Observation (CEACR) - adopted 2003, published 92nd ILC session (2004)

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

1. Articles 1 and 2 of the Convention. With reference to its comments in 2001, the Committee notes the report received in October 2002, which provides a brief analysis of the employment situation and government policies to achieve higher economic growth. In 2001, the gross domestic product increased by 3 per cent, which amounted to a fall of over two points in relation to the previous year, and inflation remained at the lowest level for the past nine years (an accumulated annual rate of 4.65 per cent). Nevertheless, the labour market indicators show an unemployment rate of 10.7 per cent, with underemployment reaching 12.4 per cent. The national telecommunications company was privatized and new provisions were approved for the protection of bank deposits. The Government is focusing on further strengthening the private sector as a whole and promoting foreign investment. The industrial export processing zone contains 52 enterprises which have generated direct employment for 40,220 persons. The Emergency Investment Fund (FISE) is intended for the most vulnerable categories of the population and in 2001 implemented 846 projects which generated 68,920 direct temporary jobs (in 2002, 109 projects benefited 152,098 persons). The Government recalls that the Reinforced Poverty Reduction Strategy is intended to achieve equitable growth on a broad basis with a high level of employment generation, with emphasis on rural development, a high level of investment in human capital among the poor to increase competitiveness, an improvement in access to basic goods and services, such as health, education and housing, and the strengthening of institutions. The Committee trusts that the Government will continue to provide information in its report on the manner in which the employment objectives established in the Reinforced Economic Growth and Poverty Reduction Strategy have been achieved.

2. In this context, the Committee understands that in October 2002 the Government concluded an agreement with the ILO on the formulation of a National Employment Policy (PNE) with a view to maximizing the utilization and development of human resources as a means of securing decent work for men and women in order to achieve the national aspiration of living in dignity. The Committee hopes that the Government will be able to include information in its next report on the progress achieved in the context of the PNE and the results observed in terms of the creation of productive employment (Part V of the report form). The Committee would also be grateful if the Government would provide information on the situation, level and trends of employment, unemployment and underemployment, with an indication of the extent to which it affects specific categories of the population (women, young persons, older workers, workers with disabilities, rural workers and workers in the informal economy). In particular, the Committee requests that the Government continue providing information on the contribution of export processing zones to the creation of sustainable quality employment for those working in the above zones.

3. With reference to its previous comments, the Government indicates that small, medium-sized and large rural producers are associated in various institutions managing the commercialization of their products, obtaining information and undertaking a full range of activities. There are no distinctions, exclusions or preferences between organizations bringing together persons working in the rural sector and in the organized informal economy. Furthermore, the General Directorate of Employment and Wages is the body responsible for the implementation, coordination and evaluation of employment and labour migration policies. The Committee refers to Article 3 of the Convention, which requires consultations with the representatives of the persons affected (employers’ and workers’ organizations, representatives of the rural sector and the informal economy) with a view to taking fully into account their experience and views. The objective of such consultations is to secure their full cooperation in formulating and implementing employment policies. In this respect, the Committee trusts that the Government will ensure that the consultations required by the Convention are taken into account in the context of the PNE, as well as in the employment measures adopted as a consequence of the Reinforced Economic Growth and Poverty Reduction Strategy. The Government is also requested to provide detailed information on these consultations.