Observation (CEACR) - adopted 1989, published 76th ILC session (1989)

Employment Policy Convention, 1964 (No. 122) - Costa Rica (Ratification: 1966)

1. In its previous observation, the Committee noted the communication of 8 July 1987 from the International Confederation of Free Trade Unions (ICFTU) containing a report by the Costa Rican Confederation of Democratic Workers (CCTD). The report contained comments regarding employment policy. These comments referred, in particular, to the reduction in public spending, the increase in external dependence and the measures taken within the stabilisation and structural adjustment programmes prepared with the assistance of international financial institutions (International Monetary Fund, World Bank). The CCTD maintains that the method for stabilising and reactivating the economy imposed by the international financial institutions has resulted in amongst other things a large reduction in expenditure on social policy and therefore a considerable deterioration in the living conditions of the people. The CCTD considers that, despite the increase in minimum wages and the decrease in the open unemployment rate, the living standards of broad categories of the population continue to be seriously affected and inequalities have increased.

2. The Committee notes the detailed information supplied by the Government in a communication dated 25 February 1988, in reply to the comments of the CCTD. The Government maintains that endeavours are being made to rationalise public expenditure and contribute to the development of a more efficient State. It also refers to various measures intended to stimulate production, promote exports and, through a draft reform of the taxation system, to prevent the accentuation of inequalities in the distribution of income. In July 1987, the rate of open unemployment was 5.5 per cent (while in 1982 it had reached 9.4 per cent). Real wages, which fell by almost one-half between 1980 and 1982, regained their level of 1980 in about 1986. In order to promote employment and improve the wages of the most deprived social sectors, the Government established a national programme for the generation of employment (Decree No. 17269-TSS of 1986, and Decree No. 17436-TSS of 1987). This programme was carried out in three main areas: the generation of productive employment and permanent incomes, training for employment, and temporary employment for the unemployed. The Government also refers to the co-operation and technical assistance provided by the ILO, through a technical co-operation agreement under the National Programme for Employment and Social Development, executed by PREALC with funds from the UNDP. The Committee also notes a brief report on the application of the Convention for the period ending 30 June 1988.

3. The Committee notes with interest that the Government has formulated and implemented an active employment policy along the lines of the objectives set out in the Convention and has achieved, in particular, a decrease in the open unemployment rate. It welcomes the fact that the Government has the benefit of technical assistance, especially the assistance of PREALC, which has promoted the implementation of the Convention. Taking into account the concerns set out by the CCTD and that there is still a need to adopt measures to harmonise the supply and demand of labour with structural adjustment, it hopes that the Government will continue to supply detailed information on the impact on employment of the measures taken to comply with its monetary and financial undertakings. The Committee considers that in order to be in a position to examine in detail the way in which effect has been given to the provisions of the Convention, it will be necessary for the Government to supply in its next report full and detailed information on the matters set out in the report form approved by the Governing Body, with particular reference to the matters raised in its comments, the particular difficulties that have arisen in achieving the objectives of the Government's employment programme, and the consultations with the representatives of the persons concerned, including those who work in the rural and informal sectors (Article 3 of the Convention).