers to its comments of 2023 concerningthe implementation of the Discrimination (Employment and Occupation) Convention, 1958 (No. 111).

Employment of persons with disabilities. The Committee refers to its comments concerning the application of the Vocational Rehabilitation and Employment (Disabled Persons) Convention, 1983 (No. 159), in which it notes the adoption in 2020 of the Special Act on the Inclusion of Persons with Disabilities (LEIPD), which provides for the granting of work incentives to promote the employment of persons with disabilities. The Committee notes the information provided by the Government concerning the measures implemented to promote employment opportunities for persons with disabilities, such as job orientation and intermediation measures, business meetings to raise awareness and place persons in jobs, advice to enterprises with a view to ensuring the adaptation of jobs, and the creation of an inter-institutional round table for the labour market integration of persons with disabilities. On the other hand, Furthermore, the Committee notes that the Government reports, based on the 2015 National Survey of Persons with Disabilities (ENPD), that out of a total population of 6 450,336 inhabitants, 410,798 are persons with disabilities (54.8 per cent of whom are women). The Government further indicates that the labour participation rate is highest for persons with visual disabilities (54.1 per cent), followed by persons with physical disabilities (51.4 per cent), while for persons with mental or psychosocial and intellectual disabilities it is 11.4 per cent, for those living with intellectual disabilities it is 24.7 per cent and for those with communication difficulties it is 22.6 per cent. The Committee refers to its comments concerning the application of the Vocational Rehabilitation and Employment (Disabled Persons) Convention, 1983 (No. 159), and requests the Government to continue to provide detailed and up-to-date information on the nature and impact of the measures taken with a view to promoting the employment of persons with disabilities, particularly women with disabilities, in the regular labour market. It also requests the Government to provide statistical information, disaggregated by age and sex.