Ecuador

The project Strengthening the Social Protection System against Unemployment in Ecuador
aims to improve the current institutional framework of the social protection system in case of job loss. The purpose is to provide the economy with a counter-cyclical mechanism to facilitate the mitigation of the negative effects on employment and workers’ income caused by unemployment, both in the formal and informal sectors, and to avoid a possible fall into poverty.

By adequately linking active and passive employment policies and institutionalising the participation of social actors, the project is expected to promote a better and faster reintegration of workers into the labour market. The project seeks to achieve results in terms of capacity building, institutional strengthening, public finance management, coordination between active and passive employment policies, and strengthening tripartite participation through social dialogue.

Key achievements 2021-22

Social dialogue sessions have been held with ILO tripartite constituents, mainly focused on the process of building a reform of the existing unemployment insurance.
After analysing the current scheme, the project developed scenarios for a possible reform including the aspects of coverage, sufficiency, sustainability and employment promotion towards a comprehensive system of social protection for unemployment benefits.
The employment services within the Ministry of Labour have been strengthened by building a route for employability that will benefit not only the project’s target group but also the entire population; institutional coordination between the Social Security Institute, the Ministry of Economic and Social Inclusion and the Ministry of Labour has also been fostered.
An actuarial valuation process is being developed, both as a baseline and to evaluate possible reform scenarios that have been identified; as well as working to design and identify, from the non-contributory sphere, together with the the Ministry of Labour and the Ministry of Economy and Finance, the protection strategy for unemployed people, with an emphasis on active and passive employment policies.
The project has also promoted the ratification of Social Security (Minimum Standards) Convention, 1952 (No. 102), part IV on Unemployment, and Employment Promotion and Protection against Unemployment Convention, 1988 (No.168).

Resources

Events

Webinar on unemployment protection mechanisms in Ecuador
Social dialogue with academia
Social dialogue with workers’ and employers’ organisations
Webinar “Challenges for the implementation of a comprehensive protection system for unemployment benefit: coverage of vulnerable workers” Ecuador-Peru
Webinar “Strengthening the social protection system for unemployment benefit in Ecuador” Reform scenarios

Partners

In Ecuador, the main national partners are the Social Security Institute (Instituto Ecuatoriano de Seguridad Social), the Ministry of Labour and the Ministry of Economy and Finance, together with employers and workers’ organisations, and other government agencies coordinating active labour policies.