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

Direct Request (CEACR) - adopted 2021, published 110th ILC session (2022)

The Committee notes that the Government’s report does not respond to the questions raised in the direct request of 2019.

COVID-19 pandemic. Socio-economic impact. Response and recovery measures. The Committee invites the Government to provide up-to-date information in its next report on the impact of the COVID-19 global pandemic on employment and the measures taken, in consultation with the social partners, to address this impact when implementing programmes and measures designed to achieve the objectives of the Convention, and also on the results of such programmes and measures.

Articles 1 to 3 of the Convention. Adoption and implementation of an active employment policy in the context of a coordinated economic and social policy. Participation of the social partners. The Committee recalls that since 2011 it has been asking the Government to provide information on the measures taken to formulate a national employment policy designed to promote full, productive and freely chosen employment. The Committee notes that the Government has still not supplied any information in this respect. The Committee also notes that on 1 July 2021 the Government published the National Plan for Poverty Reduction and Human Development 2022–26, which contains various public policies such as the monetary and financial policy and the public investment policy, as well as a series of strategies and actions. The National Plan contains 12 strategic guidelines whose objectives include achieving sustained, sustainable, inclusive and equitable economic growth conducive to increased employment and decent work for all, and also the development of human talents. In this regard, the Plan provides for the adoption of measures such as promoting and facilitating the establishment of new productive and private investment and export-oriented services, both national and foreign, with an estimated investment gain of USD 336.0 million, and the creation of 10,651 decent jobs contributing to poverty reduction. In addition, the National Plan provides for continuing to ensure the establishment and consolidation of mechanisms for coordination, cooperation and inter-institutional linkage with the various economic sectors of the country and with technical and higher training institutions, in order to provide vocational guidance and job placement services, as well as the compilation, processing and analysis of labour market indicators for jobs and wages. To this end, efforts will be made to integrate workers and place them in jobs, through the public employment services, and the Mi primer empleo (My first job) National Programme will be designed and implemented. With regard to labour market trends, according to statistical information from the National Institute of Development Information of Nicaragua (INIDE), in the first quarter of 2021, the national labour participation rate was 69.5 per cent (80.7 per cent of men and 59.4 per cent of women). The labour participation rate was 67 per cent in urban areas, while it was 72.5 per cent in rural areas. On the other hand, the national open unemployment rate was 4.9 per cent (5.2 per cent for men and 4.6 per cent for women), while the national underemployment rate was 44.6 per cent (47.7 per cent for men and 40.8 per cent for women). The Committee notes that the United Nations Committee on Economic, Social and Cultural Rights (CESCR), in its concluding observations of 15 October 2021, expressed concern at the high levels of unemployment in the country, and at the significant number of persons working in the informal economy, particularly women, indigenous persons and Afro-Nicaraguans. It also expressed concern at reports of discrimination on the basis of political opinion affecting persons opposed to and critical of the Government with regard to the exercise and enjoyment of their economic, social and cultural rights, such as the right to work (E/C.12/NIC/CO/5, paras 17 and 21). The Committee therefore once again requests the Government to provide detailed, up-to-date information on: (i) the measures taken to formulate, in consultation with the social partners, an active policy designed to promote full, productive and freely chosen employment; (ii) the various programmes and measures implemented to create employment, including the National Plan for Poverty Reduction and Human Development 2022–26, and also the impact thereof (especially on specific groups such as women, young persons, persons with disabilities, small-scale producers and indigenous and Afro-Nicaraguan communities in rural areas); (iii) the measures taken to promote the transition of workers from the informal to the formal economy, and the impact thereof; (iv) up-to-date statistics, disaggregated by sex, age and region, on the size and distribution of the labour force, and the nature and extent of unemployment.

Youth employment. In its previous comments, the Committee noted the adoption of a series of programmes aimed at promoting youth employment, and asked the Government to send information on the results achieved. However, the Committee notes that the Government’s report does not contain any information in this regard. The Committee once again requests the Government to provide detailed, up-to-date information on the measures taken or envisaged to promote employment for young people, especially those in situations of vulnerability. It further requests the Government once again to send up-to-date statistics, disaggregated by sex, age and region, on the impact of these measures in terms of sustainable youth employment.

Export processing zones. The Committee notes the adoption of the Tripartite Agreement on Export Processing Zones (EPZs), which aims to address the impact of the crisis caused by the COVID-19 pandemic in EPZs. The tripartite agreement includes recommendations aimed at the enterprises concerned so that they implement occupational safety and health measures, and grant employment leave with pro rata wage payments and temporary contract suspensions, prior to the collective temporary suspension of contracts. It also provides for paid breaks from employment for persons in situations of vulnerability (persons over the age of 60 years, pregnant women, and other persons potentially at a high level of risk) and for vacations taken in advance in export processing enterprises. The Committee once again requests the Government to provide up-to-date information, disaggregated by sex and age, on the contribution of export processing zones and the impact of the above-mentioned Tripartite Agreement on Export Processing Zones on the creation of lasting, high-quality employment compatible with the requirements of decent work.

Small and medium-sized enterprises (SMEs). In its previous comments, the Committee asked the Government to send an evaluation of the implementation of the Micro, Small and Medium-Sized Enterprises Development Programme Action Plan (PROMIPYME) and the reactivation of the National Council for Micro, Small and Medium-Sized Enterprises (CONAMIPYME), including information on their impact on areas with the largest concentrations of people living in extreme poverty. However, the Committee notes that the Government has not provided any information in this respect. On the other hand, it notes that the National Plan for Poverty Reduction and Human Development 2022–26 provides for the adoption of measures to promote the growth potential of SMEs, in terms of both their production and their creation of jobs. To achieve this objective, it is planned to adopt measures such as the implementation of 108 plans for the promotion of business projects and SMEs, and to provide training for 1,846 SMEs in the development of business model growth strategies. The Committee once again requests the Government to provide detailed, up-to-date information, including statistics, disaggregated by age and sex, on the impact of the measures adopted by the Government on the development of SMEs and their creation of jobs. The Committee also requests the Government to indicate the results of these measures in relation to reducing the rate of informality.

Article 3. Participation of the social partners in the formulation and implementation of policies. In its previous comments, the Committee asked the Government to provide information on the activities implemented in the context of the National Labour Council for designing employment policies and programmes for the creation of decent work. The Committee notes that the Government has not provided any information in this respect. The Committee once again recalls that Article 3 of the Convention provides that “representatives of the persons affected by the measures to be taken, and in particular representatives of employers and workers, shall be consulted concerning employment policies, with a view to taking fully into account their experience and views and securing their full cooperation in formulating and enlisting support for such policies”. Underlining the importance of the consultations required by the Convention, the Committee once again requests the Government to provide detailed, up-to-date information on the consultations held with the social partners and the representatives of persons affected by employment policies and programmes.

Direct Request (CEACR) - adopted 2019, published 109th ILC session (2021)

Articles 1–3 of the Convention. Adoption and implementation of an active employment policy in the context of a coordinated economic and social policy. Participation of the social partners. The Committee notes that since 2011 it has been asking the Government to provide information on the measures taken to formulate a national employment policy designed to promote full, productive and freely chosen employment. The Committee observes that the Government has still not supplied any information in this regard. Moreover, the Committee notes the Government’s general reference to the implementation of various government programmes for promoting employment in the country. The Government indicates that job placement programmes have been implemented in all departments, as well as vocational guidance programmes aimed at providing assistance in the search for employment. In addition, meetings have been organized with employers to identify the need of enterprises in all economic sectors with regard to workers’ skills, and business fairs have been held to promote access to the labour market. The Government also refers to the implementation of employability programmes to boost job skills and increase employment possibilities. The Committee also refers to its 2018 observation on the application of Convention No. 117, in which it noted the adoption in February 2018 of the Country Partnership Framework for Nicaragua for 2018–22 with the World Bank, with the aim of reducing poverty and promoting prosperity for more Nicaraguans. The Committee noted that the core objectives of the Framework are: to invest in human resources, especially with regard to groups in vulnerable situations, such as women, young people, small-scale producers who practise subsistence agriculture and communities of indigenous peoples and of people of African descent in rural areas; to promote private investment for job creation; and to improve institutions. As regards trends in formal employment, the Government indicates that there was an 8.3 per cent increase in 2015–2016 in formal employment (persons registered with the Nicaraguan Social Security Institute (INSS)), with a total of 878,019 workers as at December 2016. The Government adds that, according to INSS statistics, this positive trend continued throughout 2017, since there were 922,000 persons affiliated to the social security scheme as at July 2017. The Committee therefore once again requests the Government to provide detailed, up-to-date information on the measures taken to formulate, in consultation with the social partners, an active policy designed to promote full, productive and freely chosen employment. The Committee also requests the Government to provide detailed information on the various programmes and measures implemented with a view to job creation and the impact thereof (especially on women, young people, small-scale producers, and indigenous and communities of people of African descent in rural areas). The Committee also requests the Government to provide information on the steps taken to promote the transition of workers from the informal to the formal economy, and the impact thereof. The Committee further requests the Government to supply up-to-date statistics, disaggregated by sex, age and region, on the size and distribution of the workforce, and the nature and extent of unemployment.

Youth employment. In its previous comments, the Committee noted the adoption of a series of programmes to promote youth employment, and asked the Government to provide information on the results achieved by them, especially with regard to young persons in socially vulnerable situations, in both urban and rural areas. However, the Committee observes that the Government has not supplied any information in this respect. The Government indicates that between 2007 and the first half of 2017 the Department for Employment and Wage Policies held 607 vocational and employment guidance workshops, which were attended by 15,372 young people. The Committee once again requests the Government to provide detailed, up-to-date information on the measures taken or contemplated to promote employment for young people, especially those in vulnerable situations. The Committee also requests the Government to provide up-to-date statistics, disaggregated by sex and region, on the impact of these measures in terms of sustainable youth employment.

Export processing zones. The Government indicates that employment in export processing zones has increased, standing at 114,917 workers in 2017. The Committee requests the Government to provide up-to-date information, disaggregated by sex and age, on the contribution of export processing zones to the creation of lasting, high-quality employment, compatible with the principle of decent work.

Small and medium-sized enterprises (SMEs). In its previous comments, the Committee asked the Government to send an evaluation of the implementation of the micro, small and medium-sized enterprises development programme action plan and the reactivation of the National Council for Micro, Small and Medium-Sized Enterprises (CONAMIPYME), including information on their impact on areas with the largest concentrations of people living in extreme poverty. However, the Committee notes that the Government has not provided any information on the impact of job creation support measures with regard to SMEs. The Committee once again requests the Government to provide detailed, up-to-date information, including statistics, disaggregated by sex and age, on the impact of the measures taken by the Government in favour of SMEs and job creation. The Committee also requests the Government to indicate the results of such measures in terms of reducing the rate of informality.

Article 3. Participation of the social partners in the formulation and implementation of policies. In its previous comments, the Committee asked the Government to provide information on the activities implemented in the context of the National Labour Council to design employment policies and programmes that create decent work. The Committee notes that the Government has not provided any information on this matter. The Committee recalls that Article 3 of the Convention provides that representatives of the persons affected by the measures to be taken, and in particular representatives of employers and workers, shall be consulted concerning employment policies, with a view to taking fully into account their experience and views and securing their full co-operation in formulating and enlisting support for such policies. Underlining the importance of the consultations required by the Convention, the Committee requests the Government to provide detailed, up-to-date information on the measures taken or contemplated for holding consultations with the social partners and the representatives of persons affected by employment policies and programmes.

Direct Request (CEACR) - adopted 2016, published 106th ILC session (2017)

The Committee notes that the Government’s report has not been received. It hopes that the next report will contain full information on the matters raised in its previous comments.

Repetition

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 Committee notes the observations made by the Trade Union Unification Confederation of Nicaragua (CUS) in a communication transmitted to the Government in September 2013 stating that there is no public employment policy or national employment plan to address the needs of the more than 1 million Nicaraguans who are unemployed and of the workers in the informal economy. The Government indicates that it has promoted programmes that have generated sustainable productive jobs (“Hambre Cero” – zero hunger) and improved possibilities for better income for small traders (“Usura Cero” – zero usury), more than 160,000 persons having benefited from each of the programmes implemented between 2007 and 2011. The Government further indicates that the Nicaraguan Social Security Institute (INSS) has encouraged the extension of social security benefits to undertakings with at least one employee. Thanks to the National Job Opportunities Programme, men and women have developed skills in areas such as entrepreneurship, self-employment and vocational training for employability. The main thrusts of the economic policy include macroeconomic stability and incentives to investment (local and foreign), laying the foundations for growth of the formal economy. The Committee notes that the Government’s main policies for the period from 2012 to 2016 include: the promotion of active employment policies, particularly those that seek to extend and improve the public employment service and vocational training, and job creation incentive programmes. The Government indicates that between 2007 and 2011, a total of 12,571 persons were placed in jobs, while in 2012, 2,858 persons gained access to the labour market, largely through the Public Employment Service (SEPEM). The Committee invites the Government in its next report to supply up-to-date information on the measures taken to devise an active policy designed to promote full, productive and freely chosen employment. It invites the Government to continue to provide information on the results obtained in creating jobs through the implementation of government programmes. It also invites the Government to include information on the measures taken to allow a gradual transfer of workers from the informal economy to the formal sector, including data on the impact of the programmes on micro-credit, training and micro- and small enterprise development. Please also include up to-date statistical data on the size and distribution of the workforce and on the nature and extent of unemployment, such information being essential for deciding on measures of an active employment policy (Article 2).

Youth employment. The Committee notes the establishment of the National Youth Employment Committee, which reports to the National Labour Council, and the approval of the National Plan on Employment and Decent Work for the Youth of Nicaragua, 2012–16, which is aligned with the strategic priorities set in the National Human Development Plan 2012–16. The Government further indicates that, in the course of implementation of the Joint Programme on Youth, Employment and Migration, a total of 56 municipal youth employment boards were established to facilitate employment and self-employment for young persons in the target municipalities (70 boards of this kind are expected to be up and running by the end of 2013). The Committee also notes that the Ministry of the Economy of Families, Communities, Cooperatives and Associations is engaged in the promotion of undertakings by young people. The Committee invites the Government in its next report to provide information on the results obtained by these measures in improving access to decent work for young people who are socially vulnerable, both in urban and in rural areas.

Export processing zones. The Committee notes that employment trends in the enterprises operating in export processing zones have remained constant. In 2007 they accounted for 88,750 direct jobs, whereas by March 2013 there were an estimated 104,493 direct jobs. The Committee invites the Government to continue to provide information on employment trends in the export processing zones and on how the tripartite agreements have affected these zones in terms of the provision of lasting and high-quality employment.

Development of small and medium-sized enterprises for employment creation. The Committee notes that the operational plan of the Micro, Small and Medium Enterprise Development Programme (PROMIPYME) is being updated. The Government further indicates that work is under way to reactivate the National Council for Micro, Small and Medium Enterprises (CONAMIPYME). The Committee notes the activities undertaken for human resource training and the promotion of entrepreneurship, including the establishment of a vocational training centre in Masaya and the production of 100 diagnostic studies of the micro-, small and medium enterprises with the greatest export potential. The Committee invites the Government once again to include in its next report an assessment of the implementation of the PROMIPYME and CONAMIPYME operational plans, including information on their impact on the parts of the country with the highest concentration of persons living in extreme poverty.

Article 3. Participation of the social partners in the formulation and application of policies. The Government indicates in its report that in other forums for discussion and consensus, members of the National Labour Council have embarked on the drafting of regulations to govern its operation. The Committee requests the Government to include in its next report specific information on the activities undertaken under the aegis of the National Labour Council to devise employment policies and programmes that generate decent work and which contribute to poverty reduction and to the country’s economic and social development.

Direct Request (CEACR) - adopted 2013, published 103rd ILC session (2014)

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 Committee notes the information sent by the Government in the report received in September 2013. It also notes the observations made by the Trade Union Unification Confederation of Nicaragua (CUS) in a communication transmitted to the Government in September 2013 stating that there is no public employment policy or national employment plan to address the needs of the more than 1 million Nicaraguans who are unemployed and of the workers in the informal economy. The Government indicates that it has promoted programmes that have generated sustainable productive jobs (“Hambre Cero” – zero hunger) and improved possibilities for better income for small traders (“Usura Cero” – zero usury), more than 160,000 persons having benefited from each of the programmes implemented between 2007 and 2011. The Government further indicates that the Nicaraguan Social Security Institute (INSS) has encouraged the extension of social security benefits to undertakings with at least one employee. Thanks to the National Job Opportunities Programme, men and women have developed skills in areas such as entrepreneurship, self-employment and vocational training for employability. The main thrusts of the economic policy include macroeconomic stability and incentives to investment (local and foreign), laying the foundations for growth of the formal economy. The Committee notes that the Government’s main policies for the period from 2012 to 2016 include: the promotion of active employment policies, particularly those that seek to extend and improve the public employment service and vocational training, and job creation incentive programmes. The Government indicates that between 2007 and 2011, a total of 12,571 persons were placed in jobs, while in 2012, 2,858 persons gained access to the labour market, largely through the Public Employment Service (SEPEM). The Committee invites the Government in its next report to supply up-to-date information on the measures taken to devise an active policy designed to promote full, productive and freely chosen employment. It invites the Government to continue to provide information on the results obtained in creating jobs through the implementation of government programmes. It also invites the Government to include information on the measures taken to allow a gradual transfer of workers from the informal economy to the formal sector, including data on the impact of the programmes on micro-credit, training and micro- and small enterprise development. Please also include up to-date statistical data on the size and distribution of the workforce and on the nature and extent of unemployment, such information being essential for deciding on measures of an active employment policy(Article 2).

Youth employment. The Committee notes with interest the establishment of the National Youth Employment Committee, which reports to the National Labour Council, and the approval of the National Plan on Employment and Decent Work for the Youth of Nicaragua, 2012–16, which is aligned with the strategic priorities set in the National Human Development Plan 2012–16. The Government further indicates that, in the course of implementation of the Joint Programme on Youth, Employment and Migration, a total of 56 municipal youth employment boards were established to facilitate employment and self-employment for young persons in the target municipalities (70 boards of this kind are expected to be up and running by the end of 2013). The Committee also notes that the Ministry of the Economy of Families, Communities, Cooperatives and Associations is engaged in the promotion of undertakings by young people. The Committee invites the Government in its next report to provide information on the results obtained by these measures in improving access to decent work for young people who are socially vulnerable, both in urban and in rural areas.

Export processing zones. The Committee notes that employment trends in the enterprises operating in export processing zones have remained constant. In 2007 they accounted for 88,750 direct jobs, whereas by March 2013 there were an estimated 104,493 direct jobs. The Committee invites the Government to continue to provide information on employment trends in the export processing zones and on how the tripartite agreements have affected these zones in terms of the provision of lasting and high-quality employment.

Development of small and medium-sized enterprises for employment creation. The Committee notes that the operational plan of the Micro, Small and Medium Enterprise Development Programme (PROMIPYME) is being updated. The Government further indicates that work is under way to reactivate the National Council for Micro, Small and Medium Enterprises (CONAMIPYME). The Committee notes the activities undertaken for human resource training and the promotion of entrepreneurship, including the establishment of a vocational training centre in Masaya and the production of 100 diagnostic studies of the micro-, small and medium enterprises with the greatest export potential. The Committee invites the Government once again to include in its next report an assessment of the implementation of the PROMIPYME and CONAMIPYME operational plans, including information on their impact on the parts of the country with the highest concentration of persons living in extreme poverty.

Article 3. Participation of the social partners in the formulation and application of policies. The Government indicates in its report that in other forums for discussion and consensus, members of the National Labour Council have embarked on the drafting of regulations to govern its operation. The Committee requests the Government to include in its next report specific information on the activities undertaken under the aegis of the National Labour Council to devise employment policies and programmes that generate decent work and which contribute to poverty reduction and to the country’s economic and social development.

Direct Request (CEACR) - adopted 2011, published 101st ILC session (2012)

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 Committee notes the information sent by the Government in the detailed report received in August 2010. With regard to the observation made in 2009, the Government indicates that in 2009 the rate of economic growth declined to -1.5 per cent, due to the international financial crisis. A fiscal reform was undertaken in December 2009 to reorganize public accounting and promote a climate of confidence to boost private investment. According to data from the National Household Survey (ECH) conducted in February 2010, the labour force participation rate stood at 31.1 per cent, with men outnumbering women (84.3 per cent and 54 per cent, respectively). The Committee notes the recovery in women’s participation in the labour force, increasing from 49.9 per cent in February 2009 to 54 per cent in February 2010. This growth is particularly visible in rural areas as a result of the social programmes which have been promoted. According to the National Development Information Institute (INIDE), in February 2010, the unemployment rate stood at 8 per cent and 43 per cent of the working population were underemployed in terms of insufficient hours of work or low wages. The rate showed a 2.5 per cent increase in 2010 over the previous year. Income from family remittances fell by 6.1 per cent owing to the downturn in the main countries employing Nicaraguan workers. According to the Statistical Yearbook of the Ministry of Labour, in 2009, job applications submitted to the public employment service tripled and, despite the fact that job offers doubled compared to the previous year, only one third of jobseekers were placed in employment. The Government indicates that between February 2009 and February 2010 a total of 178,000 jobs were created (94,000 for women and 84,000 for men). The Committee requests the Government to include information in its next report on the steps taken to formulate an active policy designed to promote full, productive and freely chosen employment. The Committee requests the Government to include information on the results achieved in terms of job creation within the framework of the Decent Work Country Programme.

Export processing zones. The Committee notes that in 2009 the Export Processing Zone (EPZ) Tripartite Labour Committee, the Nicaraguan Textile and Clothing Industry Association (ANITEC), the National EPZ Committee and the Ministry of Labour signed an “Emergency economic and labour agreement”. With the aim of preserving investment and jobs for the 2010–13 period, another agreement was signed in January 2010 in the context of the EPZ Tripartite Labour Committee, in which the parties undertook to promote social policies geared towards the comprehensive development of workers in the sector and to maintaining labour stability. Moreover, a training strategy was formulated with the National Institute of Technology (INATEC) to improve the productivity of workers in EPZ enterprises. The sector performed well in 2010, recording average growth rates above 3 per cent and providing work for more than 80,000 workers, reaching pre-crisis levels. The Committee requests the Government to include information in its next report on employment trends in the export processing zones and the impact of tripartite agreements on the provision of lasting, high-quality employment by the EPZs.

Coordination of employment policy and poverty reduction. The Committee recalls that the objectives of the “Programme for micro-, small and medium-sized enterprises” (PROMIPYME) included giving priority to actions that would result in the establishment of mechanisms and incentives that promoted the formalization of the informal economy. According to ECLAC, the proportion of persons working in the informal economy increased by 1.4 percentage points to 64.9 per cent. Moreover, INIDE indicates that the rate of informal employment in rural areas is 88.7 per cent. The Committee requests the Government to continue to supply information on the steps taken to enable a gradual transfer of workers from the informal to the formal sector, including statistics on the impact of programmes relating to microcredit, training and the promotion of micro- and small enterprises.

Promotion of small and medium-sized enterprises for job creation. The Committee observes that the first phase of the “Programme for micro-, small and medium-sized enterprises” (PROMIPYME) (2007–17) is coming to an end. In March 2010 the National Council for Micro-, Small and Medium-Sized Enterprises (CONAMIPYME) was set up as a body for consultation and cooperation between the Government and the trade unions in micro-, small and medium-sized enterprises (MSMEs). The Committee requests the Government to include in its next report an evaluation of the implementation of the operational plans for PROMIPYME and CONAMIPYME, including information on their impact in areas where there are high concentrations of people living in extreme poverty.

Youth employment. The Committee observes that the demand for labour continues to be substantially greater for young people between 20 and 29 years of age. According to data published by the ILO in the Panorama Laboral 2010, youth unemployment stands at 9.6 per cent, three points above the unemployment rate. The Government states that it is implementing the “Programme of opportunities for youth, employment and migration” with the collaboration of the Spanish Agency for International Development Cooperation (AECID) to establish networks and associations of young micro-entrepreneurs, and to promote community tourism and access to technical training. The Committee requests the Government to include information in its next report on the steps taken and the results achieved to improve access to decent employment for young people living in precarious social conditions in both urban and rural areas.

Article 3. Participation of the social partners in policy formulation and implementation. The Committee notes that in March 2010 the National Labour Council was established as a forum for tripartite social dialogue in which subjects such as employment, wages, gender equality, equal employment opportunities, restitution of the right to decent work and observance of labour legislation could be discussed. The Committee hopes that the Government will include more detailed information in its next report on the activities undertaken within the Council to formulate employment policies and programmes for generating decent work and contributing to poverty reduction and national economic and social development.

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

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.

Direct Request (CEACR) - adopted 2008, published 98th ILC session (2009)

The Committee notes that the Government’s report has not been received. It must therefore repeat its 2007 comment which read as follows:

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.

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

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.

Observation (CEACR) - adopted 2005, published 95th ILC session (2006)

1. Coordination of employment policy and poverty reduction. The Committee notes the report received in September 2004, which contains information on the Enhanced Economic Growth and Poverty Reduction Strategy and the proposed National Development Plan. The National Development Plan indicates that the overall unemployment rate did not change significantly between 1998 and 2001 (it was 11.6 per cent in 2002 and 10.2 per cent in 2003). The unemployment rate is higher among poor households (25.6 per cent). Some 46 out of every 100 employed persons at the national level are in the informal economy, with most of them (28 out of every 100) in own-account activities with very low productivity and income levels. Furthermore, 18 out of every 1,000 employed persons are in the traditional small-scale rural and indigenous production sector. Open underemployment (defined as jobs with fewer than 40 hours a week) accounts for one-third of total employment. The regions with the highest rates of open underemployment are the Pacific and the Atlantic. In order to halve extreme poverty by 2015, it will be necessary to achieve average annual GDP growth rates of 5 per cent (GDP growth was 4 per cent in 2004). The Committee notes with interest that the proposed National Development Plan indicates that "the employment generation policy, understood both from the viewpoint of demand (productive investment) and supply (investment in human capital), is the principal objective of both economic and social policy. Economic growth produced by a conducive macroeconomic environment and social investment has to be articulated so that economic growth objectives benefit the majority of the population, thereby improving the productivity and utility of both large enterprises and small and medium-sized enterprises. In this manner, basic wage income will be increased through the integration of the unemployed and the underemployed (informal sector) into the formal labour market, thereby serving a triple objective: (i) economic reactivation; (ii) the provision of more and better social services; and (iii) the growth of fiscal income, which will in turn reinforce public investment as an instrument of economic reactivation and social development, thereby creating a positive multiplier effect". The Committee notes with interest the information on the process of consultation and participation for the preparation of the National Development Plan, and the assistance received from the ILO for the formulation of the National Employment Policy.

2. As it did in its previous observations, the Committee hopes that the Government will continue its efforts to ensure that the creation of productive employment is central to macroeconomic and social policies when preparing and implementing the national poverty reduction strategy. Indeed, the Committee considers it essential from the outset for employment objectives to be included "as a major goal" in the formulation of economic and social policy if these objectives are truly to be an integral part of the policies that are adopted (paragraph 490 of the General Survey of 2004 on promoting employment). The Committee hopes that the Government’s next report will contain information enabling it to assess the measures adopted for the implementation of the National Development Plan which contribute to achieving the objectives of the Convention (Articles 1 and 2 of the Convention).

3. In this respect, the Committee welcomes the reports prepared by the Office in the framework of the assistance provided to the Government for the formulation of the National Employment Policy, and it trusts that the next report will contain information on the measures adopted as a result of the assistance received from the ILO (Part V of the report form).

4. The Committee asks the Government to provide information in its report on the manner in which lasting employment has been created for the vulnerable groups defined in the National Development Plan. As on previous occasions, the Committee would be grateful to be provided with information 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, rural workers and the informal economy). In particular, the Committee requests the Government to provide information on the contribution of export processing zones to the creation of high-quality lasting employment.

5. Other matters relating to migrant workers and the functioning of employment services are addressed in comments on the Social Policy (Basic Aims and Standards) Convention, 1962 (No. 117), and the Employment Service Convention, 1948 (No. 88).

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

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.

Direct Request (CEACR) - adopted 2001, published 90th ILC session (2002)

The Committee refers to its observation and asks the Government to include information on the following matters in its next report.

1. Article 1 of the Convention. In its report the Government cites the labour market analyses and short-term studies on the country’s occupational situation conducted by the Employment and Wages General Directorate of the Ministry of Labour. The Committee would be grateful if the Government would provide information on the situation, level and trends of employment, unemployment and underemployment as shown by the analyses of the Employment and Wages General Directorate, indicating the extent to which they affect particular categories of workers (women, older workers, workers with disabilities, rural workers and workers in the informal sector).

2. Article 2. Please state what measures have been taken to ensure that the analyses done by the Employment and Wages General Directorate have been taken into account in adopting other measures to promote economic development or to achieve the economic and social objectives established in the Poverty Reduction Strategy.

3. The Committee repeats once again its direct request of 1999 that the Government provide evaluations of the results achieved in job creation by some of the programmes mentioned in its report, such as those implemented by the Emergency Social Investment Fund, the Social Action Secretariat, the Institute for Small and Medium-Sized Enterprises and the National Programme for Support to Small Producers.

4. In its report the Government indicates that the export processing zone programme has contributed to generating 20,861 direct jobs and 2,099 indirect jobs. The Committee requests that the Government continue to provide information on the contribution of export processing zones to the creation of decent and lasting employment for those working in them.

Observation (CEACR) - adopted 2001, published 90th ILC session (2002)

1. The Committee notes the Government’s report, received in November 2000, in which reference is made to the legal framework in which the Ministry of Labour operates, the measures taken regarding micro, small and medium-sized enterprises, investment promotion and other measures related to vocational training. The Committee notes that the unemployment rate fell in 2000 (from 10.7 to 9.8 per cent) though the underemployment rate (12.1 per cent) increased considerably. Most of the jobs created were in the agricultural, construction, commerce and social service sectors. In December 2000, the World Bank and the International Monetary Fund decided to support a comprehensive debt reduction package for Nicaragua as part of the Heavily Indebted Poor Countries (HIPC) Initiative. As part of the package, the Government is to finalize and implement a wholly participatory poverty reduction strategy including measures to promote human development and social protection and expand access to primary education and health care. The Committee trusts that the Government will continue to give priority to the objectives of full employment in its plans and programmes and will include in its next report information on the extent to which the employment objectives set in the poverty reduction strategy have been attained (Articles 1 and 2 of the Convention).

2. The Committee reiterates, as it has done for many years, its request to the Government to include in its next report the information required in the report form on consultation of the representatives of the persons affected concerning the various aspects of employment policy, and particularly on any consultations held with representatives of those working in the rural sector and the informal sector (Article 3).

The Committee raises other aspects of the application of the Convention in a request addressed directly to the Government.

Direct Request (CEACR) - adopted 1999, published 88th ILC session (2000)

1. The Committee notes the Government's detailed report for the period ending in June 1998. The Government states that it is attempting to create conditions conducive to savings and investment, in line with economic growth and the consequent creation of jobs. Three political objectives have been set: maintenance and consolidation of social peace, promotion of investment, in line with production, and more equitable income distribution. The Committee again recalls that the objectives of full, productive and freely chosen employment must be an integral part of a coordinated economic and social policy (Articles 1 and 2 of the Convention). The Committee hopes that in its next report the Government will indicate to what extent the abovementioned policies have enabled the goals of full, productive and freely chosen employment to be attained. The Government is asked to bear in mind that many aspects of an active employment policy go beyond the competence of the Ministry of Labour. As the report form drawn up by the Governing Body states, the preparation of a full report on the Convention may require consultation with the other ministries concerned, such as those responsible for economic affairs. The Committee trusts that the next report will refer to the subjects related to overall and sectoral development policies set out in the report form for Article 1 of the Convention.

2. The Committee notes the statistical annexes sent by the Government on the urban labour market and its gender implications and on the profiles of the economically active urban population, compiled with the Office's cooperation. Please indicate the action taken as a result of the abovementioned studies, and any way in which the Office's assistance has contributed to the declaration and pursuit of an active employment policy within the meaning of the Convention.

3. The Committee notes the various specific programmes that the Government plans to carry out: promotion of foreign investment, preferential designation of recipients of agricultural loans, generation of emergency jobs and vocational training. The Committee would be grateful if the Government would include in its next report an evaluation of the results obtained by these programmes. With regard to employment generation in export processing zones, the Committee notes that the Ministerial Resolution of 23 January of 1998 on work in export processing zones in the Republic of Nicaragua seeks to promote certain rights of the male and female workers involved. In this connection, the Committee trusts that the Government will continue to try to avoid the adverse effects and stimulate the positive effects on employment of the investments of such enterprises.

4. The information sent by the Government shows that fewer people are employed in the formal than in the informal sector of the economy. The level of unemployment is also very high (close to 14 per cent in 1997), with the majority of the economically active population still employed in low productivity activities, such as subsistence farming and informal trade. The Committee would be grateful if the Government would indicate in its next report the results of any measures it has adopted to increase job opportunities and improve working conditions in the informal sector and to facilitate the latter's gradual integration into the national economy. The Government may find it useful to refer to the relevant provisions of the Employment Policy (Supplementary Provisions) Recommendation, 1984 (No. 169), and the Job Creation in Small and Medium-Sized Enterprises Recommendation, 1998 (No. 189), as a source of guidance for its action.

5. The Committee notes that the Government's report contains no information on the consultations required under Article 3 of the Convention. In these circumstances, it again requests the Government to include in its report the information requested in the report form concerning consultations with representatives of the persons affected by the various aspects of employment policy, particularly any consultations held with representatives of those working in the rural sector and the informal sector.

6. In general, the Committee considers that, in responding to the points raised, it would be advisable for the Government to take account of its comments on the application of other Conventions ratified by Nicaragua which are directly linked to Convention No. 122, such as the Employment Service Convention, 1948 (No. 88), and the Human Resources Development Convention, 1975 (No. 142).

Direct Request (CEACR) - adopted 1996, published 85th ILC session (1997)

1. Further to its observation, the Committee notes the Government's report for the period ending June 1996 and the information replying in part to its previous request. It notes, however, that it does not include the statistical information required by the report form on the situation, level and trends of employment, unemployment and underemployment. Please supply available data on these points in the next report, as required by the report form adopted by the Governing Body, including, to the extent possible, on the informal sector.

2. The Committee notes that the establishment of multinational enterprises in the free zones has enabled jobs to be created. It draws the Government's attention to the principles set out in paragraph 12 of Recommendation No. 169, and asks it to provide the information required in this respect.

3. The Committee notes that the other information concerning investment policy, monetary and budgetary policy, trade policy and prices and incomes policy do not indicate how the decisions taken and the results obtained in all these areas contribute effectively to promoting employment. It asks the Government to assess how the main objectives pursued by its economic policy can contribute to promoting full, productive and freely chosen employment, as a major goal and within the framework of a coordinated economic and social policy (Articles 1 and 2 of the Convention). Please indicate in particular how the implementation of structural adjustment programmes and privatization measures takes account of their effects on employment, stating whether measures are envisaged to encourage the redeployment of affected workers.

4. The Committee notes the support programmes for the population groups most affected by unemployment and underemployment, and the projects to promote rural employment. Please indicate the results of the implementation of these programmes.

5. The Committee notes with interest the training for self-employment activities carried out by the National Technology Institute (INATEC), and the Institute's efforts to coordinate training with the manpower requirements of employers. Please provide all the specific information available on the results obtained in this respect.

6. Article 3. The Committee notes that employers' and workers' representatives are associated with the definition of vocational training policies. With reference to the comments it has been making on this matter for several years, it hopes that the Government will be able to provide information in its next report on other initiatives to facilitate the consultation of representatives of the persons affected on the various aspects of employment policy. The Committee recalls in this connection that the representatives of persons employed in the rural and informal sectors should be associated with the consultations required by this provision.

7. Parts V and VI of the report form. The Committee notes that the Government received ILO technical assistance in conducting the fourth employment survey. Please continue to provide information on the assistance and advice received, and the action taken as a result of it. Furthermore, the Committee would be grateful if the Government would provide, as in the past, extracts of all reports, studies or surveys concerning employment and employment policy.

Observation (CEACR) - adopted 1996, published 85th ILC session (1997)

The Committee notes that in its examination of the representation made by the Latin American Central of Workers (CLAT) under article 24 of the Constitution, the Governing Body concluded at its 264th (November 1995) Session that the allegations did not show any grounds of non-compliance with the present Convention.

The Committee is again making a direct request to the Government concerning certain other matters.

Direct Request (CEACR) - adopted 1995, published 82nd ILC session (1995)

1. The Committee notes the Government's report for the period ending June 1994, which contains information in reply to its previous request and transmits useful documentation. It notes in particular the study on the urban employment situation in Nicaragua, undertaken in collaboration with the ILO and the PREALC, which shows that the urban unemployment rate in Nicaragua is the highest in Central America and one of the highest in Latin America. A very high proportion of the active urban population is also employed in the informal sector, although the capacity which that sector has shown to absorb labour is now limited. The analysis emphasizes that the trend for employment to be concentrated in the informal and services sectors is a characteristic of an economy with a low productivity rate.

2. The Committee notes that, according to the above study, the policy dilemma of endeavouring to increase urban employment lies in the manner in which redistribution and investment policies are combined. In a context of high unemployment, the need to adopt emergency measures gives rise to pressure to implement special programmes requiring external financing or additional resources, which increase the fiscal burden. In this respect, the Committee recalls that, under the terms of Article 2 of the Convention, the measures to be adopted for attaining employment objectives have to be decided upon and kept under review, "within the framework of a coordinated economic and social policy". The Committee would be grateful if the Government would indicate in its next report the measures adopted to overcome the difficulties to which it refers, with an indication of the manner in which the measures adopted in fields such as investment policy, fiscal and monetary policies, trade policy, and prices, incomes and wages policies, as well as in the field of rural development, have contributed to the promotion of full, productive and freely chosen employment.

3. The Committee notes with interest the information provided in reply to its previous request on the implementation of the Vocational Redeployment Plan, and on the activities of the Emergency Social Investment Fund (FISE) and the Fund for Deprived Sectors (FASO). Please continue to provide information of this type and to indicate any other measures taken to assure lasting employment to the categories of the population which are most affected by unemployment and underemployment, such as young workers, women and workers affected by structural adjustment measures. The Government may consider it useful in this respect to refer to the relevant provisions of Part III of Recommendation No. 169. The Committee also requests the Government to continue supplying information on the outcome of the projects implemented by the Ministry of the Environment and Natural Resources for rural workers, as well as any other measures to promote the productive employment of workers in the agricultural sector.

4. With reference to its last comment on the application of Convention No. 142, the Committee notes with interest the work plan of the National Technological Institute (INATEC) for 1994. It hopes that the Government will soon be in a position to indicate the extent to which the training received in the context of the INATEC's programmes has facilitated the vocational integration of the beneficiaries. In more general terms, please indicate the measures which have been taken to coordinate education and training policies with prospective employment opportunities.

5. The Government states that the Ministry of Labour and INATEC organize seminars to establish links with the various chambers of commerce and with the trade unions with a view to coordinating employment policies with labour supply and demand and vocational and technical training needs. The Committee requests the Government to describe the manner in which these seminars contribute to the holding of the consultations required by Article 3 of the Convention which, it recalls, should include representatives of the persons affected by employment policies including, in addition to representatives of employers' and workers' organizations, the representatives of persons working in the rural and informal sectors, with the objective of securing their cooperation in formulating and enlisting support for such policies. Please provide detailed information on any other procedure that has been established to give full effect to this important provision of the Convention.

6. The Committee requests the Government to continue providing any extracts of reports, studies and inquiries enabling it to assess the impact of economic and social policy measures on employment (Part VI of the report form). Please provide information on the action taken as a result of the technical cooperation or advice received from the ILO or the PREALC (Part V of the report form).

Direct Request (CEACR) - adopted 1993, published 80th ILC session (1993)

1. The Committee notes the replies made by the Government to the points raised in the direct request of 1991. The Government refers to the new National Development Strategy, which was prepared in March 1991, the objective of which is to "improve the quality of life for the majority of the Nicaraguan population, overcome poverty, respect individual freedoms and dignity and protect the environment". A stabilization programme is being carried out which involves the privatization of State enterprises, the liberalization of foreign trade and the authorization of the activities of private banks. The Government recognizes that 14,000 workers in the public sector have been affected by the structural adjustment measures during the first six months of the programme. A programme of occupational rehabilitation benefited 11,000 of the workers affected. The Committee trusts that the Government will indicate in its next report the impact on the labour market and on employment of the stabilization programme (see the report form for Article 1 of the Convention).

2. The Committee states that an Emergency Social Investment Fund (FISE) and a Fund for Deprived Sectors (FASO) have been established as labour market oriented programmes. The Committee requests the Government to describe in its next report the manner in which the above funds have contributed to the creation of productive employment for the categories of workers who often find difficulties in obtaining lasting employment, such as young persons, women and workers affected by structural adjustment measures.

3. With reference to education and vocational training policies, the Committee notes with interest the establishment of the National Technological Institute (INATEC). Within the framework of the tripartite advisory council of the INATEC, according to the Government's statement in its report on the application of Convention No. 142, the preparation and execution of strategic plans for the development of the human resources of the country are undertaken with a view to guaranteeing a dynamic and flexible mobilization of the supply of technical and vocational training for young persons and adults, whether they are seeking their first job or are returning to the labour market. The Committee refers to the comments that it is making this year under Convention No. 142, and trusts that in its next report on the application of Convention No. 122 the Government will continue to supply information on the coordination of education and training policies and measures with prospective employment opportunities.

4. The Committee notes the various measures which have been taken to compile and analyse statistical data on the labour market. It trusts that the next report will include extracts of reports, studies and inquiries in order to enable it to assess the volume and distribution of the labour force, as well as the situation, level and trends in employment (Part VI of the report form).

5. Please continue to supply detailed information on the manner in which productive employment is promoted in the rural sector, and in particular when initiatives have been taken to ensure the rational use of natural resources and adequate protection for the environment.

6. Article 3. In its previous comments, the Committee recalled the importance of consultations with the representatives of the persons affected by the measures that are adopted. These consultations should have the objective of taking into account the experience and views of such persons and enlisting their support for the implementation of the measures. In its report, the Government states that the only experience which is available is in the field of vocational training. The Committee urges the Government to make particular efforts to hold the consultations provided for by the Convention with regard to employment policy with the representatives of employers and workers, as well as with representatives of the rural sector and the informal sector. It requests the Government to supply information in this respect in its next report.

Direct Request (CEACR) - adopted 1991, published 78th ILC session (1991)

1. The Committee takes note of the Government's report which was received by the Office in January 1991, in which the Government states that it considers it unnecessary to make any comments for the time being since there have been no legislative reforms or changes in practice to affect the application of the Convention.

2. In its 1990 direct request, the Committee expressed its concern at the continued deterioration of the economic situation and its impact on the labour market. According to the PREALC, it is at present very difficult to ascertain the real rates of open unemployment, underemployment, and the situation in the informal sector and rural areas. The PREALC also refers to requests for technical co-operation to revitalise evaluation of the employment problem through a programme of household surveys, and suggests that the ILO should provide advice on the establishment of employment generation programmes. The Committee hopes that, in its next report, the Government will include information on any action undertaken as a result of ILO technical co-operation projects (Part V of the report form).

3. The Committee trusts that, in its next report, the Government will provide the detailed information required by the report form for the Convention and will supply information on the following points raised in its previous comments:

(i) please describe the measures adopted to satisfy the demand for employment, with particular reference to overall and sectoral development policies (and particularly to measures adopted in such fields as investment policy; fiscal and monetary policies; trade policy; prices, incomes and wages policies);

(ii) please describe the policies aimed directly at the labour market and policies in the fields of education and vocational training;

(iii) please indicate the measures taken to collect and analyse statistical and other data concerning the size and distribution of the labour force, the nature and extent of unemployment and underemployment and the procedures adopted to ensure that the effects on employment of measures taken to promote economic development (Article 2 of the Convention);

(iv) please indicate the measures taken to promote employment in the rural sector. The Government may find it useful in this connection to consult paragraph 27 of the Employment Policy Recommendation, 1964 (No. 122), the text of which is annexed to the report form for the Convention.

4. The PREALC mentions in the above-mentioned communication that the Government is currently implementing a vast privatisation programme. The Government is asked to provide information in its next report on the results obtained by the above programme and its effects on employment.

5. Article 3. In its previous comments, the Committee requested information on consultations with representatives of employers' and workers' organisations on the matters covered by the Convention. The Committee again points out the importance of consultations with the representatives of the persons affected by the measures that are adopted. These consultations should have the objective of taking into account the experience and views of such persons and enlisting their support for the implementation of the measures. The Committee trusts that, in its next report, the Government will not fail to supply the information required by the report form on the consultations held with representatives of employers' and worker' organisations and of the persons affected, including those working in the rural and informal sectors.

Direct Request (CEACR) - adopted 1990, published 77th ILC session (1990)

1. The Committee notes the Government's report which was received by the Office in March 1989. It notes that underlying the economic measures adopted in February 1988 were measures to reduce employment in the public sector and redeploy the workers concerned. The Government indicates that priority has been given to three employment programmes for the placement of former members of the armed services, the disabled, and returning emigrants. A programme has also been introduced to reduce the size of the informal economy, and 251 co-operatives have been set up to promote small industry.

The Committee expresses its concern at the continued deterioration of the economic situation (the GDP growth rate was negative in 1987 and 1988) and its impact on the employment situation of the economically active population, of which, according to estimates by the Office, two-thirds are unemployed or underemployed. It hopes that in its next report the Government will be able to supply information on the results achieved by the above employment programmes. Please also provide a detailed description of the measures adopted to meet all applications for employment, with particular reference to overall and sectoral development policies (and particularly measures adopted in such fields as investment policy; fiscal and monetary policies; trade policy; prices, incomes and wages policies). Please also describe the policies aimed directly at the labour market and policies in the fields of education and vocational training, in reply to the questions raised in the report form under Article 1 of the Convention.

2. The Committee refers to its 1988 direct request and requests the Government to include in its next report information on the measures that have been taken to collect and analyse statistical and other data concerning the size and distribution of the labour force, the nature and extent of unemployment and underemployment and the procedures adopted to ensure that the effects on employment of measures taken to promote economic development receive due consideration, as requested in the report form for Article 2.

3. The Committee notes the measures that have been adopted to promote employment in the rural sector. It trusts that the Government will continue to supply information on the results achieved by agrarian reform and other measures that have been adopted to promote productive employment in the rural sector. The Government may find it useful in this connection to consult paragraph 27 of the Employment Policy Recommendation, 1964 (No. 122), the text of which is annexed to the report form for the Convention.

4. In its previous comments, the Committee requested information on consultations with representatives of employers' and workers' organisations on the matters covered by the Convention, as required by Article 3. The Committee notes once again that the Government has not supplied such information. The Committee points out the importance of consultations with the representatives of the persons affected by the measures that are adopted. These consultations should have the object of taking into account the experience and views of such persons and enlisting their support for the implementation of the measures. The Committee trusts that, in its next report, the Government will not fail to supply the information required under the report form on the consultations held with representatives of employers' and workers' organisations and of the persons affected, including those who work in the rural sector and the informal sector.