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Employment Policy Convention, 1964 (No. 122) - Mozambique (RATIFICATION: 1996)

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Observation

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The Committee notes the observations of the International Trade Union Confederation (ITUC), received on 1 September 2021. It further notes the observations of the International Organisation of Employers (IOE), received on 8 September 2021. In addition, the Committee notes the observations of the Workers’ Organization of Mozambique (OTM), received on 1 September 2023. The Committee requests the Government to provide its comments in this respect.

Articles 1 and 2 of the Convention. Formulation and Implementation of an active employment policy and programmes. The Committee notes with interest the series of measures taken by the Government to implement the objectives of the Convention. It recalls that, following receipt of ILO technical assistance, Mozambique developed its first National Employment Policy (NEP), entitled “Promoting More and Better Jobs for Mozambicans”, adopted in October 2016. The NEP was developed through a process of consultation with the social partners and is centred around eight pillars: development of human resources; job creation; harmonization and prioritization of sectoral policies; promotion of decent, productive and sustainable work; improving the labour market information system; occupational health and safety; strengthening international cooperation; and cross-cutting issues. The NEP seeks to stimulate the creation of new jobs, promote entrepreneurship and sustainable development to reduce poverty and contribute to the economic and social development of the country and the well-being of the population. An Action Plan (PAPE 2018–22) was launched in January 2018 to implement the NEP. The PAPE 2018–22 was subsequently reviewed to align it more closely to the Government’s Five-Year Programme 2020–24. It was replaced in May 2021 by a new Plan of Action for the Implementation of the NEP (PAPE 2021–24). The Committee notes the significant challenges faced by the country, which include high rates of poverty, low levels of education and training, as well as the concentration of the workforce in subsistence agriculture and low-productivity informal enterprises, characterised by high levels of individual and household vulnerability, particularly in the northern half of the country. The Committee further notes the information provided by the Government with respect to the negative socioeconomic impacts of the Covid-19 pandemic. According to 2020 data from the National Statistics Institute (INE), 90.4 per cent of Mozambican enterprises were affected by the pandemic, leading to suspension of activities, reduction of working hours and suspension or termination of contracts and closure of businesses, affecting over three million workers. The Government took a series of social, economic, monetary and financial measures to respond to the pandemic. It also provides information on a series of policies implemented to promote employment in the framework of the PAPE 2021–24, including: the Industrial Policy and Strategy (PEI) (2016–25), whose main objectives are to increase industrial production, attracting investment and generating jobs, focusing on micro, small and medium-sized companies; the Commercial Policy and Strategy (PEC), which aims to stimulate trade in goods and services to respond to the needs of the internal market; the National Export Strategy (ENE) 2018–22, to support the industrialization process and create new jobs; the National Energy Strategy (2018–30); the Policy and Strategy for Standardization and Quality Policy and Strategy; the Strategy for the Development of Small and Medium-Sized Enterprises in Mozambique 2007–22. This last strategy aims, inter alia, to improve the business environment, increase the capacity of MSMEs and improve their access to financial services and markets. Finally, the Government refers to the adoption of the Plan of Action to Improve the Business Environment (PAMAN) 2019–21, which was developed through extensive consultation with the private sector and civil society. The Committee notes the observations of the OTM, which emphasizes the importance of the NEP and the PAPE 2021–24 to the workers’ organizations. Nevertheless, the OTM expresses the view that the measures taken under section 5.3.1 of the NEP to improve employment and decent work in the agriculture and fishing sector are insufficient, adding that in most cases income levels are low and workers in this sector do not have access to social protection. The OTM further observes that stronger measures need to be taken to address unemployment levels in the country as well as to promote transition from the informal to the formal economy. In addition, with respect to job growth, the workers’ organization indicates that, of the jobs registered in the second quarter of 2023, 76.5 per cent of these are temporary, with only 23.5 per cent being permanent jobs. Of the temporary jobs, 22.5 per cent are seasonal and 77.5 per cent are occasional jobs. The OTM maintains that precarious employment has increased in the country, whereas the objective under the NEP is to promote the creation of work that is decent, productive and sustainable (NEP section 5.4). The Committee requests the Government to provide detailed information, including statistical data disaggregated by sex, age and economic sector, on the impact of the initiatives taken under the National Employment Policy and its Action Plan 2021–24, as well as under the above-mentioned Strategies, on creating opportunities for women and men to access full, productive and freely chosen employment and decent work. The Committee further requests the Government to provide information on measures taken or envisaged to reduce precarious employment and promote the transition from informal to formal employment, in accordance with the Transition from informal to formal employment Recommendation, 2015 (No. 204). The Committee considers in this respect that employment policies indeed play a significant role in promoting transitions from the informal to the formal economy by addressing the factors that drive individuals and enterprises to operate informally, leading to more inclusive, productive, and resilient labour markets while also providing targeted support to facilitate the transition process. The Committee would therefore be interested to receive further information on specific measures taken to tackle the multiple challenges proper to the work in the informal economy, indicating in particular whether the measures taken or envisaged have included some of the following best practices observed internationally: (i) reducing administrative burden and red-tape; (ii) strengthening and extending social protection as a means to enrol enterprises and their workers; (iii) promoting access to finance and business development services, including access to credit and training, as these are often lacking for informal enterprises; (iv) enhancing labour market placement and intermediation and skills development services; (v) raising awareness and promoting formalization; (vi) tailoring policies to specific sectors and occupations as the informal economy is not monolithic, and informalization patterns vary across sectors and occupations; (vii) promoting dialogue and collaboration among all relevant stakeholders for effective policy formulation and implementation; and (viii) monitoring and evaluating policy impacts as this is crucial to assess policy effectiveness in promoting transitions from informality to formality. The Committee also requests the Government to continue to provide detailed up-to-date information, including statistical data disaggregated by sex and age, on the rates of informality in the country.

Article 2(a). Collection and use of labour market information. The Committee notes the information provided by the Government with respect to the size and composition of the economically active population. The Government indicates that, according to the Family Budget Survey compiled by the INE for the period 2019–20, the overall unemployment rate fell from 21.7 per cent in 2019 to 17.1 per cent in 2020, with underemployment reaching 12.5 per cent. It adds that, by the end of 2020, a total of 184,477 unemployed persons were registered at the INEP Employment Centres (Instituto Nacional de Emprêgo), of which 26 per cent were women. The Government reports on the creation of 2,495 new jobs created by 196 new industrial businesses, ranging from micro, small, medium-sized and large enterprises. However, the Government indicates that, according to data compiled by the INE, the national economy shrank by 3.25 per cent in the second quarter of 2020 compared to the second quarter of the same year. It adds that the low rate of economic growth makes it ever more difficult to alleviate poverty and ease unemployment in the country. The Government also points out that formal salaried jobs constitute some 17 per cent of employment in Mozambique, noting that close to 80 per cent of the economy in Mozambique is informal. In its observations, the ITUC expresses the view that strong measures targeted at building a job-rich economy, promoting investment to create decent, stable and lasting employment and alleviate poverty need to be adopted. Moreover, the design and implementation of such measures must be based on in-depth analysis of the composition of the workforce, employment and labour market in the country. The Committee requests the Government to provide information on measures taken to strengthen the labour market information system and to indicate the manner in which the information compiled is used to inform the design and implementation of employment policy and active labour market measures. The Committee also requests the Government to provide updated information, including statistical data disaggregated by age, sex and economic sector, on the current employment situation in the country, including trends in employment, unemployment and visible underemployment in the country.

Employment of young persons. The Committee notes that the NEP sets specific targets for the employment of young persons. The Government reports that, as of 2021, young persons made up some two-thirds of the national labour force of 15,787,223 persons. It adds that around 21 per cent of young people residing in urban areas are unemployed, while in peripheral urban areas and rural areas young people are engaged in low productive activities. The Government indicates that it intends to increase formal employment opportunities, including through promotion of entrepreneurship. Beginning in 2021, the EMPREGA (Employ) programme is financing a business plan competition, through which 3,500 young companies will receive technical assistance to prepare business plans to create or expand their entrepreneurial activities. The Government also refers to the creation of a Fund to Support Youth Initiatives (FAIJ), implemented by the National Youth Institute, which provides material and financial support for entrepreneurial initiatives by young Mozambicans in different areas, including agriculture, agro-processing, fishing, tourism, arts and culture, packaging and technological innovation. The FAIJ programme “My Kit, My Job” (MEU KIT, MEU EMPREGO), supports youth self-employment through allocating kits to young persons (such as block manufacturing kits and electricity installation kits). The Government also launched the Creative Youth Prize, recognizing young people whose actions impact the development of the community, including through entrepreneurial activities. In its observations, the IOE notes that the NEP calls for the promotion of youth entrepreneurship through training programmes in rural and urban areas, as well as increased access to credit, investments in training targeted at young persons and an increased number of traineeships available to young persons. The Committee also notes the adoption in June 2020 of the Plan of Action for Implementing the Youth Policy 2014–23 (PAIPJ 2020), which seeks to address the main challenges faced by young persons, including in accessing education and employment. The main objectives of the PAIPJ 2020 include the improvement of quality of life for adolescents and young persons, through promoting their access to education, health, employment, housing, as well as prevention of forced marriages and early pregnancies. In its observations, the ITUC notes from the Government’s statements at the 2021 International Labour Conference discussion that it had launched programmes to encourage internships and traineeships in certain sectors, such as the banking sector, as well as programmes to promote self-employment. The Committee requests the Government to provide updated detailed information, including statistical data disaggregated by age, sex and urban/rural area, on the nature and impact of the policies and programmes developed and implemented by the Government to promote full, productive, freely chosen employment and decent work for young women and men throughout the country. The Committee further requests the Government to provide additional detailed information regarding the content, scope and impact of the measures taken to promote youth entrepreneurship, including information on the entrepreneurship training and development programmes and their impact on job creation and increased access to opportunities for decent and sustainable employment of young women and young men.

Employment of women. The Committee recalls that the NEP establishes specific lines of action aimed at promoting gender equality in economic and social development programmes, including: promoting the employment of women, including in traditionally male occupations; prioritising education and vocational training to promote equal employment opportunities for both women and men; and eliminating gender discrimination in access to employment. In its report, the Government also refers to the Government’s Five-Year Programme 2020–2024, which includes the promotion of gender equality in economic, social, political and cultural development. The Committee notes the information provided by the Government on a series of measures aimed at promoting gender equity, including: training 3,340 women in entrepreneurship and business management (135 per cent of the annual target of 2,542), 64 income generation projects financed by the FAIJ, with women making up 28 per cent of the beneficiaries, 741 kits allocated for self-employment in the areas of auto mechanics, sewing and electrical installation, benefiting 499 women (over 67 per cent of the beneficiaries), and training 14 women’s associations in the use of agro-processing techniques in two provinces: Gaza and Sofala. The Committee requests the Government to provide updated information on the nature, scope and impact of active labour market measures, including vocational guidance, education and training measures taken to facilitate women’s access to sustainable, lasting employment and decent work, particularly for women belonging to disadvantaged groups, such as women with disabilities or those living in rural areas.

Education and vocational guidance and training. The Committee notes that access to secondary education in the country is limited and completion rates remain very low at 13 per cent. In its observations, the IOE points out that the relevance of education and vocational training to the needs of the labour market is also very low. In this context, the IOE suggests that technical education and vocational training policies and programmes should be defined and implemented in close consultation with employers’ organizations. The Committee notes the Government’s indication that extending access to basic education for all Mozambicans is a central element of its poverty reduction strategy, with the aim of increasing access to sustainable employment opportunities. To this end, the Government has introduced reforms to the national education system, particularly in the area of technical vocational education and training. The Government reports that it has increased investment in general primary and secondary education, with a focus on promoting the increased integration of girls, increasing gender balance in schools and enabling more girls to attend technical courses. The Government provides additional information on measures taken to reduce drop-out rates, increase the quality and relevance of education, including by strengthening teacher training, and promote access to higher education. With respect to higher-level education and vocational training, the Government indicates that the number of students enrolled in university increased by six per cent from 2019 to 2020, and the number of those enrolled in technical education increased by five per cent during the same period. In 2020, 209,839 persons participated in vocational training, 61.7 per cent in private vocational training centres and the rest in public centres, including mobile units used in rural areas. The Committee notes that some one-third of the graduates (33.6 per cent) were women. The Government also provided 3,008 pre-professional internships during this period, in the areas of accounting, plumbing and mining. It adds that 1,174 women benefited from these internships. The Committee requests the Government to provide updated information on the nature, scope and impact of the measures taken to provide quality education, vocational guidance and training, particularly on the impact of these measures on job creation and placement in employment for both women and men, especially those belonging to disadvantaged groups.

Article 3. Consultations with the social partners. Consultations with representatives of persons affected by the measures to be taken. The Committee recalls that the NEP was examined and discussed within the tripartite Labour Advisory Commission (LAC) in May 2016, prior to its adoption. It further notes with interest that the Plan of Action for the Implementation of the NEP (PAPE 2021–24) was also discussed in the LAC, with the participation of the social partners prior to its adoption. However, the Committee notes the observations of the OTM, which indicates that, while the NEP was developed with the active participation of the social partners in 2016, the workers’ organizations have not been effectively involved in its implementation. In its observations, the ITUC recalls that the LAC and the Development Observatory are the bodies entrusted with the responsibility of following up on the NEP. It nevertheless points out that, in the June 2021 International Labour Conference discussion on the application of the Convention by Mozambique, the Government provided no information on the involvement of the social partners in these two institutions. The ITUC considers that, for the NEP to be successful, it must fully include the social partners in its design, implementation and review, and calls for the establishment of strong mechanisms in this respect. The Committee requests the Government to provide detailed updated information on the manner and extent to which the social partners are consulted in the implementation of the National Employment Policy, its Action Plan 2021–24 and all other employment policies and active labour market measures. In addition, the Committee requests the Government to provide information on consultations held with representatives of the groups affected by the measures to be taken, as required by Article 3 of the Convention.