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

Individual Case (CAS) - Discussion: 2023, Publication: 111st ILC session (2023)

Written information provided by the Government

The Government has given priority to the public policy to promote an appropriate ecosystem to facilitate the labour market integration of vulnerable persons (including women, young persons and persons with disabilities) and develop a better matching of occupational demand and the vocational and technical training of workers through the current National Development and Public Investment Plan (2023–26). The Government considers it essential to indicate that, for some years, Costa Rica has been developing a series of strategies and active labour market programmes with a view to having a positive impact. These efforts have resulted not only in specific programmes and legislative reforms, which have changed procedures for labour mediation, but have strengthened the relations that existed between labour market needs and the supply of institutional programmes.

In this regard, it would be baseless to claim that the Government has not made significant efforts in this field. Employment is one of the priority themes of the current Government and is part of the strategic agenda of the Ministry of Labour and Social Security (MTSS) and the National Training Institute (INA), among other public institutions, of which the ILO is one of the principal partners.

It should be noted that the ILO itself advised the Government to begin with the development of one of the central planks of its general policy, in order to build bridges and develop trust in participatory tripartite processes with a view to achieving more fluid progress in future years. In this respect, it should be noted that the Government is currently benefiting from technical assistance from the ILO Office for Central America, Haiti and the Dominican Republic, as recommended by the Committee of Experts in its 2023 report, for the design and development of the National Strategy of Employability and Human Skills.

It is noteworthy that Costa Rica has been included in the preliminary list of 40 cases before the Committee, even though the Committee of Experts has noted with interest the measures and action taken by Costa Rica within the framework of other Conventions, as indicated in the 2023 annual report. In this respect, attention should be drawn to the fact that the Committee of Experts has noted with interest the information and measures reported by the Government in relation to the Employment Service Convention, 1948 (No. 88). More specifically, the Committee of Experts noted with interest the adoption of the executive decree establishing the National Employment System (SNE) “to respond both to the dynamics of the labour market and to the needs of jobseekers or persons already in employment in order to retain their work or improve their conditions of work, giving priority to those in conditions of vulnerability”.

Aspects directly related to the Government’s strategic action in the field of employment

1. National Strategy of Employability and Human Skills: with the support of the ILO, this is being developed through a process of participation and consultation with the social partners, as it has been submitted to the Employment Council, which is of tripartite composition (the Executive, the private sector and trade unions) The purpose of the National Strategy of Employability and Human Skills is also to strengthen the governance of the SNE and the National Employment Agency (ANE), a platform which is an important landmark, as it has been built up from zero based on the Government’s conviction of the added value that will be provided to the public employment system not only by reinforcing the employment service, but also by improving the employability of those who are already in work.

2. Consolidation of the SNE: this is built on a model that corresponds to the vision of the public employment system, by not only dealing with employment placement, but by converting it into a more robust system that provides more services and is broader in scope. And it is the outcome of an articulated, inter-institutional and participatory process responding to the need to align education with labour market requirements. The approach adopted allows the SNE to provide more focused services and facilitate the access of persons in any part of the country. Its establishment was based on social dialogue through a process involving the Executive, the private sector and the unions, which are members of the Employment Council, which is the body with the highest authority in the system. In operational terms, reference should be made to the ANE and employment units. The ANE is a technical and operational body, which is national in scope, public and free-of-charge, which organizes employment services, the network of employment units, the electronic information platform and other means of serving people and enterprises, and which harmonizes administration, processes, procedures and protocols in a single window. The ANE operates 24 hours a day through contact centres, which are a free public tool and connect people and enterprises with employment services, in accordance with the policies established by the Employment Council. As of May 2023, the ANE had concluded 45 cooperation agreements to improve the capacities of the offices and branches of the network of employment units with various municipal authorities and private bodies to facilitate the access of the population to the services provided through the SNE. These units not only register persons, but also activate the coordination of the programmatic supply of employment services so that services are provided to improve employability, as well as employment placement. Up to now, there are around 5,114 active enterprises registered, over 128,000 people have been placed in employment since the tool was established and over 19,000 jobseekers are registered.

3. Inclusion of the system of financing by results of the Labour Market Observatory and the coverage of migrant workers by employment services.

4. The Dual Education and Training Act: the Advisory Commission for the Promotion of Dual Technical and Vocational Education and Training (EFTP-Dual), in the Ministry of Public Education, is operational and brings together the various social partners involved in this new mode of education, namely: the MTSS, the INA, the Costa Rican Federation of Chambers and Associations of Private Enterprise (UCCAEP), the Association of Enterprises in Export Processing Zones of Costa Rica (Azofras), and unions in the education, cooperative and solidarist sectors. It is also important to indicate that, in April 2020, the General Regulations were published of Act No. 9728 on dual vocational and technical education and training, which specify even further the rules for participation in dual-training processes. Moreover, emphasis should be given to the EFTP-Dual in Costa Rica, which has various similarities with dual-training systems in other parts of the world, including the principle of alternance, training in enterprises, shared financing and social dialogue. However, one significant difference from other countries lies in the nature of the relationship between those engaged in training (in Costa Rica they are not called apprentices), educational centres and enterprises.

5. National Skills Framework: a nationally recognized structure, which sets standards for qualifications and the associated skills on the basis of a series of technical criteria set out in descriptors with a view to guiding training, classifying occupations and jobs and facilitating the mobility of people at the various levels, all in relation to labour market dynamics. Some of the benefits of the articulation between training and labour market needs promoted by the National Skills Framework for Technical and Vocational Education and Training in Costa Rica (MNC-EFTP-CR) include:

- facilitating and clarifying the articulation of the education system, by setting qualification levels and establishment links between them;

- making it possible to create spaces for cooperation between the social partners in relation to technical and vocational education and training (TVET), namely: employers, training centres, public and private bodies and civil society;

- establishing parameters for training and the assessment of skills in relation to levels of qualification;

- providing employers with clarity on the competences associated with qualification levels, as provided by training centres;

- facilitating access to TVET by the population in terms of the skills they will acquire, the route to be followed to have access to training and employment opportunities;

- ensuring that the participation of enterprises and organizations in the development of qualification standards is representative at the sectoral level.

6. Implementation of the Act respecting export processing zones outside the Greater Metropolitan Area (GAM), No. 10234 of 2022, under which at least 11 initiatives have been developed so that enterprises can see opportunities for investment outside the GAM, such as: the inclusion of new categories for export processing zones (human health services, inputs and sustainable adventure parks); the strengthening of the single investment window to facilitate transactions; rules which urge the INA to promote programmes that correspond to the technical and occupational needs of enterprises; and the strengthening of formal employment. The generation of new jobs is key to the recovery of the labour market. The Act seeks to contribute to the generation of favourable conditions to increase investment that has a direct impact on competitivity throughout the territory, economic growth and the generation of employment outside the GAM through reforms and certain additions to specific laws adapted to the real situation in these areas of the country. This series of reforms and additions will have a direct impact on the decisions taken by national and foreign enterprises which, in compliance with certain conditions pre-established by the regime for export processing zones, can invest in zones outside the GAM. All of the above is in line with the indications provided, and shows not only the existence of political will and multiple good practices at the national level that are deserving of recognition, but also that the Government of Costa Rica retains the conviction to continue taking action to ensure the well-being and quality of life of workers in Costa Rica, within the framework of participatory processes and dialogue with partners, without which it would not be possible to implement these Government efforts. The commitment of this Government includes the prioritization of strategic interventions in relation to economic, social, environmental and citizens’ security challenges, which give rise to priorities such as the modernization of State institutions, economic recovery and a reduction in the cost of living, unemployment, poverty, inequality and regional differences, among others. Through an integrated and modern approach to public policies, these will be able to have a real impact on areas that lie within the scope of State governance with a view to stimulating action on these challenges, thereby achieving the well-being of the population of Costa Rica.

Discussion by the Committee

Chairperson – The first case on our agenda is Costa Rica on the Employment Policy Convention, 1964 (No. 122). I would like you to know that we have more than 17 delegates inscribed to take the floor and, consequently the reduction of time from 5 to 3 minutes will apply to the delegates. I now invite the Government representative of Costa Rica, the Vice-Minister of Labour, to take the floor.

Government representative – My first words will be to offer you fraternal greetings from the Minister of Labour, Andrés Romero Rodríguez. For reasons beyond his control, he has not been able to accept this invitation, but expresses his wishes for success to the Director-General for the launch of the Global Coalition for Social Justice initiative and for the productive work of our Committee.

On the basis of one of the principles that inspired the ILO Constitution, that is dialogue, Costa Rica succeeded in establishing the guarantees of social protection in its Political Charter over 80 years ago. As a result of this historical landmark, which regrettably continues to be no more than an aspiration for many peoples, the citizens of Costa Rica sealed a fundamental social pact setting out the highest values of solidarity and respect for the dignity of all persons. The country is globally recognized for this and other achievements, as well as its vocation of safeguarding human rights and being in the vanguard or their promotion.

Emulating the democratic tradition and honouring our international commitments, we are appearing in person on this occasion before the Committee to show in this forum the strategic action adopted by the State of Costa Rica in compliance with the Convention.

It is important to recall that, during the 2020s and up to the beginning of 2022, Costa Rica faced up to, with more than just diligence, the health crisis of the COVID-19 pandemic. Appropriate responses in the field of public health and the protection of life, as well as robust interventions in the field of social protection, enabled our law-abiding State to meet the challenge. We faced a challenge and democracy emerged with credit.

Nevertheless, within the context of the crisis of global dimensions as recognized by everyone, Costa Rica was not immune to the economic impact, which resulted in a significant loss of jobs, and more specifically the pandemic shock in the months of May, June and July in 2020, when the unemployment rate reached 24.4 per cent, with 557,000 unemployed persons. The process of the recomposition of the labour market has been showing a trend for employment recovery. Data from the Continuous Employment Survey of the National Statistics and Census Institute (INEC) show the recent trends on the labour market in Costa Rica.

In the first place, it is important to note the trend for unemployment to fall, with a decrease since the third quarter of 2020, reaching 9.7 per cent in the months of February, March and April in 2023, at 2.8 percentage points below the pre-pandemic level. Emphasis should be placed on the decrease in the number of unemployed persons at the national level, with 90,142 persons fewer, a figure that is lower than the same quarter prior to the pandemic. There has been a reduction in the percentage of persons in underemployment, for both men and women. Although the number of persons engaged in informal employment is under the levels prior to the pandemic, this unfortunately affects 40.7 per cent of the population.

Before the pandemic, the economy of Costa Rica was encountering difficulties in generating sufficient opportunities for the labour force. These were associated with the fact that the processes of economic, social and technological change have resulted in important transformations on the internal labour market. The State was therefore confronted by the urgent challenge of providing workers with the skills and knowledge required for the fourth industrial revolution and of avoiding at all costs that our young population, and particularly women, are faced with the ignominy of exclusion from the labour market.

In the national context, as described, we draw the attention of the honourable members of the Committee to the manner in which the country has been taking progressive steps towards full compliance with the Convention through the adoption of specific measures with a view to the formulation and approval by the Higher Labour Council (CST) of an employment policy. This is our aspiration and our commitment.

Accordingly, it can be seen in the National Development and Public Investment Plan 2023–26 that employment is an urgent aspect of economic and social development, such that the reduction in unemployment, as indicated by a lower number of unemployed persons in respect of the total number of workers, is a national objective for this four-year period. The Committee should note that this provides evidence of the Government’s commitment to including employment in strategic planning during this constitutional period, which is also part of the priority agenda of the MTSS, the INA and the other competent institutions, in which our strategic allies are undoubtedly employers’ and workers’ representatives, as well as the ILO Regional Office, which has its headquarters in San José in Costa Rica.

In the context of this progressive compliance, and as preparatory steps towards this objective, it should be noted that, in accordance with a recommendation made by the Committee of Experts in its 2023 report, ILO technical assistance is currently being received for the implementation of the National Strategy for Employment and Human Skills, which was unanimously approved by the National Employment Council, which is tripartite in composition, and adopted as one of its priorities. This shows that tripartite dialogue in democracies gives effect to the real objective for which we are meeting here today, that is the well-being of society as a whole.

This is how Costa Rica is making progress in the implementation of the National Strategy for Employment and Human Skills with its comprehensive perspective, basing its decisions on intersectoral alliances, outlining results with the focus on innovation and sustainability with a view to consolidating an active labour market policy which facilitates the links between supply and demand, thereby offering a response to the challenges referred to earlier.

Adopting a coherent approach, in this effort to ensure compliance with the Convention, the National Employment Programme was reformed by executive decree with a view to ensuring that interventions, through financial transfers, succeeded in achieving greater impact at the regional level and among beneficiaries, as an effective and appropriate response to the requirements of the productive sector. A new system of transfers was introduced which will help future workers in the process of integration, which is known as “active job search”, which consists of a cash transfer to support the beneficiary with the costs involved in integration into the labour market, as well as through training financed by the State.

With a view to ensuring more dynamic employment services within the framework of the SNE, a start has also been made in drawing up a work plan establishing action, time schedules, responsibilities, deliverables and potential resources to be invested, both by the MTSS and the INA, including the integration of the Empléate programme and its information system with the www.ane.cr platform, which I invite you to visit.

The SNE not only demonstrates the determined culture of the State of Costa Rica to give effect to its commitments, but also responds to a development in the vision of the public employment system, under which it is not confined to employment placement, but is converted into a robust system with diversified services and greater coverage. Its creation has been based on social dialogue through a process involving the executive authorities, the private sector and trade unions, which the Government welcomes. The Employment Council gave tripartite approval to the Management Model and Guidance Manual within the context of the SNE, in which differentiated routes are set out for vulnerable population groups. Similarly, I wish to describe to this honourable Committee the recently adopted reforms to the laws and regulations of Costa Rica with a view to stimulating employability and creating new jobs, among which emphasis should be placed on: the reform of the Basic Act of the National Learning Institute, bringing it into line with the principles set out in the Human Resources Development Recommendation, 2005 (No. 195); the Act on Dual Technical Training and Education, which is an important landmark, as it was developed and consolidated with the active participation of the social partners, with both laws offering legal security to employers and promoting conditions for the development of human talent based on a market logic; the National Skills Framework, which includes technical careers through skills standards; and the Act respecting export processing zones outside the GAM, which promotes a climate for investment with an impact on competitivity throughout the country, economic growth and employment generation in the areas where they are most needed. These measures are duly supported by their financing: for dual training grants, there is a budget of over 1,200 million Costa Rican Colones (CRC), which is equivalent to US$2.2 million; similarly, with reference to the services of the ANE and the regional units, there is a budget of over CRC5,600 million, equivalent to over US$10 million; with regard to vocational training and skills services, there is a budget of over CRC11,460, equivalent to US$21million; and for the National Employment Programme, in its various forms, the budget is over CRC19,000 million, equivalent to over US$35 million. We can convincingly assert that Costa Rica has taken firm and determined steps to offer more opportunities for labour market integration through the improvement of public services by providing them with financing. This is accompanied by macroeconomic policies to control inflation, which is today the lowest of all the countries of the OECD, and the implementation of policies to support entrepreneurship and to attract investment for the creation of decent quality employment, of which we are also informing the Committee.

These efforts made by Costa Rica have been recognized by the Committee of Experts, which has noted with interest the measures and action adopted within the framework of other Conventions, as indicated in its 2023 annual report, such as the Employment Service Convention, 1948 (No. 88), the Discrimination (Employment and Occupation) Convention, 1958 (No. 111), and the Vocational Rehabilitation and Employment (Disabled Persons) Convention, 1983 (No. 159). We recognize that there are undoubtedly opportunities for improvement, and the present administration has the will and is ready to continue developing public policy initiatives in consultation, through dialogue and in agreement with the social partners. By way of conclusion concerning the progress made in giving effect to Convention No. 122, it is important for this honourable Committee to note the consistency of the State of Costa Rica in creating conditions through legal and administrative measures and public investment to raise the employability profile of our population, thereby promoting their labour market integration in an environment of peace and prosperity for everyone.

Employer members – We thank the Government for the oral and written information provided, of which we have taken full note. The Employer members place emphasis on the importance of States giving effect to the Convention. It is one of the four priority governance Conventions of the ILO and was ratified by Costa Rica on 27 January 1966. By way of background, the Committee of Experts has made observations on the application of the Convention on four occasions, that is in 2013, 2104, 2018 and 2022. However, this is the first time that the case has been discussed by this Committee.

The Committee of Experts has commented on compliance with the Convention by the Government in relation to the following issues: first, information is not available on the impact of the measures adopted to achieve the objective of the Convention, including those adopted within the context of the National Strategy for Employment and Productive Development, in relation to which it reminded the Government that it could request ILO technical assistance. Second, consultations were not held with the social partners and the CST was not convened to engage in tripartite consultations on employment policies and programmes. Third, the labour market is characterized by low levels of employment and limited access to job opportunities for women and young persons, and it is also necessary to match education to labour market requirements.

It also noted that the Confederation of Workers Rerum Novarum (CTRN) had observed that existing employment problems had been aggravated by the COVID-19 pandemic, giving rise to an increase in unemployment and underemployment, and in poverty levels from 21 per cent in 2019 to 30.4 per cent in 2020 and in levels of extreme poverty from 5.8 to 11 per cent.

What is the statistical context of employment in the country, according to the available data?

The Employer members observe that the Committee of Experts noted the 2021 Yearbook of Statistics of the MTSS, which contains various types of data for between 2018 and 2021 on levels of open unemployment, youth employment through the so-called Empléate programme, and the labour market integration results through the SNE.

However, the Government, in the report of 24 May 2023 provided to the Committee of Experts, while updating various statistics, indicates, among other matters, that: first, the national formal employment percentage in 2022 was 56.7 per cent (as indicated, 2 percentage points below the established objective); and that, in the same year, the national economy grew by 4.2 per cent as a result of external demand associated with the recovery of tourism and exports of services; second, the active population in formal employment is tending to increase, as shown by the increase of around 23 per cent between the third quarter of 2020 and the third quarter of 2022; and third, the open unemployment rate in Costa Rica in 2022 was 12.2 per cent on average, according to the Continuous Employment Survey of the INEC. Finally, in relation to education during the 2019–22 period, the objective exceeded initial expectations with the provision of 4,241 grants, equivalent to 176.7 per cent of the initial objective.

What is the legal and regulatory context for employment in Costa Rica?

With a view to identifying the reasons for the social context affecting employment, it is important to also take into consideration the regulations that have been adopted recently, and in this regard, according to the information provided by the UCCAEP, since 2017, in Costa Rica work has been carried out on various texts, policies, guides and decrees to reduce unemployment, while endeavouring to narrow vocational training gaps, as shown by:

(a) In 2017, a tripartite committee was established to review the adoption of the Transition from the Informal to the Formal Economy Recommendation, 2015 (No. 204).

(b) On 3 December 2018, Act No. 9635 on the strengthening of public finances was adopted, adjusting the salaries and benefits of public officials, in a provision which went beyond the comments that had been made, and which is a provision that was subject to four hearings in the Constitutional Chamber of Costa Rica, which did not find any violations by the Act of any ILO Conventions.

(c) In 2019, action was taken to regulate dual technical education and training in Costa Rica, which makes it possible to develop skilled resources, promote the labour market integration of vulnerable persons and groups, retain young persons in the education system for continued studies, while the EFTP-Dual was created in the Ministry of Public Education as an advisory body.

(d) Moreover, in the CST, which is a tripartite body, and with ILO support, prior to the COVID-19 pandemic, work was being carried out on a tripartite agreement for the generation of decent employment in Costa Rica, which is awaiting approval.

(e) Act No. 9738 was adopted regulating telework.

(f) Through Decree No. 41776, the SNE, the Employment Council and the CST, which is tripartite, were also created.

(g) The National Strategy on Employability and Human Skills was promoted with the technical support of the ILO.

(h) Various bodies exist in education on the subjects of training, education and labour.

(i) The National Technical and Vocational Education and Training System was created and transformed in 2022 by Decree No. 43481.

(j) Act No. 9931 was adopted on the strengthening of vocation training for employability, social inclusion and productivity in light of the fourth industrial revolution and future employment.

In light of the above, the Employer members consider that, over and above the issues that may arise in relation to the scope of the various measures adopted, Costa Rica has an employment policy that is reflected in the legal provisions adopted, and in the data and indicators seeking a reduction in unemployment.

In any case, we must not forget that adequate dialogue on these types of policies is subject to the provisions of Article 3 of the Convention, which promotes the active participation of representatives of the persons affected, and of workers’ and employers’ representatives, so that, through their experience and views, they can contribute to structuring public employment policies through social dialogue.

We know that these processes of consultation and dialogue are not easy. They require the establishment of appropriate means of information for the organizations as a basis for the development of the exchange of information and views in order to achieve the best results, taking into account the positions of the social partners, before a final decision is adopted.

We are certain and convinced that the conditions exist for this purpose in Costa Rica as a means of ensuring the continued development of public employment policies within the framework of dialogue, and that there is a pre-disposition by employers through their chambers as the most representative organizations of employers in the country. By way of illustration, they promoted a reduction in the minimum basis for social security contributions with a view to achieving greater formality of employment in the country.

Within the framework of the situation as described, the Employer members consider it important for the national authorities of the Government to intensify their efforts to explore alternatives to improve dialogue and the exchange of information for all the partners, in relation to initiatives that it is already developing, and those that may by promoted in future in relation to employment policies and programmes, the inclusion of young persons in the labour market and gender equality in terms of opportunities for access to sources of employment, by seeking their adaptation and modernization in the context of the real labour situation of the country. Moreover, there is the real possibility of benefiting from ILO technical assistance in this respect.

Worker members - We thank the Government for the information provided. This is the first time for many years that we have examined a case concerning Costa Rica in this Committee. What has led us to do so is the need to assess the action taken by the Government, or rather the lack of action, for the proper application of the Convention in law and practice.

We must also recognize the significant numbers of workers trapped in the informal economy, and the manner in which the Government’s failure to take action is aggravating their difficult situation. Costa Rica continues to suffer from alarming levels of poverty and unemployment. Despite economic growth and development, a considerable part of the active population continues to be marginalized and deprived of opportunities for stable employment and decent living conditions. At the centre of this problem is the omnipresence of unstable and insecure forms of employment and the informal economy, a cradle for the development of exploitation, vulnerability and lack of protection. In Costa Rica, an alarming number of people are forced to work in the informal sector, in jobs that lack legal protection and social security benefits. These workers suffer from very low and scarce wages, precarious or non-existing job security, and a deep-rooted lack of access to essential health and social protection. This situation was exacerbated by the COVID-19 pandemic. The data used by the MTSS in its recent report need to be relativized against the background of the relationship between employment creation and poverty.

Although the Government is claiming increases in employability, the inactivity rate rose from 39.7 to 41.7 per cent, compounded by the increase in extreme poverty. This means that the level of jobs is not higher, but in contrast the number of men and women workers has increased who are no longer seeking work and who are not therefore taken into account in these statistics. Over 1 million women are outside the labour market in the country, which is around double the number of men. According to the Committee of Experts, the Government has admitted that it does not have information on the impact of the measures adopted to achieve the objective of the Convention. In this context, the lack of action and the inertia of Costa Rica in addressing the problem of poverty and unemployment are in our view very clear and a matter of concern. It is clear that the authorities have not formulated or applied comprehensive policies that really address the deep-rooted causes of this socio-economic crisis. The lack of robust initiatives to formalize the informal economy, provide support structures and incentives for the transition to the formal sector, as set out in Recommendation No. 204, bear witness to the apathy of the Government towards its own citizens.

The Convention provides a crucial framework for guiding efforts to combat poverty and unemployment, particularly in relation to the informal economy. This Convention places emphasis on the vital importance of promoting full and productive employment, giving priority to decent work for all and encouraging employment creation. Regrettably, Government action has been inadequate in aligning its policies and practices with the principles set out in the Convention. It has shown a flagrant lack of concern for the well-being and subsistence of its citizens, ignoring the urgent need for comprehensive employment policies.

In its comments on the Convention, the Committee of Experts refers to Act No. 9635 on strengthening public finances, which entered into force on 3 December 2018. The application of this Act imposed significant restrictions on collective bargaining in the public sector, by limiting in practice the budgets of State institutions. This made it necessary to reduce the funding for workers’ wages and benefits in the public sector, which has led to cases in which collective agreements have been abolished or not applied. Wages in public bodies have been frozen indefinitely, thereby worsening an already serious situation. Moreover, in March 2023, the Framework Act on public employment entered into force, which impedes the possibility of increasing the wages of the various groups of public employees, irrespective of annual inflation rates. Wage negotiations through collective bargaining are specifically prohibited. Both laws have very significant implications for workers’ rights, stable and secure jobs and the general well-being of society. By placing severe limitations on collective bargaining and eroding labour rights, the laws are undermining the Government’s ability to reactivate the economy, create decent jobs and give effect to the principles set out in the Convention.

Finally, the Government admits that it did not consult the social partners on employment policies and programmes during the period covered by the report, which presupposes a violation of Article 3 of the Convention. In conclusion, we cannot ignore the gravity of the current situation. The lack of action by the Government to address poverty and unemployment in Costa Rica is a series failure in its duties and a violation of the Convention.

Employer member, Costa Rica – As the representative of the employers of Costa Rica, I wish to indicate that the Federation of Chambers, as the umbrella organization, will focus solely and exclusively on the specific points covered by the Convention for which the country was convened before this honourable Committee, that is Convention No. 122.

As a sector that is respectful of our national legislation and the treaties and Conventions ratified by the country, we cannot and will not refer to matters that have not been raised by the Committee of Experts. We are bound to point out that there are instruments and the corresponding channels through which the arguments touched upon relating to the context of our country can be addressed at the appropriate time. Allowing the examination of situations that are not strictly related to the Convention gives room for the polarization of the discussion of this instrument and, in any case, creates an unhealthy precedent for future discussions. We cannot allow confusion between the standards under examination and the underlying political issues of each country.

In the first place, I would like to indicate that employers in Costa Rica are a positive and active sector, which seeks by all means to ensure that the policies which we promote have positive and overall impacts on our society. Legal certainty and respect for existing institutions are what we seek at all times as part of our commitment to democracy, with its system of checks and balances.

In view of the above, and taking into consideration the observations made by the Committee of Experts, I wish to point out the following. The Articles of the Convention on which the Committee of Experts has commented are the first and the third. The first provides that each Member shall declare and pursue, as a major goal, an active policy designed to promote full, productive and freely chosen employment. And the third provides that representatives of the persons affected by the measures to be taken in relation to the employment policy shall be consulted, and in particular representatives of employers and workers, with a view to taking fully into account their experience and views.

It should be noted that, in the case of Costa Rica, action has been taken for many years in relation to these themes of employment and employability, and it is a characteristic of our country that most subjects are worked on in a tripartite manner, through social dialogue, which is constantly promoted by the ILO. On this basis, employers have been proactive in the various types of national action that have been taken in relation to employment-related subjects which, in most cases, and in accordance with the customs of our country, are undertaken in a tripartite manner in accordance with Article 3 of the Convention.

It is noteworthy that, among the comments of the Committee of Experts, the Government is requested to indicate whether, in the consultations in the country on the application of ILO Recommendation No. 204, there were representatives of rural areas and of the informal economy. In this regard, Costa Rica was the first country in the world to work on the application of that Recommendation through tripartite social dialogue, in recognition that informality functions according to a logic of the denial of fundamental rights at work, that it was undermining the basis of our system of social protection and that it facilitates unfair competition. Moreover, through a simple search, including on the ILO’s own web page, there is a list of the trade union confederations of Costa Rica, the great majority of which have branches for workers in the rural areas of the country, and our federation, as the employers’ organization that is most representative of employers at the national level, also ensures the representation of rural areas. Accordingly, we do not understand this comment. From the viewpoint of employers in Costa Rica, represented by the Federation of Chambers, we are able to refer to national efforts on the subjects of employment and employability including, following ten years of discussions, the adoption in 2019 of the Act on Dual Technical Training and Education, on which the consultation process included tripartite dialogue at the legislative level.

Dual education became a public policy tool for access to a model of education which can generate the necessary experience to find decent employment, for which reason it forms part of a series of measures to achieve quality education, training principally focused on work for young people, and a successful transition to the world of work. The same year, the Act on teleworking and its regulations were adopted which, as they had been approved prior to the COVID-19 pandemic, made it possible to maintain many decent jobs during the pandemic and to cope with the lockdowns, as it was essential to have regulations that were capable of responding to the situation at that time. The CST and the Occupational Health Council, both of which are tripartite bodies, developed guidance for the implementation of teleworking in enterprises and the Guide on occupational health and the prevention of risks in relation to teleworking.

In 2019, the Decree on the development of the SNE was adopted with the objective of defining and establishing a logical system of governance for employment services in the country. In addition, the system includes an Employment Council, which is tripartite in composition and is the public policy body which articulates the services associated with the system.

During the period of the COVID-19 pandemic, various types of action were taken in support of employment, such as regulations on the suspension of labour contracts, which was already permitted by the labour legislation, the adoption of the Act on the reduction of the working day with a view to avoiding the need to dismiss workers, and the establishment of health protocols to protect the health of workers, among other measures.

In 2021, the Act was adopted on the strengthening of vocational training for employability, social inclusion and productivity to address the fourth industrial revolution and future employment trends, which reformed the Basic Act of the INA. The Act approved key conditions for the improvement of the training and skills improvement services provided by the INA and the National Training System. In 2022 and 2023, the current Government took the initiative of working in a tripartite context on a National Strategy for Employment and Human Skills, with the cooperation and support of the ILO.

In relation to education, which has a direct effect on employment issues, our country has various dialogue bodies, including the National Council of Technical and Vocational Education and Training, the Interinstitutional Commission of the Implementation of the National Skills Framework, and the Board of Direction of the INA, which is also a tripartite body.

Finally, I would like to indicate that efforts are being made by employers to participate in the processes for the development of a new comprehensive migration policy by the Directorate for Migration and Foreign Nationals, with the support of the International Organization for Migration (IOM) .

I do not wish to finish my intervention without first making a comment that concerns all of us who are present here today. It was only two months ago that the end of the COVID-19 pandemic was declared at the international level. And we cannot ignore the fact that today many countries are suffering from the consequences of the pandemic, including our own. During the pandemic, there were many serious effects at the economic level, many enterprises had to close, people lost their jobs and had no source of income, which resulted in significant increases in levels of unemployment and poverty in Costa Rica and throughout the world. The employers requested the Government on many occasions to take measures to promote economic recovery and, through social dialogue, various initiatives were taken to maintain jobs for as long as possible, clearly taking into account the health of workers. As a country that is still suffering from the onslaught of the COVID-19 pandemic, Costa Rica has made significant efforts in relation to employment and employability, seeking the well-being of the working population and the productivity and competitivity of private enterprises, which are made up of 97 per cent of micro-, small and medium-sized enterprises, which generate 87 per cent of the employment in my country.

For these reasons, the Federation of Chambers considers that our country is in compliance with the provisions of the Convention under examination and that the State, under various administrations and through social dialogue, has worked on multiple initiatives and national efforts to improve the employment situation. Moreover, in its 2023 annual report, the Committee of Experts has noted with interest the action taken by the country in relation to various Conventions, such as Conventions Nos 88, 111 and 159, all of which are related to employment. And yet, for reasons that we do not understand, it is this case that has been taken up here.

Let me conclude by indicating that the Federation of Chambers has social dialogue in its DNA. We are aware of the dictum that, to go further, we need to go forward together. To the Worker representatives, as we have traditionally done, we hold out our hand to continue building together a country that is more prosperous and inclusive. And we make a final call to the Government of the Republic, as has always been the case in life in Costa Rica, to continue promoting and strengthening spaces for social dialogue through the necessary policies so that in Costa Rica no one is left behind and so that, through decent work, we can create inclusion and equity for our society.

Worker member, Costa Rica – On behalf of the women and men workers of Costa Rica, I am addressing this honourable Committee to give our views on compliance with the Convention in our country, in accordance with the comments made by the Committee of Experts. We totally disagree with the arguments put forward by the Government on compliance with the comments of the Committee of Experts. According to the prestigious academic report on the state of the nation (2022), which is highly respected in Costa Rica, it has been many years since there was a national employment policy focusing on gender, youth and the unskilled. In its last report on the Convention, the Government did not provide data on compliance, and now that it has been placed on the short list, it sent the Committee a few days before the Conference, on 24 May, a document providing updated information on action to give effect to the comments of the Committee of Experts. We were not aware of this last-minute document and, as a result, we were not able to provide a relevant contribution from the trade unions, which reflects the Government’s lack of consideration and disdain for consultation and tripartite machinery, and we are not able here to say everything we would like on the subject. The document provides indicators of progress, based on indicators of unemployment, poverty, the increase in the GDP and other data, which do not in practice prove the implementation and development of an employment policy in accordance with Article 1 of the Convention, but tend more to show up patent shortcomings in its implementation.

There is no national employment policy or plan formulated through tripartite consultation or that is in the process of being implemented. Moreover, since the end of last year, production trends have been returning to their characteristic behaviour in the pre-pandemic years, that is a dual economy, with moderate growth and the generation of few opportunities for formal work. For this reason, the data used by the Ministry in its recent report needs to be seen in strongly relative terms with regard to the relation between employment creation and poverty. While the Government claims that there has been an increase in employability, the inactivity rate rose from 39.7 to 41.7 per cent, in addition to the increase in extreme poverty.

According to a report analysing the labour market and poverty in Costa Rice, prepared in 2022 and 2023 by the Economic Investigation Institute of the University of Costa Rice, the country is confronted by an increase in extreme poverty, which has increased from 6 per cent in 2022 to 8 per cent in February 2023. It is calculated that 265,528 workers are living in total poverty, according to the data published by the INEC for International Workers’ Day 2023. Some 20.9 per cent of employees work more than 48 hours a week and 15.1 per cent do not earn the minimum wage. Of these, 50.8 per cent are not paid for overtime hours and 27.7 per cent are not insured against employment risks, according to the Continuous Employment Survey for the fourth quarter of 2022. In the agricultural sector, 12,000 jobs have been lost for agricultural and skilled agricultural workers. According to the INEC Continuous Employment Survey, undertaken between February and April 2023, a total of 586,000 workers are not covered by social security, which is equivalent to over one quarter of employed persons in the country, or 28.4 per cent. Although in April the unemployment rate fell from 11 to 10.6 per cent, that is related to the significant number of persons who have stopped seeking employment, as in the first quarter of 2023 there were 2.10 million active persons, whereas the figure was 2.20 million in October 2022. Women make up the majority of those who have left the labour force over the past year (114,000 of the 196,000 persons who ceased to seek work), when comparing the data from the Continuous Employment Survey for the three-month period from February to April 2023 with the same period in 2022. Over a million women are outside the labour market in the country (1,167,547), which is around twice the number of men (664,547), and makes a total of 1,832,094 persons out of a population of 5,180,000.

Combined with poverty and the lack of work opportunities, one of the principal problems of the country is the growing income inequality and social inequality, and there have been no public policy responses to reverse this situation. Over the space of one generation, Costa Rica went from being one of the most equitable societies in Latin America to one of the most inequitable and unequal countries in the world. The Government’s report appears to ignore the fact that working conditions, wage policies and employment relations are inherent to and interlinked with employment and income policies, or should be. The National Productive Employment Strategy is a theoretical plan to the formulation of which the ILO Office in San José contributed with the previous Government, and it is now used as a point of reference in discussions, but no specific action is being taken and it is not being implemented. Several of the programmes described in bureaucratic terms by the Government are old, have not produced significant changes and do not form part of a national employment plan. There is no correlation whatsoever between employment policies and formalization policies, which have not been implemented either. In export processing zones, there are no unions or collective agreements, and therefore there is no sectoral tripartism. The Government is putting forward a Bill to intensify working hours, with precarious working time arrangements of 12 hours a day over 4 days, without overtime pay, thereby making the labour force as cheap as possible. The argument is being used that in practice in export processing zones there are 12-hour working days without overtime pay, which is not legal and it is therefore necessary to regularize and legalize them through the Bill, which is contrary to the Hours of Work (Industry) Convention, 1919 (No.1). According to the ILO resolution concerning the third recurrent discussion on employment (June 2022): “Social dialogue, including collective bargaining and tripartite cooperation, contributes to the creation of decent jobs”. It is therefore noteworthy that the Government is ignoring or overlooking the link between collective bargaining and employment policy and working conditions, as well as industrial relations deriving from the legal framework of employment policy.

With reference to the observation by the Committee of Experts, there are two laws which severely restrict the possibility of collective bargaining, and practically eliminate it, as well as trade union rights: the Act on strengthening public finances, which has restricted collective bargaining in the public sector, limiting the budget of State institutions and making it necessary to lower and remove wage components and bonuses, eliminating collective agreements or leaving them without effect, as well as freezing wages in the public sector indefinitely; and the Framework Act on public employment, which runs counter to the ILO resolution referred to above, which sets out the principle of supporting “the role of the public sector as a significant employer and provider of quality public services.” This Act is closely related to the former and endangers the exercise of trade union rights and collective bargaining through restrictions that are contrary to the Freedom of Association and Protection of the Right to Organise Convention, 1948 (No. 87) and the Right to Organise and Collective Bargaining Convention, 1949 (No. 98), as well as preventing wage increases for public sector workers by consolidating the indefinite wage freeze. Wage negotiations are explicitly prohibited, among other aspects of the employment relationship, thereby voiding collective bargaining of its content.

With regard to tripartite consultation, effect has not been given to the comment relating to Article 3 of the Convention, nor has participation by trade unions been offered in any of the stages of action on policies relating to employment and the labour market. The existing tripartite bodies at the national level are stalled and are absolutely ineffective. The Decent Work Country Programme has not been renewed or taken on board by the Government, even though one of its priorities is the promotion of employment and decent work. The major deficit in the world of work in Costa Rica is the absence of social dialogue and tripartism. According to the prestigious report on the state of the nation (2022), the current social and political situation in the country is characterized by the normalization of measures that are contrary to human development following the progressive abandonment of the social contract in Costa Rica. Unilateralism is becoming consolidated in an alarming manner in Cost Rica. For this reason, we need strong action by the ILO and its supervisory bodies.

Government member, Colombia – I am speaking on behalf of a significant majority of Latin American and Caribbean countries, which wish to refer to the inclusion of Costa Rica in the list of countries to be examined by the Committee.

We welcome the information provided by the Government representative, which has provided information to the delegates and the Committee, from which it may be noted that: Costa Rica has been developing for some years a series of active labour market strategies and programmes with the objective of having a positive effect on the working population, with particular emphasis on the vulnerable population, including women and young persons, through the creation of active labour market programmes, as well as a change of focus in the form of the provision of employment mediation with a view to strengthening the links that are required between the needs of the market and the supply of institutional programmes.

We are aware that the country has given priority to the integration into the labour market of vulnerable categories or persons and the promotion of the matching of labour demand and technical and vocational training for workers. In this regard, the country has been making efforts in the area covered by the Convention. Examples of these efforts indicated by the Government include the consolidation of the SNE, based on social dialogue, the creation of the ANE, which is a public instrument that matches workers and enterprises, and the Act on dual training.

Finally, the Government’s indication should be emphasized that it is currently receiving technical assistance from the ILO Office for Central America, Haiti and the Dominican Republic, as recommended by the Committee of Experts in its 2023 report, for the formulation and development of the National Strategy for Employability and Human Skills.

We trust that the Government will continue taking action to ensure well-being and quality of life through social dialogue with the social partners.

Finally, we urge the ILO to continue providing technical cooperation to Costa Rica.

Employer member, Guatemala – The Convention provides that Member States shall declare and pursue an active policy designed to promote full, productive and freely chosen employment with a view to stimulating economic growth and development, raising levels of living, meeting labour requirements and overcoming unemployment and underemployment.

As we have already heard from the Government, I note in this particular case that national efforts have been made to improve the national employment situation and the current Government is only just commencing its work in relation to employment, which is being carried out through the means and corresponding bodies, with the promotion of appropriate reforms and provisions.

It is important to point out that the Government has given priority to the public policy designed to promote an appropriate ecosystem to facilitate the labour market integration of vulnerable persons and the technical and vocational training of workers, through the current National Development and Public Investment Plan.

In addition to the efforts that the country has been making since 2019, work has progressed with the social partners on a series of instruments, policies, guides and decrees with a view to helping to reduce the levels of national unemployment, overcome gaps in vocational training and reduce informality.

Among these efforts, reference may be made to an Act which regulates dual technical education and training, which is necessary to adapt to the needs of the labour market, which requires labour focused on technical skills and in the forefront of technological development, thereby offering labour market integration for persons and groups that are vulnerable or at social risk. It is a public policy tool for access to an educational model that can generate the necessary experience for subsequent integration into formal employment.

The Act on teleworking was also adopted and helped to retain many jobs during the COVID-19 pandemic.

For all these reasons, it appears to us that today’s examination of this case by this supervisory body is not related to a failure to comply with the Convention, but is more a case of progress by the State of Costa Rica.

Worker member, Singapore – Let me start by saying that it is very disheartening to observe that the Government has yet to develop concrete policies that effectively tackle the lack of jobs and bridge the gap between economic growth and employment generation.

Costa Rica’s failure to establish a national policy aimed at generating more and higher quality jobs is a cause for concern, necessitating a comprehensive range of policy interventions. In addition, the Government’s omission of tripartite consultations for the formulation and implementation of employment policies is disappointing.

A critical aspect to consider is the connection between employment policies and formalization strategies, which ensure investment in expanding basic social protection. Recommendation No. 204 serves as a foundation for progressive formalization, leading to sustainable and equitable growth. Regrettably, the Government appears to have taken no action to comply with this Recommendation.

While the Government’s report alludes to programmes for micro- and small enterprises, benefiting about 200 SMEs, the impact of these initiatives on the overall universe of existing SMEs is negligible. Significantly, the Government has failed to mention the exact numbers of jobs created through all these programmes.

On the contrary, the Government’s proposal to increase taxes on SMEs by up to 30 per cent would likely result in the exodus of a vast majority of small companies, consequently exacerbating informality and unemployment.

Moreover, the Government’s support for the dual education modality is flawed and exploitative, as apprentices lack social security, rights and fair wages. It is concerning that the Advisory Commission for Dual Education consists of 11 members, with only 1 representing workers.

Lastly, I would like to draw your attention to a recent report by the UN Special Rapporteur on contemporary forms of slavery, which highlights serious cases of modern slavery in Costa Rica. These cases include the banana and pineapple sectors, the security sector, the retail sector, domestic service, construction, and even State activities, which run counter to the provisions of the Convention.

The United Nations Special Rapporteur offers important recommendations to the Government, emphasizing the need to improve labour inspection through the allocation of sufficient resources, both human and financial, as well as granting additional powers, such as on-the-spot sanctions.

In conclusion, I urge the Government to address all these shortcomings promptly, taking into account the urgency of implementing effective employment policies and rectifying all the prevailing issues.

Employer member, Argentina – The Republic of Costa Rica has been included on the list of cases submitted for examination by this Committee for alleged failures of implementation or violations of Articles 1 and 3 of the Convention. The Government has indicated that it duly implemented the so-called Bicentennial National Plan for Development and Public Investment. This programme envisages the adoption of measures to strengthen the productive capacity of the country and promote employment. We recall that the Committee of Experts has noted that the current challenges include the need to align education with labour market requirements since, although the efforts made by the Government are recognized, the 2018 National Enterprise Survey showed that there were a high number of vacancies due to the lack of the required skills among job applicants. The study provided by the Government also shows women and young people still have lower activity rates and have limited access to employment opportunities due to their lack of experience and training in non-traditional branches (such as science, technology and engineering). This is a very important issue for employers, as it is not possible to strengthen the productive capacity of a country without improving the employability and vocational training of workers. The Government has indicated that a public policy has been developed with a view to giving priority to the labour market integration of vulnerable persons (women, youth, persons with disabilities) and that priority has been given to technical and vocational training through the National Plan for the Development of Public Investment which, according to the Government’s report, has been a priority issue. Indeed, the ILO provided technical assistance, as suggested by the Committee of Experts.

When reviewing Articles 1 and 3 of the Convention, it can be seen that the first Article indicates that each Member shall declare and pursue, as a major goal, an active policy designed to promote full, productive and freely chosen employment. The objective of the Convention is to stimulate economic growth and development, with a view to raising the levels of living of workers, meeting the labour requirements of enterprises and endeavouring to resolve the problems of unemployment and underemployment. However, the active policy has to be drawn up in consultation with the representatives of workers’ and employers’ organizations, which are those affected by the measures to be taken, and such policies have to be subject to tripartite consultation. Despite the fact that the measures developed can always be improved, it is not clear that the Government has not made significant efforts in this regard. On this subject, it is worth recalling that it is the ILO that has supported the Government in developing practical policies and measures to build bridges and trust in the participatory and tripartite process. We believe that the Government has shown that there is the political will to continue promoting employment policies and action to improve employability.

Worker member, Argentina – We are examining the case of Costa Rica in relation to the failure to give effect to the Convention which, as we know, has been identified by the Governing Body as one of the four priority Conventions in view of its importance for the operation of the system of international labour standards. It is a governance Convention, as indicated in the ILO Declaration on Social Justice for a Fair Globalization, and its provisions are of the greatest relevance to the creation of decent work, the priority goal of this Organization.

As indicated in the report of the Committee of Experts, the achievement of these objectives is limited in Costa Rica, as the report indicates that, without prejudice to the economic plans referred to by the Government to remedy the situation, there are no indicators or data showing that any results have been achieved.

Although the lack of compliance with the Convention relates to the absence of policies for the creation of genuine quality employment, the report makes special reference to the situation with regard to public employment. In this regard, the Committee of Experts notes the adoption of Act No. 9635 to strengthen public finances, which provides for the adjustment of the wages and benefits of public employees, in violation, as indicated by the Workers, of Conventions Nos 87 and 98, as it provides that issues that have an impact on the national budget, such as wages, cannot be the subject of negotiations. There is accordingly no collective bargaining in the public sector, wages are frozen by the Act on public finances and, at the same time, the Framework Act on public employment explicitly prohibits collective bargaining on wages.

The Committee of Experts had made comments previously in this regard, in its 2020 observation, as indicated in the report, and emphasized that workers in the public sector “shall enjoy the right to collective bargaining, including with respect to wages, and that […] there are mechanisms through which compliance with budgetary limitations can be reconciled with the recognition of the right to collective bargaining.”

The fact that it is impossible to engage in collective bargaining in the public sector inevitably affects compliance with the Convention, as social dialogue between the parties to determine fair wages and adequate conditions of work is a fundamental tool that contributes to the creation of decent and quality employment. It is for this purpose that compliance with the Convention requires the promotion of active employment policies and the consequential subjective right of workers in the country to obtain decent work, which is essential for the reduction of poverty and inequality.

As this is not reflected in the current situation, it must be addressed in light of the seriousness of the case.

Employer member, Colombia – According to the information provided by the Government, Costa Rica has made noteworthy efforts to provide an effective response, with the respective tripartite consultation, to employment requirements.

It is important to emphasize that in Costa Rica there are two bodies covering the world of work which operate in a tripartite manner. I am referring to the CST and the Employment Council. Both, in relation to labour, have given priority to the adoption of measures that we consider appropriate. For the Government, it is of great importance for these bodies to benefit from the participation of the most representative employers’ and workers’ organizations. And accordingly, I would like to focus on certain measures on which emphasis should be placed and in relation to which Costa Rica is making progress.

On the one hand, with ILO technical assistance, Costa Rica is making progress in its National Strategy for Employability and Human Skills. Under this Strategy, the social partners participate in the design and implementation of solutions to improve conditions of employment. Similarly, the SNE, for which strategic direction is provided by the tripartite Employment Council, has operational bodies to promote positive dynamics in the labour market. The Government has allocated resources to consolidate the Labour Market Observatory as a tool that is necessary for the understanding and transformation of the structural causes of employment problems. Based on acceptance that one of these causes is related to the skills required in Costa Rica, there is an Advisory Commission to Promote Dual Technical and Vocational Education and Training, which has the purpose of evaluating the relevance of the skills demanded on the labour market. This is only a small sample of some of the measures that are being taken forward in the right direction by tripartism in Costa Rica.

On the other hand, I would like to emphasize that, in relation to unemployment and informality in Costa Rice, although their levels are a matter of concern, with figures of 11 and 43 per cent, respectively, in the first quarter of 2023, it is clear that many positive steps are being taken. The informality rate in Costa Rica, which is 42.9 per cent, is below the regional average, which is around 50 per cent. The unemployment rate has fallen by 2.3 percentage points in comparison with the same period last year, leading to the recuperation of over 240,000 jobs. It is also worth underlining with regard to the composition of employment in Costa Rica that 75 per cent of workers are employees, which is an atypically positive indicator in comparison with other countries in the region.

Finally, it is clear that the best employment policies are policies that improve productivity, industrialization and economic growth. It is also clear that the structural problems of unemployment and informality in Costa Rica, as in most of Latin America, require long-term solutions, and we cannot therefore expect short-term solutions in such a complex context.

Worker member, Uruguay – As has been said, it is necessary to relativize some of the date used by the Ministry of Labour in its late report, for which no consultations were held, which was sent to the Committee of Experts. It should also be noted that the Government refers to the link between employment creation and poverty, even though extreme poverty has increased. It is not therefore fanciful to address the subject of poverty in this discussion, nor does it remove the focus from the central issue that we are here to examine.

Although the economy has returned to levels of production that prevailed prior to the pandemic, it has done so with a lower demand for employment. The insufficient level of job opportunities has meant that income poverty has remained at historically high levels. In July 2020, 26.2 per cent of households were below the poverty line and 7 per cent were in extreme poverty, therefore giving an indicator of 23 per cent in 2021, with official estimates for 2022 which place it at 23 per cent, although with 15,934 new households in this situation.

Reports prepared by the University of Costa Rica indicate that the country is facing an increase in extreme poverty. As already noted, today 8 out of every 100 citizens of Costa Rica are in this socio-economic category and are not able to meet their basic food needs. This increase has meant that 32,000 households and 103,000 people have been added to the population suffering from poverty in the country.

In view of this situation, we urge the Government to launch genuine social dialogue for the development of an employment policy with decent work that contributes, among other aspects, to reversing this serious situation of poverty experienced by the country.

Employer member, Chile – With reference to the case of Costa Rica, it is surprising that it has been selected among the cases to be examined by the Committee. However, as it is under examination, it is important to emphasize that it is a case of progress in view of the many initiatives for the active promotion of formal and protected employment.

In particular, since 2019, Costa Rica has been working on a series of measures, policies, guides and decrees to reduce unemployment, close gaps in vocational training and reduce informality. And the only remaining shortcoming on which the country needs to keep making progress, as indicated by the Committee of Experts, is to have more and better statistical information as a basis for assessing the impact of the employment creation measures that have been adopted. But this cannot obscure the enormous efforts made by the Government through various measures to improve employability in Costa Rica, many of which have benefited from ILO assistance.

In recent months, the MTSS has been working on a National Strategy for Employability and Human Skills in Costa Rica with ILO technical support, which has been submitted to the partners in the Employment Council, a body with tripartite representation. This Strategy must also be approved by the CST, which is another tripartite body with decision-making powers.

Time is short in this intervention to enumerate and provide details of the many public efforts with tripartite participation that have been undertaken to promote formal and protected employment. But this is a very good opportunity to recognize the many efforts made and to outline Costa Rica as a case of progress that should be taken into account as an example.

Worker member, Spain – The Committee of Experts notes in its report the observations made by the trade unions on the Convention in 2017 and 2021. That coincided with the period during which Costa Rica experienced an enormous deterioration at the socio-economic, political and also democratic levels.

As indicated by reports, such as the report on the state of the nation, the country has lacked for many years a general national employment policy. Even the reports provided by the Government to the Committee of Experts reveal serious problems in relation to access to employment, with special emphasis on the difficulties faced by women and young persons.

With reference to the situation of women workers, women account for the majority of those who have been excluded from the labour force over the past year. Over 1 million women are outside the labour market, which is around double the number of men. The net labour force participation rate of women is 26 percentage points lower than that of men, and they account for 54 per cent of the unemployed, even though they represent less than 40 per cent of employment. This picture of clear segregation of women workers bears witness to the absence of and need for an employment policy without discrimination of any type, as required by Articles 1 and 2 of the Convention.

Employment policy is rightly a key instrument and, in addition to complying with Convention No. 122, it also has to be in line with other ILO Conventions, some of which are fundamental. We therefore consider that the Committee must take into consideration the issues raised by the workers of Costa Rica to the effect that one of the basic initiatives with an impact on employment, the Act of 2019 on the strengthening of public finances, was adopted despite the fact that it is contrary to various ILO Conventions, including Conventions Nos 87 and 98. This important statement is supported, as indicated by the Committee of Experts, by a technical memorandum prepared by the ILO.

Moreover, the Committee of Experts itself refers to its 2020 observation on the application of Convention No. 98, in which it trusts that the guarantees of Convention No. 98 will be taken fully into account in the Bill on public employment.

The Government endeavours to justify the implementation of the National Strategy for Employment and the Development of Production, in the same way as its employment policy, but has not even provided the Committee with information on its results, just as it has not provided information on the impact of other initiatives that are supposedly in favour of employment.

I will conclude by saying that the situation in Costa Rica demonstrates the urgent need for the Government to develop an employment policy in accordance with the Convention. That is, an employment policy based on consultation with workers’ representatives, with their cooperation in its formulation and counting on their support for its implementation.

Employer member, Mexico – In the first place, we wish to place emphasis on the effort made by the Government to give effect to the Convention, Article 1 of which provides that, with a view to overcoming unemployment and underemployment, an active policy designed to promote full, productive and freely chosen employment shall be pursued as a major goal.

Under the so-called Plan Rescate 2014–18, one of the three pillars for recovery in Costa Rica was economic growth and the creation of more and better jobs, including through the reduction of poverty and inequality. On 27 May 2014, the Council of the Government of Costa Rica took the decision to establish the employment policy as a strategic institutional objective of the State of Costa Rica to combat poverty and inequality, and entrusted the MTSS with drawing up the policy.

In view of the above, we consider that there are insufficient reasons for placing the Republic of Costa Rica on the list of cases to be examined by the Committee.

It is also noteworthy in this case that the Committee of Experts has included comments on Conventions Nos 87 and 98, even though the issues are totally separate from employment promotion.

In this light, there is clearly no basis for extending the alleged violation of one Convention to other Conventions, particularly since, if there were issues relating to freedom of association, the right to organize and collective bargaining, they would merit special treatment, which has not been done in the present case.

As a result of the COVID-19 pandemic, which was experienced at the global level, it is evident that all countries in the world felt the impact on their economies, and consequently all countries are in the recovery phase. Nevertheless, we are sure that, in view of the efforts made by Costa Rica to give effect to the Convention, the unemployment curve will begin to diminish, to the benefit of the population.

Employer member, Honduras – The objective of this Convention is to ensure that Member States declare and pursue policies to promote decent employment with a view to meeting the needs of the labour force, in order to overcome the problems of unemployment and underemployment. Accordingly, in accordance with the requirements of the Convention, the Government has given priority to a public policy intended to develop an adequate ecosystem to facilitate the labour market integration of vulnerable people, based on a better matching of the demand for labour and the technical and vocational training of workers through the National Plan for Development and Public investment (2023–26).

It is very noteworthy that the Government has been found not to be in compliance with the Convention, when it has repeatedly provided full details in its reports of the efforts made and the various types of action that have been taken through the creation of instruments, policies, decrees and guides, among other measures, with priority being given to reducing the incidence of unemployment at the national level, remedying the gaps in vocational training and reducing informality. We therefore consider that the comments made by the Committee of Experts in its report lack coherence in their interpretation, as the Government and the constituents have demonstrated the political will to take action for the adoption of appropriate reforms and standards in the SNE.

In light of the above, we are confident of the commitments and progress that has been prioritized by the Government in labour matters, and we therefore consider that, instead of being brought before the Committee, there should be recognition of the progress achieved by the Government within the context of the Convention. We remain firmly convinced that it will continue to take action to ensure the well-being and living standards of workers in Costa Rica, within the framework of the participatory processes and tripartite dialogue in the country.

Observer, Confederation of University Workers of the Americans (CONTUA) – It is not often that we deal with the case of Costa Rica in this Committee, as it is a country that has historically been in compliance with international labour standards, and in our region it has always been a reference in relation to the promotion of human rights. And yet, despite its history, in recent years there has been an enormous reversal of social protection in Costa Rica, and since the present Government took office, regressive measures have been adopted which are severely affecting workers. The most severe attack has been on public sector workers, who are to be covered by a new Act on public employment, which removes the benefits of all the collective labour agreements that have been concluded in the various State bodies, unifies administrative careers in a single scale managed unilaterally by the Ministry of Planning and freezes salaries in a single scale known as the global wage, which reduces the salaries of workers whose rates are above those set out in the central scale.

Years of collective bargaining and the development of professional careers, for example in the health and education sectors, have been removed at a stroke. This is no accident, as unionization in Costa Rica is essentially concentrated in the public services, and the Government is undertaking a strong campaign against trade unions and union members, which started with the absolute prohibition in certain cases, and abusive restrictions in others, of the exercise of the right to strike in public services, and is now continuing with the denial of collective bargaining. What is coming is frightening, with draft legislation to intensify the working day up to 12 hours, greater precarity of employment and the reduction in the cost of labour as much as possible. The projects and programmes announced here by the Government are isolated measures which are not getting through to the people. Dual education is precarious, without rights, wages or social security. Interventionism in collective industrial relations is seen clearly in the public universities. The Government is refusing to approve collective agreements. The Framework Act on public employment, combined with the Act on fiscal matters, is in violation of the independence of universities, a historic achievement by the people of Costa Rica and an essential bulwark in the defence of the social rule of law in the country.

Urgent action is needed by the ILO in Costa Rica to collaborate in good faith with employers and workers, who are desirous of defending decent work in all its dimensions, combined with respect for human, social, economic and cultural rights. We need to slow down the retrogression and work to recover the path of social dialogue and the principles set out in the Convention.

Government representative – It is important to reiterate in this second intervention in this session that, over the past five years, Costa Rica has made progress in the implementation of policies and programmes that seek to contribute to inclusive economic growth and the well-being of everyone, based on a human rights approach.

The reduction of economic, social, regional, gender and other gaps has been the objective of our active labour market policies, social protection policies and differentiated strategies for specific population groups. Their implementation and results have been influenced and conditioned by a context, as I indicated earlier, of the improvement of public finances and the COVID-19 pandemic.

I also wish to place special emphasis on the fact that the Committee of Experts has noted with interest the measures adopted by Costa Rica within the framework of other Conventions, including Convention No. 88, in relation to which it noted: “The Committee notes with interest the adoption of Decree No. 41776 […] establishing the National Employment System (SNE) […] to respond both to the dynamics of the labour market and to the needs of jobseekers or persons already in employment in order to retain their work or improve their conditions of work, giving priority to those in conditions of vulnerability.”

The Committee of Experts has also noted with interest the information provided by the Government in relation to Convention No. 111, emphasizing that “discrimination on the grounds of health status has been prohibited with the adoption of […] the overall reform of the General Act on HIV/AIDS, which amends section 404 of the Labour Code”, as well as “affirmative action in support of persons of African descent, which establishes measures to promote access for the population of African descent to employment and education”.

Finally, it noted with interest “the numerous measures implemented with a view to facilitating the labour market integration of persons with disabilities” within the framework of action to give effect to Convention No. 159.

With reference to persons with disabilities, it should be noted that Executive Decree No. 41761 of 2019 created the National Commission for the Employability and Work of Persons with Disabilities (CNETPcD) as a body to influence national employability and entrepreneurship processes, through the adoption of technical and political strategies for the effective inclusion and retention of persons with disabilities in the public and private sectors.

The Commission is of tripartite composition, with representation of the Government, the productive sector and civil society, through organizations for persons with disabilities. During a sitting held on 30 May, the Biennial Work Plan of the Commission on labour market integration was unanimously approved. And now I also have to make reference to Act No. 8862, which reserves at least 5 per cent of vacancies in the centralized and decentralized public sector, as well as in public non-State bodies and public autonomous enterprises.

The MTSS, as the institution responsible for the constant and explicit follow-up of the Act, has deployed a strategic plan to accelerate action so that public institutions comply with the employment integration commitment in accordance with the procedures set out by law. At present, there are around 882 persons with disabilities who have entered the ranks of the public sector in Costa Rica through the reserved 5 per cent quota.

My colleagues in the Department for Equality of Opportunities for Persons with Disabilities (DIOPCD) of the National Social Security Department of the MTSS are leading at the institutional and interinstitutional levels the formulation of public policies for equal treatment and equality of opportunities for persons with disabilities in social and labour matters with a view to promoting their labour market inclusion, protecting their labour and human rights and promoting decent quality work for them.

I should refer to the support of the National Support Programme for Poverty and Social Mobility (PRONAMYPE), which from its origins was established as an executive arm for public policies to combat unemployment, which is one of the main sources of inequality in the world of work. The Social Solidarity Economy Department of the MTSS manages this programme, which is an instrument to support individual and collaborative associative enterprises.

Its contribution to society is directed towards promoting social mobility through alternative sources of income for persons and their families through the creation of opportunities for the generation of self-employment through productive projects, also known as micro-initiatives.

I cannot fail to refer to other specific measures to ensure the elimination of discrimination in relation to women and employment, which it is essential to include in this review: (1) the special emphasis placed by the National Labour Inspection Department (DNI) on the subject of women’s rights through the programme of inspections focusing on gender, which has led to the identification of different treatment and inequalities between women and men in the field of work in such areas as remuneration, sexual harassment, labour harassment, the segregation of occupations on the basis of traditional gender roles; (2) the increase in demand for the Empléate programme through its Strategic Alliance for Bilingualism, which has in most cases assisted women; and (3) the results achieved through the provision of the temporary unconditional subsidy in response to employment assignments as a result of the restrictions and the crisis caused by COVID-19, known as the Bono Proteger (protection voucher), of which 52.4 per cent of beneficiaries were women.

We are also working on the implementation in practice of the national agenda for paid domestic work, which will be an essential tool to combat informality and will particularly benefit migrant women, who are those who basically work in the domestic sector in Costa Rica. This is a requirement that we are currently addressing with ILO assistance.

All of the above is in harmony with the information provided previously and shows not only the existence of the political will and many good practices, which can all be improved, of course, but also that the Government retains the conviction to continue taking action to ensure the well-being and quality of life of workers in Costa Rica, within the framework of participatory process and dialogue with the social partners, without which it would undoubtedly not be possible to give effect to this Government action.

It is important for the Committee to understand the consistency and will of the State of Costa Rica to create the legal, administrative and investment conditions to raise the employability profile of the population, which has been and will continue to be our constant endeavour.

Similarly, the Government is determined and committed to creating the macroeconomic conditions, as I indicated previously, for national and international investment capital to find the best environment possible in a region that is constantly becoming more competitive and in an environment with very serious migration challenges.

In this regard, we welcome the opportunity to explain in this Committee some of the action that we are taking and that Costa Rica is desirous of extending and harmonizing relations with all parties with a view to continuing the tradition in Costa Rica of sincere tripartite dialogue with the objective of achieving better living standards for our population.

Chairperson – Thank you Vice-Minister and your delegation for participating in the work of the Committee, and of course we take note of the commitment of the Government in staying engaged with the Committee, as well as the social partners.

Worker members – We thank the Government for its comments, and we also thank all the other speakers for their interventions.

We wish to recall, in the first place, that the list of cases examined by this Committee is a result of consensus between Employers and Workers, and that Costa Rica has therefore correctly been included in the list of cases to be examined by the Committee. As we indicated in our first intervention, Costa Rica continues to suffer from very high levels of poverty and unemployment. Despite the arguments made in favour of economic growth and development, as in many countries in our region, we find that in Costa Rica a considerable proportion of the population continues to be marginalized and denied opportunities for stable employment. For this reason, this is not a case of progress.

In light of these considerations, Costa Rica must review its policies and programmes with a view to promoting investment in the creation of decent, stable and lasting employment and in reducing poverty. Moreover, taking into account the characteristics and composition of employment in the country, it is clear that specific measures need to be adopted to open up channels for the formalization of the informal economy, in accordance with Convention No. 122 and Recommendation No. 204. In the context of the post-pandemic recovery, employment policies must address in particular the needs of workers who were or are still severely affected by the pandemic and its consequences. Employment policies must be comprehensive, as isolated programmes and measures that do not reach people are ineffective and insufficient. Employment policies need to address the major inequalities on the labour market which have a major effect on women, as we have explained in detail. Greater efforts are needed to achieve greater equality of opportunity in terms of access to employment, as well as equality of treatment in conditions of work. All of these measures will have to be supported by a robust system for the collection and analysis of statistical data, especially on the situation and current trends of the active population, employment, unemployment and underemployment throughout the country. The Government must repeal the Act to strengthen public finances and the Framework Act on public employment, as neither of them are in compliance with the requirements of Convention No. 122, nor with those of Conventions Nos 87 and 98. Costa Rica needs to re-establish, at the basic level, all the social dialogue procedures and embark upon effective and genuine consultations with the social partners, particularly to discuss any legislation that has an impact on employment generation. Tripartite processes must be activated at the national level. In view of the above, for all the reasons given by the Worker members, Costa Rica is not a case of progress. Finally, we call on the Government to accept a direct contacts mission.

Employer members – We thank the Government for the further information and clarifications provided, as well as for the contributions from all those who took part in the discussion. As Employer members, it is for us to recall that, in definitive, as a consequence of the effects of the COVID-19 pandemic, we are all faced with the task, governments, employers, workers, each from their position and in accordance with their views, of seeking the adoption of policies and strategies for the recovery of the economies of each country, and as a consequence, the sources of employment that have been substantially affected throughout the world.

The concern that we have outlined must not only respond to the needs and real situation in each country, but must also take into consideration aspects that are also essential, such as: the formalization of employment; the inclusion of young persons in sources of work; gender equity in the application of these policies; the generation of channels and alternatives for technical and vocational skills; the reduction of wage gaps; non-discrimination; the labour market integration of persons with disabilities; and the promotion, insofar as possible, of what in this Organization are described as green jobs. These are all objectives that are not easy to achieve, but they must provide the motivation for all of us; they are aspects that have been considered by all the partners in Costa Rica, and on which there is full predisposition among employers in the country. While we have heard the concerns of the Workers regarding the manner in which other Conventions are applied, it is important to focus our efforts and to limit the discussion to the Convention that is under examination here, that is Convention No. 122, in respect of which it has been seen that there has been significant progress in Costa Rica through the many programmes that have been developed and which, as with everything, can of course be improved and updated as a function of the social situation in the country. Within this framework, with a view to avoiding unnecessary susceptibilities, and so that the progress made in terms of laws and regulations, and the reasons for the action taken, which have also been described today, it is of vital importance for there to be adequate discussion with all the partners on employment plans and policies. Appropriate information must be provided to both workers’ and employers’ organizations so that, through social dialogue, everyone can contribute to this effort through their experience, views and interests, in accordance with Article 3 of the Convention, which precisely seeks a dynamic of collaboration.

In light of the above, having noted the explanations provided by the Government during this meeting and, as indicated and reiterated, recalling that it has employment policies, the Employer members recommend the Government: first, to intensify efforts to improve the process of dialogue and information for all actors on the employment policies and programmes that are being developed and those that may be developed in future, all within the framework of the Convention, ensuring the continuity of tripartite social dialogue, which has been undertaken as the principal means of resolving the employment problems of the country; and, second, to avail itself of the technical support that it is already receiving from the ILO, which is nothing new for Costa Rica, for certain programmes, with a view to improving the process described above, and to update information on the results achieved through the implementation of its employment plans and programmes.

The Committee’s conclusions

The Committee took note of the written and oral information provided by the Government and the discussion that followed. 

The Committee regretted that the Government had failed to establish and implement a comprehensive national policy designed to promote full, productive and freely chosen employment in full consultation with the social partners.

Taking into account the discussion, the Committee requests the Government, in consultation with the social partners, to:

- adopt a comprehensive national employment policy to promote the creation of full, productive and freely chosen employment opportunities in line with the Convention;

- intensify efforts to strengthen social dialogue and include the social partners on the initiatives already developed as well as those that may be implemented in the future, notably on employment policies and programmes, incorporation of young people in the labour market as well as promotion of gender equality and equal opportunities in access to employment;

- provide information on the impact of the measures adopted to achieve the objectives of the Convention, including those adopted under the National Strategy for Employment and Productive Development (ENDEP) and the Bicentennial National Development and Public Investment Plan (PNDIP) 2019–22;

- take measures to ensure that the Act on strengthening public finances fully complies with the Convention and does not infringe on fundamental principles and rights at work;

- indicate the manner in which representatives of workers’ and employers’ organizations have been consulted, as well as representatives of the parties involved in the design, development, implementation, monitoring and revision of the active labour market measures adopted, including the Act on strengthening public finances;

- ensure tripartite consultation on the development of employment policies and programmes by creating a national tripartite council.

The Committee requests the Government to provide the Committee of Experts with full and complete information on the above issues before 1 September 2023.

Government representative – The conclusions read out today in this room for the case of Costa Rica tarnish the work of this Committee. It is a matter of concern that they demonstrate a lack of objective and rigorous analysis of the full information provided.

The conclusions request information on old employment initiatives, from five years ago. With this inexplicable slippage in time, they disregard and ignore the current situation on the labour market, as well as all of the action duly reported to this Committee and described in this room.

What is missing is a technical examination based on in-depth reflection into the essence of the provisions of Convention No. 122, but which has gone beyond that scope by including aspects such as the Act on the strengthening of public finances. As a consequence, and this Committee should note, there is a danger of legal insecurity, which is a risk for an effective culture of compliance.

Nevertheless, Costa Rica wishes to confirm once again its firm and determined commitment to taking all available public policy action for employment for all persons, and particularly to promote national development through constructive and good faith dialogue guided by democratic principles.

Direct Request (CEACR) - adopted 2023, published 112nd ILC session (2024)

Previous comment

The Committee notes the observations of the Costa Rican Federation of Chambers and Associations of Private Enterprise (UCCAEP), sent by the Government in its report. It also notes the observations of the Rerum Novarum Workers’ Confederation (CTRN), the Costa Rican Confederation of Democratic Workers (CCTD), the Costa Rican Workers’ Movement Confederation (CMTC), the General Confederation of Workers (CGT), and the United Confederation of Workers (CUT), as well as the observations of the International Trade Union Confederation (ITUC), received on 1 September 2023. The Committee requests the Government to provide its comments in this respect.

Article 1 of the Convention.Micro, small and medium-sized enterprises (MSMEs). Informal economy. The Government indicates that, according to data from the Central Bank of Costa Rica (BCCR), in 2019 small and medium-sized enterprises (SMEs) accounted for 97.4 per cent of businesses. The Government adds that they contribute 34 per cent to gross domestic product (GDP) and that 33 out of every 100 jobs are created by SMEs. The Government therefore highlights the importance of these enterprises for expanding the economy, increasing formal employment and ensuring a fairer distribution of income and wealth. However, the Government indicates that 80 per cent of the enterprises are microenterprises, with various weaknesses and defects in terms of business management. In this regard, the Government in its report reiterates the information on the various initiatives implemented to promote the growth of MSMEs and improve the competitiveness of business ventures, including the implementation of the National Entrepreneurship Policy (PNE) and different programmes by the Directorate-General for Small and Medium-Sized Enterprises (DIGEPYME). Lastly, the Committee notes that, on the basis of the Costa Rican Business Information System (SIEC), the number of registered SMEs continued to grow, increasing from 20,127 to 27,870 in 2019–20. The Committee emphasizes that, as recognized by the Job Creation in Small and Medium-Sized Enterprises Recommendation, 1998 (No. 189), the creation of an environment conducive to the growth and development of sustainable micro, small and medium-sized enterprises is a means of creating decent and productive work and is a key component in ensuring the effectiveness of formalization strategies. The Committee requests the Government to continue providing detailed, up-to-date information, including statistical information disaggregated by age and sex, on the impact of the policies adopted by the Government in favour of MSMEs and cooperatives on the creation of employment. The Committee also requests the Government to continue sending detailed, up-to-date information on the results of the said programmes in terms of reducing the rate of informality.

Coordination of education and vocational training policy with employment opportunities. The Committee notes the information provided by the Government on the measures, programmes and policies implemented to promote training and skills acquisition in order to enhance employability in the context of a changing labour environment. The Government refers, inter alia, to the implementation of the National Qualifications Framework (MNC), which standardizes qualifications and the associated skills on the basis of various technical criteria with a view to directing training and classifying occupations and employment, in accordance with the dynamics of the labour market. The Government indicates that enterprises participate in the formulation of qualification standards to ensure that they respond to the needs of the sectors. It also enables cooperation between the various social actors connected with vocational education and training, employers, training centres and civil society. The Government also indicates that the Dual Education and Technical Training Act (Act No. 9728 of 2019) was adopted after six years of social dialogue and searching for consensus among various stakeholders. The Committee notes the actions taken with a view to applying the above-mentioned Act, such as the formulation and monitoring of institutional dual training strategies, and also the organization of forums on dual training with the participation of enterprises and information campaigns to disseminate their results. The Committee notes that the CTRN, CMTC, CGT, CCTD and CUT assert in their observations that Act No. 9728 was adopted unilaterally by the Government and employers’ organizations, outside the Higher Labour Council and the tripartite committee established in 2017 with ILO technical support to guide the preparation of the new law. They indicate that the Act implements a model which creates precarious conditions for apprentices, who have no social security, rights or proportional wage. In addition, in its governance structure there is an advisory review committee, composed of 11 persons, only one of whom comes from the unions.

The Committee also notes the measures implemented to coordinate training possibilities with the requirements of the labour market, such as the signing of cooperation agreements between the Chamber of Industries of Costa Rica (CICR) and the National Training Institute (INA). Lastly, the Government indicates that a social dialogue forum held with the participation of numerous actors, including representatives of the social partners, was followed by the adoption of Act No. 9931 of 2021 entitled “Reinforcing vocational training for employability, social inclusion and productivity with an eye to Industry 4.0 and future employment”. This Act incorporates employability as one of the substantive areas of action of the INA. However, the Committee notes that the Government does not provide any information on the impact of the measures implemented. The Committee therefore once again requests the Government to send detailed, up-to-date information, including statistical information disaggregated by age and sex, on the impact of the measures taken to promote dual education in terms of participants’ entry into the job market. The Committee also requests the Government to provide statistical information, disaggregated by age and sex, on the nature and impact of the measures taken or envisaged to coordinate vocational education and training policy with employment opportunities.

Youth employment and women’s employment. The Committee notes the Government’s indication that in 2022 a reform was undertaken of the National Employment Programme (PRONAE) in order to give priority in actions taken to young persons, women and other population groups most affected by unemployment, in order to boost employability. The Government indicates that in February 2023 assistance was received from the Inter-American Development Bank (IDB) to establish strategic and operational instruments to measure the impact of the Empléate programme in PRONAE. In addition, a new service was set up within PRONAE called Búsqueda Activa de Empleo (active jobseeking), for granting conditional monetary transfers to young persons and women actively seeking jobs. With regard to women’s employment, the Government indicates in general terms that the gender gap decreased between 2019 and 2022 as a result, inter alia, of training activities on gender equality, the improvement of economic conditions and advances in women’s political rights. However, the Committee notes that the Government does not provide any information on the outcome of the measures taken to promote employment for young persons and women. The Committee once again requests the Government to send detailed, up-to-date information on the impact of measures to promote youth employment and of those designed to promote women’s employment, including statistical information disaggregated by age and sex. The Committee also once again requests the Government to send information on the specific measures adopted to reduce gender-based horizontal and vertical occupational segregation and on the results achieved in this respect.

Persons with disabilities. The Committee notes the information in the Government’s report on the measures implemented to promote employment for persons with disabilities, such as the formulation of a strategic plan to accelerate the implementation of the 5 per cent recruitment quota for persons with disabilities in the public sector. Moreover, in 2019 the National Committee on Employability and Work for Persons with Disabilities, which monitors and supports the implementation of inclusive public policies concerning employability, employment and work for persons with disabilities, was established. The Committee notes that representatives of the social partners and persons with disabilities participate in this National Committee. Lastly, the Government indicates that 348 persons with disabilities entered the labour market thanks to business sector job placement or strategies promoted by the Ministry of Labour and Social Security (MTSS), exceeding the target established in the National Development and Public Investment Plan (PNDIP) 2019–22. The Committee requests the Government to provide detailed, up-to-date information, disaggregated by sex and age, on the impact of the employment measures, including reasonable adjustment measures and measures to implement the 5 per cent quota in the public sector, which have been adopted to help persons with disabilities to find sustainable and decent jobs in the regular employment market, and to remain in or return to employment.

Observation (CEACR) - adopted 2023, published 112nd ILC session (2024)

Previous comment

The Committee notes the observations of the Costa Rican Federation of Chambers and Associations of Private Enterprise (UCCAEP), transmitted by the Government with its report. It also notes the observations of the Rerum Novarum Workers’ Confederation (CTRN), the Costa Rican Confederation of Democratic Workers (CCTD), the Costa Rican Workers’ Movement Confederation (CMTC), the General Confederation of Workers (CGT), and the United Confederation of Workers (CUT), as well as the observations of the International Trade Union Confederation (ITUC), received on 1 September 2023. The Committee requests the Government to provide its comments in this respect.

Follow-up to the conclusions of the Committee on the Application of Standards (International Labour Conference, 111th Session, June 2023)

The Committee notes the discussion which took place in the Conference Committee on the Application of Standards (CAS) in June 2023 regarding the application of the Convention. In its conclusions, the Committee regretted that the Government had failed to establish and implement a comprehensive national policy designed to promote full, productive and freely chosen employment in full consultation with the social partners.

Taking into account the discussion of the case, the CAS urged the Government, in consultation with the social partners, to take the following measures: (i) adopt a comprehensive national employment policy to promote the creation of full, productive and freely chosen employment opportunities in line with the Convention; (ii) intensify efforts to strengthen social dialogue and include the social partners on the initiatives already developed as well as those that may be implemented in the future, notably on employment policies and programmes, incorporation of young people in the labour market as well as promotion of gender equality and equal opportunities in access to employment; (iii) provide information on the impact of the measures adopted to achieve the objectives of the Convention, including those adopted under the National Strategy for Employment and Productive Development (ENDEP) and the Bicentennial National Development and Public Investment Plan (PNDIP) 2019–22; (iv) take measures to ensure that the Act on strengthening public finances fully complies with the Convention and does not infringe on fundamental principles and rights at work; (v) indicate the manner in which representatives of workers’ and employers’ organizations have been consulted, as well as representatives of the parties involved in the design, development, implementation, monitoring and revision of the active labour market measures adopted, including the Act on strengthening public finances; and (vi) ensure tripartite consultation on the development of employment policies and programmes by creating a national tripartite council. The CAS asked the Government to provide the Committee of Experts with full and complete information on the above issues before 1 September 2023.

Article 1 of the Convention. Adoption and implementation of an active employment policy. The Committee notes the detailed information provided by the Government in its report on the policies, programmes and actions implemented to promote the creation of employment, in particular to promote the employability of the population. Among the measures taken, the Government highlights the launch on 26 July 2023 of the National Strategy on Employability and Human Talent (ENETH-CR) 2023–27, which was drawn up with the technical assistance of the ILO Regional Office for Central America and the Caribbean. The aim of the ENETH-CR is to improve the employability of active jobseekers, especially women, young persons and individuals living in conditions of poverty, with a view to promoting more inclusive and sustainable economic growth. The Government also indicates that, thanks to the creation of the National Employment System (SNE) in 2019, public employment services now carry out more focused work, and access to these services is guaranteed in all parts of the country through a network of employment units. The Government adds that the SNE is also responsible for ensuring that the services offered respond not only to the dynamics of the labour market but also to the needs of individuals, especially those living in situations of vulnerability. Furthermore, the Government indicates that various reports on the State of the Nation Programme (PEN), conducted independently by universities in the country, have underlined the inequalities that exist in territorial development and have highlighted the need to tackle territorial gaps to avoid any worsening of problems which are preventing significant progress in productivity and social equity in the country. In this regard, the Government indicates that, thanks to the implementation of the Act on strengthening territorial competitiveness to attract investment outside the Greater Metropolitan Area (GAM) (Act No. 10234 of 2022), a greater number of jobs outside the GAM has been created. The Government indicates that free zone enterprises have created 159,331 direct jobs (88,555 occupied by men and 69,775 by women). The Committee also notes the information provided by the Government on the results of the National Development and Public Investment Plan (PNDIP) 2019–22. The Government indicates that although many of the targets set in the PNDIP were achieved, some were not achieved with respect to reducing open unemployment and increasing formal employment in 2022, partly because the labour market is still recovering from the impact of the COVID-19 pandemic. The Committee also notes the adoption of the new National Development and Public Investment Plan (PNDIP) 2023–26, which provides for the adoption of, inter alia, public policy measures aimed at promoting an appropriate ecosystem for facilitating the entry into the job market of persons in situations of vulnerability (such as women, young people and persons with disabilities). The PNDIP 2023–26 also provides for the implementation of public actions aimed at ensuring a better match between occupational demand and the technical and vocational training of workers. As regards labour market trends, the Committee notes that, according to the ongoing survey of employment of the National Statistics and Census Institute (INEC), in the first quarter of 2023 the net participation rate and the occupation rate were 56.8 per cent and 50.7 per cent, respectively, while the unemployment rate was 10.6 per cent. The Government also indicates that the proportion of persons occupied in the informal economy was 41.8 per cent. The Committee also notes that, on the basis of available INEC information on the PNDIP 2023–26, the income poverty index (level of income below the minimum needed to cover the price of the basic food basket (CBA)) was 21 per cent in 2021.

The Committee also notes that the ITUC claims in its observations that the number of men and women who have stopped looking for work has increased. The confederation claims that over a million women are outside the labour market, which is twice the number of men. The ITUC also highlights the alarming levels of poverty and unemployment and denounces the worrying lack of action by the Government. The Confederation also emphasizes that unstable and insecure forms of employment are omnipresent and there is an alarming number of persons who lack legal protection and social security benefits. In this regard, the ITUC highlights the lack of robust government initiatives to provide incentives to make the transition from the informal to the formal economy. The CTRN, CMTC, CGT, CCTD and CUT point out that even though, in the context of a tripartite formalization committee, a national strategy was designed with ILO assistance in 2018 and various action plans were formulated to implement it in 2020, these measures were not implemented because of lack of action by the Government. The unions add that there is no linkage between employment policies and policies aimed at formalizing the informal economy. Lastly, the CTRN, CMTC, CGT, CCTD and CUT reiterate that the Government has not established or implemented a comprehensive national policy designed to promote full, productive and freely chosen employment in full consultation with the social partners. They underline the need to formulate and implement a comprehensive employment policy as a matter of urgency.

In this context, the Committee notes the approval of the road map for the formulation of a national employment policy by the Higher Labour Council (CST) on 5 October 2023. The road map was proposed by ILO experts at the CST meeting of 21 September 2023. The Committee also notes that the Government is requesting ILO technical and financial assistance to formulate a national employment policy based on tripartite social dialogue. The Committee welcomes the first steps taken by the Government aimed at formulating, with the participation of the social partners, a comprehensive national employment policy to promote opportunities for full, productive and freely chosen employment. The Committee hopes that any new policy framework established will make it possible to give effect to the conclusions adopted in June 2023 by the International Labour Conference Committee on the Application of Standards and to hold effective consultations with the social partners on all concerns raised by them in their observations. The Committee requests the Government to send information on progress achieved in this respect. The Committee also requests the Government to continue sending detailed information, disaggregated by age, sex and region of the country, on the results achieved in terms of the creation of employment as a result of the implementation of government programmes. In addition, given the high rate of informality, the Committee requests the Government to send detailed information on the scope of the informal economy and on the measures taken, in coordination with its national employment policy, to facilitate the transition to the formal economy. In this regard, the Committee draws the Government’s attention to the guidance provided by the Transition from the Informal to the Formal Economy Recommendation, 2015 (No. 204).

Article 3. Participation of the social partners. The Committee notes the Government’s indication that both the regulatory reforms and the most relevant national labour market active policy initiatives have been the result of participatory social dialogue processes. The Government also indicates that tripartite consultations on the development of SNE employment policies and programmes take place in the Employment Council. Under section 7 of Decree No. 41776-MTSS establishing the SNE, the functions of the Employment Council include: (i) issuing SNE policies and monitoring compliance with them; (ii) laying down guidelines and actions to govern employment services in line with changes in the labour market; (iii) establishing target groups for the SNE; (iv) promoting training programmes; and (v) approving the use of research results and instruments to provide guidance for employment services. In this regard, the Government indicates that the ENETH-CR was unanimously approved in the Employment Council. The Government also refers to other ongoing forums for tripartite consultations, such as the CST and the board of the National Training Institute (INA). The Committee also notes that the UCCAEP maintains that most actions implemented regarding employment and employability have tripartite involvement. In this regard, the UCCAEP refers, inter alia, to the drawing up of the Dual Education and Technical Training Act in a tripartite dialogue committee and also to the approval of various actions aimed at preserving jobs in the context of the COVID-19 pandemic.

The Committee also notes that the CTRN, CMTC, CGT, CCTD and CUT state that although there has been a relative improvement in the Ministry of Labour’s efforts to engage in social dialogue regarding the ENETH-CR, this has been the only initiative discussed to date by the Employment Council. In this regard, the CTRN, CMTC, CGT and CCTD attach the minutes of the relevant meeting of the Council, in which they state that the theoretical formulation of the ENETH-CR is interesting but add that their participation in the design of it was only partial, since there was insufficient feedback and tripartite discussion. They assert that the ENETH-CR document of some 150 pages was sent to them only a day and a half before it was submitted to the Employment Council for approval. The CTRN, CMTC, CGT, CCTD and CUT also indicate that there has been no intensification of the tripartite dialogue on employment policies and programmes, such as those adopted in relation to the integration of young people in the labour market and the promotion of gender equality. By way of example, the CTRN, CMTC, CGT, CCTD and CUT point out that the social partners do not participate in the monitoring of the results of employment programmes such as Empléate, Mi Primer Empleo and Chamba Vivís Mejor, and assert that there is no information available on their contribution to securing employment. Lastly, the CTRN, CMTC, CGT, CCTD and CUT maintain that tripartite consultations should not be exclusively limited to employment policy measures but should also include all aspect of economic policy which affect employment. They emphasize that there is a need to hold consultations with the social partners not only on labour market and vocational training programmes but also on the design of more general economic policies which are related to the promotion of employment. In this regard, the Committee recalls that employment policy must take due account of the interrelationship between employment objectives and other economic and social objectives and, in particular, should seek to stimulate economic growth and development, while increasing the standard of living and addressing the issue of unemployment and underemployment. In light of the above, the Committee requests the Government to provide specific examples of how consultation is ensured with representatives of workers’ and employers’ organizations and with representatives of persons affected by the measures to be taken as regards the design, development, implementation, monitoring and revision of the active labour market measures adopted, 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, in accordance with Article 3 of the Convention.

The Committee is raising other matters in a request addressed directly to the Government.

Direct Request (CEACR) - adopted 2022, published 111st ILC session (2023)

The Committee notes the Government’s replies to the observations of the Confederation of Workers Rerum Novarum (CTRN) dated 2017, which were included in its report. The Committee also notes the observations of the CTRN, received on 31 August 2021. The Committee requests the Government to send its comments in this respect.

Article 1 of the Convention. Coordination of education and vocational training policy with employment opportunities. The Committee notes the establishment of the Tripartite Committee on Coordination, Monitoring and Consultation on Dual Technical Vocational Education and Training (TVET) in April 2018, with the aim of conducting tripartite consultations on this technical vocational education and training model, and providing recommendations for its implementation. In this context, the Committee notes the approval of the Dual Technical Training and Education Act, Act No. 9728, of 12 September 2019, and the implementing regulations of 14 April 2020. In accordance with section 1 of Act No. 9728, dual technical vocational education and training is understood as an educational method that allows students to be trained in two learning environments, a TVET institution and a training enterprise, with the use of the enterprise’s material and human resources. The Government reports that the educational centres and the National Training Institute (INA) have been granted a one-year period to implement the measures established in the above-mentioned Act, and therefore there is not yet any information on the impact of the Act. The Committee notes the CTRN’s indication in its observations that the above-mentioned legislation was adopted unilaterally by the Government and the employers’ organizations, and that it affects the rights of the students. The Committee also notes the statistical information, disaggregated by sex and level of qualification, provided by the Government on the impact of the measures by the INA. In particular, the Government reports that, between 2018 and 2020, 55,167 women and 41,295 men registered for INA vocational training programmes. Furthermore, during the same period, 11,686 men and 7,376 women received, after passing the respective exams, certification of their labour skills, irrespective of the manner in which they acquired those skills. The Committee requests the Government to provide detailed and updated information on the impact of the measures adopted to promote dual education, including those adopted under the Act on Dual Technical Vocational Education and Training, Act No. 9728 of 2019, and its implementing regulations. Furthermore, in light of the observations of the CTRN, the Committee requests the Government to provide detailed information on the consultations held with the social partners on Act No. 9728 of 2019 and its regulations, and the outcome of those consultations. The Committee also requests the Government to continue providing statistical information, disaggregated by sex and age, on the impact of the measures adopted or contemplated with a view to coordinating education and vocational training policy with employment opportunities.

Article 2. Labour market trends. The Committee notes that, according to the 2021 Yearbook of Statistics of the Ministry of Labour and Social Security (MTSS), between 2018 and 2021, the net participation rate decreased from 62.9 per cent to 59.9 per cent, and the employment rate decreased from 55.4 per cent to 51.7 per cent. During the same period, the open unemployment rate increased from 12 per cent to 13.7 per cent. The Committee requests the Government to continue to provide updated statistics, disaggregated by age and sex, on trends in employment, unemployment, and underemployment.

Youth employment. The Committee notes that, in accordance with the amendments made to Executive Decree No. 29044-TSS-COMEX of 30 October 2000, which established the National Employment Programme (PRONAE), the coverage of access to the Empléate programme was extended. This programme promotes labour market integration through technical training scholarships for persons aged between 17 and 24 years old, and thanks to the amendments made, it applies not only to young persons living in basic or extreme poverty, but also to unemployed or underemployed persons, particularly those belonging to vulnerable communities. The Government indicates that the programme offers both in-person and online technical training services, primarily in fields with a high demand for labour, such as the medical industry, banking and finance, Information and Communications Technology (ICT), or bilingual call centres. The Committee observes that the number of participants in the programme increased from 7,077 in 2018 to 10,573 in 2019. The Government adds that, in 2019, 21 per cent of participants achieved labour integration through the National Employment System (SNE). The Committee notes that the CTRN reports the detrimental impact on the employability of young people. The Committee requests the Government to continue to send detailed and updated information on the nature and scope of the measures adopted or contemplated with a view to promoting youth employment, including those adopted under the “Empléate” programme, and in particular those aimed at promoting the employment of young persons in situations of vulnerability. The Committee also requests the Government to provide updated statistical information, disaggregated by age and sex, on the impact of such measures on the access of young persons to decent, lasting and quality employment.

Women’s employment. The Committee notes the detailed information provided by the Government regarding the different measures adopted to promote the employment of women, and equality between men and women in the workplace, and the impact of those measures. The Government refers, among other measures, to the implementation of the “Sello de Igualdad de Género” programme in the business sector, and the Programme for the Recognition of Good Labour Practices for Gender Equality. The Government indicates that the labour integration of women is promoted through a “Programme for individual productive venture benefits” in conjunction with training benefits, through which non-reimbursable financial support is granted to facilitate the creation and strengthening of economic activities carried out by families and persons living in poverty, with a view to encouraging self-employment and job creation through skills building (technical micro-entrepreneurial training and participation at job fairs). The Government reports that, between 2018 and 2019, the number of women participants was 182, while the number of men participants was 104. Lastly, the Government refers to the development of different actions in the area of gender-sensitive labour inspection, in conjunction with several national institutions, including the National Institute for Women (INAMU), and the ILO. Such measures include the development of a new gender-sensitive labour inspection guide and measures to disseminate the guide, and the implementation of awareness-raising and training processes aimed at labour inspectors. Nevertheless, the Committee observes that, according to the Continuous Employment Survey, in the first quarter of 2022, both the net participation rate (59.6 per cent) and the employment rate (51.5 per cent) for women were very low compared with those for men (70.8 per cent and 63.1 per cent, respectively). The Committee further notes that, during the same period, the unemployment and underemployment rates were higher for women (17.5 per cent and 15.4 per cent) than for men (10.9 per cent and nine per cent). Lastly, the Committee refers to its 2019comments on the Discrimination (Employment and Occupation) Convention, 1958 (No. 111), in which it noted the overrepresentation of women in low-paid jobs, the persistence of occupational segregation and the significant gender wage gap. The Committee requests the Government to continue to provide detailed and updated information on the measures adopted or contemplated in order to promote women’s employment and their impact. The Committee also refers to its 2019 comments on the application of Convention No. 111, in which it requests the Government to provide information on the specific measures adopted to reduce horizontal and vertical occupational gender segregation, and on the results obtained in that regard.

Persons with disabilities. The Committee notes that, in its observations, the CTRN indicates that, according to the 2018 National Disability Survey, 43.6 per cent of persons with disabilities aged over 18 years of ages were employed or were seeking employment, compared with 68.2 per cent of persons without disabilities. In this context, the Committee refers to its comments on the application of the Vocational Rehabilitation and Employment (Disabled Persons) Convention, 1983 (No. 159), in which it notes the numerous measures implemented to promote the labour integration of persons with disabilities. The Committee requests the Government to provide updated and detailed information, disaggregated by sex and age, on the impact of the employment measures, including reasonable adjustment measures, that it has adopted to help persons with disabilities to find sustainable and decent jobs in the regular employment market, and to remain in or return to employment.

Microenterprises and cooperatives. Informal economy. The Committee notes that, according to data from the Central Bank of Costa Rica (BCCR), in 2017, small and medium-sized enterprises (SMEs) represented 97.5 per cent of the business environment at national level. The Committee also notes the Government’s indication that the implementation of the National Entrepreneurship Policy 2030 (PNE), which aims, inter alia, to improve the competitiveness of entrepreneurial ventures with a view to promoting employment and economic development. In this regard, its main lines of action include building capacity in business management, fostering innovation and reducing technology gaps. The Government also refers to the implementation of the Impulso a Encadenamientos Productivos (Promoting Productive Linkages) programme, which foresees that, by 2022, 138 SMEs will have concluded business linkage deals and 163 will have registered as State suppliers. The Committee observes, based on the SME register, that the number of SMEs increased from 6,300 in 2016 to 20,127 in 2019 (77 per cent of which were microenterprises). The Committee also notes the information provided by the Government regarding the financial and entrepreneurial development services provided for SMEs between 2017 and 2019 through the SME Support Network and the Integrated Entrepreneurial Development Centres (CIDE). Regarding the measures adopted to promote the transition from the informal economy to the formal economy for SMEs, the Government reports that, based on the III national survey of micro, small and medium-sized enterprises in 2018, 60.9 per cent of the enterprises that participated in the survey had completed all the operating procedures since the start of the entrepreneurial activity. The Government also refers to the implementation of an enterprise formalization programme, which provides training and support for enterprises on its register with the Ministry of Economic, Industrial and Commercial Affairs (MEIC), which enables them to receive tax incentives, participate in entrepreneurial meetings and obtain preferential positions in the award of public tenders. Furthermore, measures have been adopted with the aim of simplifying the procedures for the registration of enterprises, such as the creation of municipal one-stop shops to simplify the procedure for opening a business and to promote the formalization of workers in the informal economy. Concerning micro-enterprises, the Committee notes the statistical information included in the Government’s report on the impact of the National Programme to Support Micro-enterprises and Social Mobility (PRONAMYPE), which provides access to financing and support for entrepreneurial activity. The Government indicates that, according to the National Household Microenterprise Survey, in 2019, 54.4 per cent of micro-enterprises were found in the informal economy. Lastly, the Government indicates that, based on statistical information from the National Institute for Cooperative Development (INFOCOOP), the number of entrepreneurial ventures in the field of cooperatives doubled from ten in 2018 to 20 in 2019, and that 387 direct jobs were created in 2019. The Committee requests the Government to continue to provide detailed and updated information, including statistical information, disaggregated by age and sex, on the impact of the policies adopted by the Government for MSMEs and cooperatives regarding the creation of employment. It also requests the Government to continue to provide detailed and updated information on the results of those programmes in relation to the decrease in the rate of informality.

Export processing zones. The Government indicates that, in 2018, direct Jobs in enterprises operating in export processing zones represented 12 per cent of total formal employment in the private sector, and that women represented 42 per cent of that total. According to estimates by the Government, in 2018, 57,441 jobs were indirectly created by enterprises operating in export processing. The Government indicates that the average daily monthly of persons working in export processing zones in 2018 was US$1,554, which is evidence of a wage advantage for those workers. The Committee requests the Government to continue to provide detailed an updated information, disaggregated by age and sex, on the contribution of export processing zones to the creation of lasting and quality employment.

Observation (CEACR) - adopted 2022, published 111st ILC session (2023)

The Committee notes the Government’s replies to the observations of the Confederation of Workers Rerum Novarum (CTRN) in 2017, which were included in its report. The Committee also notes the observations of the CTRN, received on 31 August 2021. The Committee requests the Government to send its reply in this respect.

Article 1 of the Convention. Formulation and implementation of an active employment policy. The Committee notes the copy of the study by the Ministry of National Planning and Economic Policy (MIDEPLAN), provided by the Government, which presents the challenges identified during the implementation, in 2019, of the Bicentennial National Development and Public Investment Plan (PNDIP) 2019–22. The PNDIP provides for the adoption of measures to strengthen the productive capacity of the country and to promote employment. The Committee observes that, according to the study, the current challenges include the need to bring education into line with labour market requirements, as, although efforts have been made in this regard, the 2018 National Survey of Enterprises (ENAE) shows that there is a number of job vacancies due to the lack of skills required for those jobs among applicants. The study also shows that women and young persons have the lowest employment rates and limited access to employment opportunities due to lack of experience and training in non-traditional branches of activity (such as science, technology and engineering). The Committee also notes that, despite the implementation of various programmes and measures to consolidate and improve the competitiveness of small and medium enterprises (SMEs) (which constitute 97.5 per cent of the business environment), the COVID-19 pandemic has had adverse effects on the economy, including the contraction of economic activity, a decrease in employment and changes in employment contracts.

The Committee also notes that, in its observations, the CTRN reports a lack of employment policy in the country. It also states that the COVID-19 pandemic exacerbated the existing employment issues in the country. In this regard, the CTRN highlights the increase in unemployment and underemployment, and in violations of social and labour rights, such as failure to pay minimum wages and wage reductions. The CTRN also states that, between 2019 and 2020, levels of poverty (without taking into account revenue from the health emergency) increased from 21 per cent to 30.4 per cent, while levels of extreme poverty increased from 5.8 per cent to 11 per cent. In its reply to the 2017 observations of the CTRN, the Government refers to the continued implementation of the National Strategy for Employment and Productive Development (ENDEP), which aims to “increase opportunities to enable women and men to find decent and productive work, through a combined effort of economic and social policy, and the public and private sectors, which fosters inclusive growth and the reduction of poverty and inequality”. The Government also provides information on the adoption of a project to support the implementation of this strategy with the help of the ILO Office in San José. However, the Committee notes the Government’s indication that it does not have any information on the impact of the measures adopted to achieve the objective of the Convention, including those adopted under the ENDEP. In this regard, the Committee underscores the importance of having statistical information that allows for the evaluation of the impact of measures adopted to create jobs. The Committee recalls that “a comprehensive, participative and transparent monitoring and evaluation mechanism enables all the parties concerned to identify achievements and challenges in meeting policy objectives. The Committee emphasizes that it is essential to ensure that policies are (..) monitored and evaluated in relation to the established targets and indicators” (2020 General Survey, Promoting employment and decent work in a changing landscape, paragraphs 112 and 153).Lastly, the Committee notes the approval of Act No. 9635, Act on strengthening public finances, on 3 December 2018, which, among other measures, provides for the adjustment of the wages and benefits of public servants. The CTRN maintains that the above-mentioned Act was adopted despite being contrary to a number of ILO Conventions, such as the Freedom of Association and Protection of the Right to Organise Convention, 1948 (No. 87)and the Right to Organise and Collective Bargaining Convention, 1949 (No. 98), as observed in a technical memorandum drafted by the ILO. The Committee once again requests the Government to provide information on the impact of the measures adopted to achieve the objectives of the Convention, including those adopted under the ENDEP and the Bicentennial National Development and Public Investment Plan (PNDIP) 2019–22.The Committee reminds the Government that it may avail itself of ILO technical assistance in that respect. Regarding the Act on strengthening public finances, the Committee refers to its 2020 observation on the application of Convention No. 98, in which, while it noted the repeated observations of the CTRN reporting that the Act was contrary to the Convention, the Committee requested the Government to provide its comments in that respect.

Article 3.Participation of the social partners. The Committee notes the Government’s indication that no consultations on employment policies and programmes were held with the social partners during the period covered by the report. Furthermore, the CTRN reports that the Higher Labour Council (CST) was not convened during this period to hold tripartite consultations on employment policies and programmes. In this regard, the Committee underscores that it is essential to ensure that policies are developed, implemented and evaluated through a consultative process with the social partners and representatives of those concerned by the measures to be taken (2020 General Survey, paragraph 153). The Committee requests the Government to indicate the manner in which representatives of workers’ and employers’ organizations have been consulted, as well as representatives of the parties involved in the design, development, implementation, monitoring and revision of the active labour market measures adopted, including the Act on strengthening public finances.

The Committee is raising other matters in a request addressed directly to the Government.

Direct Request (CEACR) - adopted 2018, published 108th ILC session (2019)

The Committee notes the observations of the Rerum Novarum Workers’ Confederation (CTRN), received on 31 August 2017. It also notes the observations of the International Organisation of Employers (IOE) and the Costa Rican Confederation of Democratic Workers (CCTD), received on 1 September and 23 September 2017, respectively. The Committee further notes the Government’s replies to the observations of the CCTD, which are included in its report. The Committee requests the Government to send its comments on the observations of the CTRN and the IOE.

Article 1 of the Convention. Coordination of education and vocational training policy with employment opportunities. In its previous comments, the Committee asked the Government to send updated information on the activities carried out by the National Training Institute (INA) so that it could evaluate the manner in which the beneficiaries of INA activities had found lasting employment. It also asked the Government to provide information on the impact of measures taken to promote dual education. The Committee notes the Government’s indication that such information is not currently available. It also notes the setting up of the “National system of employment placement, guidance and information (SIOIE)” and the related online platform, aimed at linking the placement services of the Ministry of Labour and Social Security, the INA, the technical colleges of the Ministry of Public Education and the Municipal Employment Service. The Committee requests the Government to provide statistical information, disaggregated by sex and age, on the impact of the measures taken or contemplated for coordinating education and vocational training policy with employment opportunities. It also once again requests the Government to send information on the impact of the measures taken to promote dual education.

Article 2. Labour market trends. The Committee notes that, according to the ongoing unemployment survey conducted by the National Institute of Statistics and Census (INEC), there were 2,060,000 persons in employment in the first quarter of 2017, of whom 15 per cent (309,000 persons) were in the 15–24 age group and 25.6 per cent were living in rural areas (528,000 persons). With regard to unemployment rates, the national rate was 9.1 per cent whereas the rate of informality stood at 43.2 per cent. In this respect, the Committee notes that, of the 207,000 unemployed persons, 38.64 per cent were in the 15–24 age group (80,000 young persons) and 26.1 per cent were living in rural areas (54,000 young persons). The Committee requests the Government to continue providing up-to-date statistical information, disaggregated by sex and age, on trends in employment, unemployment and underemployment.

Youth employment. The Committee notes the Government’s indication that, through the implementation of the Empléate youth employment programme, young persons have been trained in occupations for which there is demand in the labour market. It also indicates that further to the evaluation of results of the programme, an action plan has been adopted following the recommendations of the Ministry of National Planning concerning the necessary measures for improving the employability of young persons in the 17–24 age group, and up to 35 years of age in the case of persons with disabilities living in poverty or from socially vulnerable groups. The Committee also notes the implementation of a series of activities aimed at catering comprehensively for the beneficiaries of the programme, such as: (i) the creation of a link with the Mi primer empleo (my first job) programme, which promotes the creation of new job opportunities for women, young persons and persons with disabilities through financial incentives for enterprises which hire such workers; (ii) an increase in the number of agreements concluded with enterprises seeking workers whose occupational profile is compatible with the Empléate programme training; and (iii) the collection of information on labour markets trends and needs. In addition, the Committee notes the new model for the administration of the Empléate programme using IT tools aimed at enabling beneficiaries to gain better knowledge of the programme in order to help them find and remain in employment. The Committee also notes the implementation of the “Social and labour strategy” (ELS), whose objective is to reduce poverty through the creation of formal employment in 76 priority districts. Lastly, the Committee notes that the Government, in reply to the observations of the CCTD, emphasizes that one of the main objectives of its employment policy is to reduce the school dropout rate. In this respect, the Government indicates that in 2016 the lowest school dropout rate in the past ten years was recorded and that a tripartite dialogue round table has now been set up for discussing the technical education model that the country needs. The Committee requests the Government to continue providing information on the measures taken or contemplated to promote youth employment, including the Empléate programme and measures to promote employment for socially vulnerable young persons. The Committee also requests the Government to provide statistical information, disaggregated by sex and age, on the impact of such measures. Lastly, the Committee requests the Government to provide information on the results achieved in the context of the tripartite dialogue round table regarding the technical education model in Costa Rica.

Women’s employment. The Committee notes the information provided by the Government concerning the measures applied for the gender mainstreaming of employment placement and guidance services in the municipalities. In this respect, the Government indicates that employment managers were trained in various municipalities under “Action plan No. 2 (2008–12)” of the “Gender equality and equity policy”. In addition, a proposal regarding job placements based on gender equality and a draft strategy for communication with the business sector have been drawn up, which are awaiting approval and implementation by the competent authorities. The Committee also notes the adoption of a series of programmes aimed at finding employment for women heads of household, such as Bienestar familiar (family welfare), Avancemos (let’s move forward), Manos a la obra (getting down to work) and Ideas productivas (productive ideas), the latter being aimed at women entrepreneurs. The Government also refers to the implementation of the “Child development and care network” and the “Senior citizen local care network”, whose respective objectives are to facilitate entry into the labour market for women with children under 7 years of age and those who take care of older persons. The Committee requests the Government to indicate the impact of the measures taken for the gender mainstreaming of employment placement and guidance services in the municipalities. The Committee also requests the Government to continue providing information on measures taken or planned to promote women’s employment and their impact.

Persons with disabilities. The Government indicates that the Empléate programme includes the Empléate inclusivo component aimed at persons with disabilities who are between 17 and 35 years of age. The Government reports that 140 persons with disabilities have benefited from the aforementioned component. Furthermore, a “Plan for the labour integration of persons with disabilities” has been incorporated into the ENEDP, which was developed in cooperation with the United Nations Development Programme (UNDP) and the ILO. The aforementioned plan aims to raise awareness in enterprises with regard to facilitating the integration of persons with disabilities. The Committee requests the Government to provide detailed, up-to-date information on the impact of employment measures, including reasonable adjustment measures, that have been adopted to help persons with disabilities to find sustainable employment in the regular employment market. The Committee also requests the Government to send information on the measures taken to promote the employment of persons with disabilities who are over 35 years of age.

Microenterprises and cooperatives. Informal economy. The Government indicates that one of the goals of the “National development plan 2014–18” is to give comprehensive assistance to ten entrepreneurial ventures per year. The Government indicates that, according to data supplied by the Department for the Promotion of Cooperatives at the National Institute for Cooperative Development (INFOCOOP), the abovementioned plan gave rise to 1,240 direct jobs and 114 indirect jobs from 2014 to 2016. Moreover, financial and business development services are supplied through the support network for small and medium-sized enterprises (SMEs). The Government also reports the implementation of measures to promote the formalization of such enterprises, including the “Mobile business consultation programme”, which provides capacity and support for enterprises with regard to the formalization and registration of SMEs at the Ministry of Economic, Industrial and Commercial Affairs, which enables incentives such as tax breaks for legally registered companies, access to funds, participation in business symposia and preferential treatment in the award of contracts by the public administration. Furthermore, the Committee notes that various programmes are implemented through the SME Support Department (DIGEPYME), catering for women entrepreneurs, improvements in the craft work sector, public procurement and micro-franchise development. The Government indicates that at the end of 2016 the register of microenterprises and SMEs had recorded some 6,300 active enterprises, of which nearly 68 per cent were microenterprises, in addition to 21 registered cooperatives. Lastly, the Committee notes that the “integrated business development centres” provide support for entrepreneurs and microenterprises and SMEs with regard to start-up and expansion, and such centres enabled the creation of 325 temporary jobs and 112 new jobs in 2016. The Committee requests the Government to continue providing information, including statistics disaggregated by sex and age, on the impact of the policies adopted by the Government for micro, small and medium-sized enterprises and cooperatives with regard to job creation. The Committee also requests the Government to indicate the results of the abovementioned programmes in relation to reducing the rate of informality.

Export processing zones. The Government refers to the report of the Director-General of the Costa Rican Coalition for Development Initiatives, which highlights the fact that the level of direct employment created by enterprises in export processing zones (EPZs) grew by 5 per cent in 2015, reaching the total of 82,086 formal direct jobs, with the services sector generating the most employment. The Committee also notes that women account for 40 per cent of direct employment generated by EPZ enterprises in the last five years, that the total wage bill for direct jobs increased by 13 per cent in 2015 by comparison with 2014 and that the average wage per worker paid in the EPZs rose by 7 per cent, which corresponds to almost double the average national wage in Costa Rica. The Committee requests the Government to continue providing up-to-date information on the contribution of export processing zones to the creation of lasting and quality employment.

Observation (CEACR) - adopted 2018, published 108th ILC session (2019)

The Committee notes the observations of the Rerum Novarum Workers’ Confederation (CTRN), received on 31 August 2017. It also notes the observations of the International Organisation of Employers (IOE) and the Costa Rican Confederation of Democratic Workers (CCTD), received on 1 September and 23 September 2017, respectively. The Committee further notes the Government’s replies to the observations of the CCTD, which are included in its report. The Committee requests the Government to send its comments on the observations of the CTRN and the IOE.

Article 1 of the Convention. Formulation and implementation of an active employment policy. In its previous comments, the Committee asked the Government to provide information on the progress of the “National employment and production strategy (ENEDP)” in achieving the objectives of the Convention. The Committee notes the detailed information included in the summary of the “Annual technical report on the ENEDP support project”, provided by the Government. According to the aforementioned report, improvements were made in 2016 with regard to: (i) building institutional and managerial capacity for effective implementation of the abovementioned strategy through measures such as expansion of the national directory of organizations in the social solidarity economy and the creation of spaces for coordination and follow-up with institutions involved in implementation of the ENEDP; (ii) strengthening social dialogue, including through the establishment of the preparatory framework for creating a national forum for tripartite dialogue on the transition from the informal economy; (iii) formulating and implementing specific policies to improve ENEDP vocational training and job placement programmes; (iv) the provision of technical advice for the Presidential Economic Council in relation to the formulation of national policy on productive transformation and the development of an agenda for research into the links between macroeconomic policy and employment; and (v) the conditions for the integration of socially vulnerable groups (women in general and female domestic workers in particular) with a view to safeguarding their labour rights. The Committee also notes that the CTRN, in its observations, maintains that the labour rights of workers are not guaranteed in practice, particularly as regards payment of the minimum wage, bonuses and overtime. The CTRN emphasizes that social inequality and informality have increased in the last few decades. The CTRN also refers to the drafting of a Tax Reform Bill, which provides for the deregulation and flexibilization of labour rights of public sector workers. The Committee requests the Government to provide information on the impact of the measures taken to achieve the objectives of the “National employment and production strategy (ENEDP)”. The Committee also requests the Government to provide information on the status of the process of adoption of the Tax Reform Bill and to send a copy when it is adopted.

Article 3. Participation of the social partners. In its previous comments, the Committee asked the Government to provide information on the consultations held with the social partners, particularly those working in the rural sector and the informal economy, with a view to enlisting the support needed to implement the employment policy. The Committee notes the Government’s indication that a tripartite round table was convened in 2017 regarding the adoption of the Transition from the Informal to the Formal Economy Recommendation, 2015 (No. 204), in which the main workers’ and employers’ organizations and public institutions took part. The Government adds that the round table reached consensus on the need for action with regard to, inter alia, simplification of taxation and improved access to technical training and social protection. In this context, tripartite technical committees were also formed to draw up specific measures for achieving the stated objectives. However, the Committee notes that the Government has not provided information on the holding of consultations with the social partners, including those working in the rural sector and the informal economy, in relation to implementation of the employment policy. The Committee once again requests the Government to provide detailed, up-to-date information on the consultations held with representatives of the social partners on the matters covered by the Convention, including with representatives of the rural sector and the informal economy.

The Committee is raising other matters in a request addressed directly to the Government.

Direct Request (CEACR) - adopted 2014, published 104th ILC session (2015)

Article 1 of the Convention. Coordinating education and training policy with employment opportunities. The Government indicates that impact assessments of the training plans and programmes are among the follow-up activities conducted by the National Training Institute (INA) in relation to the youth placement process. While it is estimated that between 55 and 60 per cent of persons entering such programmes are not working at the time of their entry, 40 per cent of them enter the labour market upon their completion. The Government indicates that the Ministry of Labour, the INA and the Costa Rican Federation of Chambers and Associations of Private Enterprise (UCCAEP) have held discussions to promote dual training. The Committee notes that a bill regulating dual vocational education and training has been introduced in the Legislative Assembly and is currently being examined in the Special Standing Committee on Science, Technology and Education. The Committee invites the Government to submit updated information so that it can assess the manner in which the beneficiaries of the INA’s activities have found lasting employment. Please also provide information on the impact of measures taken to promote dual education.

Article 2. Labour market trends. Please continue providing updated statistical information on the size and distribution of the labour force, the nature and extent of unemployment which is a crucial phase in the implementation of an active employment policy.

Youth employment. The Government indicates that the labour market participation of the employed population aged 15–24 and 25–34 increased. With the entry of 55,358 young persons to the labour market, these groups increased from representing, respectively, 15.8 and 26.8 per cent of the employed population in the last quarter of 2012, to 16.5 and 27.8 per cent for the same period in 2013. The Committee notes the indication in the National Employment and Production Strategy that the unemployment rate is considerably higher for the youngest persons (aged 15–24) than for other groups. The strategy’s priorities include combating youth unemployment and strengthening the Empléate programme mentioned in previous comments. The Committee notes the information provided by the Government regarding the number of graduates and holders of diplomas who have benefited from the Empléate programme. The Committee invites the Government to continue providing information so that it can determine whether the young beneficiaries of the Empléate programme have entered and remained on the labour market. Please also provide information on other measures taken to promote youth employment.

Women’s employment. The Government indicates that in January 2013, the INA adopted the gender equality policy focusing on, inter alia, equal conditions for women and men with respect to employment opportunities and entrepreneurial initiatives. The Committee notes the other steps taken by the Ministry of Labour and Social Security to develop a municipal gender-sensitive employment service model, as well as its role in the drafting of the national technical standard INTE 38-01-01:2013 “Gender Equality and Equity Management System (SIGIEG)”. The Committee invites the Government to indicate the manner in which these new measures have helped to increase women’s participation in the labour market.

Micro-enterprises and cooperatives. Informal economy. The Government indicates that it still does not have an impact study, given that monitoring and follow-up by the National Micro-enterprise Support Programme (PRONAMYPE) began in 2013. The sectors that have most benefited from the provision of loans have been agriculture and commerce (receiving 56 and 44 per cent, respectively, of the loans granted). With respect to the activities of the National Cooperative Development Institute (INFOCOOP), the Government indicates that, in 2012, cooperatives generated 21,632 direct jobs. Moreover, INFOCOOP’s 2013 annual management report identified 19 new undertakings, which generated 611 new positions. The Committee invites the Government to continue reporting on the manner in which the initiatives for micro-enterprises and cooperatives have had an impact on job creation and the improvement of the working conditions of persons working in the informal economy.

Export processing zones. The Committee notes the updated information in the Government’s report provided by the Costa Rican Coalition of Development Initiatives. Between 2010 and 2013, on average 7,635 new jobs were created per year, representing 14 per cent of the jobs created in the formal economy for that period. It is estimated that enterprises in export processing zones currently employ more than 80,000 persons. The Committee invites the Government to continue providing updated information on the contribution made by export processing zones to the creation of lasting and quality employment.

Observation (CEACR) - adopted 2014, published 104th ILC session (2015)

Articles 1 and 3 of the Convention. Adoption and implementation of an active employment policy. Participation of the social partners. With reference to the observation made in 2013, the Committee notes the detailed and comprehensive information provided by the Government in August 2014 that includes observations by the Costa Rican Federation of Chambers and Associations of Private Enterprise (UCCAEP). The International Organisation of Employers expressed support for the observations made by UCCAEP. The Government emphasizes that unemployment fell by about 29,000 persons and that there has been a rise in employment in absolute terms, estimated at 10,033 new jobs. According to the regular employment survey by the National Institute of Statistics and Census, the unemployment rate during the last quarter of 2013 was estimated at 8.3 per cent. In March 2014, the Higher Labour Council adopted the implementation plan for the Republic of Costa Rica’s Decent Work Programme that includes, among the four priority areas, the establishment of an employment and decent work policy. In this regard, the UCCAEP states that the ILO’s support was sought to assist the country in drafting a truly effective employment policy. The Committee notes with interest that, on 14 August 2014, the Government submitted the National Employment and Production Strategy Paper, Employment at the heart of development, the objective of which is to expand opportunities for women and men to find decent and productive work, through a combined economic and social policy effort in the public and private sectors to promote inclusive growth and the reduction of poverty and inequality. The Committee invites the Government to continue to provide information on the progress made by the National Employment and Production Strategy in achieving the objectives of the Convention. The Committee requests the Government to provide information on the consultations held with the social partners, particularly those working in the rural sector and the informal economy, with a view to enlisting the support needed to implement the employment policy.

The Committee is raising other matters in a direct request addressed directly to the Government.

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

Coordinating education and training policy with employment opportunities. The Committee indicates in its reports for 2012 and 2013 that for graduates of the National Institute for Learning (INA) who have the greatest difficulty in finding employment, the INA provides individual assistance to expand opportunities for entry to the labour market. The INA has an electronic platform to record the needs entered by employers and an employment platform that serves as an interface. The Committee notes that the Costa Rican Union of Chambers and Associations of Private Employers (UCCAEP) indicates that dual training needs to be promoted in the country and that the matter has been discussed with the Ministry of Labour and the INA; furthermore, a bill needs to be drafted to promote this initiative with a view to matching the training offered with the needs of the labour market. The Committee also notes the information provided by the Government on the network of intermediation services provided by the SIOIE, and refers the Government to its observation on the application of the Employment Service Convention, 1948 (No. 88). The Committee invites the Government to include detailed information in its next report on the manner in which it ensures coordination between education and training policies with prospective employment opportunities; and invites the Government to continue to include data allowing an assessment of the manner in which the beneficiaries of the INA’s activities have found lasting employment. The Committee would also be grateful if the Government would provide information on the measures taken or envisaged in the area of dual education.

Employment of women. The Government states that there has been an upward trend in women’s entry to the labour market in recent years. The net participation rate reached an all time high in 2009 (42 per cent). The Government draws attention to the significant employment of women in the formal sector: 60 per cent of all female employment. The Committee invites the Government to indicate in its next report the manner in which the measures taken have contributed to increasing women’s participation in the labour market.

Micro-enterprises and cooperatives. Informal economy. The Government recalls that the National Programme of Support to Micro-enterprises (PRONAMYPE) assists persons who are short of money and are unable to apply for loans in the national banking system, by setting up a micro-enterprise and providing business management training. PRONAMYPE has benefited a total of 3,251 persons due to its credit and training components. Agricultural activities accounted for 56.04 per cent of the loans granted and commercial activities for 23.18 per cent. The Government also indicates that the National Cooperative Development Institute (INFOCOOP) has continued to grant loans to promote viable cooperative undertakings with a high economic impact, at the same time ensuring that they generate high-quality employment. By April 2012, INFOCOOP had generated 840 jobs in cooperative undertakings. The Committee invites the Government to continue to report on the manner in which the initiatives for micro-enterprises and cooperatives have affected job creation and the improvement of the working conditions of persons employed in the informal economy.

Export processing zones. The Committee notes the information supplied by the Costa Rican Coalition of Development Initiatives, included in the Government’s report. High technology foreign investment enterprises generated 15,964 new jobs; over the last decade, an average of 5,917 new jobs were generated yearly. The Committee notes that the employment created by such enterprises accounts, on average, for 20 per cent of all private sector jobs generated in the formal economy and 9 per cent of jobs generated in the formal economy over the same period. The Committee invites the Government to continue to provide up-to-date information on the contribution made by export processing zones to the creation of lasting and high-quality employment.

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

Adoption and implementation of an active employment policy. Participation of the social partners. Referring to its observation of 2011, the Committee notes the information supplied by the Government in February 2012 and in the reports received in May 2012 and September 2013. It also notes the observations sent in August 2013 by the Costa Rican Federation of Chambers and Associations of Private Enterprises (UCCAEP), which were endorsed by the International Organisation of Employers (IOE). The Government confirms that there was no consensus in the National Labour Council on adopting a national employment policy. The UCCAEP reports that discussion of the policy is on the standing agenda of the National Labour Council; furthermore, statistics militating in favour of the policy have been reviewed and the policy has been updated, with a view to launching discussion of the National Employment Plan. In the report on the Social Policy (Basic Aims and Standards) Convention, 1962 (No. 117), the Government indicates that between 2010 and 2012, the average household income increased and job quality improved. Between 1990 and 2012, the percentage of households living in poverty and extreme poverty fell. Rural poverty declined between 2010 and 2012. The Government refers to the adoption of the National Development Plan 2011–14, which incorporates the Millennium Development Goals. The Committee notes the information contained in the report on this Convention concerning the statistics sources used in compiling and analysing labour market information, the establishment and consolidation of the Labour Market Observatory and the publication of a statistical yearbook. The Committee requests the Government to supply, in its next report on this Convention, information on progress made in the formulation and application of an active employment policy (Article 1 of the Convention). It invites the Government to include up-to-date statistical information on the size and distribution of the work force, and the nature and extent of unemployment, such information being essential to the implementation of an active employment policy (Article 2). In this connection, the Committee reiterates its request that full account be taken of the experience and views of the persons affected by the employment policy measures, particularly those working in the rural sector and the informal economy (Article 3).

Youth employment. The Committee notes with interest the implementation of the Empléate strategy to facilitate the entry of persons between 17 and 24 years of age in the labour market. According to the information provided by the Government, Empléate has a platform of information, guidance and labour intermediation services for its beneficiaries. In joint activities with the municipalities, 11 “one-stop-shops” and a web page (www.empleate.cr) have been set up. The strategy, launched in 2011, has delivered positive results: more than 4,000 young people received grants and some 6,000 were involved in the so called “Empléate challenges”. In 2012, in coordination with the Ministry of Foreign Trade (COMEX), and the Costa Rican Development Initiatives Coalition (CINDE), a labour market survey was conducted that included content on the formative careers most in demand. The Committee invites the Government to provide in its next report information allowing it to ascertain whether the young persons benefiting from the “Empléate” strategy have found and retained employment. The Committee also invites the Government to provide information on the measures taken to promote youth employment and to continue to report on the discussion and adoption of a national youth employment plan.

The Committee is raising other points, including the impact on the labour market of the activities of the National Institute for Learning, the status of women’s employment and the manner in which microenterprises, cooperatives and export processing zones have contributed to the creation of productive employment, in a request addressed directly to the Government.

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

Adoption and implementation of an active employment policy. Participation of the social partners. The Committee notes the Government’s report for the period ending May 2011. In reply to its previous comments, the Government indicates that the Higher Labour Council did not approve the National Employment Plan. The Government adds that in February 2011 a proposal was made to the National Labour Council to develop a national youth employment plan and the proposal was received positively by the three social partners. With a view to promoting productive employment, the Government emphasizes that an electronic tool has been established (buscoempleocr.com) through which employment vacancies are found and where employers identify the personnel required for their enterprises. In a communication forwarded to the Government in September 2011, the Confederation of Workers Rerum Novarum (CTRN) expresses concern at the lack of a long-term employment policy with a vision of the State. According to the workers’ organization, an employment policy should have the fundamental objective of generating high-quality jobs. The Committee emphasized in its 2010 General Survey concerning employment instruments that the first fundamental step for achieving full employment consists of a political commitment reflected in national legislation or the Government’s main strategic documents. The Committee also emphasized the importance of holding continuous and genuine tripartite consultations to address and mitigate the consequences of the global economic crisis (paragraph 513 and also its concluding remarks, paragraphs 785–790). The Committee requests the Government to provide detailed information in its next report on the progress achieved in the adoption and implementation of an active employment policy, as required by the Convention. The Committee invites the Government to describe the manner in which the discussions held in the National Labour Council have been used to declare and pursue an active employment policy. In this respect, the Committee requests the Government to include examples of the manner in which full account has been taken of the opinions and experiences of the persons affected by employment policy measures, with particular reference to those working in the rural sector and the informal economy. The report should also describe the measures that have been taken to compile and analyse statistical information on the labour market and provide updated data on the size and distribution of the labour force, and the nature, extent and trends of unemployment and underemployment.

Coordination of education and training policies with employment opportunities. The Committee notes the action taken by the National Training Institute (INA) to improve the skills and provide vocational training to the population, and particularly to women and young persons. The Government emphasizes the gender perspective promoted by the INA. The Committee notes that the INA provided training for more women than men through vocational skills and training modules and programmes, while the skills certification services catered for more men than women. More women have chosen to train in the commerce and services sectors, as well as in the food industry. The INA collaborates with municipal authorities to promote the access to employment of young persons and persons with disabilities, as well as with the National Programme to Support Micro-enterprises (PRONAMYPE). The Committee invites the Government to provide data in its next report as a basis for assessing the manner in which the beneficiaries of the action taken by the INA have found lasting employment. The Committee also requests the Government to provide more detailed information on the coordination of education and vocational training policies with employment policy.

Women’s employment. The Committee notes that in May 2010 it was declared of public interest to establish and develop the National Childcare and Development Network. The National Development Plan 2011–14 includes among its objectives improving the employability of the workforce, and particularly of women and vulnerable groups. The Committee invites the Government to indicate in its next report the manner in which the measures adopted have facilitated the achievement by women of greater participation in the labour market.

Youth employment. The Government recalls in its report that a plan is being promoted to improve the vocational skills of young persons living in poverty and who are at social risk, particularly through a subsidy allowing them to follow training modules in private institutions. The Government adds that programmes have been developed for the employability, employment and entrepreneurship of young persons (the programme known as the Ventanilla Única). The Committee reiterates its request for the inclusion of information on the measures adopted for the development of the National Youth Employment Plan and to ensure lasting employment for young persons who enter the labour market.

Micro-enterprises and cooperatives. The informal economy. The Government indicates that microfinance is used to promote self-employment and ensure that households have a sustainable income. The Committee notes that the credits provided in 2010 by PRONAMYPE amounted to a little over US$3 million. The Committee once again invites the Government to indicate the manner in which the loans provided by PRONAMYPE have been converted into sources of sustainable employment. The Committee requests the Government to indicate the manner in which the initiatives to promote micro-enterprises and cooperatives have had an impact on improving the working conditions of the those engaged in the informal economy.

Export processing zones. The Government’s report contains the information provided by the Costa Rican Coalition for Development Initiatives indicating that in 2010 some 7,432 new jobs were created in export processing zones. The Committee hopes that in its next report the Government will provide updated information on the contribution of these zones to the creation of sustainable and high-quality employment.

[The Government is asked to reply in detail to the present comments in 2013.]

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

1. Articles 1 and 2 of the Convention. Adoption and implementation of an active employment policy in the framework of a coordinated economic and social policy. The Committee notes the replies to its 2008 observation sent by the Government in a report received in June 2009. Furthermore, the Committee notes the detailed report provided by the Government on Conventions not ratified and Recommendations relating to employment policy. The Government indicates that the National Employment Plan distinguishes between two major productive segments: the modern productive sector linked to export trade and the other sector associated with informal employment and subsistence. With regard to the modern productive sector, the Government supports a strategy based on foreign trade complemented by concrete macroeconomic measures and logistical support for investment and exports, including strengthening formal education and vocational training activities. In the second sector, the aim is to use the resources of the cooperative sector to promote employment, coordinate support for micro- and small enterprises and promote non-conventional forms of education and vocational training. According to the data published by the ILO in the 2008 Panorama Laboral, the urban unemployment rate in Costa Rica remained at 4.8 per cent, while the national unemployment rate increased from 4.6 per cent to 4.9 per cent. At the end of 2008, employment in Costa Rica’s manufacturing industries had fallen by 4.8 percentage points. The Committee requests the Government to provide information in its next report on the manner in which the implementation of the National Employment Plan (PLANE) has facilitated progress in achieving the objective of full and productive employment under the Convention.

2. Coordination of education and training policies with employment opportunities. In reply to previous comments, the Government indicates that young persons of working age are often excluded from public policy on professional and vocational training due to the fact that the majority of them do not meet the entry requirements for participating in formal training activities. The Government mentions difficulties encountered by the Board of Directors of the National Training Institute in making vocational training more flexible. In this regard, the Committee reiterates the importance of continuing to provide information on the coordination of education and vocational training policies with employment policy. The Committee would be grateful if the Government would provide information in its next report on the concrete results achieved in ensuring that young persons and other vulnerable persons (such as women, persons with disabilities, older workers) benefit from guidance and training services which enable them to enter the labour market and secure lasting employment.

3. Promotion of women’s employment. The Committee notes with interest the proposal under the PLANE to take immediate measures relating to childcare. Under this proposal, childcare facilities will be set up in companies and be managed as private productive initiatives by groups of women. The cost of each child’s care would be jointly covered by the state (two-fifths) by the company (two-fifths) and one fifth by a workers’ organization or the beneficiaries directly. The Committee requests the Government to include information in its next report on the establishment of childcare facilities and the manner in which they have contributed to generating lasting employment for women.

4. Promotion of youth employment. In its report, the Government mentions the Young Entrepreneurs Programme which is designed to promote an entrepreneurship culture among young persons. The Committee notes that this programme forms part of the Shield Plan to tackle the current crisis. In this context, the Government is proposing to delay the departure of young persons from the school system and therefore prevent their premature entry into the labour market. The Committee requests the Government to also provide information in its next report on the impact of the measures taken to ensure lasting employment for young persons who enter the labour market.

5. Micro-enterprises and cooperatives. The informal economy. The Government includes information in its report on the National Support Programme for Micro-enterprises which grants soft loans to micro-enterprises and training for persons excluded from traditional banking and the financial system. In 2008, a total of 1,011 investment loans were granted amounting to 1.154 billion colones (CRC) and benefiting men (52.3 per cent) and women (47.7 per cent). The Committee also notes the activities carried out by the National Institute of Cooperative Development. The Committee requests the Government to provide information in its next report on the results of the measures taken to convert micro-enterprises and cooperatives into sources of sustainable employment. Please also indicate how the initiatives relating to micro-enterprises and cooperatives have contributed to improving the working conditions of those working in the informal economy.

6. Export processing zones. The Government reiterates that export processing zones have created a significant number of sustainable and high‑quality jobs. The Committee notes the information provided by the Costa Rican Coalition for Development Initiatives (CINDE) indicating that in 2008, these zones exported more than 1,200 products to 106 different countries. Some 247 companies are active in the export processing zones, employing more than 53,000 workers, half of whom work in high technology. Productivity per worker in these companies, as well as their wages, are relatively high compared to other sectors of the economy. The Committee requests the Government to continue providing information on the contribution of export processing zones to the creation of sustainable and high-quality employment.

7. Participation of the social partners. Article 3. The Government reports that the PLANE proposal and the Decent Work Agenda were submitted to the Higher Labour Council for consideration and approval. The Government also indicates that the ILO has fully supported the analysis work, the research undertaken and the search for consensus. The Committee reiterates its interest in examining concrete information on the tripartite consensus reached in the context of the Higher Labour Council in relation to the formulation and implementation of the employment policy measures required by the Convention.

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

1. Adoption and application of an active employment policy in the framework of a coordinated economic and social policy. The Committee notes the detailed answers to its observation of 2006, which were forwarded in a complete report prepared by the National Employment Administration and the General Administration for Work Planning in September 2007. The key element of the employment policy involves the creation of quality jobs. In order to increase people’s employability, the Government proposes to attract quality foreign investment, support small and medium-sized enterprises, train a competitive labour force and formalize the informal sector (that is, allow enterprises that finance labour costs and generate quality jobs). In 2006, the National Employment Programme had a budget of 150 million colones, which were allocated to the areas with the highest levels of unemployment and poverty (Chorotega, Central Pacific, Brunca and Huetar). Most of the projects were aimed at improving infrastructure, such as local roads, building of bridges, aqueducts and schools. The Committee requests the Government to continue to provide information in its next report on the manner in which it has taken into account the objectives of full employment in formulating the economic and social policies and to indicate the results achieved in creating productive employment in the framework of the National Employment Programme.

2. Employment promotion and vulnerable groups. The information provided by the Government indicates an increase in the economically active population in 2006 of approximately 1.83 million workers, including 10,138 unemployed persons. The official unemployment rate in 2006 reached 6 per cent of the population. The participation of women increased but their participation rate is around 30.1 per cent, while that of men is around 71.8 per cent. Most of the paid work performed by women is concentrated in the domestic sector or as self‑employed persons. Furthermore, young persons have higher unemployment rates than the rest of the population, with an unemployment rate of 13.8 per cent for young persons under 25 years of age. The Committee requests the Government to describe in its next report the measures adopted to create sustainable employment for women and young persons. The Committee asks that it also include detailed information on the situation, levels and trends of employment, unemployment and underemployment, indicating the manner in which the most vulnerable sectors (women, young workers, older workers, rural workers and workers in the informal economy) have overcome the difficulties encountered in the labour market.

3. Small enterprises and the informal sector. In its report, the Government indicated that, according to data from 2002, some 275,000 non-agricultural micro-businesses and 66,000 micro-enterprises existed, while pointing out the need to update the data, particularly with respect to activities in the informal sector whose growth increased significantly in the tourism and construction sectors. The Committee asks the Government to indicate in its next report whether the tasks of updating the information on small and micro-enterprises have been carried out so that new measures can be adopted with a view to increasing employment opportunities, improving working conditions in the informal sector and facilitating the gradual integration of this sector in the national economy.

4. Export processing zones. In response to previous comments, the Government indicates that the creation of jobs through direct foreign investment had been continuous. Most of such investments were concentrated in the export processing zones. These zones had generated approximately 36,000 jobs, twice as many as existed a decade ago. At the end of July 2006, the Coalition for Development Initiatives (CINDE) had stated that in the last four years, enterprises in the export processing zones had created some 9,000 new jobs. The Committee requests the Government to continue to provide information on the contribution of export processing zones to the creation of lasting and quality employment.

5. Coordination of education and training policies with employment opportunities. The Committee notes with interest the information provided on the initiation of an electronic work platform, coordinated jointly by the Ministry of Labour, the National Training Institute and a network of technical colleges and municipal employment offices. The Government also mentioned the National System for Professional Training. The Committee reiterates the importance of continuing to provide information on the coordination of education and vocational training policies with employment policies. The Committee particularly requests information on the concrete results achieved by the provision of guidance and training services for young persons, migrants and persons with disabilities.

6. Article 3. Participation of the social partners. The Committee notes that the Higher Labour Council had been elected as a forum for discussion and improvement of the National Employment Plan. The Union of Private Sector Enterprises had forwarded its comments in March 2007, and the opinion of the trade union sector was awaited. The Government indicates that in order to carry out such activities it hoped to continue to have the participation and collaboration of the ILO. The Committee requests that the next report include more detailed information on the tripartite consensus reached in the framework of the Higher Labour Council with regard to employment policy. Please also indicate the initiatives supported by the ILO to promote the Convention’s objectives for the generation of productive employment (Part V of the report form).

Observation (CEACR) - adopted 2006, published 96th ILC session (2007)

1. Adoption and application of an active employment policy within the framework of a coordinated economic and social policy. The Committee notes the information provided by the Government in its report for the period ending May 2005. The Government provided a copy of the document entitled “Employment policy for Costa Rica”, published in March 2004, for which it received technical advice from the ILO. The publication was the outcome of tripartite consultations held in the framework of the Higher Labour Council and emphasizes there has not been an explicit employment policy in Costa Rica, as an integrated part of development policy, with the objective of promoting upward social mobility, achieving a better distribution of income and reducing poverty. The components of an employment policy should include: the creation of an employment information, guidance and placement system and a national technical training system; the restructuring of labour migration; the improvement of production by micro-, small and medium-sized enterprises, cooperatives and the social economy sector; the promotion of areas with relatively low levels of development and the protection of groups requiring special attention; and the establishment of a mechanism for planning, monitoring, assessment and evaluation so that the employment policy becomes a state policy. 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 (2004 General Survey on promoting employment, paragraph 490). The Committee hopes that the Government’s next report will include information enabling it to assess the progress achieved in the adoption of an active employment policy, with the participation of the social partners, with a view to achieving the employment creation objectives set out in the Convention (Articles 1, 2 and 3 of the Convention). In this respect, it requests the Government to provide information on the results achieved in terms of employment creation by the “Strategic Employment Generation, Production and Investment Programme”, particularly in the peripheral regions of the country. The Government is also requested to provide detailed information on the measures adopted in the framework of the national employment policy.

2. The information provided by the Government shows that the unemployment rate of 6.5 per cent (in 2004) was slightly lower than that of 2003 (6.7 per cent). The numbers of the unemployed fell and the labour force increased slightly. In 2004, a total of 13,492 new jobs were created. The Government indicates that if greater numbers of young persons of an age to be potentially active had opted to enter the labour market, the unemployment figures would have been discouraging. The Committee requests the Government to provide detailed information in its next report on the situation, level and trends of employment, unemployment and underemployment, with an indication of the manner in which they affect the most vulnerable categories (women, young workers, older workers, rural workers and workers in the informal economy). The Committee requests information on the contribution of export processing zones to the creation of lasting high-quality employment.

3. The Committee notes the information provided on the initiatives adopted by the Ministry of Public Education and the action taken by the National Training Institute (INA). The Committee would be grateful if the Government would continue to refer in its next report to matters relating to the coordination of education and vocational training policies with employment policy, which is indispensable if every worker is to enjoy full opportunities to acquire the necessary training with a view to obtaining suitable employment and using their training and skills in such employment. In this respect, the Government may wish to refer to the guidance contained in Recommendation No. 195, adopted by the International Labour Conference at its 92nd Session (June 2004), and the provisions of the Human Resources Development Convention, 1975 (No. 142).

4. ILO technical cooperation. The Committee notes the Tripartite Declaration on the promotion of employment and decent work in Central America and the Dominican Republic, concluded by the Ministers of Labour and representatives of employers’ and workers’ organizations in Tegucigalpa in June 2005. In the Tripartite Declaration, among other significant policies, it was agreed to place the objective of creating worthwhile, sustainable and high-quality jobs, in accordance with ILO parameters, at the centre of macroeconomic policy, with efforts being focused not only on controlling inflation and the fiscal deficit, but also, with equal priority, on the promotion of investment and equitable growth. The Committee would be grateful if the Government would provide information in its next report on the initiatives that have been taken with ILO support to promote, at both the national and subregional levels, the objective of the creation of productive employment as set out in the Convention (Part V of the report form).

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

1. The Committee notes the detailed information sent by the Government in its report for the period ending in May 2002. According to the Government, there were no significant changes in the application of the Convention during the following period.

2. The Committee notes that priority has been given to foreign investment in order to encourage exports, development of free zones and improved productivity in small and medium-sized enterprises. The Government also provides information on the measures that have been implemented to contain inflation, simplify and enhance tax collection and modernize the customs system. According to the Government, slow growth in the United States and the drop in the prices of the main agricultural exports - added to the fiscal deficit and the growing public debt - have affected employment policy. Between 1998 and 2002, 326,000 new jobs were generated (increasing the economically active population by 26.5 per cent). The household poverty rate has remained stable at approximately 20 per cent. The information analysed by ECLAC in its Economic Survey of Latin America and the Caribbean 2001-2002 confirms that open unemployment in 2001 stood at 6.1 per cent and total underuse at 13.7 per cent. The activities most affected were manufactures (textiles) and agricultural exports (coffee and bananas). Rural unemployment again exceeded the average (6.5 per cent). Underuse of the workforce occurs mainly in the regions where the population is poorest: Chorotega, Brunca and Pacifico Central. The Committee trusts that the Government will provide information on the situation, level and trends of employment, underemployment and unemployment, as required by the report form, indicating the extent to which they affect particular categories of workers (women and young persons in the poorest sectors of the population and workers in the rural sector and the informal economy).

3. The Committee would be grateful if the Government would continue to provide information on labour market policies and programmes that have been implemented in order to match labour supply and demand so as to ensure that the categories of workers affected by structural change, such as restructuring in the public sector, remain in the labour market.

4. The Committee would also be grateful if, in its next report, the Government would include more detailed information on education and training, and in particular indicate the measures taken to coordinate these policies with prospective employment opportunities.

5. Article 3. The Committee notes with interest that the Higher Labour Council succeeded in getting the three parties to agree to a common strategic agenda, regarding migrant workers, labour flexibility, and employment policy and employment in the informal economy. In a policy statement concerning a policy on migrant labour, it was recognized that migrant workers contribute to the country’s economic and social development. Furthermore, a labour market modernization programme is planned, with updated content for the Central American countries. The Committee would like to stress the importance of securing the full cooperation of the representatives of the persons affected in the formulation of employment policy and enlisting the necessary support for its implementation. The Committee hopes that the Government will be able to continue to supply information on the consultations held in the Higher Labour Council - or other bodies - with representatives of employers’ and workers’ organizations (and representatives of other sectors of the economically active population, such as workers in the rural sector and the informal economy) on employment policy.

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

The Committee notes the Government’s reports in which it refers to the matters raised in the 1998 observation.

1. The Government indicates that in 1998 an economic growth rate of 6.2 per cent was achieved (the second highest in the whole of America), with the creation of 73,000 new jobs and a decrease in poverty of 19.7 per cent, according to the National Household Survey. As from the second quarter of 1999, there was a certain weakening in economic activity: in 2000, GDP growth was only 1.7 per cent. The open unemployment rate fell (to 5.2 per cent in 2000, from 6 per cent in 1999), the best for the past five years, despite the fact that industrial employment fell, particularly in export processing and activities in free zones. In 2000, poverty rose to 21.1 per cent of households, according to the income and expenditure survey cited by ECLAC.

2. With regard to the follow-up of the recommendations of the Governing Body when it adopted the report of the committee set up to examine the representation made under article 24 of the Constitution of the ILO by the Latin American Central of Workers (CLAT) (document GB.266/8/1, June 1996), the Government states that the restrictive policies implemented during the period 1985-97 resulted in the percentage of employment in the public sector falling from 19.1 per cent (in 1985) to 14.2 per cent (in 1997) of the economically active population (14.1 per cent in 2000 according to data from the ILO Multidisciplinary Advisory Team for Central America). Among other measures, a Training and Rehabilitation Programme for Retrenched Workers was intended to train workers displaced from the public to the private sector. In this respect, the Confederation of Workers "Rerum Novarum", in observations transmitted to the Government in September 2000, refers to new policies for a reduction in the numbers employed in the public sector which have resulted in dismissals. In this connection, the Committee would be grateful if the Government would continue to address in its reports the impact on employment of the structural reforms which have been undertaken in the public sector and requests that it provide information on the labour market measures and programmes which have been adopted to match the supply and demand of labour so as to ensure that the categories of workers affected by structural changes remain in the labour market (Article 1 of the Convention).

3. In the report received in March 1999, the Government refers to the National Plan to Combat Poverty (PNCP), which is intended principally for poor children and young persons, poor women and poor adults or persons with disabilities. Furthermore, the adoption of Act No. 7983 respecting workers’ protection, of 16 February 2000, is intended, among other measures, to make pensions universal for all elderly persons in a situation of poverty and who are not covered by other pension schemes. The basic pension for persons in a situation of extreme poverty must not be lower than 50 per cent of the minimum old-age pension provided under the Invalidity, Old-Age and Survivors’ Scheme of the Costa Rican Social Security Fund. The Committee requests that the Government provide an evaluation in its next report of the employment impact of the PNCP and of the progress achieved in establishing social security safety nets, as well as on any other active employment policy measure intended to combat poverty.

4. The Committee notes that, by means of Decree No. 27603-MTSS-MEIC, dated 4 September 1998, an integrated system has been established to support micro and small enterprises (SIAMYPE), based on the consideration that micro and small enterprises are a sector with great development potential, capable of increasing job creation through the promotion of entrepreneurship. The Committee notes that the Institute of Women has the function, in the Higher Council to Support Micro and Small Enterprises (CONSUMYPE), of ensuring the inclusion of a gender perspective in the policies of the SIAMYPE and the promotion of women in the sector. The Committee trusts that the Government will provide information in its next report on the employment creation achieved by the programmes implemented by SIAMYPE, with reference, if it considers it useful, to the provisions of the Job Creation in Small and Medium-Sized Enterprises Recommendation, 1998 (No. 189).

5. Article 3. The Committee notes that, as a result of the process of dialogue on freedom of association and wage policy, by means of Directive No. 013-P, dated 7 November 1998, the President of the Republic requested the Minister of Labour and Social Security, among other measures, to pursue a policy to promote the creation of new and better sources of employment. In this respect, the Workers’ Confederation "Rerum Novarum" indicates that its organizations were not consulted concerning employment policies. The Committee refers to its previous comments and once again recalls the importance of securing the full cooperation of the representatives of the persons affected in formulating employment policy and enlisting support for its implementation. The Committee once again requests the Government to provide information in future reports on the consultations actually held with representatives of employers’ and workers’ organizations (and with representatives of other sectors of the economically active population, such as those working in the rural sector and the informal sector) with regard to employment policy.

Observation (CEACR) - adopted 1998, published 87th ILC session (1999)

1. The Committee notes the information included in the Government's report received in January 1998, according to which the open unemployment rate fell from 6.2 per cent (in 1995) to 5.2 per cent (in 1996) and rose again slightly to 5.7 per cent (in 1997). Between 1994 and 1996, employment in the public sector fell to 7,197, continuing the downward trend in staffing levels in that sector. The Government refers to the voluntary job reduction programme in the public sector and the restructuring programme, details of which are given for various institutions. The purpose of these programmes is to reorientate the State's role and reduce the fiscal deficit. The report also describes a reintegration programme aimed at strengthening the National Employment Exchange, improving training for former public servants and promoting the creation of micro-enterprises. The Committee notes that, according to the analysis carried out by technical specialists of the multidisciplinary team at San José in Costa Rica, the existence of a range of social development and employment programmes, together with sustained efforts in the area of education and training, have resulted in relatively low levels of unemployment, underemployment and poverty. In 1997, there were increases both in employment and in wages.

2. The Committee recalls that, in its previous observations, it referred to the report (in document GB.266/8/1 of June 1996) of the Committee set up to examine the representation made by the Latin American Central of Workers (CLAT) under article 24 of the ILO Constitution, alleging non-observance by Costa Rica of the Employment Policy Convention, 1964 (No. 122). The Governing Body invited the Government to provide, in its subsequent reports under article 22 of the Constitution, comprehensive information on the application of the Convention, and to clarify in particular:

(i) the effect on employment, either recorded or anticipated, of the macroeconomic policies implemented as part of the structural adjustment programme to reduce public spending;

(ii) the number of workers affected by the programme to reduce public employment, the measures taken to facilitate their reintegration into the private sector and the results achieved;

(iii) the manner in which the representatives of the persons affected by the measures to be taken, and in particular employers' and workers' representatives, are consulted about employment policies.

3. In this regard, the Committee notes that in May 1998, the Ministry of Labour asked the Ministry of National Planning and Economic Policy for additional information on the above-mentioned points. The Committee trusts that the Government in its next report will consider these points and that it will also include the information requested in the report form on the results of measures taken to harmonize the supply and demand of labour with structural changes, including copies or extracts of reports, surveys and inquiries and statistical data on the situation of the labour market (Part VI of the report form). The Government is asked in particular to describe the procedures that have been adopted to ensure that due consideration is given to the impact on employment of measures adopted with a view to achieving economic and social objectives and that the principal measures of employment policy are decided and kept under review within the framework of a coordinated economic and social policy (Article 2 of the Convention).

4. Article 3. The Committee notes the communication of August 1997 from the Comité Interconfederal Costarricense, which was forwarded by the Office to the Government in 1997 to allow it to formulate its own comments. The Comité Interconfederal Costarricense states that it has not participated in any manner or at any time in the formulation of the Government's employment and wages policy. In its view, the fact that employment policy is not discussed with workers' representatives constitutes a violation of Article 3 of the Convention. The Government has indicated that in general, in those public institutions where restructuring programmes were implemented, committees were set up in which staff could participate. In addition, in most of the restructuring processes, trade union leaders were consulted. Consultations took place in the private sector involving the employers' councils who were asked for their support for the training and reintegration programmes. The employers in general have been openly in agreement with the proposed changes. The Committee notes the preceding observations and recalls the importance of obtaining the full cooperation of the representatives of the interested parties in the work of formulating employment policy and of obtaining the support needed for its implementation. The Committee trusts that the Government will include in its next report information on the consultations that have taken place with representatives of employers' and workers' organizations (and with representatives of other sectors of the economically active population such as those employed in the rural sector and the informal sector) with regard to employment policy.

Observation (CEACR) - adopted 1997, published 86th ILC session (1998)

The Committee notes that the Government's report contains no reply to its previous observation. It must therefore repeat its previous observation which read as follows:

The Committee notes the Government's report for 1996. It also notes that at its 266th Session (June 1996), the Governing Body approved the report of the Committee that it had set up to examine the representation made by the Latin American Central of Workers (CLAT) under article 24 of the ILO Constitution alleging non-observance of the Convention by Costa Rica. The Governing Body invited the Government to provide, in its next report under article 22 of the Constitution, comprehensive information on the application of the Convention, and in particular: (i) the effect on employment, either recorded or anticipated, of the macroeconomic policies implemented as part of the structural adjustment programme to reduce public spending; (ii) the number of workers affected by the programme to reduce public employment, the measures taken to facilitate their reintegration into the private sector and the results achieved; and (iii) the manner in which the representatives of the persons affected by the measures to be taken, and in particular employers' and workers' representatives, are consulted about employment policies. The Committee requests the Government to provide the information requested in order to enable it to resume its examination of the application of the Convention at its next session.

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

The Committee notes the Government's report for 1996. It also notes that at its 266th Session (June 1996), the Governing Body approved the report of the Committee that it had set up to examine the representation made by the Latin American Central of Workers (CLAT) under article 24 of the ILO Constitution alleging non-observance of the Convention by Costa Rica. The Governing Body invited the Government to provide, in its next report under article 22 of the Constitution, comprehensive information on the application of the Convention, and in particular:

(i) the effect on employment, either recorded or anticipated, of the macroeconomic policies implemented as part of the structural adjustment programme to reduce public spending;

(ii) the number of workers affected by the programme to reduce public employment, the measures taken to facilitate their reintegration into the private sector and the results achieved; and

(iii) the manner in which the representatives of the persons affected by the measures to be taken, and in particular employers' and workers' representatives, are consulted about employment policies.

The Committee requests the Government to provide the information requested in order to enable it to resume its examination of the application of the Convention at its next session.

[The Government is asked to report in detail in 1997.]

Observation (CEACR) - adopted 1994, published 81st ILC session (1994)

1. The Committee notes the Government's brief report which merely provides statistics for 1987 to 1991 and a document on recent economic developments and prospects for 1993, produced by the Central Bank of Costa Rica.

2. According to the above document, there was significant growth in the Costa Rican economy in 1992. The Central Bank indicates that, as a result of a more dynamic economy, there was considerable growth in employment with prospects for reconciling growth objectives with equity and counteracting the effects of the reduction in the number of public sector jobs as part of the efforts to reduce state control. In 1992, there was further progress in the opening of the economy through the modernization of the currency exchange regime and acceleration of the process of lowering customs tariffs. These measures were reflected in a drop in import prices, with the beneficial result of lower inflation and a higher level of economic activity. The programme proposed for 1993 by the Central Bank was designed first and foremost to achieve a GDP increase of 4 per cent in real terms, reduce inflation and increase net currency reserves. These objectives were to be attained by reducing the total public sector deficit to 1 per cent, at most, of GDP, a prudent wages policy, restrictions on loans and the maintenance of a fixed exchange rate regime for the market. Structural measures aimed at a further reduction in import tariffs, substantial liberalization of price controls and public sector reform.

3. With regard to the growth in employment referred to by the Central Bank, the Committee is bound to note that according to the statistical data of the Ministry of Labour, between 1990 and 1991 the general level of employment stagnated and even dropped slightly (by approximately 1 per cent, whereas women's employment grew by some 3 per cent), and that the unemployment rate rose from 4.6 to 5.5 per cent of the active population over the same period (with a noticeably greater increase for women), which represents an increase of almost 20 per cent in the number of unemployed.

4. The Committee is only able to note from the report the monetary and budgetary policy measures taken or envisaged. It recalls, however, that in the comments it has been making for several years, it has already requested information on measures to declare and pursue a policy to promote full, productive and freely chosen employment, as required by Article 1 of the Convention, aiming, in particular, to offset both restrictive macroeconomic policies and the reduction of the public sector. So that it may examine in detail the way in which effect is given to the provisions of the Convention, the Committee is bound once again to urge the Government to provide in its detailed report for the period ending June 1994 all the information required by the report form aprproved by the Governing Body. The Government is therefore asked to describe its main policies to attain the objectives of the Convention, and the methods used to ensure that account is taken of the effects on employment of the stabilization and structural adjustment programmes, and that the main employment policy measures are determined and regularly reviewed within the framework of a coordinated economic and social policy (Article 2).

5. The Committee notes that the Government's report makes no mention of any consultations with the representatives of persons affected by the measures to be taken, and particularly with the representatives of employers' and workers' organizations in accordance with Article 3 of the Convention. In this connection, it would be grateful if the Government would indicate whether consultations were held with the social partners on issues linked to employment policy in the context of the August 1991 meeting of the Central Labour Council. Please indicate also whether consultations have been held or are planned with representatives of the other sectors of the active population in the rural and informal sectors.

6. The Committee notes that the report of the 1992 ILO interdepartmental mission, Stabilization, structural adjustment and social policies in Costa Rica: The role of compensatory programmes, which was sent to the Government in June 1993, contains comments on the special employment programmes carried out with the technical cooperation of PREALC. It asks the Government to provide information, as required in Part V of the report form, on action taken as a result of technical cooperation, and on any factors which may have prevented or delayed such action recommended with a view to promoting an employment policy as laid down in the Convention.

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

The Committee notes that the Government's report has not been received. It must therefore repeat its previous observation which read as follows:

The Committee takes note of a general report - received in November 1990 - in which the Government states that there have been no significant changes in national legislation and practice as regards the application of the provisions of Convention No. 122, among others, and refers the Committee to previous reports. The Committee notes that the general report does not take into account the comments it made in 1989. In its observation of 1989, the Committee expressed the hope, in particular, that the Government would continue to provide detailed information on the impact on employment of the measures taken to meet its monetary and financial commitments. The Committee considered that in order to be in a position to examine in detail the way in which effect has been given to the provisions of the Convention it would be necessary for the Government to provide full and detailed information on the matters set out in the report form for the Convention approved by the Governing Body, with particular reference to the difficulties that have arisen in achieving the objectives of the national programme for the generation of employment (as set out in Decrees Nos. 17269-TSS, of 1986, and 17436-TSS, of 1987) and to the consultations with representatives of the persons affected, including those who work in the rural and informal sectors (Article 3 of the Convention). Since the report on the application of the Convention has not been received, the Committee hopes that the Government will submit a complete and detailed report, as requested in the previous comments, so that it may be examined at the Committee's next meeting in March 1993. Part V of the report form. In its communication of February 1988, the Government referred to the cooperation and technical assistance proposed by the ILO under a technical cooperation agreement for the national employment and social development programme, executed by PREALC with UNDP resources. The Committee trusts that the Government's next report will also contain detailed information on the action undertaken as a result of the advice received from the ILO in connection with the Convention.

Observation (CEACR) - adopted 1992, published 79th ILC session (1992)

The Committee takes note of a general report - received in November 1990 - in which the Government states that there have been no significant changes in national legislation and practice as regards the application of the provisions of Convention No. 122, among others, and refers the Committee to previous reports. The Committee notes that the general report does not take into account the comments it made in 1989.

In its observation of 1989, the Committee expressed the hope, in particular, that the Government would continue to provide detailed information on the impact on employment of the measures taken to meet its monetary and financial commitments. The Committee considered that in order to be in a position to examine in detail the way in which effect has been given to the provisions of the Convention it would be necessary for the Government to provide full and detailed information on the matters set out in the report form for the Convention approved by the Governing Body, with particular reference to the difficulties that have arisen in achieving the objectives of the national programme for the generation of employment (as set out in Decrees Nos. 17269-TSS, of 1986, and 17436-TSS, of 1987) and to the consultations with representatives of the persons affected, including those who work in the rural and informal sectors (Article 3 of the Convention).

Since the report on the application of the Convention has not been received, the Committee hopes that the Government will submit a complete and detailed report, as requested in the previous comments, so that it may be examined at the Committee's next meeting in March 1993.

Part V of the report form. In its communication of February 1988, the Government referred to the cooperation and technical assistance proposed by the ILO under a technical cooperation agreement for the national employment and social development programme, executed by PREALC with UNDP resources. The Committee trusts that the Government's next report will also contain detailed information on the action undertaken as a result of the advice received from the ILO in connection with the Convention.

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

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

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

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