Information System on Labour Markets

1

INTER-AMERICAN COUNCIL FOR INTEGRAL DEVELOPMENT (CIDI)

XII INTER-AMERICAN CONFERENCE OFOEA/Ser.K/XII.12.1

MINISTERS OF LABORTRABAJO/INF.2/01

October 17-19, 200128 September 2001

Ottawa, CanadaOriginal: Spanish

INFORMATIVE DOCUMENT

SISMEL REPORT

SISMEL - Information System on Labour Markets

1

SISMEL
INFORMATION SYSTEM ON LABOR MARKETS
ACHIEVEMENTS AND A PROJECTION TO 2005
The purpose of this document is to deliver concise information of the project “Information System on Labor Markets”, its objectives and achievements up to date.
Principally, it has the intention of informing the Labor Ministries about the available platform of labor information through SISMEL and future activities that may be put into practice taking advantage of the existing version.
Through the signing of an Execution Agreement between the Executive Secretariat for Integral Development (ESID) of the OAS and the Instituto Nacional de Estadística e Informática (INEI) of Peru, this institute is responsible for the execution of the SISMEL.
SISMEL has created and maintains a Web site with its own server that has ampler general information and complete detail of the activities done by the project. The site’s address is,

General Secretariat

Organization of American States

Document prepared for presentation at the Twelfth Inter-American Conference of Ministers of Labor (XII CIMT)

Washington D.C., June 2001

INDEX

Introduction...... 4

Executive Summary...... 5

Origin of SISMEL...... 9

General Aspects of the Project...... 8

Main Characteristics of the Project...... 11

Objectives of SISMEL ...... 11

Duration and Stages...... 11

Participating Countries...... 12

Executive Institutions and Collaborating Organizations...... 12

Financial Resources Used……………………………………………………….. 12

Activities Performed...... 13

Main Achievements………...... 14

Proposal for the Projection of the SISMEL until 2005………...... 15

Institutional Structure and Organization of the SISMEL...... 15

Inter-American and Sub regional Technical Forums ...... 16

Other Activities Foreseen for the SISMEL...... 17

Improvement of the SISMEL Web site ………...... 17

Production of technical documents...... 17

Strengthening of the Ability to Analyze Labor Information………… 17

Improvement of data gathering tools …………………………………….. 18

Incorporation of new information in the SISMEL Web site ...... 18

Support to Programs of Labor Training ...... 18

Information Systems on Labor Offer and Demand ...... 18

Funding for the SISMEL Activities for the Period 2002-2005...... 19

Proposal for an Executive Schedule of Activities for the Management of Resources ...... 19

Annexes ...... 20

INTRODUCTION

The overcoming of the offending situation of poverty a large part of the population in the American Region is suffering is without any doubt the most urgent challenge which the respective governments have to face, and so they have expressed in the different forums which bring them together.

The response to this challenge is the promotion of productive and decent employment, and that is why these governments currently earmark resources and foremost attention to policies and programs tending to improve offer and quality of employment which must be carried out in the context of the new conditions of economic development, characterized by globalization, competitiveness and the use of new technologies which, until now, have not shown positive effects regarding the promotion of employment in the majority of the countries in the Region.

Information systems on labor markets become essential for the design, monitoring and evaluation of such policies and programs, and twenty countries from Latin America and the Caribbean have been working together for approximately three years in the Project “Information System on Labor Markets (SISMEL)” which is part of the actions of Cooperation for Integral Development of the Organization of American States (OAS).

Project SISMEL stands out from other initiatives carried out in the Region because

• It is an activity originated by the CIMT and it works inside the framework of the CIMT
• Not only does it gather information, but it also encourages and coordinates efforts between the sources from which it comes, so that it can be comparable regionally
• It also deals with the strengthening of the capacity of analysis of the available information
• Through the systematic preparation of technical documents, SISMEL disseminates and encourages the study of methodologies, procedures and use of modern technology to achieve greater efficiency and quality in the production, analysis and dissemination of information in the labor sector

thus rendering an integral service in the treatment of information in the labor sector.

Recently, in the Preliminary Reunion of the Twelfth CIMT (Miami, 11-13 July 2001) the document “A projection of SISMEL to 2005” was presented, this document contains the main characteristics of this project, a summary of the activities carried out to this date, the achievements and a projection of SISMEL for the next four years.

The document was favorably received by the delegates of the mentioned Preliminary Reunion, which, in its proposal of Declaration of the Twelfth CIMT, recognizes “the need to continue the actions tending to improve and develop methods and procedures for the production and analysis of information on the labor sector as a means to strengthen the role of the Ministries of Labor in governmental decisions” and incorporates in its respective Plan of Action the carrying out of technical workshops on labor information systems.

This document is based on the one presented before the Preliminary Reunion and has been expanded and complemented, taking into consideration the indications and comments done in that reunion.

EXECUTIVE SUMMARY

A) ORIGIN OF THE SISMEL

The Information System on Labor Markets (SISMEL) had its origin at the 10th Inter-American Conference of Ministers of Labor (CIMT), which stated the need to urgently advance towards the modernization of Labor Ministries so they would be able to confront in a suitable way the challenges arising from the transformation and globalization of the economy in their respective countries. This Conference recommended specifically that the General Secretariat of the OAS elaborate a draft on Information Systems of Labor Markets, to be put into consideration of the Inter-American Council for Integral Development (CIDI).

B) GENERAL ASPECTS OF THE PROJECT

The SISMEL is a project of the Organization of the American States which intended to be a substantial tool for the design, monitoring and evaluation of programs and policies carried out in the framework of the priority actions determined by the CIMT.

The Project SISMEL complies with the Plan of Action of the Second and Third Summit of Presidents and Chiefs of State, fits into the Plan of Action of Viña del Mar formulated by the 11th Inter-American Conference of Ministers of Labor, maintains a permanent link with the CIMT and its specialized forums adjusting the project to the priorities determined, it follows the new concept of solidarity of the CIDI, it is permanently coordinated with the international organizations interested in the subject and has the active participation of the Governing Organ of the National Statistics System of the participating countries.

C) MAIN CHARACTERISTICS OF THE PROJECT

The main objective of the SISMEL is to develop Systems of Labor Information which allow knowing, and as far as possible, anticipating the impact of the current economic and social policies on the situation of labor. Also, it has as a goal to facilitate the regional harmonized comparison of labor indicators. The Project was originally conceived to last three years and has been carried out since 1998. The participation of the countries in the Project SISMEL is voluntary and twenty countries from Latin America and the Caribbean participate in it. The Instituto Nacional de Estadística e Informática (INEI), of Perú is the Executive Unit of the Project. Each Ministry of Labor of the participating countries acts as the Executive Institution of the activities carried out in each country and their National Statistics Institutes are Collaborating Institutions in the development of the project. Also, the International Labor Organization (ILO) and the Caribbean Community (CARICOM) lend their invaluable support to the project. Between 1998 and 2000 U$S 981,000 were invested in the execution of the Project Information System on Labor Markets (SISMEL), of which U$S 539,256 correspond to OAS resources and U$S 450,000 as national balancing entry of the participating countries. This year, the OAS has destined U$S 72,000 to the Project and the national balancing entry reaches U$S 150,000.

1. ACTIVITIES PERFORMED

Two General Seminars basically aimed at approving the activities of the SISMEL, define the basic indicators of the System and agree on harmonization aspects of the same, with the attendance of representatives from countries participating in the Project, as well as from the ILO and the CARICOM.

Three Sub Regional Seminars for the participating countries of the following sub regions, Central America and Dominican Republic, English speaking Caribbean and South America and Mexico, aimed at dealing with specific aspects of the respective Sub regions related to the management of the project SISMEL.

Funding of computing equipment (PC) and Internet connection for a year for each of the 20 participating countries.

Execution of nine National Courses-Workshops on statistics and indicators of the SISMEL, carried out in, Bolivia, Colombia, Costa Rica, Chile, Honduras, Panama, Paraguay, Peru and Dominican Republic. In this year the eleven remaining National Courses will be held based on the teaching material prepared by the SISMEL to be used for distance learning.

Building and maintenance of the Web site of the SISMEL.

Building and maintenance of an inventory on the production of labor statistics and indicators in the participating countries and on the operational situation of each national office in charge of the production of these statistics and indicators.

Production of fourteen technical documents and five are being prepared for the present year on diverse subjects considered priorities by the CIMT.

MAIN ACHIEVEMENTS

Establishing of the basic set of twenty statistics and indicators which make up the SISMEL,

Beginning of the harmonization process of the statistics and indicators included in the basic set.

Improvement of the coordination between the national institutions involved in the production and analysis of this information, through the carrying out of nine national course-workshops in the participating countries of the SISMEL.

Creation of the Web site of the SISMEL as an effective tool for the exchange of information and experiences in labor matters.

Building of the basic infrastructure to be part of the Internet and to make the operational management of the Project SISMEL possible for each national institution in charge of it.

A program of activities of the SISMEL in accordance with the real current and potential capacity of each participating country through the use of the information on inventories about the production of statistics and labor indicators and about the operational situation of the national bureaus in charge of this production.

Diffusion of methodologies to calculate and harmonize indicators through the production of technical documentation.

E) PROPOSAL FOR THE PROJECTION OF THE SISMEL UNTIL 2005

In a little more than three years, the twenty participating countries in the Project SISMEL have completed a series of important activities, whose achievements certainly strengthen the ability to study their respective labor markets. The investment done by the SISMEL lays the foundation for the Labor Ministries to consolidate this tool, improve it and strengthen it as a center of exchange, inter-American forum, and of training. We suggest that the action of SISMEL should continue as described below

Institutional Structure and Organization of the SISMEL

It is convenient to adopt a new institutional framework for the development of the development of the future activities of the SISMEL. Taking into consideration that SISMEL is a tool to support the execution of the Plans of Action of the CIMT and that the Ministries of Labor of the participating countries are the institutions responsible for the orientation, execution and evaluation of the activities of the SISMEL,

A Pro Tempore Secretariat of the SISMEL needs to be created, rotating every two years, to the effect of institutionalize a permanent link between the CIMT and the activities of production and use of labor information.

Each Ministry of Labor should name a National Coordinator of the SISMEL, who, among other tasks, will be in charge of the creation and administration of a Web site of the SISMEL for their country.

The General Secretariat of the OAS, as Technical Secretariat of the CIMT, is responsible for the services of the Technical Secretariat of the SISMEL Forums and for the monitoring of the actions and agreements adopted by this System.

Ensure the cooperation of the Governing Organs of the National Statistics Systems of the participating countries and the collaboration of international organizations such as: ILO, IADB, World Bank, CEPAL, CARICOM and others.

Inter-American and Sub Regional Forums

SISMEL is an excellent technical meeting place for the Ministries of Labor to make progress in the development of common methodologies in the field of labor information, to bring forward actions for the regional harmonization of indicators and to agree on activities of supportive cooperation. Thus, it is suggested that the following should be done,

• Organization and carrying out of a General SISMEL Forum every two years with the attendance of a Ministry of Labor representative and a representative of the Governing Organ of the National Statistics System of each participating country.

• Organization and carrying out of four Sub-Regional SISMEL Forums every two years, for the English speaking Caribbean and Belize, Central America and Latin speaking Caribbean, Andean Pact Countries and MERCOSUR countries, Chile and Mexico.

Functioning of SISMEL

SISMEL is a tool that is already working in the Region and has enormous potential to contribute to the efforts of the Ministries of Labor in their future tasks. We suggest the following,

Extension and improvement of the Web site of the SISMEL to make it an intensive means of interchange between Ministries of Labor.

Production of technical documents on subjects of production and analysis of labor information in the priority areas of the CIMT, such as, Information to supervise the performance of labor regulations passed by the FTAA, Anticipatory Indicators of Employment Behavior, Indicators of Employment Quality, Indicators of Employment in Vulnerable Groups and Indicators of Dynamic Behavior of Employment among others.

Strengthening of the Capacity of Analysis of Labor Information, Improvement of tools to gather information which allow new multivariate studies, development of programs of labor training and advance in the development of information systems on employment offer and demand.

F) FUNDING FOR THE SISMEL ACTIVITIES PASSED FOR THE PERIOD 2002-2005

For the funding of SISMEL activities which shall be agreed on for the period 2001-2005, by request of the CIMT, the General Secretariat of the OAS should be entrusted with carrying out negotiations through the relevant channels before the Inter-American Development Bank, and other regional organizations, to obtain funding, additional to the national balancing entry from the participating countries of SISMEL, which will allow the implementation of this new stage of the project SISMEL.

SISMEL: ITS ACHIEVEMENTS AND A PROJECTION TO 2005

ORIGIN OF THE SISMEL

The Information System on Labor Markets (SISMEL) had its origin at the 10th Inter-American Conference of Ministers of Labor (CIMT), held in Buenos Aires (1995), which stated the need to urgently advance towards the modernization of Labor Ministries so they would be able to confront in a suitable way the challenges arising from the transformation and globalization of the economy in their respective countries.

As part of this modernization, the 10th CIMT pointed out the need that Labor Ministries “develop information systems on labor markets which should be transparent and available to accomplish the needs of employees and employers.”

This Conference also held that “the modernization of labor policies may only support itself with adequate information on labor markets” and that the adequate information “must demand the incorporation of information technology and resources, and special training of the personnel to use it.”

To fulfill these requirements, the Conference recommended specifically that the General Secretariat of the OAS elaborate a draft on Information Systems of Labor Markets, to be put into consideration of the Inter-American Council for Integral Development (CIDI).

This draft entitled “Information system on Labor Markets (SISMEL)” was prepared by the General Secretariat of the OAS, passed by the political bodies of the Conference and approved partial funding by the Multilateral Special Fund of the CIDI (FEMCIDI).

GENERAL ASPECTS OF THE PROJECT

The SISMEL is a project of the Organization of the American States (OAS) which is intended to be a substantial tool for the design, monitoring and evaluation of programs and policies carried out in the framework of the priority actions determined by the CIMT.

The following general aspects of Project SISMEL may be singled out

It conforms to the Plan of Action of the Summit of Presidents and Chiefs of State

The Second Summit of the Americas, held in Santiago de Chile in 1998 approved the Plan of Action which contains the regional priorities determined by the presidents and chiefs of State.

This plan gives special importance to the modernization of the State in the administration of labor matters through the incorporation of new technologies, the implementation of active policies in the labor market and the promotion of better and timely information on the labor market. Specifically, it considers the participation of the Organization of American States (OAS) to assist the Ministries of Labor in order to support these initiatives.

Moreover, the recent Declaration of Quebec, from the Third Summit of the Americas held in Quebec, Canada, expresses that “in order to advance in our commitment to create greater employment opportunities”, it instructs “the Inter-American Conference of Ministers of Labor (CIMT) to continue considering the subjects related to globalization which affect employment and labor.”

As far as it is concerned, the Plan of Action of this Summit, in Chapter 11, “Labor and Employment”, it reaffirms the fundamental importance of the CIMT and order the Ministries of Labor to make new progress “in the social dimensions of globalization and the Modernization of the Ministries of Labor.” it also indicates the need to perform, among other tasks,