1

Nicaragua

Labour Market Profile

2014

This Labour Market Profile is a yearly updated report that provides a broad overview of the labour

market's situation and development. The report is based on the latest data available and following

trends. Each section has also accesses to the sources' links that can be used to go more in-depth on

selected themes. This is a revised version.

2

Nicaragua – Labour Market Profile 2014

Executive Summary

Nicaragua is attempting to find a balance between global competitiveness and equity for workers. Sound macroeconomic and open trade policies are implemented, but the economy and the labor market show little structural change. The productivity has stagnated, leading to underperforming GDP and employment growth relative low in comparison with the Latin American average. On the other hand, the Nicaraguan transoceanic canal is a mega-project that is projected to start in 2015. If it succeeds to raise the necessary funds to implement this huge program through a Chinese billionaire entrepreneur, the government has estimated it will raise the GDP growth up to 12%-15% annually in coming years and create jobs for 50,000 workers in construction and indirectly 200,000 for the operation of the Nicaraguan Canal. Many questions are floating about an impact of the canal, such as U.S.-China as well as Latin America geopolitics, a possible high influx of Chinese workers, and environment consequences. Poverty is declining in Nicaragua, but remains high. The labour market was affected by the global financial recession in 2008-09 and unemployment rose from 5% in 2007 to 8% in 2010, and has been unchanging on this level since then. Youth unemployment also increased to 11%, while the time related underemployment stands at 22%. This report shows that the employment in the informal economy is on a rise. The lack of decent work opportunities drive Nicaraguans seeking jobs in other countries and it is estimated that 20% of the population live abroad, which is one of the highest migration rates in the world. Remittances are also very high at 9.7% of GDP. Many of the migrating Nicaraguans are agricultural workers in Costa Rica and two trade union centres in Nicaragua and Costa Rica have initiated cooperation to improve migrants working conditions. The minimum wages were set in 2014 and reached an average of C$4,260 per month (US$178). Minimum wages have steadily been increased every year, doubling-up the real minimum wage during the last decade. However, the average wage has only increased slightly over the last decade, and has been falling since 2006 due to high inflation.

A new Code on Processes of Labour and Social Security came into force in May 2013. It establishes specialize labour courts, and judicial mediators are appointed whose role it is to mediate labour disputes orally in the first instance, thereby reducing the amount of labour disputes, which can take years to solve. Many trade union organizations experience a fragmentation, which mainly are motivated by internal ruptures of central trade unions, affected by the current government's policies, and flexibility of the labour market. It has also been reported that the government interfered in union activities, and some employers engaged in antiunion discrimination with impunity.

The tripartite dialogue has improved labor stability in a normally volatile sector. It has suppoted Nicaragua to reduce the labour market impact of the global financial crisis and recover quicker than other countries. The collective bargaining coverage is estimated to cover 2.4% of the labour force. A large share of waged workers is covered by collective bargaining agreements. In December 2012 a tripartite agreement was reached, increasing the salary of workers in Export Processing Zones with 8%, for the four consecutive years 2014-17.

Reforms to Nicaragua's Social Security system were agreed by the National Assembly in January 2014. The reforms initiate that the retirement age will remain at age 60 and workers' contributons will remain the same, with a requirement to pay into the system for 14 years in order to qualify for entitlement to a pension. However, the amount that employers contribute will gradually increase from the current 16% to 19% in 2017.

Nicaragua was one of the first countries to ratify the ILO Convention 189 on Domestic Workers. Labor inspectors have authority to inspect working conditions of domestic workers. It has been observed that the Government’s enforcement of labor laws in agriculture is still inadequate due in part to resource constraints.

3

Contents

Trade Unions ......................................................................................................................................... 4

Trade Unions in Nicaragua ............................................................................................................................ 5

Employers’ Organisations ....................................................................................................................... 5

Central Tripartite Structures ................................................................................................................... 6

National Labour Legislation .................................................................................................................... 6

ILO Conventions ..................................................................................................................................... 7

Trade Union Rights Violations ................................................................................................................ 8

Working Conditions................................................................................................................................ 9

Workforce ........................................................................................................................................... 10

Unemployment and underemployment ..................................................................................................... 11

Migration ..................................................................................................................................................... 12

Informal Economy ....................................................................................................................................... 13

Child Labour ................................................................................................................................................. 13

Gender ......................................................................................................................................................... 14

Youth ........................................................................................................................................................... 14

Characteristics of the Working Age Population ..................................................................................... 15

Vocational training ...................................................................................................................................... 16

Social Protection .................................................................................................................................. 17

General Economic Performance ............................................................................................................ 18

Trade ................................................................................................................................................... 19

Trade agreements ....................................................................................................................................... 19

Export Processing Zones (EPZs) ................................................................................................................... 20

References ........................................................................................................................................... 21

4

Trade Unions

Trade unions in Nicaragua

Number of trade unions 1,312

Dues (standard) N/A

Members of trade unions 342,410

Trade union members share of labour force 14 %

Trade union members to waged workers 32 %

Female member share of trade unions (FNT & CST)

51 %

Members of affiliated trade unions from the informal economy (CSTCP)

50,000

Number of CBAs 13

Workers covered by CBAs 60,000

Share of workers covered by CBA 2.4 %

Labour force (2013) 2,588,000

Organized labour in Nicaragua was developed during struggles in the nineteenth century between Conservatives and Liberals, Somoza dynasty dictator regime (1936-1979), and interference from outside interests.

1 The trade union movement boomed in

1979 after the fall of the Somoza regime. The trade union movement is in a transition phase: Many trade union organizations experience a fragmentation, which mainly are motivated by internal ruptures of central trade unions, affected by the current government's policies, and flexibility of the labour market.

2

It is estimated that around 1,312 active trade unions are operating in the country. There are registered eight unions in the Export Processing Zones (EPZ), but only two are active. Members of labour unions are becoming more vulnerable in organizing collective bargaining with employers, e.g. workers have concerns to be fired due to negotiations.

3

Most labor unions are allied with political parties. It is estimated that close to 350,000 workers are members of trade unions in Nicaragua. It equals a trade union density of 14% of the labour force, which is slightly lower than the Latin America's average at 21%.

4 This

density is much higher among waged workers were it is measured at 32%. Based on an estimation, it is noteworthy that half (51%) of trade union members are women. The Constitution guarantees the right to collective bargaining and with a length of two years, which

automatically can renew if neither party requests revisions. The collective bargaining coverage is estimated at 2.4% of the labour force. Nicaragua has several trade union centres: National Workers Front (FNT)

5

FNT is the largest trade union centre. It has nine affiliated trade union federations. The organization has approximately 267,000 members. Several trade union leaders from FNT were elected to the Parliament in 2011 under the Sandinista party.

Public Sector Union (UNE)6

UNE has represented public sector workers in Nicaragua since its formation in 1978. Its membership has drastically decreased since 1990 in part because of the privatization of previously publicly owned services and in part because of attacks on unions carried out by successive right wing governments since 1990. Industrial and Manufacturing Union & the Free Trade Zones (CST-JBE)

7

The CST-JBE is affiliated with FNT and represents workers in the industrial and manufacturing sectors. CST-JBE has around 70,000 members organised in 23 federations and 150 trade unions. Around 15,000 members are women, who mostly work in the maquilas. CST has close ties to the Sandinista FSLN party.

Health Workers Union (FETSALUD)

8

FETSALUD is affiliated with FTF and organizes doctors, nurses, administrative staff, auxiliary workers and others in the health sector. FETSALUD represents 26,000 health workers, including both medical and non-medical staff; and 80% members are women. Teachers Union (ANDEN)

9

ANDEN is one of the biggest teaching unions in Nicaragua, representing over 50% of primary and secondary school teachers. University Lecturers Union (FEPDES)

10

FEPDES is affiluated with FTF and was created in April 1990 and recognised as a Federation in 2001. The FEPDES has an estimated 5,109 members.

5

Trade Unions in Nicaragua11

Members, Dues, Collective Bargaining Agreements (CBA) and Occupational Safety and Health committees

Trade Union / Trade Union Centre

National affiliation

Total Members

(2012)

Female Members

Dues

Number of CBAs

Workers covered by CBAs

Number of OSH com-mittees at

workplaces FNT Frente Nacional de los Trabajadores 267,000 55% - 13 - -

CPT Consejo Permanente de Trabajadores - - - - - -

CTN-A Central de Trabajadores de Nicaragua Autónoma CPT

- - - - - -

CUS Confederación de Unificación Sindical CPT 30,000 - - - - -

CPT-I Confederación General del Trabajo (independiente) CPT

- - - - - -

CAUS Central de Acción y Unificación Sindical CPT

- - - - - -

CST Central Sandinista de Trabajadores 50,000 30% - - - -

CTN Central de Trabajadores de Nicaragua 25,410 - - - - -

CUSa Confederación de Unidad Sindical Autónoma

- - - - - -

CST-JBE José Benito Escobar FNT - - - - - -

CUT Confederación Unidad de Trabajadores

- - - - - -

CSTCP-FNT Confederation of Self-Employed Workers FNT

50,000 - - - - -

CSNTMLAC Fishermen FNT 22,000 - - - - -

CSNTAI Confederation of Agroindustry Workers FNT

12,000 - - - - -

Employers’ Organisations

High Council of Private Enterprise (COSEP)12

COSEP (Consejo Superior de la Empresa Privada) is the main employers’ organisation. Its mission is to foster economic and social policies and to ensure free enterprise, respect for private property and strengthening business in order to contribute to progress in Nicaragua through its leadership, the active participation of its members and its interaction with the various stakeholders. COSEP is governed by a Board of Directors, and is run by an Executive Committee and has a workforce commission.

COSEP has 18 affiliated organisations – mainly chambers of commerce. COSEP conducts CSR activities, publishes a “Legislative and Economic Reports” newsletter every second month has received development aid from DANIDA, among others. Notable other employer organisations are the Nicaraguan Association for Textiles and Apparel Industry (ANITEC), and the Federation of Nicaraguan Chamber of Commerce in Free Private Zones (FCNZFP).

6

Central Tripartite Structures

Mediation and Arbitration

Labour disputes are governed by the labour code:13

First a dispute is submitted to the Ministry of Labour (MITRAB), and is attempted to be solved under direct settlement between employers and workers. Then a conciliator appointed by MITRAB will attempt to settle the dispute. If conciliation fails, a strike may be initiated or the dispute may if the parties agree, be referred to arbitration, by a Arbitration Tribunal presided by a representative from MITRAB, and one representative each from workers and employers.

A new Code on Processes of Labour and Social Security came into force in May 2013.

14 It establishes

specialised labour courts, and judicial mediators are appointed whose role it is to mediate labour disputes orally in the first instance, thereby reducing the amount of labour disputes which can take years to solve.

15

Bi/tripartite organs16

- National Council for Social Economic Planning - Local Power Cabinets - National Commission on the Occupational Health

and Safety of the Workers and Workplace Hygiene (MITRAB)

- National Minimum Wage Commission (MITRAB) - Higher Work Council - Social Security Council - National Health Council - National Education Council - National Fishing Council - National INATEC Council - National Airport Council - National Lottery Council - Tripartite National Commission for Export

Processing Zones

National Labour Legislation

Constitution17

The Constitution from 1987 was last amended in 2014 paving the way for third consecutive terms of Presidency as well as scraped the minimum required votes for election and allows the president to issue decrees with force of law. Previous amendments from 1995 created a unicameral legislative National Assembly. The constitution recognises the right to work, worker participation at workplaces, equal pay for equal work, minimum social benefits and wage, occupational safety and health, eight hour workday, rest, holidays, job stability, job security and paid maternity leave. It also prohibits child labour and recognises the right to strike, freedom of association and collective bargaining. Workers have the right to participate in development and implementation of economic plans.

Labour Law18

The Labour Law (Código del Trabajo) from 1996 regulates individual and collective labour relations, working hours, breaks, leave, wages occupational safety and health and special working conditions.

Código del Reglamento de Asociaciones Sindicales19

The trade union law from 1997 outlines the forms of membership and geographical levels. Basic trade union rights are guaranteed and workers have the right to form and join the trade union of their choice as well as to bargain collectively. The International Trade Union Confederation (ITUC) has argued that some problematic areas exist in the law, e.g. while union leaders have protected status, this is limited to nine executive members per union and three branch members. The fines for interfering in trade union affairs are not sufficiently dissuasive.

20

Código Procesal del Trabajo y de la Seguridad Social

21

The law on processes of labour and social security came into force in May 2013 and aims to ease the process of settling labour disputes.

The Labour Code is the most important labour legislation. Several other legislations exist, which regulates and sets standards and restrictions for the labour market.

22

7

ILO Conventions

Ratified ILO Conventions23

Subject and/or right Convention Ratification

date

Fundamental Conventions

Freedom of association and collective bargaining

C087 - Freedom of Association and Protection of the Right to Organise, 1948 1967

C098 - Right to Organise and Collective Bargaining Convention, 1949 1967

Elimination of all forms of forced labour

C029 - Forced Labour Convention, 1930 1934

C105 - Abolition of Forced Labour Convention, 1957 1967

Effective abolition of child labour

C138 - Minimum Age Convention, 1973 1981

C182 - Worst Forms of Child Labour Convention, 1999 2000

Elimination of discrimination in employment

C100 - Equal Remuneration Convention, 1951 1967

C111 - Discrimination (Employment and Occupation) Convention, 1958 1967

Governance Conventions

Labour inspection C081 - Labour Inspection Convention, 1947 Not ratified

C129 - Labour Inspection (Agriculture) Convention, 1969 Not ratified

Employment policy C122 - Employment Policy Convention, 1964 1981

Tripartism C144 - Tripartite Consultation (International Labour Standards) Convention, 1976 1981

Up-to-date Conventions

Working time C014 - Weekly Rest (Industry) Convention, 1921 1934

Elimination of child labour and protection of children and young persons

C077 - Medical Examination of Young Persons (Industry) Convention, 1946 1976

C078 - Medical Examination of Young Persons (Non-Industrial Occupations) Convention, 1946

1976

Wages C095 - Protection of Wages Convention, 1949 1976

C131 - Minimum Wage Fixing Convention, 1970 1976

Occupational Safety and Health

C115 - Radiation Protection Convention, 1960 1981

C139 - Occupational Cancer Convention, 1974 1981

Industrial relations C135 - Workers' Representatives Convention, 1971 1981

Vocational guidance and training

C140 - Paid Educational Leave Convention, 1974 1981

C142 - Human Resources Development Convention, 1975 1977

Freedom of association (agriculture)

C141 - Rural Workers' Organisations Convention, 1975 1981

Seafarers C146 - Seafarers' Annual Leave with Pay Convention, 1976 1981

Indigenous and tribal peoples C169 - Indigenous and Tribal Peoples Convention, 1989 2010

Specific categories of workers C110 - Plantations Convention, 1958 1981

C189 - Domestic Workers Convention, 2011 2013

Fundamental Conventions are the eight most important ILO conventions that cover four fundamental principles and rights at work. Equivalent to basic human rights at work.

Governance Conventions are four conventions that the ILO has designated as important to building national institutions and capacities that serve to promote employment. In other words, conventions that promotes a well-regulated and well-functioning labour market.

In addition, there are 71 conventions, which ILO considers “up-to-date" and actively promotes.

8

Trade Union Rights Violations

The International Trade Union Confederation (ITUC) noted restrictions on the principle of free and voluntary bargaining in March 2013 when the Universidad Politécnica de Nicaragua (UPOLI) was unwilling to negotiate. Teachers and administrative personnel from UPOLI staged a protest calling for a 10% salary increase. According to the Secretary General of the trade union, the employers and authorities at UPOLI were unwilling to negotiate.

24

According to the U.S. Annual Human Rights Report25

, there continued to be reports that the government interfered in union activities, and some employers engaged in antiunion discrimination with impunity. There continued also to be reports of government interference in union activities in the public sector, including illegal dissolution of unions and firing of workers not associated with the ruling FSLN party. The Democratic Federation of Public Service Workers (FEDETRASEP) reported that since 2007 government ministries illegally disbanded 175 unions, including 19 during the year 2013. Former ministry employees and human rights and labor organizations alleged that pro-FSLN public sector unions used intimidation and coercion to recruit new members, often pressuring workers to leave non-FSLN unions. There are abundant cases of workers being fired due to political motives. For example, the organization FEDETRASEP has registered that since 2007 close to 27,000 public sector employees were fired without just cause or due process of law, including 2,361 workers during 2013. In addition, employers often do not reinstate workers fired for union activity or pay the required severance. According to labour leaders, collective bargaining agreements and labor laws have routinely been violated by employers with impunity. Labor organizations have argued that the fines for antiunion

discrimination were not severe enough to prevent abuses. Also several cases with state workers were processed by the Central American Court of Justice, ruling in favor for the employees. None had been reinstated or received severance payment, despite the favorable ruling. The U.S. Annual Human Rights Report moreover observed that many employers in the formal sector continued to blacklist or fire union members with impunity and delay severance payments to fired workers - especially public sector employees – or omit the payments altogether. Employers avoided legal penalties by organizing employer-led unions that lacked independence and frequently using contract workers to replace striking employees. There were reports party dues were automatically withdrawn from paychecks.

26

ILO's Committee of Freedom of Association is processing one active confidential case, which was raised by the Federation of Workers and Textile Maquila (FESTMIT) in September 2013. The follow-up case was filed by the Administrative Workers’ and Teachers’ Union of the Ministry of Education (SINTRADOC) in Decmber 2011. It has reference to transfer and subsequent dismissal of three trade union officials by the Ministry of Education on the pretext of restructuring. The Government was requested to keep the Committee informed of any rulings handed down with respect to the transfer and subsequent dismissal of the trade union officials.

ILO Complaints Procedure27

Freedom of Association cases (2014)

Active 1

Follow-up 1

Closed 64

9

Working Conditions

Wages and earnings Monthly average, median and legal minimum wages

Source

Current Cordoba

US$

Average wage (2011)

Global Wage Database28

6,615 295

Median wage (2012)

Wage Indicator29

3,189 132

Minimum wage (average, 2014-15)

MITRAB30 2,851 110

Minimum wage for a 19-year old worker or an apprentice (2014)

Doing Business31

3,448 135

Growth of real average wage (2000-2011) Global Wage

Database

6.9 %

Growth of real minimum wage (2000-2011)

94 %

The minimum wage is set for 10 different economic formal sectors, with the lowest being C$2,851 (US$110) for agriculture and the highest being C$6,410 (US$251) of construction, finance and insurance sectors. The minimum wage has steadily increased every year, doubling the real minimum wage during the last decade. The average wage has only increased slightly over the last decade, and has been falling since 2006 due to high inflation.

32

The minimum cost of living is C$1,666 per week (US$256), whereas a textile worker in the EPZs receive C$1,455 per week (US$223 per month).

33 Both the

minimum and median wage are well below the cost of living. Also in terms of minimum wages' averages in Central America, Nicaragua's remain much lower than the others. The National Assembly voted in 2012 to broaden rights ensuring decent work for domestic workers, including expanding union rights, reducing the length of the workday, and assuring social security benefits. However, the legislation has so far not entered into force. A recent assessment of 20 factories, showed no evidence of child labour and forced labour. However, the section of child labour on page 12-13 demonstrates that child employment still is prevalent.

The most common areas of non-compliance in the areas of national labour law are in the categories of Occupational Safety and Health, and Contracts and Human Resources. Regarding Freedom of Association, the implementation of clauses in collective bargaining agreements was the area in which there are the highest levels of non-compliance.

34

During the first six months of 2012, the Ministry of Labour (MITRAB) reported conducting 1,276 health and safety inspections and registered 6,820 workplace accidents, including 13 registered deaths.

This insufficient enforcement of labour law is widely prominent in the informal economy. This 'sector' makes up 65% of the total employment and absorbs workers in street sales, agriculture and ranching, transportation, domestic labour, fishing, and minor construction. It has been registered that legal limitations on hours worked often are ignored by employers who claim that workers readily volunteer for extra hours for additional pay. Violations of wage and hour regulations are common and generally not investigated in the large informal sector, particularly in street sales, domestic work, and agriculture. Compulsory overtime is reported in the private security sector where guards often are required to work excessive shifts without relief.

35

Working hours per week (2010)36

As can be seen from the graph above, most employed Nicaraguans work more than 40 hours per week, and over a third work more than 50 hours per week.

<25 hours 20%

25-34 hours 10%

35-39 hours 13%

40-48 hours 31%

>=50 hours 26%

10

Workforce

Nicaragua has a population of 5.9 million people and a labour force of 2.6 million workers. Population projections can be interpreted as favorable, as no major changes are expected in terms of a 'youth bulge' massively entering the labor force, or rapid aging process in which a shrinking labor force has to cope with the costs of supporting an increasing share of elderly people. Women have considerably lower employment rates than men, but the overall employment rate is average for the region. Nicaragua has a larger lower middle class, but a smaller upper middle class than the regional average, as 38% lived for US$2-4 a day and 29% for US$4-20 a day, compared the average for Latin America and the Caribbean where 19% lived for US$2-4 a day and 57% for US$4-20 a day.

The latest data on working poverty from 2005 indicate that there are double as much working Nicaraguans living for US$1.25 or US$2 a day than the average for the Latin America and the Caribbean region.

Working Poor38

Age 15+

Share of workers

in total employment

1.25 US$

a day 2 US$ a day

Nicaragua (2005) 10 % 28 %

Latin America and the Caribbean (2005)

5.7 % 12 %

Latin America and the Caribbean (2012)

3.5 % 7.4 %

Working poor measures employed people living for less than US$1.25 and US$2 a day, as proportion of total employment in that group.

Employment rates37

(2013), Age and Sex distribution

Sex Age Employment

rate

Male & female

Total 15+ 59 %

Youth 15-24 43 %

Adult 25+ 66 %

Male Total 15+ 75 %

Youth 15-24 58 %

Adult 25+ 83 %

Female Total 15+ 44 %

Youth 15-24 28 %

Adult 25+ 51 %

59%

43%

66%

75%

58%

83%

44%

28%

51%

0% 20% 40% 60% 80% 100%

15+

15-24

25+

Female Male Male & female

11

Unemployment and underemployment Unemployment and Underemployment (2010)

Total Male Female

Unemployment rate39

8 % 7.4 % 8.8 %

Urban youth Unemployment rate 40

16 % 15 % 16 %

Underemployment41

share of employment

22 % 17 % 29 %

Part-time workers share

of employment42

21 % 14 % 31 %

Unemployment in Nicaragua stands at 8%, and urban youth unemployment at 16%. The both rates a similar as the Latin America and the Caribbean's average at 7.8% and 16.3%, respectively.

Indicators of hidden unemployment, which indicate who involuntary work less than they desire out of total employment, are high: 22% are in underemployment and is much higher among women. Around 30% are part-time workers, voluntary or not. Interpretation of the open unemployment and employment rates as indicators of a well-functioning

labour market is problematic in developing countries. When unemployment is not an option where a person can survive, work of some sort has to be found, often casual and informal work. Unemployment should therefore be understood in relation to the strength of social safety nets, the prevalence of informal employment and how much of informal employment is underemployment due to few formal employment possibilities.

43

Unemployment trend in Nicaragua, 2000-2012 (%)

44

Sectoral employment

Around 46% of workers are in waged employment and 66% of non-agricultural employment is informal.

47

Agriculture produces 18% of GDP, which is largely

because of the share of cash crops in exports. It is estimated that 32% of workers are operating in this sector. It is a male dominated sector. Male are also

6 6 6 8 7 6 5 5 6 7 8 8 8

4 4 5

13 11

9 9 7

9 9 11 11 11

17 21

23

44 44 43 43

36 35 35 34 34 33

0

10

20

30

40

50

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Unemployment rate (%)Youth unemployment rate (%)Share of youth unemployed in total unemployed (%)

Employment (2010)45

& GDP share (2012)46

Sector & Gender distribution

Sector Male

employment Female

employment GDP share per sector

Mining and quarrying 9,775 1,089 2.5 %

Manufacturing 144,757 154,557 15 %

Electricity, gas and water 11,658 2,130 1.6 %

Construction 101,396 1,587 5.3 %

Trade, hotels and restaurants

256,512 382,809 14 %

Transport, storage and communications

89,080 8,708 5.9 %

Financing, insurance, real estate and business services

56,407 24,425 10 %

Community, social and personal services

176,180 333,885 18 %

Others N/A N/A 8.9 %

Agriculture 670,952 163,294 18 %

18%

8.9%

18%

10%

5.9%

14%

5.3%

1.6%

15%

2.5%

0% 7% 14% 21% 28%

0 180,000 360,000 540,000 720,000

Male Female GDP share by Sector

12

more present in the sector construction, mining and transport, but these only employ a smaller group. One out of two workers (51%) are employed in the service sector. The service sector has been declining in contribution to GDP, though, but not in share of employed. It suggests a decline in productivity of this sector.

Many employed women tend to work outside of agriculture, especially in Trade, Hotels and Restaurants as well as Community, Social and Personal Services.

Sector Share of GDP (%)48

Migration

Migration49

Net migration (2008-2012)

Nicaragua - 120,000

Net migration to average population per year (2008-2012)

Nicaragua - 1 : 243

Inhabitants

Latin America & the Caribbean

- 1 : 956 Inhabitants

Personal transfers i.e. remittances received, % of GDP (2012)

Nicaragua 9.7 %

Latin America & the Caribbean

1.1 %

Net migration is the net total of migrants during the period, i.e. the total number of immigrants less the annual number of emigrants, including both citizens and noncitizens.

With a remittance rate of 9.7% to GDP, Nicaragua receives much more remittance than the Latin American and Caribbean's average. It makes Nicaragua one of the top remittance receiving countries in the world.

50

More leave out of Nicaragua than enter. The net migration rate from 2008-2012 is one out of every 243 inhabitant, and the Latin American and Caribbean region already has a high migration rate, compared to the rest of the world. The trend is on a decreasing rate, i.e. the previous Labout Market Profile 2013 reported one out of 141 inhabitants.

Nicaraguans migrate to very different countries, with the top three destinations being Costa Rica, the United States, and Spain.

51

Around 20% of the population has migrated abroad. An estimated 400,000 Nicaraguans work in Costa Rica, mainly in the agricultural sector. Many of them are illegal migrants, and therefore prone to be paid wages lower than the minimum wage and not receive mandatory health insurance and pension. The two trade union centres FNT and ANEP in respectively Nicaragua and Costa Rica, have started cooperation to improve migrant workers conditions.

52

Lack of decent work opportunities, unemployment and underemployment are the main reason for migrants leaving Nicaragua.

53 Migrants tend to be

young and unskilled, and there are also many temporary migrants, mainly to neighbouring Costa Rica, but also increasingly to El Salvador, Panama, and Guatemala. A tightened U.S. immigration policy has increased emigration to neighbouring countries. The large exodus of Nicaraguan labour migrants has also had social impact, and most families now have one parent away from the household.

54

A new migration law is being discussed in Parliament to reflect the current migration management reality and strengthen the protection of Nicaraguans abroad.

55

22 23 23 23 23 23 23 23 23 23 24 26 27

58 58 59 60 59 59 59 59 59 59 57

54 53

19 18 18 17 17 18 17 17 18 18 19 20 20

0

10

20

30

40

50

60

70

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Industry Services Agriculture

13

Informal Economy

Employment in the informal economy

Total informal employed in non-agricultural employment

Nicaragua (2009)56

65 %

LAC (2010)57

50 %

Employment in the informal sector in non-agricultural employment

Nicaragua (2013)58

55 %

LAC (2010)59

32 %

Informal employment make up 65% of total employment in the non-agricultural sector. The informal economy is therefore somewhat larger than the average for the Latin American and Caribbean region. It is also noteworthy that the informal economy is on rise. Another indication is the type of employment: Two types of employment, which are often informal, are own-account workers, who make up 30% of the employed; and contributing family workers who make up 17%. There are 46% waged workers.

60

Trade unions are opening up access for affiliated organizations, e.g. Confederation of Informal Sector Workers (CSTCP) is an association affiliated to FNT. It

organises 50,000 self-employed workers in the informal economy.

61

Trend of employment in the informal economy (%)

62

A survey by WageIndicator.org conducted in 201263 rated workers on an informality scale from 1-5, with 1 being workers not entitled to social benefits, who do not contribute to social security and with no contract. It shows 44% in the most informal category and 25% in the most formal. This is more formal than a similar survey of neighbouring Honduras. The survey also showed that the informality index correlates the wage level as well as how likely a worker is to be paid above the minimum wage level. With only 22% in the most informal category paid above the minimum wage level. There is no clear correlation between age and informality, and young workers are only slightly more likely to work informally.

Child Labour The most recent survey on child labour in Nicaragua is from 2005, where 13% of children were engaged in child labour, slightly higher than the average for the Latin America and Caribbean region.

64 The rate of

children in employment fell slightly from 12.1% 2000 to 10.1% in 2005, which coincided with an increase in school attendance.

Children are more likely to be engaged in child labour in rural areas (19%) than urban (7%). Boys (21%) are also much more likely than girls (4%). Children are more likely to work the older they are, as 10% of children aged 7-14 and 36% of children aged 15-17 are employed.

Most children aged 7-14 work as unpaid helpers (85%) many are also waged workers (14%). The average working week for children who only work is 38.5 hours, children who also go to school work an average of 20.8 hours. Children tend to work in forestry, fishing, coffee plantations, and subsistence farms. Hazards in agriculture included sun exposure, extreme temperatures, pesticides and chemicals. Hazards in fishing included polluted water and dangerous ocean conditions.

65

5 = Very formal

4 3

2

1 = Very informal

Employment status on

informality-index

66

57

48 44

58 59

66

81

54 58

40

50

60

70

80

90

2000 2001 2002 2003 2004 2005 2009 2010

Share of persons in informal employment in total non-agricultural employment (%)

Share of persons employed in the informal sector in total non-agricultural employment (%)

14

The government's plans to combat child labor and protect children have not been fully implemented, and programs are insufficient to reach the numbers of children engaged in hazardous child labor in agriculture and victims of commercial sexual exploitation.

66

In October 2012, the National Assembly approved a law to simplify, modernize, and streamline the public administration of labor justice, including child labor cases. The trade union CTCP has identified elimination of child workers from the informal sector as a priority area.

Working children Proportion of all children in age group

Region Age Type Proportion

Nicaragua (2005)67

7-14 Children in employment

10.1 %

5-17 Child Labour 12.9 %

14-17 Hazardous work 26.9 %

Latin America and the Caribbean68 (2008)

5-17

Children in employment

13.3 %

Child labourers 10 %

Hazardous work 6.7 %

Children in employment include all children who conduct some kind of work, whereas child labourers are a narrower term without mild forms of work. Hazardous work is the worst from of child labour as defined in ILO C182.

GenderOn the Global Gender Gap Index, Nicaragua has moving up from rank 62 in 2006 to 10 out of 136 countries in 2013, and is the highest ranking in Latin America.

69 This index is constructed to rank countries

on their gender gaps not on their development level. On the Gender Inequality Index it is ranking 129 out of 187 countries.

70

As noted elsewhere in this report: Women have considerably lower employment rates than men. Women are only slightly more likely than men to be affected by unemployment, though almost twice as likely to be affected by underemployment. Few women work in agriculture and more commonly find employment in manufacturing, commerce, education health, and domestic work. In addition, boys are more

than five times more likely as girls to be engaged in child labour. Women have lower levels of education, however, more girls enrol into schools than boys. The large trade union centre FNT has a policy of promoting 50% female participation in trade union leadership. It is also promoting the implementation of the 2008 Equal Opportunity Law 648.

71

An Enterprise Survey reported that as many as 62% of firms had female participation in ownership compared to 40% for the average in Latin America and the Caribbean, whereas 10% of full time employees were women, lower than the Latin America and the Caribbean where it was 14%.

72

Youth The Government established a National Plan of Youth Employment (2012-2016) and expanded its Youth Employment and Migration program to protect working adolescents and increase their employment opportunities.

73

The youth labour force participation rate (15-24 years old) is 48% of the total participation, which equals 605,000 workers. As previously showed, the share of youth unemployed in total unemployed exploded in the beginning of the 2000s, and is only gradually decreasing again since 2003. Unemployment for educated youth is around 30%, three times higher than average youth unemployment and four times higher than general unemployment.

74 It explains why

more workers are turning to self-employment in the growing informal economy. Moreover, there is evidence that the productivity of labor has stagnated

as most jobs continue to involve low-skill tasks, and this is reflected in the meager growth of real incomes. Notwithstanding, a recent survey from 2011 estimated that more than 62% of young Nicaraguans are optimistic about their future despite high levels of unemployment, poverty, and violence.

75

There has been raised concerns of the high youth density in the Caribbean Coast, which is characterized by multiple risk factors that contribute to an acute level of vulnerability. Among others, there is a higher prevalence of drugs and alcohol, disintegration of family and community ties, school abandonment, unemployment and bleak prospects for a job, and the weak presence of state institutions.

76

15

Characteristics of the Working Age Population

The graph above shows the educational attainment of all Nicaraguans above 25 years, therefore gives a glance of the human capital of the labour force. Nicaragua’s education is unequally spread between the over 50% of the population who have either had no schooling or have not completed primary school,

and the rest, where most have progressed to secondary schools and above. Women have lower levels of educations in most types of education, with especially more having no schooling.

Enrolment in Primary and Secondary schools (2000-2010)79

Total and Female, Nicaragua and Latin America & Caribbean

Net enrolment is the ratio of children of official school age, who are enrolled in school to the population of the corresponding official school age. Gross enrolment is the ratio of total enrolment, regardless of age, to the population of the corresponding official school age. Gross primary enrolment is therefore sometimes higher than 100%.

The enrolment into Nicaragua’s primary schools has increased during the last decade and is now similar to the regional average, while enrolment into secondary schools are still considerably below the regional average.

There have hardly been any gender differences in enrolment rates in the last decade, even though women in general have lower average years of schooling. The enrolment rate for tertiary education was 18% in 2003, somewhat below the regional average at 28%.

70%

75%

80%

85%

90%

95%

100%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Net primary school enrolment

0%

10%

20%

30%

40%

50%

60%

70%

80%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Net secondary school enrolment

Nicaragua ,Totalenrolment

Nicaragua ,Femaleenrolment

LAC , Totalenrolment

LAC , Femaleenrolment

Highest level attained and years of schooling in the population77

(2010), Population 25+, Total and Female

Highest Level Attained Total Female

No Schooling 32.1 % 42.4 %

Primary Begun 22.2 % 16.7 %

Completed 8.1 % 10.1 %

Secondary Begun 10.1 % 9 %

Completed 11.6 % 10 %

Tertiary Begun 5.8 % 4.3 %

Completed 10.1 % 7.5 %

Average year of total schooling 5.8 years 4.8 years

Educational Gini Coefficient 0.52 0.59

Primary, secondary and tertiary is the internationally defined distinction of education. In Denmark these corresponds to grundskole, gymnasium & university.

The educational Gini Coefficient is similar to the Gini Coefficient, but instead of measuring the distribution of income in a population, it measures the distribution of education measured as years of schooling among the population.78

0% 20% 40% 60% 80% 100%

Total

Female

No Schooling Primary - Begun Primary - CompletedSecondary - Begun Secondary - Completed Tertiary - BegunTertiary - Completed

16

Vocational training

Vocational Training80

Pupils in vocational training (2010)

Nicaragua 6,880

Ratio of pupils in vocational student to all pupils in secondary education

Nicaragua 3.5 %

Latin America & Caribbean

9.3 %

Ratio of pupils in vocational training out of 15-24 year olds

Nicaragua 1.3 %

Latin America & Caribbean

5.2 %

Nicaragua’s ratio of pupils in vocational training to all pupils in secondary education was calculated on average for the period 2006-2010, while the Latin America & the Caribbean region is an average of the period 2007-2011. The ratio of pupils in vocational training out of 15-24 year olds is calculated as an average in the period 2005-2010.81

Ratio of pupils in vocational student to all pupils in secondary education, 2000-2011

82

Nicaragua has a lower share of students in vocational training out of students in secondary education, and also compared to the population of 15-24 year olds. This can be a problem for youth unemployment of

young people, as vocational training often gives easily employable skills. The vocational training trend has been on a decreasing rate which is in contrast with the Latin America and Caribbean's average. Among firms that have unfilled vacancies, more than 61% of them find that social skills such as communication skills are the most difficult to find in a candidate, in contrast to 52% in the rest of Central America. It is noted that Nicaragua has less difficulties with technical skills in comparison with the region.

An impact evaluation of interventions aimed at increasing the income capacity of the poor through vocational training, micro-finance or business grants in Nicaragua, showed that poorest households were more likely to enter programs and received higher profits in non-agricultural self-employment, while less poor households assigned to the training had higher non-agricultural wages. The vocational training didn't lead to wage increases of the poorest. It questions benefits and impact of courses.

84

0%

2%

4%

6%

8%

10%

12%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Nicragua Latin America & Caribbean

Most difficult skill to find when filling vacancies83

(% firms)

Rest of Central

America Nicaragua Total

Social skills 52 61 52

Technical skills 48 39 48

17

Social Protection

Public spending on social protection schemes85

(2009)

Public social protection

expenditure, excl. health

Córdoba 4.8 billion

US$ 236 million

% of GDP 2.9 %

per capita 41 US$

% of government expenditure86

36 %

Public health care % of GDP 4.1 %

Health social protection coverage

% of population 12 %

Trends in government expenditure in health

% changes per year (2007-2011)

3.5 %

Benefits, coverage and contributions to pension schemes

87

(2011)

Social benefits for the active age % of GDP 0.5 %

Pensionable age receiving an old age pension (men 62+; women 57+)

Proportion of total

24 %

Old age effective coverage as proportion of programs

Proportion of contributory

24 %

Active contributors to an old pension scheme

15-64 years 14 %

Nicaragua's old pension schemes have a low coverage on an estimated 14%, between 15-64 years, contributors, while the rate is 28% in Latina America. The country has a relatively high government expenditure on social protection at 36% and with US$41 per capita. It is also notable that there is an annual growth of 3.5% of government expenditure on health. The National Institute of Social Security (INSS) is the main provider of social security. Data from INSS shows that between 1998 and 2011 the population that contributes to social security increased from 16% to 20% of the economically active population. This coverage corresponds to less than 50% of wage-earners in Nicaragua, 25% of the employed population and 8% of the total population.

88

INSS has three schemes: i) Riesgos Profesionales (RP) covers professional risks and work injury; ii) Invalidez, Vejez y Muerte (IVM) provides invalidity, old-age and survivor pensions, and iii) Enfermedad y Maternidad (Integral) provides medical, sickness and maternity benefits.

89

Employers pay 16% of the salary to the Integral and 10% to IVM and RP. Workers pay 6.25% of the salary to Integral and 4.25% to IVM and RP. Integral and IVM are open for voluntary coverage for self-employed for respectively 18% and 10% of declared earnings.

90 Still

only about 15% of the working age population is covered by the INSS. Reforms to Nicaragua's Social Security system were approved by the National Assembly in January 2014. The retirement age will remain at 60 years old and workers' contributons will remain the same, with a requirement to pay into the system for 14 years in order to qualify for entitlement to a pension. The reforms initiate that employers contribute will gradually increase from the current 16% to 19% in 2017.

91

The non-contributory Social Protection Network (RPS) provides conditional cash transfers. RPS transfers US$9.2 per household per month, US$21 per year for school materials, US$18.7 per month to support health and US$4.6 per year subsidy to school per child covered. The conditions are that children must enrol and attend school, as well as attend health check-ups.

92

There are some legal and political constraints of extending social insurance to informal sector workers, but there are possibilities for private sector actors to take on the role of agent and/or provider of social and health insurance. Many workers from the informal economy do often not have knowledge about the pension systems and/or the costs were crucial determinants of signing up for health insurance. When they are offered voluntary insurance schemes, they enroll fast, mostly in public institutions. An evaluation showed that insurance did not result in increased overall service utilization, but in a switching to health clinics for the insured from other facilities not covered by the insurance program. It was concluded that the subsidized insurance significantly reduced enrollees’ out-of-pocket health expenditures. On the other hand, once subsidies for the premium expired, the insurance program experienced a low retention rate.

93

18

General Economic Performance

Key Facts 94

(2013 est.)

GDP GDP

per capita (PPP)

GDP real growth

HDI (2012)95

Gini Index (2010)

11.3 billion US$

4,500 US$ 4.2 %

0.599 40.5

166 of 229 countries

129 of 187 countries

56 of 141 countries

The Human Development Index (HDI) measures the average of a long and healthy life, access to knowledge, and a decent standard of living. This Gini Index is measured if income were distributed with perfect 'equality', the index would be zero; if income were distributed with perfect 'inequality', the index would be 100. In terms of the ranking, the first country has the highest inequality, while the number 136 has the highest equality.

Doing business96

Control of corruption

Government effectiveness

Rule of Law

119 of 189 countries

-0.76 (2007) -0.91 (2007) -0.80 (2007)

-0.78 (2012) -0.89 (2012) -0.74 (2012)

A high ranking on the Ease of Doing Business Index means the regulatory environment is more conducive to the start-up and operation of a local firm.97 The selected Governance Indicators98 cover the years 2007 and 2012, and ranking from ‐2.5 to 2.5; i.e. negative tendencies below the zero mean and unit standard deviation, score negative measurements.99

Nicaragua is one of the least developed countries in Latin America with mediocre income equality. Poverty has decreased steadily in recent years, but remains high. There have been no advances on the Human Development Index in the period 2007-2012. After a quick rebound in 2010 after the global financial crisis in 2008, economic activity grew at 5.4% in 2011, the highest rate in a decade. Inflation was also tamed to single digits, down from a high of 25% in mid-2008. The macroeconomy remains stable, with a GDP forecast growth at 4.2% in 2014. The fixed capital formation is still increasing and stays above the average in the Latin America and Caribbean.

100 The

country is highly dependent on remittances and on development aid.

101

Agriculture, construction, forestry, fishing and mining are driving growth. On the demand side, are private consumption, exports and government spending. Private investment registered a slight growth, well below the levels of the past two years, though. The Nicaraguan Canal has been interpreted by the government as a symbol of progress in the country. The government has estimated that this mega-project will raise the GDP growth up to 12%-15% annually in

coming years and create jobs for 50,000 workers in construction and indirectly 200,000 for the operation of the Canal. However, critical questions remain on the perspectives of the canal, e.g. if the main investor, which is a Chinese billionaire, can raise at least US$40-50 billion; when China is more present in the U.S. “backyard”; influx of thousands of Chinese workers; and environmental consequenses.

102

The doing business indicator ranks Nicaragua as medium to low at 119 out of 189 countries, stepping up on 7 steps on the index during the period 2013/14 and 2014/15. Nicaragua has low scores on all three governance indicators, especially on Government Effectiveness.

GDP per Capita (PPP), trend and forecast103

Inflation, trend and forecast104

Gross fixed capital formation (% of GDP)105

0

5000

10000

15000

20000

200

5

200

6

200

7

200

8

200

9

201

0

201

1

201

2

201

3

201

4

201

5

201

6

201

7

Cu

rren

t U

SD

Nicaragua Latin America and the Caribbean

0%

5%

10%

15%

20%

25%

200

0

200

1

200

2

200

3

200

4

200

5

200

6

200

7

200

8

200

9

201

0

201

1

201

2

201

3

201

4

201

5

201

6

201

7

Nicaragua Latin America and the Caribbean

26 24 22 22

24 26 26

30 30

23 22 23 25

19 18 17 18 18 19 20 20 21 20 20 21 21

0

10

20

30

40

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Nicaragua Latin America & Caribbean

19

Trade

Trade and Foreign Direct Investment

106

2013 (est.)

Exports Imports FDI flow

(average 2008-12) FDI Stock

4.3 billion US$

6.6 billion US$

668 million US$ N/A

38 % of GDP 59 % of GDP 5.9 % of GDP

Trade is a prominent part of Nicaragua’s economy, with export at 38% and imports at 59% of GDP. Foreign Direct Investment (FDI) flows are also at a very high rate at 5.9% of GDP. The export sector is relatively well diversified, making it less vulnerable to changes in global demand. The export productions have a composition of skill requirements that make it difficult for skilled labour to be used in other sectors.

107

Main products share of exports (2012)

108

Main export markets (2013)

109

Trade agreements Nicaragua has bilateral trade agreements with Costa Rica, Mexico, Panama and Taiwan, and is also negotiating trade agreements with Canada and Chile.

The country is also part of the Central American Integration System, which includes the Central American Common Market (CACM), and has a Consultative Committee involving labour and works to harmonise education systems.

110

Nicaragua is member of the Dominican Republic-Central America-United States Free Trade Agreement (CAFTA-DR), which was initiated in 2002. It is an agreement between the United States and Central American states, with the goal of setting up a free trade area. It requires the two countries to uphold the four core ILO labour standards, as well as acceptable conditions of work, in a manner that does not affect trade. It sets up a monitoring mechanism.

111 CAFTA

has been controversial in the United States, for not making enough labour and environmental requirements,

112 while in the Central American

countries liberalize state owned enterprises and opening markets to subsidized U.S. agricultural products.

113 Nicaragua’s exports to the U.S. have

grown 75% over the past six years and fostered a US$1 billion-plus trade surplus with the U.S., which in large part to CAFTA. Nicaragua benefits from European Union’s (EU) unilateral Generalised Scheme of Preferences (GSP+) special incentive arrangement, which allows duty and quota free access for most products. To be granted and continue to be granted GSP+, a country must ratify and effectively implement conventions within human rights, environmental and the eight ILO Core Conventions. The EU will examine each beneficiary every second year.

114 As of 1 August 2013, the EU and

Honduras, Nicaragua and Panamainitiated started applying the trade part of an Association Agreement signed in 2012. The agreement will open up markets and create a stable business and investment relation.

115

Along with five other Central American countries, Nicaragua has entered an association agreement with EU, which has not yet entered into force. The Association Agreement is to strengthen regional integration between the Central American countries including cooperation, harmonisation and improvement of labour market. In turn, the EU will provide trade benefits.

116

Coffee; 14%

Gold; 10% Frozen

Bovine Meat; 8.2% Passenger and Cargo

Ships; 5.9% Raw Sugar;

5.0% Insulated Wire; 4.9%

Knit Sweaters;

4.0% Crustaceans;

4.0%

Others; 44%

US; 50%

Canada; 8%

EU; 6%

Venezuela; 7%

El Salvador;

4%

Mexico; 12%

Others; 13%

20

Export Processing Zones (EPZs)

Nicaragua’s EPZs where first established in 1991, though there had been minor free zones since the 1970s.

117

As of 2010 there were 49 EPZs in Nicaragua with 147 enterprises, which according to the National Free Trade Zone Commission (CNZF) have created 84,900 directs jobs and 254,700 indirect jobs, and exports for US$1.57 billion. The largest sector is textiles comprising 60 enterprises and 69% of direct jobs.

118

Export constitutes close to 40% of Nicaragua’s GDP, much of this from the Export Processing Zones. A 60-hour workweek, including overtime, pays below estimated costs of living. In 2008, 20 collective bargaining agreements were signed in the EPZs covering 54,054 workers out of 73,200 workers in 2008. It is illegal for employers to restrict unions, but dismissals due to union activities are still common. Nicaragua has several industry

specific minimum wages, and they are the same in EPZs.

119

A tripartite agreement on the EPZ was reached in December 2012 between the Government, the trade unions CST, CST-JBE, CUS, CUT and the employer organisations ANITEC and FCNZFP. The point of the agreement is wage increases of 8%, for four consecutive years 2014-2017.

120

Anecdotal evidence suggests that EPZ workers in Nicaragua are denied the legally mandated minimum wage under the current government. In fact, low pay and violations of labour law have characterized Nicaraguan EPZs. Wages in comparable industries outside the zones are higher on average, though. There has also been a hostile social dialogue at times within the EPZs. It is noteworthy that women have played an important role in Nicaraguan labour struggles.

121

21

References

1 Robert J. Alexander, A History of Organized Labour in Panama and Central America, 2008 2 REAL CARD, Estudio sobre la Situación de las Organizaciones de Trabajadores en Nicaragua, 2010 3 REAL CARD, Estudio sobre la Situación de las Organizaciones de Trabajadores en Nicaragua, 2010 4 ILO, Social Dialogue Indicators, International Statistical Inquiry 2008-09 5 LO/FTF Council 6 NSCAG, Trade Unions in Nicaragua 7 NSCAG, Trade Unions in Nicaragua 8 NSCAG, Trade Unions in Nicaragua 9 NSCAG, Trade Unions in Nicaragua 10 NSCAG, Trade Unions in Nicaragua 11 LO/FTF Council 12 http://www.cosep.org.ni 13 ILO, NATLEX, Ley núm. 185 por la que se dicta el Código del Trabajo 14 ILO, NATLEX, Ley núm. 815 de Código Procesal del Trabajo y de la Seguridad Social 15 ILO, News, Nicaragua moderniza su sistema de justicia laboral, 10 June 2013 16 LO/FTF Council 17 ILO, NATLEX, Constitución Política de la República de Nicaragua de 1987 [versión consolidada] 18 ILO, NATLEX, Ley núm. 185 por la que se dicta el Código del Trabajo 19 ILO, NATLEX, Decreto núm. 55-97 por el cual se dicta el Reglamento de Asociaciones Sindicales 20 ITUC, 2010 Annual Survey of violations of trade union rights – Nicaragua 21 ILO, NATLEX, Ley núm. 815 de Código Procesal del Trabajo y de la Seguridad Social 22 ILO, NATLEX, Country Profile Tunisia, Basic Laws 23 ILO, NORMLEX, Country Profiles 24 ITUC, Surveys of Violations of Trade Union Rights, Nicaragua 25 U.S. Department of State, Country Reports on Human Rights Practices for 2013, Nicaragua 26 U.S. Department of State, Country Reports on Human Rights Practices for 2013, Nicaragua 27 ILO, NORMLEX, International Labour Standards country profile, Nicaragua 28 ILO, Global Wage Database 2012/13 29 Wage Indicator, Tijdens & Wambugu, Wages in Nicaragua, Wage Indicator survey 2012 30 MITRAB, Acuerdo Ministerial ALTB-01-03-2014 31 World Bank & IFC, Doing Business 2014, Economy Profile: Nicaragua 32 ILO, Global Wage Database 2012/13 33 IndustriALL, Fighting for a living wage in Nicaragua, 30.10.2012 34 ILO & IFC, Better Work Nicaragua: garment industry 1st compliance synthesis report, 2013 35 U.S. Department of State, Country Reports on Human Rights Practices for 2013, Nicaragua 36 KILM 37 KILM 38 KILM 39 KILM 40 ECLAC 41 KILM 42 KILM 43 Kucera D. & Roncolato L. (2008), Informal Employment: Two contested policy issues, International Labour Review, Vol. 147 (2008). No. 4 44 ILO, Key Indicators of the Labour Market 8th Edition 45 ILO, Key Indicators of the Labour Market 8th Edition 46 ECLAC, CEPALSTAT 47 KILM 48 World Bank, World dataBank 49 World Databank 50 World Bank, Migration and Remittances Factbook 2011 51 World Bank, Migration and Remittances Factbook 2011 52 LO/FTF 53 IOM, Where We Work, Nicaragua 54 IOM, Perfil Migratorio de Nicaragua, 2012 55 IOM, Where we work, Nicaragua 56 ILO, Key Indicators of the Labour Market 8th Edition 57 ILO, 2011 labour overview : Latin America and the Caribbean 58 FNT, Nicaragua: Sector real de la economía 2013 59 ILO, 2011 labour overview : Latin America and the Caribbean 60 KILM 61 LO/FTF Council 62 ILO, Key Indicators of the Labour Market 8th Edition 63 Wage Indicator, Tijdens & Wambugu, Wages in Nicaragua, Wage Indicator survey 2012

22

64 Understanding Children's Work, Trends in children's employment and child labour in the Latin America and Caribbean region: country report for Guatemala, 2010 65 USHRR 66 U.S. Department of Labour, 2012 Findings on the Worst Forms of Child Labor, Nicaragua 67 Understanding Children's Work, Trends in children's employment and child labour in the Latin America and Caribbean region: country report for Nicaragua, 2010 68 ILO, Accelerating action against child labour, International Labour Conference, 99th Session 2010 69 Global Economic Forum, The Global Gender Gap Report 2013 70 UNDP, Gender Inequality Index 2012 71 LO/FTF Council 72 World Bank, Nicaragua Enterprise Survey, 2010 73 U.S. Department of Labour, 2012 Findings on the Worst Forms of Child Labor, Nicaragua 74 World Bank, Better Jobs in Nicaragua: The Role of Human Capital, 2012 75 UNDP, Despite high unemployment, young Nicaraguans are hopeful, 2011 76 USAID, Nicaragua Youth Assessment, Assessment of security and crime prevention activities, with a focus on youth as risk, on the Caribbean Coast of Nicaragua, 2012 77Barro, Robert and Jong-Wha Lee, April 2010, "A New Data Set of Educational Attainment in the World, 1950-2010." NBER Working Paper No.

15902 78Calculation from based on Thomas, Wang & Fan (2001), with data sets fromBarro-Lee (2010) and Psacharopoulos and Arriagada (1986). 79 World Databank 80 World Databank 81 UNdata, Population aged 15-24 (thousands) 82 World Databank 83 World Bank, Better Jobs in Nicaragua: The Role of Human Capital, 2012 84 World Bank, Policy Research Working Paper 6389, Demand versus Returns?: Pro-Poor Targeting of Business Grants and Vocational Skills Training, March 2013 85 ILO, Social Protection, Statistics and indicators 86 World Bank, DataBank 87 ILO, Social Protection, Statistics and indicators 88 ECLAC, Social protection systems in Latin America and the Caribbean: Nicaragua, 2013 89 http://www.inss.gob.ni 90 http://www.inss.gob.ni 91 NSCAG, Social Security Reforms Agreed in Nicaragua: Retirement Age To Stay at 60, January 24, 2014 92 ILO, Social Security Department, Social Security Inquiry 93 USAID, Extending Social Insurance to Informal Sector Workers in Nicaragua via Microfinance Institutions: Results from a Randomized Evaluation, 2009 94 CIA, The World Factbook, Nicaragua 95 UNDP, Human Development Index trends 96 World Bank & IFC, Ease of Doing Business, Nicaragua 97 World Bank & IFC, Doing Business, Methodology 98 World Bank, Worldwide Governance Indicators, Niger 99 World Bank, Worldwide Governance Indicators 100 World Bank, Countries, Nicaragua Overview 101 EU, MTR Document (Annex), Nicaragua CSP 2007-2013, 2010 102 Brookings, A Transoceanic Canal for Nicaragua?, July 9, 2014 103 IMF, World Economic Outlook Databases 104 IMF, World Economic Outlook Databases 105 World Bank, World dataBank 106 CIA, The World Factbook, Nicaragua 107 MIT, Alexander Simoes, The Observatory of Economic complexity, Rankings 108 MIT, Observatory of Economic Complexity, Profiles: Nicaragua 109 European Commission, DG TRADE, Bilateral Relations, Statistics 110 http://www.sica.int 111 Office of the United States Trade Representative, Free Trade Agreements, Bahrain, Final Text 112 CFR, Issue Tracker, The Candidates on Trade, July 30 2008 113 ITUC, Costa Rica: ITUC supports “No” to DR-CAFTA in referendum, 5 October 2007 114 EC, DG TRADE, Development, Generalized System of Preferences (GSP) 115 EU, European Commission - IP/13/758, EU Trade deal with Honduras, Nicaragua and Panama becomes operational, 31 July 2013 116 EC, DG TRADE, EU-Central America association agreement 117 ILO, DIALOGUE, Callum, Working Paper 21: Export processing zones: Comparative data from China, Honduras, Nicaragua and South Africa, 2010 118 Comisión Naitonal de Zonas Francas, Industrial Directory 2011-2012 119 ILO & ITUC, Nicaragua, Zonas Francas Industriales, Derechos Laborales y Estrategias Syndicales, 2012 120 ILO, News, Nicaragua: acuerdo tripartito en Zona Franca, 9 Jan 2013 121 ILO, Working Paper No. 21, Export processing zones: Comparative data from China, Honduras, Nicaragua and South Africa, March 2011