TOWARDS BETTER LABOR MIGRATION SYSTEMS IN NORTHERN CENTRAL AMERICA OVERVIEW OF FINDINGS FROM EL SALVADOR, GUATEMALA, AND HONDURAS © 2023, International Bank for Reconstruction and Development / World Bank 1818 H Street N.W. Washington D.C. 20433, United States of America Phone: (202) 473-1000 Web Page: www.worldbank.org E-mail: feedback@worldbank.org All rights reserved This volume is the product of the staff of the International Bank for Reconstruction and Development / World Bank. The results, interpretations and conclusions expressed in this publication do not necessarily reflect the opinion of the Executive Directors of the World Bank or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this publication. Rights and permissions The International Bank for Reconstruction and Development / World Bank encourages Dissemination of its knowledge, this work may be reproduced, in whole or in part, for non- commercial purposes as long as full attribution is given. Acknowledgements Acknowledgements This report was authored by Claudia P. Rodriguez Alas (Social Protection Specialist), with the support and over- all guidance of co-team leaders Aylin Isik-Dikmelik (Senior Economist) and Luz Stella Rodriguez (Senior Social Protection Specialist). It is part of a cross-sectoral effort from the World Bank to support the governments of three countries in the North of Central America (El Salvador, Guatemala, and Honduras) to strengthen their capacity to maximize the potential benefits from labor migration and reduce its potential negative impacts. The report is part of the broader analytical work: “Northern Central America Migration: Creating Opportunities at Home and Promoting Mutually Beneficial Pathways.” The report synthesizes the main findings of the country-level Institutional Diagnostic Reports on Labor Migration Systems in El Salvador, Guatemala, and Honduras, completed by AFÁN International Consultants. The World Bank team is grateful to AFÁN, whose team comprised Alberto Enriquez, Helena Moreno, and Carlos M. Sáenz. The report also includes information from the extensive background materials produced under the previously mentioned broader analytical work, and acknowledges the significant contributions of Carlos Antonio Heredia Zubieta (consul- tant); Danilo Aristizabal (consultant), for the micro-data analysis of labor demand in the United States and Canada; AFÁN International Consultants, for the Journey Map of Migrants in El Salvador; Ruth Hernández García (consultant), for the documentation of the Germany-El Salvador pilot dual education program on health/elderly care; and Ana Sofia Martínez (Social Protection Analyst), for analysis of socioeconomic and labor market indicators of Northern Central American countries. The team is especially grateful to Manjula M. Luthria (Senior Economist) for her substan- tive guidance in the design of the institutional assessment tool used to conduct this research and guide the country level Institutional Diagnostic Reports. The broader analytical work, “Northern Central America Migration: Creating Opportunities at Home and Promoting Mutually Beneficial Pathways,” was carried out under the guidance of Michel Kerf (Country Director) and Pablo Gottret (Practice Manager). The Institutional Diagnostic Reports benefited from the collaboration and inputs of multiple international entities including the IOM, ILO, USAID; as well as academia, civil society, the private sector, and government officials from El Salvador, Guatemala, and Honduras. The team deeply thanks all for their valuable contributions and insights. The team received valuable advice and guidance from Rita Almeida (former Program Leader for Human Development in Central America), Kinnon Scott (Country Manager, Honduras; formerly resident representative for Nicaragua), as well as from peer reviewers Melissa Johns (Adviser); Jose Antonio Cuesta Leiva, (Global Lead for Data and Analytics); Syud Amer Ahmed (Lead Economist); Mattia Makovec (Senior Economist); and Mirey Ovadiya (Senior Social Protection Specialist). Special thanks to Will Wiseman (Lead Economist), Carolina Mejia-Mantilla (Senior Economist), Ana I. Aguilera (Social Development Specialist), for valuable advice and feed- back; and to Social Protection and Jobs country teams: Maria Concepcion Steta Gandara (Senior Social Protection Specialist); Miriam Montenegro (Senior Social Protection Specialist); Julieta Trias (Senior Economist); Nancy Banegas Raudales (Senior Social Protection Specialist), and Pascal Jaupart (Economist) for their knowledge and ideas. Administrative support was provided by Lily Franchini, Marcello Arrigo edited the report, and Alejandro Espinosa (Sonideas) designed the cover and typeset the document. Towards Better Labor Migration Systems in Northern Central America iii Acronyms Acronyms AMP Autoridad Marítima Portuaria – El Salvador MLA Multilateral Agreement (Maritime Port Authority – El Salvador) MOUs Memorandum of Understanding ASEAN Association of Southeast Asian Nations MTPS Ministerio de Trabajo y Previsión Social – El BLA Bilateral Agreement Salvador (Ministry of Labor and Social Welfare CONAMIGUA Consejo Nacional de Atención al Migrante de – El Salvador) Nicaragua (Guatemalan Migrant Assistance NCA Northern Central America Council) NEET Not in Education, Employment, or Training CONAPROHM Consejo Nacional de Protección OFW Overseas Filipino Workers al Hondureño Migrante (National Council for OWWA Overseas Workers Welfare Administration the Protection of Honduran Migrants) PGG Política General de Gobierno (Government DGMM Dirección General Marina Mercante - General Policy) Honduras (General Directorate of Merchant PTTE Programa de Trabajo Temporal en el Marine of Honduras) Extranjero (Temporary Work Abroad Program) DMW Department of Migrant Workers RREE Ministerio de Relaciones Exteriores de El ECLAC Economic Commission for Latin America and Salvador (Ministry of Foreign Affairs of El the Caribbean Salvador) ESDC Ministry of Employment and Social SETRAS Secretaría de Trabajo y Seguridad Social Development Canada Honduras (Labor Secretariat and Social EU European Union Welfare of Honduras) FAO Food and Agriculture Organization SGJD Secretaría de Gobernación Justicia y FCCA Florida-Caribbean Cruise Association Descentralización (Secretariat of Justice, FERME Fondation des Entreprises en Recrutement de Government and Decentralization). Main-d’oeuvre Agricole (Foundation of Foreign SIMEL Sistema de Información del Mercado Laboral Agricultural Labor Recruitment Companies). (Labor Market Information System) GDP Gross Domestic Product SRECI Secretaría de Relaciones Exteriores y IGM Instituto Guatemalteco de Migración Cooperación Internacional - Honduras (Guatemalan Migration Institute) (Secretariat of Foreign Relations and IC Ministry of Immigration and Citizenship International Cooperation - Honduras) ILO International Labor Organization STCW Standards of Training, Certification, and INE Instituto Nacional de Estadísticas (National Watchkeeping Institute of Statistics) TFWP Temporary Foreign Worker Program INM Institution Nacional de Migración (National TWA Temporary Work Agreement Institute of Immigration) UN United Nations INTECAP Instituto Técnico de Capacitación y US United States Productividad (Technical Institute of Training USAID United States Agency for International and Productivity) Development IOM International Organization for Migration USCIS United States Citizenship and Immigration MINTRAB Ministerio de Trabajo y Previsión Social - Services (USCIS). Guatemala (Ministry of Labor and Social UNHCR United Nations High Commissioner for Welfare - Guatemala) Refugees MINEX Ministerio de Relaciones Exteriores de WDI World Development Indicators Guatemala (Ministry of Foreign Affairs of Guatemala) iv Towards Better Labor Migration Systems in Northern Central America Table of Contents Table of Contents Acknowledgements ............................................................................................................................................................iii Acronyms................................................................................................................................................................................iv Executive Summary..............................................................................................................................................................1 1. Introduction.......................................................................................................................................................................6 2. Country Context................................................................................................................................................................9 2.1. Socio-economic and labor market situation..................................................................................................... 9 2.2. Migration trends in NCA: A Brief History............................................................................................................ 11 2.3. Socio-demographic characteristics of the migrant population................................................................... 15 3. Legal Framework for Access: Regulations Governing Labor Migration........................................................... 19 3.1. International Legal Framework........................................................................................................................... 19 3.2. National Legal Frameworks................................................................................................................................. 21 3.3. Institutional Framework and Coordination Mechanisms.............................................................................. 22 4. Facilitating International Access: Helping Workers Seize Opportunities in Foreign Labor Markets ....... 25 4.1. Programs for Hiring Migrant Workers................................................................................................................. 25 4.2. Labor Intermediation in Practice........................................................................................................................ 33 4.3. Regulation of Private Recruiters.......................................................................................................................... 36 4.4. Crosscutting Issues................................................................................................................................................ 37 5. Fortifying Access: Strengthening the Protection of Labor Migrants................................................................. 40 6. Furthering Access: Harnessing Skills to Access New International Markets................................................... 45 7. Key Findings and Policy Recommendations: Critical Factors and Best Strategies to Develop Robust Labor Migration Sending Systems in NCA Countries ....................................................... 50 7.1. Challenges for NCA countries.............................................................................................................................. 50 7.2. Policy recommendations..................................................................................................................................... 52 References............................................................................................................................................................................ 59 Annex 1. Development stages of labor migration sending systems..................................................................... 62 Annex 2. Labor Market Statistics.................................................................................................................................... 64 Towards Better Labor Migration Systems in Northern Central America v Table of Contents List of Figures Strengthening labor migration sending systems in NCA countries – Recommendations.................................5 Figure 1: Framework for Institutional Diagnostics.......................................................................................................8 Figure 2: GDP growth in NCA countries (annual %)................................................................................................... 10 Figure 3: Number of northern Central American immigrants in the United States in 2019............................ 14 Figure 4: Personal remittances received as percentage of GDP............................................................................. 14 Figure 5: Steps to apply for US H-2A and H-2B visas ................................................................................................ 26 Figure 6: Number of H-2A visas granted to citizens of El Salvador, Guatemala, and Honduras.................... 27 Figure 7: Number of H-2B visas granted to citizens of El Salvador, Guatemala, and Honduras.................... 27 Figure 8: Number of Work Permit Recipients under the TFWP.............................................................................. 29 Figure 9: Sex of Guatemalan temporary migrant workers in Canada.................................................................. 30 Figure 10: Projected growth in employment (%) in the US by 2030, by occupation........................................ 32 Figure 11: Projected growth in employment (%) in Canada by 2028, by occupation...................................... 34 Figure 12: Main steps to recruit migrant workers through government-run temporary work abroad programs..................................................................................................................................................... 35 Figure 13: Canadian and US work visas intermediated by private and government institutions in Guatemala and Honduras, 2021.......................................................................................................... 36 Figure 14 : Migration cycle - levels of pain and satisfaction.................................................................................... 44 Figure A. Share of Informal vs Formal Employment in Northern Central America........................................... 64 Figure B. Employment, informality, and unemployment in Northern Central American countries............ 64 Figure C. Employment rate by education level in Northern Central American countries............................... 65 vi Towards Better Labor Migration Systems in Northern Central America Table of Contents List of Tables Table 1: Key Socioeconomic Statistics.............................................................................................................................9 Table 2: Labor Market Structure..................................................................................................................................... 10 Table 3: Basic Labor Market Indicators......................................................................................................................... 12 Table 4: International migration in NCA: Key indicators by country (2020)........................................................ 13 Table 5: Age structure and educational level of northern Central American migrants in the US.................. 16 Table 6: Labor insertion of migrants in the US by country of origin, 2018.......................................................... 17 Table 7: International Legal Framework....................................................................................................................... 20 Table 8: Canadian and US work visas granted to NCA migrants in 2021.............................................................. 37 Table 9 : Benchmarking key elements of labor migration sending systems....................................................... 51 List of Boxes Box 1: Profile of Migrant Households vs. Non-Migrant Households in NCA........................................................ 18 Box 2: Profile of Migrant Workers in the US................................................................................................................. 28 Box 3: Profile of Guatemalan Temporary Migrant Workers in Canada................................................................. 30 Box 4: Occupations in high demand in the US............................................................................................................ 32 Box 5: Occupations in high demand in Canada.......................................................................................................... 34 Box 6: Understanding the barriers to legal migration pathways for NCA workers............................................ 39 Box 7: Journey Map of the Salvadoran Labor Migrant.............................................................................................. 43 Box 8: Dual Professional Training: Pilot program between El Salvador and Germany.................................... 46 Box 9: Benchmarking against The Philippines’ Labor Migration Sending System............................................ 48 Towards Better Labor Migration Systems in Northern Central America vii Executive Summary Executive Summary Northern Central American (NCA) countries—Guatemala, Honduras, and El Salvador—have been historically impacted by migration cycles that have shaped their economic, cultural, and social development. More than 1 in 10 northern Central Americans live abroad. The majority are in the US, which hosted about 3.3 million Guatemalans, Hondurans, and Salvadorans in 2021—a number equivalent to 86 percent of all migrants from Central America in the US1 (Ward & Batalova 2023). In 2020, about 90 percent of all Guatemalans living abroad were in the US, while the proportion was 88 percent for Salvadorans, and 78 percent for Hondurans. However, the migration patterns of NCA citizens have been predominantly irregular. Nearly 55 percent of the NCA immigrants living in the US in 2015 were unauthorized; for comparison, when considering the total immigrant population in the US, the share of unauthorized immigrants was 24 percent (Cohn, et al. 2017). Remittances from migrants have become a pillar of the NCA economies: in 2020, they accounted for 24.1 percent of GDP in El Salvador, 23.5 percent in Honduras, and 14.7 percent in Guatemala (WDI 2022a). The COVID-19 pandemic has exacerbated labor market challenges in the region. The NCA countries’ economies con- tracted in 2020, and despite a recovery in 2021, their labor markets have suffered as a result of the pandemic. Lockdown measures severely impacted jobs in the tertiary sector, which accounts for half of total employment in Guatemala and Honduras and for 62 percent in El Salvador, and which employs a disproportionate share of young people, women, and low-skilled workers. In addition, informality is prevalent across the NCA countries: around 80 percent of workers in Honduras and Guatemala, and more than 65 percent in El Salvador, are estimated to work in the informal sector (World Bank, 2022). Such workers tend to be highly vulnerable, as they perform low-productivity and low-paying activities with no social insurance coverage. Poor socio-economic conditions, lack of employment opportunities, and broader inse- curity—exacerbated by natural disasters—have been among the main push factors for migration in all three countries. Managed temporary labor migration is an underutilized tool in the NCA region’s employment agenda. Shortages of labor in the US and Canada, the top countries of destination for NCA migrants, offer a wealth of opportunities for regular and orderly migration. However, NCA countries have not necessarily explored them systematically so far. Taking full advan- tage of such opportunities, and promoting regular migration pathways, require a robust labor migration sending system. This report aims to assess whether NCA countries have the fundamental elements of an effective labor migration sending system in place, identify gaps, and offer recommendations to strengthen such systems over time. The diagnostic is based on four main pillars: i) legal framework for access: regulations governing legal labor migration; ii) facilitating access: helping workers seize foreign labor markets; iii) fortifying access: strengthening the protection of labor migrants; and iv) furthering access: harnessing skills to access new international labor markets. Legal Framework for Access: Regulations Governing Legal Labor Migration Advanced labor migration systems start with national laws and policies that outline the country’s vision and key objectives for labor migration. To this end, a country can become a party to international labor agreements and enact legislation and policies to manage labor migration. Relevant policies set out the terms of admission into a host Data covering migrants from Belize, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, and Panama. 1 Towards Better Labor Migration Systems in Northern Central America 1 Executive Summary country and access to its labor market, ensure rights and protection to workers throughout the migration cycle, and regulate the operations of private labor intermediators. Countries with advance labor migration systems typically have bilateral agreements (BLAs), multilateral agreements (MLAs), and Memoranda of Understanding (MOUs) with receiving countries to facilitate the labor migration process. Mature systems also include fully developed, well-co- ordinated government institutions in charge of regulating and operationalizing the labor migration sending system, under a coherent national strategy. The NCA countries are signatories to a range of international agreements, BLAs, MLAs, and MOUs relevant to labor migration. The three countries have ratified five UN agreements to protect the rights of labor migrants and their families. They have also signed five ILO agreements, but only ratified one, about preventing discrimination against workers. Moreover, the NCA countries have ratified an IOM convention on marine workers, an MLA with the European Union, and BLAs with the US, Canada, Spain, Qatar, Mexico, and Belize. Honduras has a track record of MoUs with private companies abroad, including two currently active to facilitate the recruitment of labor migrants. The domestic regulatory framework for labor migration is still in development in Guatemala and Honduras, and in much earlier stages in El Salvador. Each country’s Constitution provides for basic rights to economic wellbeing, migra- tion, and social protection. Concurrently, their labor codes regulate the protection of all workers, the relations between employers and employees, and the right of individuals to work overseas. Guatemala reached a significant milestone in the regulation of labor migration with the enactment of the Migration Code in 2016 and related regulations in 2022. Both Guatemala and Honduras are formulating their national migration policies through participatory processes and with tech- nical assistance from the IOM. El Salvador, on the other hand, has not yet taken steps to devise a national migration policy. The Ministries/Secretariats of Labor and Social Welfare and the Ministries/Secretariats of Foreign Affairs are the main government entities in charge of managing labor migration, but their financial and institutional capacity is weak. While institutional structures and stakeholders vary slightly by country, key agencies in all NCA countries suffer from a gap between their legal mandates and their technical and financial capacity to execute on them. To partially fill such a gap, the United States Agency for International Development (USAID) has been supporting the temporary work abroad programs of all three countries. However, the support from USAID is temporary, and it is not clear if NCA governments will ensure the same level of resources for their programs once it ends. Facilitating International Access: Helping Workers Seize Foreign Labor Markets Advanced labor migration sending systems include a well-developed employment strategy and labor intermedi- ation programs to facilitate access to international labor markets. Such systems feature: i) employment strategies that includes analysis of the labor demand in receiving countries, to tailor and promote their labor supply; ii) institu- tions and programs to facilitate the public and private labor intermediation and recruitment process; iii) regulation of private labor intermediators, including mechanisms for their registration, licensing, monitoring, and oversight; iv) strategies and campaigns to promote the identification, recruitment, and hiring of workers; and v) support to migrant workers throughout the recruitment process and with pre-departure logistics. The NCA countries can benefit from two major programs to facilitate the legal temporary migration of labor: the US H-2 Visa Program, and the Canadian Temporary Foreign Worker Program (TFWP). Although both programs have been available to NCA citizens for several years, government participation in their intermediation is a recent development. Every year, the US issues over 200,000 H-2 visas, divided in two categories: H-2A visas, for agricultural jobs; and H-2B visas, for non-agricultural jobs such as those in landscaping, construction, forestry, seafood and meat processing, restaurants, and hospitality. According to the US Citizenship and Immigration Services (USCIS), citizens of the three NCA countries only received 6.9 percent of the 95,192 H-2B visas granted globally in 2021. Historically, Guatemalans have been the main recipients of H-2 visas among citizens of the NCA countries; for example, in the first 2 Towards Better Labor Migration Systems in Northern Central America Executive Summary nine months of 2022, Guatemalans received 2,682 H-2A visas, compared with the 405 received by Hondurans and 347 by Salvadorans. Guatemala is also the second-largest sender of migrant workers to Canada under the TFWP, after Mexico; out of the 82,150 TFWP work permits issued globally in 2021, 13,020 were granted to Guatemalans, versus 555 to Hondurans and 105 to Salvadorans. The NCA countries have established some additional pathways for labor migration, although they remain small in scale. El Salvador and Honduras have set up programs for the recruitment of seafarers, regulated by the IOM’s International Convention on Standards of Training, Certification, and Watchkeeping for Seafarers (STCW 1978). Under such programs, labor intermediation for seafarers relies on internationally recognized standards and certifications, which facilitate recruitment by domestic and foreign companies. For their part, Guatemala and El Salvador have started pilot temporary work programs with Germany to train and place nurses for the care of elderly persons. In a very differ- ent context, nearly half a million Guatemalans travel regularly to southern Mexico for temporary work, in a flow that dates back to the 19th century. It is largely a circular regional migration that takes place near border towns without government supervision and exposes many migrants to informality and vulnerability. Improving migrant’s living con- ditions and regulating this migratory flow requires a decisive intervention from Guatemalan and Mexican authorities. The selection, recruitment, and hiring of workers are at the heart of the labor intermediation process, and thus consume the most time and resources for the institutions that run it. Government institutions advertise the pro- grams to potential migrant workers through traditional media as well as online platforms, including social media. Candidates typically apply online and are pre-selected based on skills and other pre-qualifying criteria. International employers participate in the selection of candidates, with process that vary slightly by country. The public inter- mediation institutions conduct in-person interviews and psychometric tests; they hold orientation sessions, once workers have been selected, to inform them of the next steps in the migration journey, and to raise awareness of their rights and responsibilities as labor migrants. Thanks to institutional coordination, issuing passports and visas for migrant workers is an agile process. The public labor intermediation programs also provide support to workers with travel preparations and logistics. Government-run intermediation services are free of charge, but applicants still incur expenses throughout the application process that may be prohibitive for some workers. Since labor intermediation by NCA governments is recent and still developing, private recruiters remain the main intermediaries for migrant labor from the three countries. In 2021, citizens of the NCA countries received a total of 23,534 visas from the US and Canada, of which Guatemalans received 81 percent, while Hondurans received 14 per- cent, and Salvadorans only 6 percent. However, Programs managed by the Guatemalan and Honduran governments only intermediated 10 percent and 16 percent, respectively, of all the work visas issued by Canada and the US to citizens of those countries. Information on the number of visas intermediated by the Salvadoran government is not available. Although private recruiters account for the majority of migrant labor intermediation in the NCA countries, their regulation is limited. Such entities offer similar services as the government programs but have been operating without a dedicated legal or oversight framework, making workers vulnerable to abuse and fraud. Honduras and Guatemala are currently developing a regulatory framework for private recruiters. El Salvador, however, has not yet taken steps to issue rules to regulate private recruiters, except in the case of seafarers. There is evidence of gender bias in access to labor migration opportunities. According to the Center for Global Development, women only received 3 percent and 12 percent, respectively, of the H-2A and H-2B visas granted to NCA citizens in FY2019. Recruiters of agricultural labor prefer to hire men for jobs eligible for H-2A visas, arguing that they are more productive than women. In Guatemala, only 10 percent of workers who obtained H-2 visas, and 15 percent of those who received Canadian TFWP visas, are female. It is more common for Guatemalan women to participate in the circular migration between Guatemala and Mexico, but they face more challenging conditions than men. Women may enter Mexico with a visitors’ card, or as dependent of their partners or relatives who migrate to take on agricultural jobs. Either way, such women do not have a work permit of their own, which exacerbates their vulnerability; and they tend to engage in irregular activities such as petty trade and domestic or sex work. Such Towards Better Labor Migration Systems in Northern Central America 3 Executive Summary precarious and informal working conditions leave women exposed to abuse, exploitation, low salaries, and poor housing, as well as unable to access the safety nets that the Guatemalan and Mexican governments may provide. Fortifying Access: Strengthening the Protection of Labor Migrants Advanced labor migration systems feature policies, institutions, and programs to protect labor migrants and reduce their vulnerability during and after migration. Migrant workers in receiving countries often face asymmetries of informa- tion and unequal access to rights and protection. Mature labor sending systems mitigate such risks by providing services, information, and social protection to workers during the migration cycle. Relevant measures may encompass: assistance in reviewing and understanding labor contracts; pre-departure workshops that provide information on the rights and responsibilities of migrant workers abroad; labor attaches to support migrants in the host countries; grievance redress mechanisms, to denounce abuse from or issues with intermediaries (private or public) and employers abroad; welfare funds; repatriation services; portability of social insurance benefits; and safety nets to assist migrants upon their return. The NCA countries provide some protection to migrant workers who benefit from public labor intermediation pro- grams, but those hired through private recruiters remain vulnerable. The Ministries/Secretariats of Labor of the NCA countries are responsible for preventing, identifying, and combating fraud and abuse against workers before migration. They also have a mandate to register, regulate, and supervise private recruiters of international labor. However, labor institutions have limited capacity, and have so far been unable to implement these mandates. Given the lack of regu- lation and registration requirements for private recruiters, workers employed through them may be more vulnerable to illegal or unethical recruitment practices, or to abusive work conditions. In Guatemala, the government established in 2021 the Code of Conduct for Migrant Workers Agencies. So far four main private recruiters have agreed to follow it. Workers recruited through government-run labor intermediation programs attend workshops that inform them of their rights and receive other services while abroad. Such migrant workers are registered with the Ministries/ Secretariats of Foreign Affairs, so that the relevant consulates can keep track of them once they are abroad. Given the large number of Guatemalan migrants on Canadian TFWP visas, the Central American country has developed a support system in Canada that includes a Labor Mobility Department at its consulate in Montreal, and in-situ vis- its to verify the labor conditions of migrant workers. Moreover, El Salvador monitors workers’ conditions in the US through labor liaisons stationed at its five main consulates in the country. However, many of the services provided by NCA embassies and consulates prioritize the needs of undocumented migrants in critical situations—e.g., searching for missing migrants, ensuring the reunification of unaccompanied children with their relatives, repatriating the deceased, and providing assistance to incarcerated migrants, victims of human trafficking, and deportees. Such services tend to exhaust the capacity of the NCA countries’ consular networks. The NCA governments do not have clear policies or programs to foster the economic and social reintegration of labor migrants upon their return to their home country. Once migrant workers return home, their status as returnees is updated in the government-run intermediation institutions, but no clear procedure exists to facilitate their future re-hiring by the same foreign employers. Currently, NCA countries offer no social safety nets for returnees or portability of social security benefits, with the exception of the special regime for Salvadoran seafarers hired on international ships: their employers must comply with the social security provisions applicable to seafarers under Salvadoran legislation. Furthering Access: Harnessing Skills to Access New International Markets Countries with advanced labor migration sending systems have national strategies for cross-border skills devel- opment and certification. Such systems help reduce information asymmetry between employees and employers across borders and promote skills development and certification before migration. Moreover, returning migrant 4 Towards Better Labor Migration Systems in Northern Central America Executive Summary workers have acquired new skills abroad that can enhance their employment opportunities at home and benefit domestic economies. Therefore, mature systems provide skills verification and certification upon the migrants’ return, as well as referrals for wage employment, or training and financial support for entrepreneurship. The NCA countries lack a coordinated and coherent set of policies to help migrant workers acquire the skills in demand in international labor markets—an effort that would also require analysis of the skills in demand on foreign labor markets. The government-run temporary work abroad programs in NCA countries are not linked to the national policies and programs that promote formal, informal, and technical education. The NCA countries also lack policies or programs for the promotion and accreditation of skills acquired abroad. Therefore, migrant workers do not have opportunities to promote such skills when seeking better employment in their home country. This issue incentivizes returnees to pursue more temporary contracts abroad, although they are not certain to obtain them. Strengthening labor migration sending systems in NCA countries – Recommendations PILLAR 1. LEGAL FRAMEWORK FOR ACCESS: Regulations Governing Labor Migration • Ratify the international labor agreements not adopted so far. • Finalize a coherent policy framework to regulate migration. • and implement policies to regulate private recruiters. • Engage in diplomatic dialogue with host countries to promote agreements and opportunities for labor migrants. • Promote strategic partnerships with international organizations and national stakeholders. PILLAR 2. FACILITATING INTERNATIONAL ACCESS: Helping Workers Seize Foreign Labor Markets • Build the financial and institutional capacity of government bodies in charge of temporary work abroad programs. • Strengthen coordination among all stakeholders involved in managing labor migration. • Consider the decentralization of government-run intermediation services to municipal or regional governments. • Reach out to employers in Canada and the US to expand opportunities for NCA migrant workers. • Address gender biases and gaps in temporary work abroad programs. • Improve information systems and registries for the monitoring and evaluation of temporary work abroad programs. • Design and implement an online platform with comprehensive information on how to access foreign labor markets. PILLAR 3. FORTIFYING ACCESS: Strengthening the Protection of Labor Migrants • Implement programs to protect workers throughout the migration cycle. • Establish safety nets that migrant workers can access in case of need, both while abroad and upon return. • Facilitate the participation of migrants in social insurance schemes. • Establish grievance redress mechanisms through which migrants can denounce abuse or issues. • Establish a reinsertion program to help returnees find jobs in the domestic market. PILLAR 4. FURTHERING ACCESS: Harnessing Skills to Access New International Markets • Assess the structure of labor supply and demand to inform and promote skills development. • Encourage investment in workforce development through alliances with providers of technical, formal, and informal education. • Improve linkages between temporary work abroad services and complementary public and private services, to amplify impact. Towards Better Labor Migration Systems in Northern Central America 5 Introduction 1. Introduction More than 1 in 10 Northern Central Americans live abroad, with the majority in the US. It is estimated that around 3.9 million Salvadorans, Hondurans, and Guatemalans live outside their country.2 An average of 407,000 people left the Northern Central American (NCA) region every year between FY2018 and FY2021,3 with the majority going to the US.4 Migration patterns from NCA to the US are mixed and in constant change and have clear links to US migration policies. NCA migration to the US has grown substantially over time, increasing 126% between 1990 and 2020. Such migration flows are, in large part, unauthorized; in FY2021 only, the US Border Patrol encountered nearly 684,000 undocumented individuals from NCA countries (US Congressional Research Service 2022). In past decades, NCA migration was composed mainly of male economic migrants; on the other hand, more recent migration waves up until the onset of the COVID-19 pandemic included predominantly women, children, and families seeking asylum or refugee status.5 However, the latest available data suggests that in the aftermath of the pandemic, once again single adults account for more than half of those trying to migrate (Gramlich 2023). Poor socio-economic conditions and insecurity, exacerbated by natural disasters, have been among the main drivers of migration for Northern Central Americans. Since the early 20th century, a lack of economic opportuni- ties at home and external demand for foreign labor have pushed Northern Central Americans to emigrate. Recent economic shocks and natural disasters have fueled the latest waves of migration. The COVID-19 pandemic caused a significant economic contraction that hit informal sectors and the most vulnerable low-skilled workers harder and was compounded by hurricanes Eta and Iota in 2020. NCA countries struggle to generate enough good jobs (Banegas & Winkler 2020; Walker & Gutierrez 2020; and Eberhard, forthcoming), and have large spatial and socio-economic disparities in investments and human capital outcomes that limit opportunities for productive employment (World Bank, 2021). For many people, NCA countries do not offer a stable and secure environment in which to live and work, while the available safety nets against increasingly more common idiosyncratic and systemic shocks have limited coverage. The prospect of better employment opportunities in the destination country is a major pull factor for NCA migrants, alongside family reunification.6 Salvadoran and Guatemalan migrants are more likely to be employed in their country of destination (75 percent each) than non-migrants are at home (38 and 57 percent, respectively). Furthermore, among those in the 21-65 age group, NCA migrants enjoy better living conditions in their country of 2 The total estimated population of NCA countries was 33.69 million as of 2021 (World Bank, Word Development Indicators 2022). 3 The US fiscal year runs from October 1 through September 30. 4 Data from a model developed at the University of Texas at Austin’s Robert Strauss Center for International Security and Law (US CRS, 2022). 5 The share of refugees and asylum seekers has been increasing in recent years, particularly among migrants from Honduras, the country with the largest share of vulnerable migrants (refugees, asylum seekers, and IDPs) as a percentage of the total migrant stock. 27 percent of Honduran migrants were considered vulnerable in 2015, one of the highest shares in the world and similar to those of Myanmar (27 percent) and Cameroon (31 percent) (World Bank, 2021b). 6 Given the lack of data to understand family reunification issues, this topic is not explored in the note. 6 Towards Better Labor Migration Systems in Northern Central America Introduction destination than NCA residents, and their earnings are more than three times higher than if they had not migrated (Mejia-Mantilla et al., 2023). Consistently with these findings, many migrants from El Salvador, Guatemala, and Honduras have no desire to return to their home countries. Although not necessarily highly skilled by interna- tional standards, migrants from NCA countries are disproportionately young adults who are more educated than their peers at home and constitute important human capital in their countries of origin. Contrary to common belief, migrants do not typically belong to the poorest households: migration is costly and risky, and selection into migration is not random, but rather a deliberate and planned household decision (Arayavechkit, et al. 2022; Mejia-Mantilla et al., 2023). Ongoing labor shortages globally, and mostly in developed countries such as the US, point to opportunities for labor migration and potential welfare gains. The spatially unequal distribution of employment creates an opportunity for some NCA jobseekers to move externally for temporary work. Managed temporary labor migration is an underutilized tool in the NCA region’s employment agenda. Shortages of labor in the US and Canada, the top destinations for migrants, offer a wealth of opportunities for regular and orderly migration. Notably, labor data from the US and Canada estimates which occupations will have the highest projected growth and labor needs over the next five years, a list that includes health care support and food preparation, among others. These demand-side labor market opportunities have not necessarily been explored systematically, and likely remain a missed opportunity for origin countries in the NCA region. With few or no legal means to move to other countries, NCA nationals will continue to pursue risky migration patterns in search of better employment opportunities. Based on international experience (e.g., from the Philippines and Korea), mutually beneficial legal migration pathways could be critical to help NCA countries address extreme poverty, promote economic growth, and facilitate the transfer of knowledge and skills. The promotion of mutually beneficial regular migration pathways requires a robust labor migration sending system in the home country.7 Such systems typically entail a diverse range of public, private, NGOs, and com- munity-based institutions,8 each playing a role throughout the migration lifecycle.9 A lack of such systems and/ or their weaknesses may contribute to the use of irregular and risky migration paths. At the same time, knowl- edge about labor migration systems in origin countries is scant, which further limits opportunities to promote regular paths. This note aims to close the knowledge gap about the effectiveness and capacity of labor migration sending sys- tems in NCA countries. The report assesses whether NCA countries have the fundamental elements of an effective labor migration sending system, identifies the missing elements, and offers recommendations for strengthening the systems over time. Filling such a knowledge gap is critical to inform policies that maximize the benefits and minimize the costs of economic migration. Programs and policies that help expand legal pathways for regular migration will not only promote mutually beneficial migration, but could be a step, albeit small, towards dissuading individuals from pursuing risky migration patterns. Indeed, evidence from Mexico indicates that investing in legal labor pathways can reduce irregular migration (Clemens and Gough, 2018). In this context, this note summarizes the main findings from three institutional diagnostics of the labor migration sending systems in NCA countries, with a view to deepening the understanding of the supply side of labor flows. To this end, and building on previous World Bank experience globally, a diagnostic tool was developed to identify 7 Regular labor migration is defined as the movement of persons from their home country to another country for the purpose of employment. This type of migration is the result of an agreement between an individual in the sending country and a firm in the receiving country, often facilitated by governments on both ends, even if they are not formally part of the agreement. Governments issue visas or work permits, and regulate the labor relationships, but do not hire individuals. It is the employers that implement the hiring process (IOM 2022a). 8 Such institutions include migration and foreign affairs authorities; education, training, and labor institutions; as well as diaspora and migrants associa- tions and employers, among others. 9 The migration lifecycle has four main phases: before the decision to migrate, prior to departure, during the migratory process, and finally the return to the home country. Towards Better Labor Migration Systems in Northern Central America 7 Introduction what steps the NCA governments have taken to recognize and respond to foreign demand for workers. The tool examines if appropriate structures, systems, processes, and resources exist to prepare and deliver adequate labor supply arrangements in the context of bilateral agreements (BLAs) or Temporary Work Agreements (TWAs) with other countries. The diagnostic tool is organized around four main pillars to regulate, facilitate, fortify, and further access of labor migrants to international labor markets (Figure 1). Figure 1: Framework for Institutional Diagnostics LEGAL FRAMEWORK FACILITATING FORTIFYING ACCESS FURTHERING ACCESS FOR ACCESS ACCESS Strengthening the Harnessing skills to access Regulations governing Helping workers protection of labor new international labor legal labor migration access overseas labor migrants markets markets • National labor migration • Programs for labor • Pre departure orienta- • Skills training and policies migration tions upskilling • Policies for the protec- • Job identification in host • Support services and • Skills verification and tion of migrant workers countries networks in host certification • BLAs/MLAs/MoUs • Facilitation of labor flows countries • Measuring on-job skills • Public management of through government • Labor attaché o ices acquisition labor migration arrangements providing legal and • Information and referral • Regulated public & representation services for wage and self-em- • Platforms for institution- al coordination private employment • Portability of social ployment intermediation insurance benefits • Support with travel • Reintegration assistance logistics Source: Adapted from World Bank (2018). Institutional Assessment of Migration Systems in Bangladesh. This note has seven sections. After the Introduction, Section 2 provides some context about NCA countries— Guatemala, El Salvador, and Honduras—describing their main labor market and migration features. Section 3 explains the legal and policy frameworks that regulate labor migration. Section 4 describes the programs and institu- tions that help workers access international labor markets. Section 5 explores the programs and measures to ensure the protection of migrant workers throughout the migration cycle. Section 6 discusses measures to harness workers’ skills and facilitate their access to international labor markers. Finally, Section 7 outlines conclusions, as well as recommendations for NCA governments and policy makers to develop and strengthen their labor migration systems. 8 Towards Better Labor Migration Systems in Northern Central America Country Context 2. Country Context This section provides a brief overview of the main socio-economic and labor market features of Guatemala, El Salvador, and Honduras, which set the context for labor migration in each country. It also describes migration trends and the socio-demographic characteristics of the migrant population from these countries. 2.1. Socio-economic and labor market situation Despite being small neighboring countries with certain cultural similarities, Guatemala, El Salvador, and Honduras also have significant differences, and do not form a homogenous region. Guatemala is a multi-cultural, multi-linguistic country with distinct historical and cultural differences from El Salvador and Honduras. Its Gross Domestic Product (GDP) and population significantly exceed those of its two neighbors combined. At the same time, even though Guatemala is an upper-middle-income country, inequality and poverty are pervasive. Its Gini index (48.3) and share of the population living on less than US$3.65 a day (26 percent) match those of Honduras, a lower middle-income country; notably, the poverty rates in both countries rank among the highest in Latin America. On the other hand, with an economy that is one-third the size of Guatemala’s, El Salvador has a significantly lower poverty rate (7 percent) and a lower Gini index (38.8). El Salvador also receives the highest relative amount of remittances among its neighbors, equal to 24.1 percent of its GDP. Human development levels in the three countries are medium by global standards (Table 1), but low if compared with their Latin American peers. Table 1: Key Socioeconomic Statistics Indicators El Salvador Guatemala Honduras Income Group Lower middle-income Upper middle-income Lower middle-income 2021 Population (million) (a) 6.52 17.11 10.06 2021 GDP current US$ bn (b) 28.74 85.99 28.49 2021 GDP per capita current US$ mm (b) 4.41 5.03 2.83 Poverty headcount ratio at US$3.65 7% (2019) 26% (2014) 26% (2019) a day (2017 PPP) (c) Gini Index (WB estimate) (c) 38.8 48.3 48.2 2019 Human Development Index (HDI) (d) 0.67 (124 of 189) 0.66 (127 of 189) 0.63 (132 of 189) 2020 Human Capital Index (HCI) (e) 0.55 (94 of 174) 0.46 (124 of 174) 0.48 (119 of 174) Sources: (a) World Bank country lending groups; available online. (b) World Bank. World Development Indicators; available online. (c) World Bank poverty and inequality indicators; available online. (d) United Nations Human Development Index; available online. (e) World Bank. Human Capital Index; available online. Towards Better Labor Migration Systems in Northern Central America 9 Country Context Figure 2: GDP growth in NCA countries (annual %) 15 12.5 10 10.8 7.5 Percentage growth 5 0 2013 2014 2015 2016 2017 2018 2019 2020 2021 -5 -9.0 -10 -15 El Salvador Guatemala Honduras Source: World Bank. Word Development Indicators. Consulted on November 25, 2022 NCA countries experienced an economic contraction during the COVID-19 pandemic, which adversely impacted the wellbeing of the population. The GDPs of all three countries plummeted in 2020, exacerbating poverty and inequality (Figure 2). Even though the economies recovered in 2021, the pandemic had detrimental impacts on the labor market. Table 2 shows that services account for almost three-quarters of female employment in NCA coun- tries, and for about 62 percent of total employment in El Salvador. Jobs in the tertiary sector were among the most impacted by pandemic lockdowns, affecting youth, women, and lower-skilled workers, who are disproportionally represented in this sector. Table 2: Labor Market Structure Indicator El Salvador Guatemala Honduras Proportion of workers in agriculture (%)  Total 15.33 31.46 28.29 Men 23.97 42.88 40.81 Women 3.30 10.41 7.89 Proportion of workers in industry (%) Total 22.86 18.21 21.91 Men 26.51 19.00 23.87 Women 17.78 16.77 18.71 Proportion of workers in services (%) Total 61.81 50.33 49.80 Men 49.51 38.12 35.32 Women 78.91 72.82 73.39 Source: World Bank elaboration based on household surveys from El Salvador (EHPM) 2019, Honduras (EPHPM) 2019, and Guatemala (ENEI) 2018 using SEDLAC harmonization. 10 Towards Better Labor Migration Systems in Northern Central America Country Context The COVID-19 pandemic has deepened labor market challenges in the region. Despite emergency policies to mit- igate the impact of the crisis, the unemployment rate in Honduras rose from 6.3 percent in 2019 to 10.9 percent in 2020, for a loss of about 400,000 jobs. The unemployment rates are lower in Guatemala and El Salvador—at 2.4 percent and 4.6 percent, respectively, in 2020—but the latter still lost between 350,000 and 550,000 jobs during the pandemic, including 140,000 in the formal sector (World Bank and AFÁN 2022b). Informality rates are high across the NCA region, exacerbating the vulnerability of informal workers in low-productivity and low-earning jobs without social security benefits. According to World Bank estimates, more than 65 percent of Salvadoran workers are active in the informal sector, and the rate reaches around 80 percent in Honduras and Guatemala (World Bank, 2022). In the latter country, indigenous people—who make up about 37.3 percent of the employed population—have historically faced additional gaps. For example, an indigenous person earns on average about one-third as much as a non-in- digenous person; only about 10.1 percent of indigenous people have access to social security, and 83.7 percent hold informal jobs (World Bank and AFÁN 20222b). Women and the young face unfavorable standing in the labor market in all NCA countries. Women in Guatemala participate in the labor market at less than half the rate of men (41 and 87 percent respectively). The female partic- ipation rate is higher in El Salvador and Honduras, but the gap remains wide. Women also experience higher rates of unemployment than men in all three countries (Table 3). The youth unemployment rate is almost double the unemployment rate of the general population in all three countries. Female youth face the wider gap, particularly in Honduras, where their unemployment rate is 10 percentage points higher than the rate for the male youth population. Women also account for a higher share of youth not in employment, education, or training (NEETs). In Guatemala, the NEET rate among women (47 percent) is five times higher than among men (9 percent). The female NEET rate is high in Honduras (43 percent) and El Salvador (38 percent) as well. 2.2. Migration trends in NCA: A Brief History Guatemala, Honduras, and El Salvador have historically experienced migration cycles that have shaped their eco- nomic, cultural, and social development. Economic crises, natural disasters (e.g., earthquakes, extreme weather events), armed conflict, gang violence, political instability, and human rights violations have all been triggers for internal and external migration. Economic reasons, linked to a dearth of employment opportunities, have been a powerful push factor in all three countries. Moreover, family reunification has become a major pull factor, as migra- tion waves have involved multiple generations. In Guatemala, armed conflict between 1960 and 1996 triggered a major wave of migration. Violence and violations of human rights led Guatemalans to flee the country and take refuge in Mexico, Canada, or the US. After the Peace Agreements in 1996, earthquakes, tropical storms, droughts, and environmental vulnerability became important drivers of migration. More recently, a lack of employment opportunities has been a major factor, according to a 2016 IOM survey. Moreover, its geographical location makes Guatemala the natural transit country for Salvadorans and Hondurans on their journey to North America: notably, 90 percent of emigrants from Central America10 pass through Guatemala on their way to the US (World Bank and AFÁN, 2022b). In Honduras, a major migration wave occurred as early as in 1876-1899, triggered by political instability, and social exclusion. Several waves of internal migration followed—especially between 1954 and 1992—as a result of the demand for agricultural labor. Between the end of the 20th century and the beginning of the 21st, internal migration responded to the demands of the maquila industry (i.e., in-bond plants, mostly in the textile sector), while exter- nal migrants largely headed to the US. Since 2009, Honduras has experienced a cycle of forced migration due to Central America comprises Belize, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, and Panama. 10 Towards Better Labor Migration Systems in Northern Central America 11 Country Context economic and security crises, violation of human rights, and the impacts of climate change. The US has received 82 percent of Honduras’ outward migration flows, while other important destinations include Spain, Mexico, Nicaragua, El Salvador, Belize, Guatemala, and Canada (World Bank and AFÁN 2022c). Table 3: Basic Labor Market Indicators Indicator El Salvador Guatemala Honduras Labor force participation rate (%)  Total 65 62 66 Men 82 87 87 Women 50 41 48 Employment to working-age population ratio (%)  Total 62 61 62 Men 78 85 83 Women 48 40 44 Proportion of working-age population without basic education (%) Total 27 36 30 Men 26 36 32 Women 28 35 25 Unemployment rate (%)  Total 4.6 2.4 6.3 Men 4.5 2.2 4.7 Women 4.8 2.7 8.7 Unemployment rate, youth 15-24 years (%)  Total 10 5 11 Men 8 4 8 Women 13 6 18 Proportion of youth not in education, employment, or training (NEET) (%) Total 28 29 28 Men 14 9 12 Women 38 47 43 Population covered by at least one social protection and jobs program (%) * Total 85.5 63.3 32.2 Source: World Bank elaboration based on El Salvador (EHPM) 2019, Guatemala (ENEI) 2018, and Honduras (EPHPM) 2019, using SEDLAC harmonization. *ASPIRE latest coverage indicator available based on El Salvador (EHPM), Guatemala (ENCOVI) 2014, and Honduras (EPHPM) 2018. Notes: Coverage may be underestimated because household surveys do not necessarily include the universe of social assistance programs. Coverage is (Number of individuals in the group who live in a household where at least one member benefits from the program)/(Number of individuals in the group). In El Salvador, the scarcity of farmland has prompted migration since the early 20th century. Throughout the first half of the 20th century, Honduras—a country more than five times as large as El Salvador—was the main destina- tion for Salvadoran migrants, attracted by demand for cheap labor and availability of land. Moreover, labor demand 12 Towards Better Labor Migration Systems in Northern Central America Country Context generated by World War II boosted Salvadoran migration to the US and Panama. Political repression in the 1970s, and a civil war between 1980 and 1992, prompted massive internal and external displacement, with the latter mainly directed to the US. The Peace Accords in 1992 allowed the return of thousands of Salvadorans, but natural disasters (e.g., earthquakes, hurricanes, droughts), economic crises, and a lack of employment opportunities generated new migration waves. External migration from NCA countries has been predominantly unauthorized and directed to the US. Data from the 2020 US Census shows that about 3.3 million northern Central Americans were living in the US in 2019, accounting for about 86 percent of all Central American migrants11 in the US (Ward & Batalova 2023) and 7.8 percent of the total foreign-born population in the US (Mejia-Mantilla at al., forthcoming). The Pew Research Center estimates that about 55 percent of NCA immigrants living in the US in 2015 were unauthorized; for comparison, when considering the total immigrant population in the US, the share of unauthorized immigrants was 24 percent (Cohn, et al. 2017). Migration to the US from NCA countries grew by 2.8 percent per year between 2016 and 2019 (Mejia-Mantilla, forthcoming). In 2020, the overwhelming majority of NCA nationals living abroad were based in the US, with the share reaching 90 percent for Guatemalans, 88 percent for Salvadorans, and 78 percent for Hondurans. Remittances from overseas migrants have become a main pillar of the NCA economies. In 2020, remittances accounted for 24.1 percent of GDP in El Salvador, 23.5 percent in Honduras, and 14.7 percent in Guatemala (WDI 2022a). Remittances comprise an important share of household welfare. Household survey estimates show that in El Salvador and Honduras, remittances make up about 38 percent and 41 percent of household income, respectively (Mejia-Mantilla at al., forthcoming).12 Table 4: International migration in NCA: Key indicators by country (2020) Indicator El Salvador Guatemala Honduras Total international migrant stock (thousands) 42.8 84.3 39.2 International migrant stock as a percentage of 0.7 0.5 0.4 the total population at mid-year 2020 Total international emigrants (thousands) 1,600.0 1,400.0 985.1 Net migration (immigrants minus emigrants) -202.7 -46.1 -34.0 in the last 5 years (thousands) Difference in the percentage of migrants to total 0.1 0.1 0.0 population between 2019 and 2000 Remittances received as percentage of GDP 24.1 14.7 23.5 Source: World Bank and AFÁN (2022a) using IOM data from “Migration Data Portal”, consulted on April 22, 2022. Data covering migrants from Belize, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, and Panama. 11 Unlike in Guatemala’s 2018 Population Census, household surveys in El Salvador (2020 EHPM) and Honduras (2019 EPHPM) collect information on 12 household income and its sources (Mejia-Mantilla at al., forthcoming). Towards Better Labor Migration Systems in Northern Central America 13 Country Context Figure 3: Number of northern Central American immigrants in the United States in 2019 GUATEMALA HONDURAS 0.75 1.1 million million EL SALVADOR 1.4 million Source: Migration Policy Institute (MPI) using data from the US Census Bureau 2019 ACS. (Cited in Ward & Batalova 2023). Figure 4: Personal remittances received as percentage of GDP 30 25 23 24 20 18 17 15 15 10 10 5 0 2013 2014 2015 2016 2017 2018 2019 2020 Guatemala Honduras El Salvador Source: World Bank. Word Development Indicators. Consulted on November 25, 2022. Weather-related shocks and other natural disasters influence migration decisions in the region but are more likely to be a reinforcing factor than a main driver. All NCA countries are highly vulnerable to natural disasters such as earthquakes, hurricanes, and droughts. The frequency of weather-related shocks has increased in recent decades, and it is expected to keep rising as a result of climate change. For example, Hurricanes Eta and Iota in 2020 caused extensive flooding and landslides in the region; the damages in Guatemala alone were estimated to be close to 1 percent of GDP (Mejia-Mantilla at al., forthcoming). El Salvador is the driest NCA country, but all three are crossed 14 Towards Better Labor Migration Systems in Northern Central America Country Context by the Central American Dry Corridor,13 an area prone to extreme rainfalls and droughts (FAO 2022). Weather-related shocks affect agricultural crop yields, productivity, and labor market outcomes for agricultural workers, and are an important driver of migration in El Salvador—see Ibañez, & Velazquez (2021) and Halliday (2021), cited by Mejia- Mantilla et al. (2023). However, estimates based on household surveys found that in Honduras and Guatemala, the probability of a household having a migrant member is less correlated with the incidence or risk of natural hazards than with economic factors (Mejia-Mantilla et al., 2023). Chronic violence and insecurity from organized crime may also have an impact on migration decisions, although the evidence is mixed. The NCA region has experienced an increase in homicides and extortions since the mid-2000s, due to the rising power of criminal organizations. In addition, transnational youth gangs—namely, the Mara Salvatrucha (MS- 13) and the 18th Street gang (M-18)—engage in violence, extortion, and turf wars (Orozco 2018; Congressional Research Service 2022). Estimates show that an average of about 40 homicides a day have been committed in the three countries combined since the mid-2000s, and a 2022 report estimated that about 333,000 northern Central Americans are victims of extortion every year.14,15 The annual value of extortions from individuals is assessed to range between US$40 – 57 million in Guatemala, US$190 – 245 million in El Salvador, and US$30 – 50 million in Honduras (Yansura 2022). Although no data is available on the value of extortions from businesses, Orozco (2018) estimated that about 42 percent of small businesses in El Salvador report having been extorted. According to the United Nations High Commissioner for Refugees (UNHCR), by the end of 2019 about 247,000 people in Honduras and 71,500 in El Salvador had been internally displaced due to gang violence (Mahecic 2020). Another survey conducted in 2016-2017 found that between 20 percent and 30 percent of Central American migrants cited insecurity as one of the reasons for leaving the country (Orozco 2018). At the same time, recent analysis by Mejia-Mantilla et al. (2023) found that homicide rates were not associated with migration across northern Central America. Thus, the evidence on the impact of insecurity on migration decisions remain mixed.16 2.3. Socio-demographic characteristics of the migrant population Most migrants from NCA countries are between 20 and 39 years of age and male, except those from El Salvador, who are predominantly female (World Bank and AFÁN 2022). These findings were confirmed by Mejia-Mantilla et al. (2023), who found that the profile of NCA migrants has been changing since 2010. More recent migrants tend to be younger, and the share of women among them has been increasing. A decade ago, the average age of Salvadoran and Honduran migrants was 25 years, compared with 22 in 2019. Moreover, in 2019, about half of Salvadoran and Honduran migrants were female (52.3 and 49.4 percent respectively), while the proportion reached 44.8 percent among those from Guatemala—up from 35.6 percent in 2010. The rise in the number of female migrants is linked to high levels of sexual and gender violence in NCA countries, with feminicide rates in the region ranking among the highest in the world (Flores & Berenguier 2021; Anguita & Sampó 2021; and Reyes 2014, cited in Mejia-Mantilla et al., 2023). El Salvador reported a rate of 13.8 women killed per 100,000 females in 2017, which dropped to 6.7 in 2019. Honduras and Guatemala recorded 6.6 and 5.0 women killed per 100,000 females, respectively, in 2020 (WDI 2022b). 13 The Central American Dry Corridor (CADC) is an area alongside the Pacific side of Central America, stretching from the Pacific Coast of Chiapas, Mexico, to the western part of Costa Rica. The area is susceptible to irregular and extreme rainfalls and droughts due to climate change, with devastating conse- quences every year. The most affected countries are Guatemala, El Salvador, Honduras, and Nicaragua. It is estimated that about 11.5 million people live in the rural areas of the Dry Corridor and more than half work in agricultural activities (FAO 2022). 14 According to the United Nations Office on Drugs and Crime (UNODC), “extortion consists of obtaining property from another through the wrongful use of actual or threatened force, violence or fear.” It differs from robbery, in that “in robbery, the property is taken against the will and without the consent of the victim, while in extortion the victim consents, although unwillingly, to surrender money or property” (UNODC 2017). 15 This figure was calculating using survey victimization rates from the 2018 Guatemalan Encuesta Nacional de Percepción de Seguridad Pública y Victimización (ENPEVI), the 2021 Salvadoran Instituto Universitario de Opinión Pública (IUDOP), and the 2018 Honduras Encuesta Permanente de Hogares de Propósitos Múltiples (EPHPM) (Yansura 2022). 16 Mejia-Mantilla et al. (forthcoming) did not find statistically significant correlation between crime or violence and migration. Several factors may explain this: first, the relationship between crime and migration may not be noticeable due to timing issues, since the exact time of migration is not available. Second, crime-related variables may be affected by measurement errors and fail to accurately capture local crime dynamics. More research is needed on this topic (Mejia-Mantilla et al., forthcoming). Towards Better Labor Migration Systems in Northern Central America 15 Country Context The majority of NCA migrants (77 percent) had secondary or tertiary education as of 2019, a similar proportion as in 2010. The average education level remained constant among Guatemalan migrants between 2010 and 2019, increased slightly among Salvadorans, and decreased among Hondurans (Mejia-Mantilla et al., 2023). According to the Economic Commission for Latin America and the Caribbean (ECLAC), in 2015, the share of migrants with higher education was 32 percent for El Salvador, 19 percent for Guatemala, and 27 percent for Honduras (Table 5); for comparison, the average number of school years is 2.3 in Guatemala, 7.1 in El Salvador, and 7.9 in Honduras. On a similar note, Mejia-Mantilla et al. (2023) estimate that 77 percent and 64 percent of recent Salvadoran and Honduran migrants, respectively, who resided in the US in 2019 had secondary or tertiary education, versus 42 percent and 35 percent of non-migrants from the two countries. Among Guatemalans, 55 percent of migrants have secondary or tertiary education, versus 40 percent of non-migrants. Notably, the brain drain from the emigration of comparatively more educated individuals will limit the development potential of the region (World Bank and AFÁN 2022). Table 5: Age structure and educational level of northern Central American migrants in the US El Salvador Guatemala Honduras Age (2005-2017 flows) 0-19 (%) 26.7 26.3 26.9 20-39 (%) 52.8 59.4 57.3 40 and older (%) 20.5 14.2 15.8 Average age 28.9 27.7 27.8 Education Level (population aged 20+ in 2015) Secondary school with diploma (%) 17 6 6 Upper secondary school without diploma (%) 33 20 25 Higher education with diploma (%) 32 19 27 Source: World Bank and AFÁN (2022a), using ECLAC data from 2005-2015. Northern Central American migrants in the US have a high employment rate compared with those from other countries, but many of them do not enjoy decent work standards.17 Table 6, based on ECLAC data from 2018, indi- cates that the employment rate in the US reached 70 percent among Salvadoran and Honduran migrants, and 73 percent among Guatemalans; however, about a third of those workers earned less than the US national median. Moreover, 59 percent of Salvadoran and 61 percent of Guatemalan workers in the US had no social insurance cover- age. Finally, NCA migrants in the US disproportionally held low-skilled jobs—e.g., as day-laborers, janitors, construc- tion maintenance workers, providers of childcare and cleaning services (World Bank and AFÁN 2022)—including 35 percent of Guatemalans who had high education levels. The International Labour Organization (ILO) defines decent work as “productive work for women and men in conditions of freedom, equity, security and 17 human dignity”. 16 Towards Better Labor Migration Systems in Northern Central America Country Context Table 6: Labor insertion of migrants in the US by country of origin, 2018 El Salvador Guatemala Honduras Mexico Other Native Migrants Employment rate by country of 70 73 70 65 62 59 origin (%) Workers with wages below the 31 35 37 32 24 25 decent employment line18 (%) Workers without health and 59 61 61 56 38 36 pension benefits (%) Average wages (US$ per month) 2,496 2,417 2,518 2,651 4,870 4,307 Highly educated workers in 35 29 14 12 low-skilled jobs (%) Avg. remuneration of workers 3,925 4,329 7,181 5,900 in high-ranking positions (US$ per month) Source: World Bank and AFÁN (2022a), using 2018 ECLAC data. Level of wages is less than half the US national median. 18 Towards Better Labor Migration Systems in Northern Central America 17 Country Context Box 1: Profile of Migrant Households vs. Non-Migrant Households in NCA Approximately 17 percent and 15 percent of households in Honduras and El Salvador, respectively, count at least one member who is an international migrant, versus only 5 percent in Guatemala. An analysis of household surveys by Mejia-Mantilla et al. (2023) sheds light on the features of migrant households in NCA coun- tries (defined as those with at least one member who is an international migrant), as well as their differences from non-migrant households. • Migrant households from El Salvador and Honduras are more likely to come from urban than rural areas, but the difference is small. On the other hand, 58 percent of Guatemalan migrant households are from rural areas. • Migrant households are smaller but have more dependents (children and elders) than non-migrant house- holds. In El Salvador and Honduras, migrant households have more elderly members. In Guatemala, they have more children and elders. • The heads of migrant households are older and more likely to be women. For example, in El Salvador, the average age of the head of a migrant household is 60, compared with 48 among non-migrant households. • The heads of migrant households tend to be less educated. In El Salvador, the household head of a migrant household has about 5.3 years of schooling on average, versus 7.1 among non-migrant households. In Guatemala, the schooling gap amounts to 1.6 years. In Honduras, on the other hand, no such gap has been found. • The heads of migrant households are less likely to be employed. In El Salvador and Guatemala, less than 50 percent of household heads in migrant households (aged 21 to 65) are employed, compared with more than 70 percent in non-migrant households. This result is consistent regardless of the sex of the household head. • Migrant households have more assets and are less likely to be multidimensionally poor. In monetary terms, the poverty rate among non-migrant households in El Salvador is 28 percent compared to 15 percent among migrant households. • Migrant households have better access to basic services. In all three NCA countries, migrant households enjoy greater access to water, sanitation, and electricity than non-migrant households, confirming that on average, they enjoy better standards of living. Source: Mejia-Mantilla et al. (2023). Understanding Migration in North Central America countries: El Salvador, Guatemala, Honduras, and Nicaragua. The concept of multidimensional poverty captures deprivation along three dimensions of well-being: monetary poverty, education, and access to basic 19 infrastructure services. 18 Towards Better Labor Migration Systems in Northern Central America Legal Framework for Access: Regulations Governing Labor Migration 3. Legal Framework for Access: Regulations Governing Labor Migration Advanced labor migration systems start with national laws and policies outlining a country’s vision and national objectives for labor migration. To this end, a country can become a party to international labor agreements, enact legislation and establish policies to manage labor migration. Legal frameworks provide the legal structure to regulate the movement of workers between countries; they set out the terms of admission into a host country, access to its labor market, and ensure rights and protection to workers throughout the migration cycle. Countries with advanced labor migration systems typically have bilateral agreements (BLAs), multilateral agreements (MLAs), and Memoranda of Understanding (MOUs) with receiving countries to facilitate the labor migration process. Mature frameworks also include fully developed, well-coordinated government institutions in charge of regulating and implementing the labor migration sending system, under a coherent national strategy. This chapter examines the legal framework managing the movement of NCA labor migrants. It analyzes whether NCA countries have clear and coherent migration policy frameworks, and supportive institutional architectures. It describes the international agreements, national regulations, BLAs, MLAs and MOUs that govern the migration of labor in NCA countries; the primary government structures responsible for managing migration; and other relevant stakeholders. 3.1. International Legal Framework The NCA countries are signatories to various international agreements for the protection of migrants and workers spearheaded by the United Nations (UN), International Labour Organization (ILO), and International Organization for Migration (IOM). The three countries have ratified five UN agreements to ensure the rights of labor migrants and their families, facilitate an orderly and safe migration, prevent human trafficking, and protect refugees. They have also signed five ILO agreements, but only one of them—about the prevention of discrimination against workers—has been ratified; the other four agreements (on the protection of migrant workers and the regulation of recruitment agencies) have been either partially ratified or not at all, and thus are not in force. Furthermore, the NCA countries have ratified an IOM convention focused on marine workers (Table 3). Towards Better Labor Migration Systems in Northern Central America 19 Legal Framework for Access: Regulations Governing Labor Migration Table 7: International Legal Framework Agency/ Legal instrument  El Salvador  Guatemala  Honduras  country International agreements, conventions, and treaties UN  International Convention on the Protection of the Rights of ●  ●  ●  All Migrant Workers and Members of their Families Protocol to Prevent, Suppress and Punish Trafficking in Persons, ●  ●  ●  Especially Women and Children, supplementing the United Nations Convention against Transnational Organized Crime New York Declaration for Refugees and Migrants ●  ●  ●  Global Compact for Safe, Orderly and Regular Migration ●  ●  ●  2030 Agenda for Sustainable Development ●  ●  ●  ILO Discrimination (Employment and Occupation) Convention ●  ●  ●  Convention No. 97 on Migrant Workers o ●  o Fee-Charging Employment Agencies Convention o 20 o Recommendation on the protection of migrant o  o o workers (developing countries) Migrant Workers (Supplementary Provisions) Convention o o o  IOM International Convention on Standards of Training, ●  ●  ●  Certification and Watchkeeping for Seafarers (STCW) Bilateral and Multilateral Agreements European Association Agreement between the European Union and Central America ●  ●  ●  Union United Agreement concerning Temporary Agricultural ●  ●  ●  States and Non-Agricultural Worker Programs Qatar21 Agreement on the Regulation of Labor and Employment ● between the Governments of El Salvador and Qatar Mexico Cooperation Agreement on Labor Issues ●  Belize Agreement concerning the Seasonal Worker Program ●  Canada Free Trade Agreement between Canada and the Republic of Honduras ●  Canada Labor Cooperation Agreement between Canada ●  and the Republic of Honduras Spain Circular migration agreement ● Memorandum of Understanding Mexico22 Memorandum on Labor Cooperation between the Secretariats ● ● of Labor and Social Welfare of the United Mexican States with the Republics of El Salvador, Guatemala and Honduras FCCA Memorandum of Understanding between the Honduran govern- ● ment and the Florida-Caribbean Cruise Association (FCCA) FERME Labor agreement between the Government of Honduras and ● Canadá the Foundation of Foreign Agricultural Labor Recruitment Companies (FERME by its French acronym) of Canada  : Ratified and partially in force. o: Not ratified  : Ratified and in force in its entirety. ❖ ● Source: World Bank elaboration based on background papers for institutional assessment of labor migration systems in El Salvador, Guatemala and Honduras (World Bank and AFÁN 2022). 20 Guatemala has accepted the provisions of Part II, “Progressive Abolition of Fee-Charging Employment Agencies for Profit and Regulation of Other Employment Agencies.” 21 The agreement is under consideration in the Legislative Assembly of El Salvador, which must ratify it for it to enter into force. 22 The Memorandum was signed by Mexico, El Salvador, and Honduras on October 14, 2016. Guatemala has not signed it; as such, it is not yet in force. 20 Towards Better Labor Migration Systems in Northern Central America Legal Framework for Access: Regulations Governing Labor Migration The NCA countries have an MLA with the European Union (EU), and BLAs with the US, Canada, Spain, Qatar, Mexico, and Belize. Active since 2013, the agreement with the EU includes commitments from the Central American countries to coordinate migration flows, protect and promote migrants’ rights, and facilitate social protection and cohesion. Moreover, each NCA country has a BLA with the US to strengthen cooperation around H-2A and H-2B visas—i.e., temporary US visas for agricultural and non-agricultural workers, respectively. The agreements aim to create mechanisms for the systematic, orderly, and safe recruitment of workers, and ensure the transparency of the process. El Salvador also has a BLA with Qatar to regulate workforce and employment issues. Honduras signed a Free Trade Agreement (FTA) and a Labor Cooperation Agreement with Canada to establish a free trade zone and ensure the enforcement of labor regulations and rights, respectively; moreover, in May 2021, Honduras signed an agreement with Spain to promote circular migration.23 Guatemala has a BLA with Mexico on labor cooperation, and one with Belize to regulate the migration of temporary workers and protect their rights. Honduras has a history of MOUs with private companies abroad to facilitate the recruitment of labor migrants. Honduras has an active MOU with the Florida-Caribbean Cruise Association (FCCA) to facilitate the recruitment of Honduran marine workers for FCCA cruises. In addition, Honduras has an MOU with the Canadian Foundation of Foreign Agricultural Labor Recruitment Companies (FERME, per its French acronym). Between 2007 and 2009, Honduras also had MOUs with two private companies to facilitate the recruitment of labor migrants in Canada and Spain, respectively. Finally, El Salvador and Honduras have signed an MOU on labor cooperation with Mexico that is also meant to encompass Guatemala but is not in force pending the latter’s signature. 3.2. National Legal Frameworks The national regulatory framework for labor migration is at a developmental stage in Guatemala and Honduras, but in much earlier stages in El Salvador. Each country’s Constitution establishes a general legal framework to guarantee basic citizens’ rights to economic wellbeing, migration, and social protection. Their labor codes, on the other hand, regulate the protection of all workers, the relations between employers and employees, and the right of individuals to work overseas; the Guatemalan Labor Code also establishes basic regulations for recruitment agen- cies. All NCA countries have a Migration and Foreign Nationals Act to regulate general migration matters, including the rights and responsibilities of national and foreign individuals, and the documentation and procedures to manage migration. While these laws and regulations establish rights that are relevant to labor migration, the NCA countries are at different stages in the process of developing the policies and institutions to enforce them. Guatemala made a major leap in the regulation of labor migration with the enactment of the Migration Code in 2016, and promulgated its regulations in 2022. The Migration Code mandates a renewed, decentralized institu- tional framework to operationalize migration measures and enforce the human right to migrate in an orderly and safe manner, under international standards of protection and assistance during the migration journey. Importantly, the Migration Code opened the door for the approval of other laws and regulation, such as: i) The Regulation for the Registration of Recruiters of Guatemalan Workers for the Provision of Services or Execution of Works outside the Territory of the Republic of Guatemala. Promulgated in 2022, this regulation mandates the creation of a registry for recruitment agencies, to be authorized and managed by the Ministry of Labor and Social Welfare (MINTRAB). ii) The Law for the Promotion of Guatemalan Merchant Marine Work Abroad, with the purpose of promoting the employ- ment of marine workers on foreign cruises. iii) The Law for the Promotion of Temporary Work Abroad, which exempts migrant workers from VAT on the purchase of plane tickets to travel abroad for work. In addition, the Public Policy for the Protection and Attention to Migrants (2019-2031) mostly concerns the irregular migrant population but can also be applied to regular migrant workers. Circular migration refers to repeated migration by the same person between two or more countries (UNECE 2016). 23 Towards Better Labor Migration Systems in Northern Central America 21 Legal Framework for Access: Regulations Governing Labor Migration The Guatemalan National Development Plan K’atun, Nuestra Guatemala 2023 identifies the geographical areas with largest migrant outflows and defines regional development plans to improve the wellbeing of their popu- lation and discourage migration. The National Plan for Innovation and Development and the Government General Policy (PGG) are aligned with the K’atun National Development Plan and establish the priorities and strategic mea- sures to be implemented in 2020-2024. Notably, the PGG sets out the strategic objectives of improving the conditions of migrants, and revamping services to the migrant population in the US and other countries. Moreover, the National Policy for Dignified Work establishes the National Program of Migration for Development, aimed at promoting digni- fied work; and the Program for the Certification of Labor Skills, to promote the certification of practical skills acquired abroad by returnees. Honduras has a record of high-level regulations and policies relevant to labor migration. These include: i) the Marine Enlistment Law (1980); ii) the Regulation for the Recruitment and Hiring of Honduran Workers Abroad (2008); iii) the Special Regime for the Legal Migration of Honduran Workers (2010), which specifically regulates migration for agricultural work in the US and other countries; iv) the Regulation for the Operations of Private Recruitment Agencies and Related Services (2015); and iv) which grants marine and floatable waterways trade unions, and other authorized organizations, the exclusive right to enlist seafarers. In 2013, Honduras enacted the Law for the Protection of Honduran Migrants and their Relatives, which regulates the rights of Honduran migrants regardless of their legal status abroad. The law establishes the right of migrants liv- ing abroad to make contributions to the Honduran social security system; it also makes provisions on the transfer and use of remittances, as well as the social and labor integration of returnees. The law mandates the establishment of two complementary regulations: i) a National Policy for the Protection of Migrants, to promote the human right of migrants and their families and promote temporary work programs abroad; and ii) a National Policy for Returnees, to promote their reinsertion into society. Moreover, a National Policy for Migration is still in the process of being formulated. Guatemala and Honduras are in the process of formulating their migration policies through participatory processes, and with the technical assistance of the IOM. The Guatemalan Migration Institute (IGM) is leading a consultation with government institutions, civil society, academia, and international organizations, to elaborate socio-economic, migratory, and judiciary diagnostics that can inform policy design and formulation. In Honduras, the Secretariat of Governance and Justice—with the participation of public institutions, civil society organizations, and academia—has drafted a National Migration Policy that is awaiting governmental review. El Salvador, on the other hand, has not initiated the formulation of a national migration policy. The country does have certain relevant laws, including: i) the Special Law on Migration and Foreigners, to regulate labor migration and workers’ rights; ii) the Special Law for the Protection and Development of Salvadoran Migrants and their Families, which mandates state protection of the human rights of Salvadoran migrants regardless of the legal status abroad; and iii) the Special Regulatory Law for the Hiring and Placement of Marines on Foreign Flag Ships, which regulates the selection, hiring, and placement of Salvadoran seafarers on foreign ships. Aside from the latter law specific to seafarers, El Salvador lacks legislation to regulate the recruitment of migrant workers by private firms. 3.3. Institutional Framework and Coordination Mechanisms The Ministries/Secretariats of Labor and Social Welfare and the Ministries/Secretariats of Foreign Affairs are the government institutions primarily responsible for operationalizing labor migration policy in the NCA countries. Each country features slightly different institutional and stakeholder structures based on their respective legal frameworks, as explained in this subsection. In addition, international or bilateral organizations, private recruitment agencies, academia, and civil society organizations can influence the regulatory framework and the implementation of labor migration policy. 22 Towards Better Labor Migration Systems in Northern Central America Legal Framework for Access: Regulations Governing Labor Migration i)  Guatemala In Guatemala, the Ministry of Labor (MINTRAB) implements labor migration policy through its Department of Labor Mobility. This Department implements the Temporary Work Abroad Programs established with Canada and the US, which started out as a pilot in 2019-2020 and was fully rolled out in 2021. The Ministry of Foreign Affairs (MINEX), through the Directorate of Consular Immigration Affairs, works on the promotion of the Guatemalan labor force overseas and the protection of its rights. The Office  of  the Public Prosecutor (MP) conducts background checks for visa applications, and the Technical Institute of Training and Productivity (INTECAP) provides training to labor migrants. Guatemala’s Migration Code establishes a Migration System for the management and coordination of migra- tion issues. The Migration System is a group of government institutions that look after the effective regulation of migrant flows and the wellbeing of migrants. The System comprises: i) the National Migration Authority, which manages the formulation and supervision of migration policy; ii) the Guatemalan Migration Institute (IGM), which implements migration policy and coordinates with MINTRAB and MINEX to assist and protect migrants; and iii) the Guatemalan Migrant Assistance Council (CONAMIGUA), which defines and oversees the activities of government institutions that implement migration policy. ii)  Honduras The Labor and Social Welfare Secretariat (SETRASS) and the General Directorate of Merchant Marine (DGMM) manage labor migration programs in Honduras. SETRASS first implemented a work abroad program in 2007, under an IOM initiative to send Honduran workers to Canada and Spain. After the enactment of the Special Regime for Legal Migration of Honduran Workers in 2010, the Temporary Work Abroad Program (PTTE) was created under SETRASS to conduct labor intermediation. The DGMM implements a program for the hiring and placement of seafarers and manages the abovementioned MOU with the FFCA. Other institutions with man- dates on labor migration are the Secretariat of Foreign Relations and International Cooperation (SRECI), the Honduran Institute for Social Security, the Secretariat of Justice, Government and Decentralization (SGJD) and the National Institution of Migration (INM). The National Council for the Protection of Honduran Migrants (CONAPROHM) and the Interinstitutional Roundtable on Labor Migration are the main advisory and coordinating platforms on migration issues. CONAPROHM—whose members include five government Secretariats and other organizations—is tasked with conducting research and formulating proposals and legislative recommendations on migration. The Interinstitutional Roundtable on Labor Migration is the coordinating platform on labor migration. It was cre- ated in 2016 with the technical assistance of the ILO and as part of an interinstitutional agreement between the SETRASS and INM, with the additional participation of SRECI, SGJD, and the National Institute of Statistics (INE). On the other hand, civil society organizations have set up a coordinating entity named Commission for Honduran Migration. The Commission has presented to the government a proposal with 23 recommendations, among which are to approve the National Migration Policy, and to improve coordination among government institutions to expand temporary and permanent labor migrant programs. iii)  El Salvador In El Salvador, three government institutions are responsible for implementing temporary work abroad programs. The Ministry of Labor and Social Welfare (MTPS) created in 2019 a temporary work abroad program for the US and Canada. In 2021, the Ministry of Foreign Relations (RREE) took charge of the part of the program Towards Better Labor Migration Systems in Northern Central America 23 Legal Framework for Access: Regulations Governing Labor Migration concerning the US (covering H-2A and H-2B visas) and created the “Safe and Orderly Regular Labor Mobility Program” under its Department of Labor Mobility. The RREE also oversees the wellbeing of Salvadorans abroad through its consular network. Finally, the Maritime Port Authority (AMP)—which regulates, supervises, and con- ducts maritime and port activities—has been managing since 2016 a program for the recruitment of Salvadoran seafarers on foreign-flagged vessels. El Salvador has two coordinating bodies for migration issues: The Consultative Council of Migration and Foreigners, and the National Council for the Protection and Development of Salvadoran Migrants and their Families (CONMIGRANTES). The Consultative Council of Migration and Foreigners is an advisory body to the President on migration and foreign affairs. Its role is to formulate a comprehensive migratory policy, an action plan, and measures to implement, monitor, and evaluate the policy. It is comprised of four minis- tries, the General Directorate of Immigration and Foreigners, and four national councils. CONMIGRANTES is an autonomous institution charged with overseeing policies related to migration and development, and ensuring interinstitutional and intersectoral coordination. It is comprised of 16 governmental institutions, the national association of municipalities, the Attorney General of the Republic, and three national councils. In addition, the MTPS and the RREE have an agreement in place to coordinate with each other on labor mobility programs, promote job opportunities abroad, monitor the work conditions of migrants, and develop job intermediation programs to assist the reinsertion of returnees in the domestic job market. There is a gap between the formal mandate of the implementing institutions and their technical and financial capacity. The United States Agency for International Development (USAID) has been supporting the management of the temporary work abroad programs in all three countries, to help fill some of the gaps. The challenge is significant: for example, SETRASS in Honduras received the equivalent of 0.2 percent of the government’s total budget in 2021, and 0.1 percent in 2022. SETRASS’s work abroad program has only 14 staff; four of them are paid with government resources, and 10 through USAID contributions. In Guatemala, the MINTRAB’s temporary work abroad program is still developing institutional and technical capacity. It has a team of 30 people, 12 of whom are paid with USAID resources through the project “Creating Economic Opportunities”. The Guatemalan government will be increasingly absorbing the program’s staffing costs, and ultimately will cover them in full. In El Salvador, USAID has been also funding the staffing costs of the RREE’s work abroad program, which will then have to be absorbed by the Salvadoran government. USAID also provides capacity building and digital platforms to facilitate labor intermediation in all NCA countries. 24 Towards Better Labor Migration Systems in Northern Central America Facilitating International Access: Helping Workers Seize Opportunities in Foreign Labor Markets 4. Facilitating International Access: Helping Workers Seize Opportunities in Foreign Labor Markets Advanced labor migration sending systems include well-developed employment strategies and labor intermedi- ation programs, to facilitate access to international labor markets. Such systems feature: i) employment strategies that include analysis of labor demand in receiving countries, to tailor and promote their labor supply; ii) institu- tions and programs to facilitate public and private labor intermediation and recruitment processes; iii) regulation of private labor intermediators, including mechanisms for their registration, licensing, and oversight; iv) strategies and campaigns to promote the identification, recruitment, and hiring of workers; and v) support to migrant workers throughout the recruitment process and with pre-departure logistics. This chapter assess the NCA countries’ strategies to facilitate labor migration. It analyzes whether the three countries have operational frameworks to ensure transparency in job intermediation and recruitment, as well as oversight of stakeholders. It describes the institutions and programs that help labor migrants overcome information asymmetries and provide labor intermediation to help match the labor supply in home countries with the labor demand overseas. The chapter also outlines the recruitment process, from outreach and identification of potential labor migrants/jobs, through to selection, hiring, and preparations for departure to the host country. 4.1. Programs for Hiring Migrant Workers This section presents the two main programs enabling citizens of Guatemala, El Salvador, and Honduras to work temporarily in the US and Canada: The H-2 Visa Program and the Temporary Foreign Worker Program (TFWP), respectively. Even though both programs have been available to NCA countries for several years, government partic- ipation in their intermediation is recent. Moreover, this section describes other bilateral temporary work abroad pro- grams—such as those between Guatemala and Germany, and Guatemala and Mexico—and the seafarers’ programs through which Hondurans and Salvadorans can work on foreign ships. i)  H-2 Visa Program for temporary work in the US The H-2 Visa Program traces its origins to the Mexican Farm Labor Agreement known as the “Bracero Program”, signed by the US and Mexico in 1942. That program allowed for hiring migrants to respond to the Towards Better Labor Migration Systems in Northern Central America 25 Facilitating International Access: Helping Workers Seize Opportunities in Foreign Labor Markets demand for agricultural labor in the US, in the context of World War II. In 1952, the Immigration and Nationality Act introduced the H-2 Visa Program, which allowed US employers to recruit workers directly from any country once certain conditions were met. Currently, the program encompasses two types of visa: H-2A, for agricultural jobs; and H-2B for non-agricultural jobs, such as those in landscaping, construction, forestry, seafood and meat processing, traveling carnivals, restaurants, and hospitality. US employers that wish to hire workers through the H-2 Visa Program must comply with certain conditions. Specifically, they have to be certified by the US Department of Labor, submit a non-citizen worker petition to the US Citizenship and Immigration Services (USCIS), and have it approved. To this end, employers must demon- strate that the job is temporary or seasonal; that there are not enough US workers who wish to perform the job, or who are qualified and available to; and that employment through H-2 visas will not negatively impact the salaries and working conditions of US workers employed in similar jobs. Figure 5: Steps to apply for US H-2A and H-2B visas US employer US employer Worker applies Worker sends If needed, Worker picks obtains a identifies a for H-2 visa personal worker attends up passport temporary labor worker and files a with relevant documents to interview at US with H-2 visa certification from petition for a US Embassy or US Embassy or Embassy or the Department non-immigrant Consulate Consulate Consulate of Labor worker with USCIS 1 2 3 4 5 6 Source: World Bank elaboration based on data from United States Citizenship and Immigration Services (USCIS). Every year, the US issues more than 200,000 H-2 visas; while H-2B visas are capped at 66,000 per fiscal year, no formal limit has been set for H-2A visas. In FY2022, the USCIS allowed an additional 23,500 H-2B visas for companies that could attest they would suffer irreparable damage if they could not hire enough workers; 11,500 of the additional visas were allocated to citizens of El Salvador, Guatemala, Honduras, and Haiti (USCIS 2022).24 Demand for foreign agricultural workers is highest for fruit culture, general agricultural work, and tobacco farming. For non-agricultural workers, the most common sectors of occupation are landscaping, fish and seafood processing, and construction. The companies that hire the most workers on H-2A visas are in the states of California, Florida, Georgia, North Carolina, Virginia, and Washington. In the case of H-2B visas, the hiring companies are mostly in Arkansas, Idaho, Mississippi, Pennsylvania, and Washington. Moreover, in December 2022, the Department of Homeland Security and the Department of Labor announced that an additional 64,716 H-2B visas would 24 be available for FY2023. Out of those, 44,716 are only available to returning workers, and the remaining 20,000 are set aside for nationals of El Salvador, Guatemala, Honduras, and Haiti, who are exempt from the returning worker requirement (USCIS 2023). 26 Towards Better Labor Migration Systems in Northern Central America Facilitating International Access: Helping Workers Seize Opportunities in Foreign Labor Markets Despite the COVID-19 pandemic, the number of H-2 visas granted increased between 2020 and 2022. The number of H-2A visas grew from 215,394 in 2020 to 257,898 in 2022, a 20 percent increase. The number of H-2B visas rose from 61,865 to 95,192 over the same period, for an increase of 54 percent. According to the USCIS, citizens of the three NCA countries received 6.9 percent of the 95,192 H-2B visas granted globally in 2021. Historically, Guatemalans have received the most H2 visas among citizens of the NCA countries (Figures 6 and 7). Figure 6: Number of H-2A visas granted to citizens of El Salvador, Guatemala, and Honduras 4,500 4,000 3,936 3,500 3,000 2,682 2,500 2,000 2,164 1,500 1,000 405 500 334 145 347 0 2018 2019 2020 2021 2022 El Salvador Guatemala Honduras Source: World Bank and AFÁN (2022a), with data from US Department of State. Consulted on September 6, 2022. Note: Data for FY2022 covers the first seven months. Figure 7: Number of H-2B visas granted to citizens of El Salvador, Guatemala, and Honduras 5,000 4,500 4,546 4,000 3,500 3,427 3,262 3,000 2,500 2,605 2,226 2,000 1,500 1,682 815 953 1,000 598 1,018 500 266 653 149 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 El Salvador Guatemala Honduras Source: World Bank and AFÁN (2022a) with data from USCIS consulted on May 25, 2022. Towards Better Labor Migration Systems in Northern Central America 27 Facilitating International Access: Helping Workers Seize Opportunities in Foreign Labor Markets Box 2: Profile of Migrant Workers in the US The following statistics are from a survey conducted by the USAID Competitive Economy Program on Guatemalan and Salvadoran migrant workers benefiting from H-2 visas intermediated by their govern- ments. This data is complemented with general information on all migrants, as reported by their relatives in Guatemala and El Salvador, included in Mejia-Mantilla et al. (2023). The majority of temporary workers on H-2 visas are male. 75 percent of Salvadorans and 90 percent of Guatemalans working temporarily in the US are male. These percentages are higher than those reported for the general migrant population from both countries. Data from relatives in their home countries show that 54 percent of Salvadoran migrants and 77 percent of Guatemalan migrants, respectively, are male. Labor migrants are relatively young. 75 percent of Guatemalan temporary migrant workers in the US are between 18 and 35 years of age, and 29 percent are between 26 and 30 years old. The average age of temporary labor migrants in the US is higher for Salvadorans: about 70 percent of them are between 23 and 38 years of age, and 30 percent are in the 23-28 age range. This is con- sistent with the trend observed in the general migrant population: Salvadoran migrants were on average 27 years old at the time of departure, and most Guatemalan migrants left in their mid-20s. Most Salvadoran migrant workers have completed some schooling. 43 percent of Salvadoran temporary migrant workers in the US have completed high school, and 25 percent have completed middle school. On the other hand, 87 percent of Salvadoran general migrants who were at least 18 years old at the time of departure have completed primary education, and 9 percent have com- pleted secondary school. Information on general migrants was not available for Guatemala and Honduras. On average, workers on H-2A visas earn slightly more than those on H-2B visas. The average hourly wage of Guatemalan and Salvadoran workers on H-2A visas is US$15.42; among those on H-2B visas, it ranges between US$13.88 for women and US$14.49 for men. Survey participants sent home a monthly average of US$844 in remittances. About 33 percent of temporary migrants used their savings to buy or improve their homes, 19 percent to pay off debt, and 9 percent for produc- tive activities. Source: World Bank and AFÁN (2022), Background reports for El Salvador and Guatemala; and Mejia-Mantilla et al. (2023). ii)  Temporary Foreign Worker Program in Canada The Canadian federal government established the Temporary Foreign Worker Program (TFWP) in 1973, to respond to labor shortages and facilitate economic growth. The TFWP is comprised of program sub-categories known as “streams”, that allow the hiring of temporary workers with different skill sets. Currently the program has 7 streams25 of which several are agricultural subprograms: i) the seasonal agricultural program (SWAP), The current 7 streams of the TFWP are: the seasonal agricultural programs (SWAP and TGWP), agricultural workers stream, low wage worker stream, high 25 wage worker stream, home care provider stream, foreign academics stream and global talent stream. 28 Towards Better Labor Migration Systems in Northern Central America Facilitating International Access: Helping Workers Seize Opportunities in Foreign Labor Markets which comprises bilateral agreements with Mexico and the Caribbean countries; ii) the Canada/Guatemala Temporary Guest Worker Program (TGWP); iii) the agricultural worker stream (positions in agricultural indus- tries); and iv) low-wage stream (positions in agricultural fields). There are not quotas for the latter two streams and employers can hire workers from any country in the world. For the agricultural streams, the TFWP directly responds to demand from private farms. Interested farms, individually or in association, indicate to the Employment and Social Development Canada (ESDC) how many foreign workers they need. The ESDC assesses the foreign labor recruitment needs of private sector companies. It verifies that three conditions are met: a) no Canadian or permanent resident workers are available for the job; b) the employer will cover all transportation costs, including for the return of the workers to their home coun- tries; and c) workers’ rights are guaranteed. After verification, ESDC issues a certification that enables farms to make job offers directly to individuals, or to hire them through recruitment agencies or governments, anywhere in the world. Guatemala is the second-largest sender of temporary migrant workers to Canada under the TFWP, after Mexico. The number of Guatemalan labor migrants temporarily hired in Canada has grown rapidly since 2003, when the TGWP was created. The program was originally managed by IOM but in 2010 was incorporated as a subprogram of TFWP. In 2021 Guatemalans obtained 95 percent of the work visas granted to NCA citizens. Moreover, out of the 82,150 temporary work permits that Canada granted in 2021, 13,020 went to Guatemalans, 555 to Hondurans, and 105 to Salvadorans (Figure 8). The NCA countries combined accounted for 16.7 percent of all temporary work permits granted that year. According to the World Bank and AFÁN (2022b), the TFWP has made a substantial impact in the communities of origin of Guatemalan temporary workers. Families receive remittances that enable them to save or invest, while the workers take part of a circular migration with wide- spread benefits. Figure 8: Number of Work Permit Recipients under the TFWP 14,000 13,020 12,000 10,000 7,390 8,000 6,000 3,155 4,000 295 2,000 230 555 115 105 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 El Salvador Guatemala Honduras Source: World Bank and AFÁN (2022a) with data from the Canadian Government; consulted on May 28, 2022. Towards Better Labor Migration Systems in Northern Central America 29 Facilitating International Access: Helping Workers Seize Opportunities in Foreign Labor Markets Box 3: Profile of Guatemalan Temporary Migrant Workers in Canada Similarly to those recruited Figure 9: Sex of Guatemalan temporary on H-2 visas in the US, most migrant workers in Canada Guatemalan migrant workers 180 168 under the Canadian TFWP are 160 male. In 2021, 77 percent of 140 migrants were male, while 33 per- 120 cent were female (Figure 9). 100 80 74 Guatemalan temporary labor migrants in Canada are young. 58 60 51 percent of men and 54 percent of 40 women are between 18 and 30 years 20 15 6 of age, and about a third of all of 0 2019 2020 2021 them are between 18 and 25 years of Men Women age. Most women and men are sin- Source: World Bank and AFÁN (2022a) gle (61 and 54 percent respectively). Most Guatemalan temporary labor migrants in Canada work in agriculture. Specifically, 75 percent work in agriculture, 11 percent in packing activities and 14 percent other activities such as mining, cattle raising and food packaging. Source: World Bank and AFÁN (2022), Background Report for Guatemala. iii)  Pilot Temporary Work Program Guatemala – Germany In 2021, Guatemala started a pilot temporary work program with Germany for the recruitment of elderly care nurses. The program is the result of outreach from the Guatemalan MINEX, through its commercial attachés, with potential employers in various countries.  Specifically, the Guatemalan Embassy to Germany partnered with the German firm Schön Klinik to recruit and hire 200 elderly care nurses. Candidates must pass a basic German language test before obtaining a visa, and continue studying the language once in Germany; they also need to have their academic and professional degrees validated and approved by German authorities. Selected candidates attend intensive German language classes in Guatemala for eight months and receive a stipend of €350 per month, to help them focus on full-time learning. Once in Germany, nurses will receive a salary of €400 per week. As of the date of this report, 16 candidates have been selected and are expected to travel in 2023, while a second round of recruitment will take place in the second semester of 2023. iv)  A Special Case: Transborder labor migration between Guatemala and Mexico More than half a million Guatemalans travel frequently to Mexico to work every year.26 This migratory flow is unlike others involving Guatemalan workers, since it dates back to the 19th century; it is built around economic, Survey About Migration on the Mexican South Border (EMIF-SUR). 26 30 Towards Better Labor Migration Systems in Northern Central America Facilitating International Access: Helping Workers Seize Opportunities in Foreign Labor Markets social, and cultural similarities between the north and the west of Guatemala and the south of Mexico, which have existed since the pre-Hispanic era; and it largely takes place without formal government supervision or monitoring. In fact, people living on both sides of the border do not consider such workers as migrants. Temporariness and informality are key traits of this circular migratory flow. The duration of each stay depends on seasonal work needs. A 2015 survey found that almost one-quarter of such workers stayed in Mexico for less than 24 hours each time; a third of them stayed between one day and one month; and about 40 percent stayed longer than a month. Eighty percent of the workers come from rural areas of Guatemala, mostly in the departments of San Marcos, Huehuetenango, and Quetzaltenango. Their main destinations in Mexico are the city of Tapachula (57 percent), and the municipalities of Tuxtla Chico, Suchiate, and Cacahoatán (41 percent). The Guatemalan and Mexican governments have limited capacity to regulate and monitor transborder labor migration. To manage this flow, Mexican authorities issue the Border Worker Visitor Card (TVTF, per its initials in Spanish). The TVTF allows citizens of Guatemala and Belize to work in the Mexican states of Campeche, Chiapas, Quintana Roo, and Tabasco, provided that they received a written job offer before leaving their home countries. However, the informal and irregular nature of the jobs on offer complicates the management of this type of labor migration. Migrant workers have little access to the protection that may be available from both govern- ments, and often suffer abuse and exploitation. The Guatemalan MINTRAB has only two officials at the Mexican border, who lack the conditions to monitor migrant flows. Migration between Guatemala and Mexico takes place in a context of vulnerability and social exclusion. Transborder labor migration has historically represented a survival strategy for many Guatemalan households. It comprises two distinct flows: i) one is predominantly male, indigenous, and rural—i.e., indigenous men with low education levels who take on seasonal agricultural jobs in Chiapas; ii) the second is predominantly female and urban—i.e., women who cross the border, usually for the day or for short periods, to engage in petty trade and domestic or sex work. Both flows involve precarious jobs, low salaries, and poor housing and health con- ditions. Designing and implementing short-, medium-, and long-term strategies to improve the wellbeing of such workers requires decisive interventions from both Guatemalan and Mexican authorities, in cooperation with migrant workers themselves, their legal advisors, employers, civil society organizations, and national and international human rights organizations. v)  Work Abroad Program for Seafarers – El Salvador The Salvadoran AMP runs the country’s work abroad program for seafarers, which encompasses labor inter- mediation, training, and skills accreditation. The program operationalizes the IOM’s International Convention on Standards of Training, Certification, and Watchkeeping for Seafarers (STCW 1978), and the country’s Special Regulatory Law for the Hiring and Placement of Marines on Foreign Flag Ships. The AMP authorizes centers for the education of merchant mariners and certifies the mariners who have trained there. The AMP also certifies national and foreign companies active in the recruitment of seafarers. To be hired on international ships, a mariner must: a) have experience relevant to the job requirements; b) have a valid passport; c) take and pass six courses on marine safety, administered by AMP-authorized centers; and d) pass all required medical tests. In 2021, the AMP placed 277 mariners with the following international shipping companies: Mediterranean Shipping Company (210), Royal Caribbean (40), IBERNOR (15), and Bahamas Paradise Cruise (12). Towards Better Labor Migration Systems in Northern Central America 31 Facilitating International Access: Helping Workers Seize Opportunities in Foreign Labor Markets 27 Box 4: Occupations in high demand in the US The US is home to about 51 million migrants (IOM 2022b). A background analysis (World Bank, 2022f), under- taken as part the broader analytical work,27 explores the demand for workers in the country, a top destination for NCA migrants. Using data from the US Bureau of Labor Statistics,28 the study sheds light on occupations in high demand in the US, dividing them in four categories based on the level of education required: no degree, high school diploma, postsecondary certificate, or bachelor’s degree. California, Texas, Florida, and New York were the states with the largest number of immigrants from Central America in 2019, both in absolute terms and as a share of each state’s total population. Not coincidentally, as of March 2022, the same states reported the highest share of employment and the most vacancies in the country. On the other hand, North Dakota, South Dakota, Nebraska, and Utah had high employment rates (i.e., employed as a share of the total working-age population). Northern states such as Montana, North Dakota, and Wyoming had the most vacancies relative to their total working-age population (World Bank, 2022f using JOLTS). Figure 10: Projected growth in employment (%) in the US by 2030, by occupation 25 20 15 10 5 0 -5 Sales and Related Farming, Fishing, and Forestry Construction and Extraction Building Cleaning and Maintenance Transportation and Material Moving Food Preparation and Serving Related Personal Care and Service O ice and Administrative Support Protective Service Healthcare Support Architecture and Engineering Business and Financial Operations Management Arts, Design, Entert., Sports, & Media Life, Physical, and Social Science Legal Educational Instruction and Library Healthcare Practitioners and Technical Community and Social Service Computer and Mathematical Installation, Maintenance, and Repair Postsecondary No degree required High school diploma Bachelor degree certificate Source: World Bank (2022f). Overview of Sought-after Occupations in United States and Canada, Background Analysis. Note: The Standard Occupational Classification (SOC) 2-digit was used for the analysis. Northern Central America Migration: Creating Opportunities at Home and Promoting Mutually Beneficial Pathways 27 National Industry-Specific Occupational Employment and Wage Estimates (2021); Employment Projection Program; Occupational Employment and 28 Wage Statistics (OEWS); and Job Openings and Labor Turnover Survey (JOLTS). 32 Towards Better Labor Migration Systems in Northern Central America Facilitating International Access: Helping Workers Seize Opportunities in Foreign Labor Markets “Office and Administrative Support Occupations” (e.g., secretaries and administrative assistants) and “Sales Occupations” (e.g., retail sales workers and cashiers) are the two most common occupations in the US, in terms of participation in total employment.29 However, employment growth in both occupations between now and 2030 is projected to be negative, perhaps because they are prone to be automated. The occu- pations with the highest projected growth among those requiring either no degree or a high school diploma are “Personal Care and Service” and “Healthcare Support”, respectively.30 “Art, Design, Entertainment, Sport and Media” and “Computer and Mathematical” occupations have the highest projected growth in employment among those requiring a postsecondary certificate and bachelor’s degree, respectively. On the other hand, occupations in “Farming Fishing and Forestry”, “Architecture and Engineering”, “Construction and Extraction”, and “Maintenance and Repair”, among others, have low projected growth in employment (Figure 10). 4.2. Labor Intermediation in Practice This subsection describes the practical steps of the labor intermediation conducted by NCA governments, as part of their work abroad programs. While all such programs benefit from technical assistance from USAID and their processes are relatively similar, specificities and nuances in each NCA country are also discussed. i)  Program Promotion and Recruitment of Migrant Workers The Foreign Relations Ministries/Secretariat of NCA countries use their consular networks to promote their labor force abroad. For example, El Salvador has five labor liaison officers in its consulates in the US, in addition to an outreach specialist who identifies demand for temporary labor. The RREE also verifies that companies that request labor comply with the requirements of the H-2 visa program. For its part, Guatemala’s MINEX has opened a consul- ate in Vancouver and is set to open another one in Toronto, through which it will promote the country’s temporary work abroad program among Canadian farmers. The program’s promotion in the US is the responsibility of the Guatemalan commercial and labor attaches in the country. Once government institutions have assessed the require- ments of potential employers in the receiving countries, they prepare the descriptions of available job opportunities. The selection, recruitment, and hiring of workers are at the heart of the labor intermediation process, and thus consume the most time and resources. Government institutions advertise the programs to potential migrant workers through traditional media as well as online platforms, including social media. They also open customer service windows in key municipalities, to provide information and assist with the pre-registration pro- cess. Special informational sessions may be held for groups of interested individuals. Such government services are free of charge, and the information they offer also covers fraud prevention (to protect workers from being unduly charged by third parties). In El Salvador, the government has engaged two private firms—Joven360 and Urban Strategies—to promote the temporary work abroad program to the US. 29 The analysis used Standard Occupational Classification (SOC) two-digit codes (22 occupations) and four-digit codes (109 occupations), differentiating between unskilled and skilled occupations. Unskilled occupations require no degree or a high school diploma. Skilled occupations require a postsecond- ary certificate or a bachelor’s degree. 30 “Personal Care and Service Occupations” include Supervisors of Personal Care and Service Workers, Animal Care and Service Workers, Entertainment Attendants and Related Workers, Funeral Service Workers, Personal Appearance Workers, Baggage Porters, Bellhops, and Concierges, Tour and Travel Guides Supervisors and Other Personal Care and Service Workers (i.e., childcare workers, trainers and fitness workers, recreation workers, among oth- ers). “Healthcare Support Occupations” include Home Health and Personal Care Aides, Nursing Assistants and Psychiatric Aides, Occupational Therapy and Physical Therapist Assistants and Aides, Other Healthcare Support Occupations. “Healthcare Practitioners and Technical Occupations” include Healthcare Diagnosing or Treating Practitioners, Health Technologists and Technicians, Other Healthcare Practitioners and Technical Occupations. (US Department of Labor- Bureau of Labor Statistics). Towards Better Labor Migration Systems in Northern Central America 33 Facilitating International Access: Helping Workers Seize Opportunities in Foreign Labor Markets Box 5: Occupations in high demand in Canada Canada has the eighth-largest immigrant population in the world, and foreign-born residents made up 23 percent of the total population as of 2019.31 While no specific information is available about Central American immigrants in Canada, the provinces with the largest absolute number of immigrants (of any origin) are Ontario, Quebec, and British Columbia; on the other hand, as of 2017, those with the most immigrants relative to the total provincial population were Manitoba, Ontario, Saskatchewan, British Columbia, and Yukon. The same provinces have the largest number of jobs in the country along with high employment rates. As of June 2022, Ontario, Quebec, and British Columbia recorded the most vacancies, both in absolute numbers and relative to the working-age population within each province. The top occupations by share of total employment were,32 respectively, those in “Sales and Services” (e.g., retail sales workers and cashiers) for unskilled workers; and “Business, Finance and Administrative Occupations” for skilled workers.33 However, employment growth in these occupations between now and 2028 is projected to be negative, likely because they are prone to be automated. Overall, employment in all occupations that do not require any education is expected to experience low growth (Figure 11). Figure 11: Projected growth in employment (%) in Canada by 2028, by occupation 25 20 15 10 5 0 -5 Processing manufacturing & utilities Trades helpers construction & related Sales support Service support and other service n.e.c. O ice support Distribution tracking & scheduling coordination Processing & manufacturing machine operators Service rep, customer & personal services Transport, heavy equip maintenance Assisting in support of health services Administrative, financial supervisors & admin Industrial electrical and construction trades Retail sales supervisors and specialized sales Technical in art culture recreation and sport Technical in health Middle management in trades transportation prod Senior management Professional in natural and applied sciences Professional in health (except nursing) Professional in nursing No degree required High school diploma Postsecondary certificate Bachelor degree Source: World Bank (2022f). Overview of Sought-after Occupations in United States and Canada. Background Analysis. Note: The analysis used NOC one-digit codes (10 occupations) and two-digit codes (40 occupations). 31 2021 Canadian Census. 32 The analysis used National Occupational Classification (NOC) one-digit codes (10 occupations) and two-digit codes (40 occupations). 33 In this context, unskilled workers are those with no degree or a high school diploma; skilled workers have a postsecondary certificate or bachelor’s degree. 34 Towards Better Labor Migration Systems in Northern Central America Facilitating International Access: Helping Workers Seize Opportunities in Foreign Labor Markets The occupations with the highest projected growth in employment by 2028 are those in “Service Support”, among those that do not require any education; and “Assisting in Support of Health Services”, among those requiring a high school diploma.34 “  Technical in Health” and “Professional in Nursing” show the highest projected growth among occupations requiring a postsecondary certificate and a bachelor’s degree, respectively. “Office Support Occupations”, on the other hand, account for a low share of current total employment, which is also projected to have limited growth between now and 2028. (World Bank 2022f). Figure 12: Main steps to recruit migrant workers through government-run temporary work abroad programs Application Recruitment Departure Candidates fill out online In person interviews with Work visa application application candidates to verify skills Candidates are preselected Candidates take based on skills and Medical screening psychometric tests prequalifying criteria Candidates' documents Employers interview and Pre-departure orientation are verified select candidates Source: World Bank elaboration based on background papers for institutional assessment of labor migration systems in El Salvador, Guatemala and Honduras (World Bank and AFÁN 2022). Employers participate in the selection of candidates, with modalities that vary slightly by country. In all three countries, employers may hold virtual or in-person interviews with the candidates. Subsequently, the government institutions managing the work abroad programs hold sessions with the selected candidates to review and sign the contracts. According to the Salvadoran Journey Map (see Box 7), the length of the recruit- ment process can vary significantly depending on the employer, but on average it lasts around three months from submitting an application to receiving a visa. ii)  Pre-departure Arrangements Once the workers are selected, they participate in orientation sessions about the next steps in the migration journey. The institutions responsible for labor intermediation hold sessions to review the contracts, as well as to provide workers with information about the terms of the job (e.g., type of employer, salary, room and board arrangements), the rights and responsibilities of labor migrants, and life abroad (e.g., weather conditions, appro- priate clothing, and cultural aspects). The sessions also raise awareness among workers of the risks they face if they drop out of the program, change employers once abroad, or stay abroad illegally. According to the Salvadoran Journey map, the orientation by the Labor Mobility Program of the RREE last three days. Complementary train- ing may be provided by the public labor intermediation institutions if required by employers. “Service Support and Other Service Occupations” include food counter attendants, kitchen helpers and related support occupations, support occupations 34 in accommodation, travel and amusement services, cleaners, and other service support and related occupations. “Assisting in Support of Health Services” include dental assistants, nurse aides, orderlies and patient service associates and other assisting occupations in support of health services. “Technical in Health” include medical technologists and technicians (except dental health), technical occupations in dental health care, and other technical occupations in health care. “Professional in Nursing” include nursing coordinators and supervisors, registered nurses and registered psychiatric nurses. Towards Better Labor Migration Systems in Northern Central America 35 Facilitating International Access: Helping Workers Seize Opportunities in Foreign Labor Markets The issuance of passports and visas for migrant workers is an agile process, thanks to institutional coordina- tion. The Ministries responsible for labor intermediation coordinate with the institutions in charge of migration and foreign affairs to expedite passport issuance. They also assist workers with their visa requests, including by helping them fill out visa application forms. The visa applications may then be sent in bulk to the Canadian and US embassies. Typically, visa costs are covered by the employers. The public labor intermediation programs also support workers with travel preparation and logistics. Once the hired labor migrants have received their visas, the government institutions coordinate with the employers about travel plans for the workers, and may provide transportation to the airport, specific travel guidance, and assistance to those who have never travelled before. In Guatemala, private agencies that recruit a large number of workers for Canadian employers sometimes arrange for charter flights. The cost associated with the application, hiring process, and actual migration may be prohibitive for some workers. Even though intermediation services by government institutions are free of charge, applicants still incur a range of expenses. Many applicants come from rural areas and must travel to their respective capitals several times during the application process. Therefore, they face food and transportation costs, in addition to fees for obtaining medical and criminal records as well as passports.35 Visa fees, on the other hand, are typically reimbursed by the employers. Once selected, the future migrants must have sufficient funds to cover travel preparation costs (e.g., to purchase adequate clothing) and to support themselves during the first two weeks abroad, before they receive their first paycheck. 4.3. Regulation of Private Recruiters Since mechanisms for the direct involvement of NCA governments are recent and still developing, private recruit- ers remain the main intermediaries for migrant labor from the three countries. In 2021, programs managed by the Guatemalan and Honduran governments only intermediated 10 percent and 16 percent, respectively, of all the work visas issued by Canada and the US to citizens of those countries (Figure 13). Information on the num- ber of visas intermediated by MTPS and RREE in El Figure 13: Canadian and US work visas Salvador is not available. However, Salvadorans only intermediated by private and government receive 6 percent of all the US and Canadian work visas institutions in Guatemala and Honduras, 2021 granted to citizens of NCA countries; for comparison, 100% 10% 16% Hondurans receive 14 percent, and Guatemalans 81 90% percent (Table 8). Therefore, the private recruitment 80% 70% business is not as developed in El Salvador as it is in 60% Guatemala. For instance, in the third quarter of 2022, 50% the US Department of Labor only listed one recruitment 90% 84% 40% agency for workers on H-2B visas in El Salvador, versus 30% three in Honduras and seven in Guatemala.36 20% 10% Despite their significant role in the intermediation of 0% Guatemala Honduras migrant labor, the regulation of private recruiters in Private Government NCA countries is limited. The Ministries/Secretariats of Source: World Bank elaboration based on background papers for institu- Labor of the NCA countries have a general mandate to tional assessment of labor migration systems in El Salvador, Guatemala regulate private recruiters of migrant labor but are still and Honduras (World Bank and AFÁN 2022). The cost of passports is: US$50 (Guatemala), US$35-US$50 (Honduras), and US25$ (El Salvador). 35 https://www.dol.gov/agencies/eta/foreign-labor/recruiter-list 36 36 Towards Better Labor Migration Systems in Northern Central America Facilitating International Access: Helping Workers Seize Opportunities in Foreign Labor Markets developing the relevant regulations and policies. Since the promulgation of the Regulation for the Recruitment and Hiring of Honduran Workers Abroad (2008) and the Regulation for the Operations of Private Recruitment Agencies and Related Services (2015), Honduras has had the most advanced regulatory framework concerning private recruiters. Specifically, the SETRASS—through the Department for the Regulation of Private Employment Agents (DRAEP)—reg- ulates and oversees private recruitment agencies for domestic and international jobs, with a focus on protecting the rights of workers and employers. The 2015 regulation also mandates the creation of a registry of private recruitment agencies; according to SETRASS, 24 private recruitment entities are currently registered, but none of them is autho- rized to recruit for jobs abroad. This implies that the entities that intermediated 86 percent of all Canadian and US work visas granted to Hondurans in 2021 were not operating within the appropriate legal framework. Guatemala has a long tradition of private recruiters, which conduct the bulk of migrant labor intermediation in the country. Such entities offer similar services as the government programs but have been operating without government reg- ulation or oversight, making workers vulnerable to abuse and fraud. The recently promulgated Regulation for the Registration of Recruiters of Guatemalan Workers for the Provision of Services or Execution of Works outside the territory of the Republic of Guatemala aims to address this gap. Table 8: Canadian and US work visas granted to NCA migrants in 2021 Canada US US Total work No. of visas Percentage of visas TFWP Visas H-2A H-2B visas intermediated intermediated Visas Visas by government by government Guatemala 13,020 2,509 3,427 18,956 1,802 10% Honduras 555 455 2,226 3,236 502 16% El Salvador* 105 284 953 1,342 – – Total 13,680 3,248 6,606 23,534 Source: World Bank elaboration based on background papers for institutional assessment of labor migration systems in El Salvador, Guatemala and Honduras (World Bank and AFÁN 2022). *Information on the number of visas intermediated by the government program in El Salvador was not available. El Salvador lacks specific regulation for private recruiters, except when their intermediation concerns seafarers. Even though the MTPS has a general mandate to regulate private recruiters, it does not have specific policies to this effect. The country has not introduced a registry of private recruiters, which makes it difficult to identify them, analyze their role, and prevent abuses. Due to budget constraints, the MTPS does not generally have the capacity to regulate and oversee such entities. However, the Special Regulatory Law for the Hiring and Placement of Marines on Foreign Flag Ships establishes the requirements that agencies for the hiring and placement of seafarers must meet to register with and obtain authorization from the MTPS. 4.4. Crosscutting Issues i)  Gender issues There is evidence of gender bias in access to labor migration opportunities. According to the Center for Global Development, women only received 3 percent and 12 percent, respectively, of the H-2A and H-2B visas granted to NCA citizens in FY2019. Recruiters of agricultural labor prefer to hire men for jobs eligible for H-2A visas, arguing that they are more productive than women. However, the share of women in the agricultural workforce in NCA countries increased from 10 percent in 1980 to 36 percent in 2018. The participation of women in labor migration has been increasing, but migrant workers are still disproportionally male. In Guatemala, only 15 Towards Better Labor Migration Systems in Northern Central America 37 Facilitating International Access: Helping Workers Seize Opportunities in Foreign Labor Markets percent of workers who obtained Canadian visas through MITRAB’s program were women; this figure was 10 percent in the case of the H-2 visas. However, no data is available to analyze gender-specific issues affecting the government-run intermediation programs. It is more common for Guatemalan women to participate in the circular migration between Guatemala and Mexico,37 but they face more challenging conditions than men. Women may enter Mexico with a visitors’ card, or as dependents of their partners or relatives who migrate to take on agricultural jobs. Either way, such women do not have a work permit of their own, which exacerbates their vulnerability; and they tend to engage in irreg- ular activities such as petty trade and domestic or sex work. They may also work under irregular arrangements, such as working under their partner’s contract without receiving their salaries directly. Such precarious and informal working conditions leave women exposed to abuse, exploitation, low salaries, and poor housing, as well as unable to access the safety nets that the Guatemalan or Mexican governments may provide. ii)  Information systems for labor migration The NCA governments have developed information systems to generate statistics on their labor markets, but data specific to labor migration is still limited. Both Guatemala and Honduras have Labor Market Observatories managed by the Ministry/Secretariat of Labor, which generate regular labor market statistics. El Salvador has created the Labor Market Information System (SIMEL), managed by the Labor Market Intelligence Unit of the MTPS. Such systems also coordinate with other government institutions that generate administrative and household survey data, including the national statistical offices; for example, the SIMEL gathers, harmonizes, and analyzes information from at least eight government institutions. When it comes to labor migration, how- ever, the existing data is not sufficiently comprehensive or specific. Studies by the ILO and IOM have produced recommendations to overcome some of the current challenges, such as improving the harmonization and documentation of data-related methodologies, expand the capacity to mine data for analytical purposes, and improve interinstitutional coordination on data matters, among others. The labor intermediation programs managed by the NCA governments offer an opportunity to generate rel- evant data on the topic. The institutions that manage labor intermediation programs have their own systems to track workers’ applications and hiring. However, such data is still unrefined, fragmented, and used for docu- mentation and tracking purposes, rather than to generate public statistics and analytics that can inform policy. Work remains to be done to create registries of employers, private recruiters, labor migrants, and returnees, and to integrate such data with existing national information systems on labor and migration. See above—A Special Case: Transborder labor migration between Guatemala and Mexico. 37 38 Towards Better Labor Migration Systems in Northern Central America Facilitating International Access: Helping Workers Seize Opportunities in Foreign Labor Markets Box 6: Understanding the barriers to legal migration pathways for NCA workers Despite efforts to expand them and incentivize their use, the legal avenues through which Central American migrants can seek job opportunities abroad are underutilized. Although uncapped employer-driven slots are available, NCA workers have not been able to fully utilize them. For example, in FY2021, only 1.3 percent of the available H-2A visas in the US were filled by NCA migrant workers (3,248 out of 258,000). Certain countries in Europe—such as Belgium, Germany, Spain, the UK, and the Nordic countries—have also emerged as options for international workers across all skill levels. In addition, Canada has long-standing arrangements with Central America and the Caribbean which may present an opportunity to build upon. Several factors limit the uptake of available legal migratory pathways. Misinformation and lack of trust in government institutions may inhibit workers from using public intermediation programs. In addition, bias and dis- crimination in hiring from certain countries (or from certain ethnic or social groups within countries) further erode trust. Discrimination or other forms of exclusion in the home country can affect the ability of potential migrants to open a bank account, obtain an ID, or even being considered by recruiters. Finally, NCA migrants might be too socially and economically vulnerable to use the existing pathways for regular economic migrants, but not vulnerable enough to be considered refugees or eligible for asylum. Existing migration processes might be difficult to navigate or understand for most people, highlighting a need for inclusive ecosystems that are accessible and capable of supporting safe and prosperous mobility. These factors suggest some hypotheses to be explored with a view to designing interventions that boost the uptake of legal migratory pathways among NCA workers. Such hypotheses are: i) high socioeconomic vulnerability increases entry barriers, and highlights the need for protection and support systems throughout the migration cycle and upon return; ii) the current mechanisms for legal temporary migration are both insufficient and under-utilized, with other pathways (both legal and illegal) preferable in the eyes of migrants; and iii) social norms and culture influence how potential labor migrants receive and analyze information, and often lead to distrust, lack of awareness, or self-exclusion from existing legal pathways. Well-managed labor mobility has the potential to improve social and economic development in both origin and host countries. Therefore, it is important to design the right set of inclusive and socially sensitive policies and measures to facilitate labor migration. Migration systems in origin countries will need to be carefully developed or overhauled to take advantage of economic opportunities while reducing exclusion and vulnerabilities. This requires aligning the efforts of public and private actors throughout the migration process (Luthria, 2013). Low- skilled emigration is increasingly recognized as vital to developed economies, as such migrants provide essential services that locals may not be willing to perform. Skilled legal emigration, on the other hand, creates a range of potential economic benefits for migrants, their families, their destination countries, and their origin countries— benefits that can turn into harm without legal avenues for labor mobility. In this context, policy decisions in both sending and receiving countries are key to turning migration into a gain, not a drain. Source: Aguilera & Luthria et al. forthcoming. Towards Better Labor Migration Systems in Northern Central America 39 Fortifying Access: Strengthening the Protection of Labor Migrants 5. Fortifying Access: Strengthening the Protection of Labor Migrants Advanced labor migration systems feature policies, institutions, and programs to protect labor migrants and reduce their vulnerability during and after migration. Migrant workers in receiving countries often face asymme- tries of information and unequal access to rights and protection. Mature labor sending systems mitigate such risks by providing services, information, and social protection to workers during the migration cycle, encompassing: assistance in reviewing and understanding labor contracts; pre-departure workshops that provide information on the rights and responsibilities of migrant workers; labor attaches to support migrants in the host countries; grievance redress mechanisms, to denounce abuse from or issues with intermediaries (private or public) and employers over- seas; welfare funds; repatriation services; portability of social insurance benefits; and safety nets to assist migrants upon their return. This section delves into the institutions and services provided by the NCA governments to protect labor migrants, help them cope with hardship, and facilitate their reintegration in their home country. The protection of labor migrants by NCA governments is a shared responsibility of the Ministries/Secretariats of Labor and the Ministries/Secretariats of Foreign Affairs. In Guatemala, the Migration Code enacted in 2016 sets out a mandate for government institutions to protect the human rights of migrant workers. In Honduras, the Honduran Institute of Social Security (IHSS) has a mandate to provide healthcare coverage to labor migrants that are regis- tered and pay the relevant contributions. Such institutions intervene at various stages of the migration journey, as explained below. i)  Pre-migration The Ministries/Secretariats of Labor of the NCA countries are responsible for preventing, identifying, and combating fraud and abuse against workers before migration. Based on the respective Labor Codes and related regulations, such ministries are tasked with reviewing and approving contracts for work abroad or rejecting them if they do not meet the basic conditions established by law—regardless of whether the inter- mediator is a public or private entity. The ministries also have a mandate to register, regulate, and supervise private recruiters of international labor. However, the Ministries have limited institutional capacity and have so far been unable to implement these mandates. To build such capacity, the Guatemalan government has been training central and regional staff from the MINTRAB, MINEX, and IGM—with support from the ILO and IOM—on the labor rights regulated by the Labor and Migration Codes. Moreover, in 2021, four private recruiters in the country—which together recruit 10,000 Guatemalans for jobs abroad every year—signed up to the Code of 40 Towards Better Labor Migration Systems in Northern Central America Fortifying Access: Strengthening the Protection of Labor Migrants Conduct for Migrant Workers Agencies, established by the government, whereby they committed to preventing abusive contracts and fraud. The NCA countries’ government-run programs for labor intermediation provide workshops on workers’ rights, to prevent abuses and encourage workers to identify and denounce any breach of contract. Such workshops are offered to applicants, selected candidates, and workers already hired. The ILO, IOM, and USAID also support government institutions with training, materials and information campaigns in public media and social networks. In El Salvador, the NGOs Independent Monitoring Group of El Salvador (GMIES) and Joven360 are also involved in delivering information sessions. Moreover, workers hired through government programs receive assistance in reviewing their contracts before signing them. Typically, such workers are also registered with the Ministries/Secretariats of Foreign Affairs, so that the relevant consulates can keep track of them once they are abroad. Labor migrants hired through private recruiters may not have access to all the safety mechanisms available to those hired through government-run programs. Given the loose regulation and lack of registration require- ments for private recruiters, workers employed through them may be more vulnerable to illegal or unethical recruitment practices, or to abusive work conditions. ii)  During migration The NCA countries’ consular networks, under the Ministries/Secretariats of Foreign Affairs, are responsible for verifying the work conditions and welfare of labor migrants while they are abroad. Guatemala has devel- oped a dedicated support system in Canada, given the large number of migrants on Canadian TFWP visas. Such system is coordinated by the Labor Mobility Department of the Guatemalan consulate in Montreal and includes field visits to verify the labor conditions of migrant workers. In the US, the MINEX offers “mobile consulates” to bring services to Guatemalan migrants, regardless of their legal status. The MINTRAB maintains contact with temporary migrant workers via WhatsApp, before and during their migration; if it receives complaints from migrants, the MINTRAB communicates with MINEX so that the relevant consulate can organize a field visit. El Salvador also monitors workers’ conditions through labor liaison officers stationed in its five main consulates in the US. Officials from the RREE and MTPS keep track of the workers participating in the public labor migration programs through social media and phone. In Honduras, the SETRASS reports to the SRECI the list of migrant workers under its program, so that the consular network can be made aware of their arrival; however, no infor- mation was available about specific measures to monitor the conditions of labor migrants. Large numbers of irregular migrants saturate the migrant services available from NCA governments. El Salvador, Guatemala, and Honduras have historically focused on serving their undocumented migrants abroad, which may exhaust the limited resources of their consular networks. In Guatemala, CONAMIGUA and the Office of the Migrants Rights Ombudsperson safeguard the human rights of undocumented migrants but have not developed specific measures to assist regular labor migrants. For its part, the Honduran government has pri- oritized serving undocumented migrants in critical situations—such as those in “migrant caravans”38 and the increasing number of unaccompanied migrant children—and activities such as the search for missing migrants, the reunification of children with their relatives, the repatriation of deceased migrants, as well as assistance to incarcerated migrants, victims of human trafficking, and deportees. In addition, the Honduran Sub-secretariat of Consular and Migratory Affairs has created a hotline called “ALHO VOZ” to assist Hondurans living in, or in transit to/from, the US, Canada, Spain, Mexico, and Central America. The government has also created the Large number of NCA migrants walking together from Honduras to the US. 38 Towards Better Labor Migration Systems in Northern Central America 41 Fortifying Access: Strengthening the Protection of Labor Migrants Solidarity Fund with the Honduran Migrant (FOSMIH) to support migrants in emergency situations, including when in need of repatriation. Most NCA labor migrants do not benefit from social protection or healthcare insurance in their home coun- tries. Only Honduras has dedicated provisions for migrants to register, contribute, and receive services from the Honduran Institute of Social Security; however, no data is available to confirm whether Honduran labor migrants are contributing to the system. Labor migrants from El Salvador and Guatemala are only covered by the social security regulations of the receiving countries, with the exception of Salvadoran seafarers hired on international ships: their employers must comply with the social security provisions applicable to seafarers under Salvadoran law, which also include healthcare coverage, social insurance, and paid leave. iii)  After migration NCA governments do not have clear policies or programs to foster the reintegration of labor migrants upon their return to their home country. In Honduras, the PTTE and the National Institute of Migration have not established a mechanism to track individuals that enter or leave the country after working abroad. A study by the IOM and the ILO identified deficiencies in the Honduran process to follow up with returning migrant work- ers and obtain feedback about the treatment they received from employers. In Guatemala, returning workers must report to the Department of Labor Mobility, where they are interviewed about their experience abroad. However, besides this control, there is no evidence that returning migrants receive any assistance in reintegrat- ing. The same applies for El Salvador where there is not a clear process to help returnees reintegrating into the domestic labor market or reapplying to temporary jobs abroad. 42 Towards Better Labor Migration Systems in Northern Central America Fortifying Access: Strengthening the Protection of Labor Migrants Box 7: Journey Map of the Salvadoran Labor Migrant The labor migration journey can be challenging for migrant workers. This Box summarizes the Journey Map of the Salvadoran Migrant, which sheds light on both challenges and positive experiences relayed by Salvadoran migrant workers who participated in the government-run temporary work abroad program in the US. The Map, produced by the World Bank and AFÁN in 2022, is based on a survey of 803 migrant workers who had completed the migration cycle, as well as in-depth interviews with 23 migrant workers. Prior to departure “I want to give my children the education that I did not have. I aspire to a better house because where we live is not ours, we are settlers, but I would like to have something of my own”. “It was very hard to leave my family, I had never done it. My child was only 6 years old.” ~ Néstor “I did not have money for the trip, a friend loaned me US$30.” ~ Antonia Many migrants consider leaving the country to work abroad legally a viable option to improve their eco- nomic conditions and those of their families. Several of them were already employed in El Salvador, but were unsatisfied with their low salaries, which prompted them to apply for the government-mediated temporary work abroad program in the US. The application process involved some challenges. First, migrants were uncertain about its outcome; they feared the possibility of not being selected, or of their visa application being rejected. Second, certain people lacked the resources to either travel to San Salvador, the country’s capital, to participate in the selection process, and/or to migrate after being selected. Migrants also faced out-of-pocket expenses—e.g., to buy appropriate clothes for a different climate, or to cover the living costs of their family at home until they could send the first remittances. Such expensed are estimated to amount to between US$800 and US$1,200 per person, which many migrants need to borrow. The Salvadoran Agricultural Development Bank (Banco de Fomento Agropecuario – BFA) has designed a pre-approved line of credit of US$800 for such cases. For many migrants, the hardest part of the process was leaving their families behind, particularly when young children were involved. On the other hand, many were excited about traveling; notably, none of those interviewed had previously left the country or travelled by plane. Many workers expressed their satisfaction with the administrative support provided by the RREE and the logistics of their travel. During Migration “I sent to my husband almost everything I earned so we could buy a piece of land” ~ Julia “It was a very nice experience because I met people from other countries and learned about their cultures.” ~ Antonia Towards Better Labor Migration Systems in Northern Central America 43 Fortifying Access: Strengthening the Protection of Labor Migrants The migrants interviewed were able to save money or send it to their families to build or fix their house, buy land, pay off debt, start a business, or pay for their children’s education. Not speaking or understanding English made them feel somewhat isolated but was not an obstacle to performing their jobs. Those who worked during the cold season suffered from the low temperatures. However, migrants were generally excited to be in a new country, meet new people, and live new experiences. Their workdays were strenuous, but they were moti- vated by high salaries, unimaginable in their home country: the pay for one hour of work in the US equaled that for two days of work in El Salvador. After Migration “I want to go back to work [abroad] every time they call me. That way I can work some months and save, and then return to be with my family the other months” ~J ulia Temporary migrant workers are happy to be able to work abroad legally, safely return home to their fam- ilies, and use their savings to improve their wellbeing. However, they soon experience uncertainty about the future. Many workers expressed a willingness to go back to the US under the program, but noted that the level of government support provided at the pre-departure stage is not available upon their return. Returnees receive no information about how they can remain involved with the program, nor intermediation support to rejoin the domestic labor market. Figure 14 : Migration cycle - levels of pain and satisfaction Phase 1: Phase 2: Phase 3: Before migration During migration A er migration RECRUITMENT DEPARTURE STAY RETURN LOGISTICS SATISFACTION Reunite Get out of the with family country and meet Support from the RREE new people Getting knew Cancel debts for paperwork and skills and procedures Support from the Higher earnings experience RREE for the trip Build or fix logistics the house Uncertainty about the visa approval Lack to resources Savings for the trip (and for Climate are drained family back home) Lack of resources for the application Lenguage Uncertainty about process future work PAIN Uncertainty about Leave the process the family Source: World Bank and AFÁN 2022. Journey Map of the Salvadoran Labor Migrant. 44 Towards Better Labor Migration Systems in Northern Central America Furthering Access: Harnessing Skills to Access New International Markets 6. Furthering Access: Harnessing Skills to Access New International Markets Countries with advanced labor migration sending systems have national strategies for cross-border skills devel- opment and certification. Such systems help reduce information asymmetry between employees and employers across borders and promote skills development and certification before migration. Moreover, returning migrant workers have acquired new skills overseas that can enhance their employment opportunities at home and bene- fit domestic economies. Therefore, mature systems provide skills verification and certification upon the migrants’ return, as well as referrals for wage employment, or training and financial support for entrepreneurship. This chapter assesses whether NCA countries have policies and programs in place to promote skills development and certification before and after migration, as well as any other mechanisms to enhance employment opportunities for migrants in receiving countries. The NCA countries lack a coordinated and coherent set of policies to help migrant workers acquire the skills in demand in international labor markets. Such policies should promote coordination between the Ministries/ Secretariats of Labor and Foreign Affairs and education institutions, focusing on programs to train migrant workers and certificate the skills they have acquired abroad—an effort that also requires analysis of the skills in demand on foreign labor markets. Currently, the migrants who participate in temporary work abroad programs must seek oppor- tunities for skills development either independently, or through training provided by their employers. In this context, one exception concerns seafarers, as the STCW 1978 enables countries to standardize training, certification, and watchkeeping requirements for seafarers across the world (National Marine Center, 2020). Thus, institutions such as the Salvadoran AMP and the Honduran DGMM can follow international standards for the training, skills accreditation, and licensing of seafarers who work on foreign-flagged vessels. In the absence of policies or programs to certificate the skills they have acquired abroad, migrant workers return- ing to NCA countries struggle to promote them on the domestic job market. This issue incentivizes returnees to seek more temporary contracts abroad, although they are not certain to obtain them. To address this gap, the Guatemalan MINTRAB is planning to soon create a program together with INTECAP for the certification of skills acquired abroad. Moreover, an independent initiative called Guate Te Incluye (Guate Includes You), led by NGOs and launched in 2016, has been focusing on the social and economic inclusion of Guatemalan returnees by providing skills certification, and seed capital, training, and mentorship for the launch of small businesses. Government institutions can learn from these experiences and assess if they could be replicated. Towards Better Labor Migration Systems in Northern Central America 45 Furthering Access: Harnessing Skills to Access New International Markets Box 8: Dual Professional Training: Pilot program between El Salvador and Germany Through the work of the Salvadoran Embassy in Germany and the RREE, in 2019 El Salvador and Germany established a dual vocational training39 pilot program titled “Scholarships for Vocational Training in Elderly Care– A Cooperation Project between El Salvador and Germany.” About 3 million elderly people need long-term care in Germany, but the country has a shortage of between 50,000 and 80,000 geriatric care profes- sionals. To address such a shortage, Germany has resorted to hiring migrant workers. The pilot project with El Salvador offers a three-year scholarship for dual training in elderly care to youth who obtained a high school diploma as Vocational Technician in Primary Health Care from Our Lady of the Rosary school in San Salvador. This Catholic school was selected thanks to its 30-year engagement with Germany’s Karlheinz Wolfgang Foundation for Education and Health; the program is not open to graduates of other schools. Participating employers in Germany cover all expenses, including travel, room and board, German lan- guage classes, vocational training, and remunerated practice. Students can remain in Germany at the end of the program, with a legal status that allows them to continue working or studying. According to the RREE, in its first three years the program invested about US$1.9 million and benefited 32 young people (RREE 2021, cited in Hernández García, 2022). By 2021, 64 youth between 18 and 22 years of age have benefited from the program. The Salvadoran Embassy in Germany plays a key role in providing a supportive environment for the students and contacting potential German employers. Application and selection process Students apply through the school’s website. The school’s Principal and Vice-Principal evaluate applicants based on academic achievement and psychological criteria. Eligible applicants must meet the following requirements: • Be recent high school graduates from the primary health program, with an emphasis on geriatrics. Graduates with a general high school diploma can apply after completing a one-year certification on health. • Be aged between 18 and 25. • Proficient in German with a B1 level certification • Have an excellent academic record. • Show empathy and service vocation towards older adults. • Have completed 460 hours of care of older adults. • Show discipline and commitment. The dual training system is a modality of technical or vocational training that combines in-school classes with apprenticeships in a company. 39 46 Towards Better Labor Migration Systems in Northern Central America Furthering Access: Harnessing Skills to Access New International Markets Pre-selected applicants enroll in an intensive German language program at the German School of San Salvador, until they are certified at B1 level—the third of six levels within the Common European Framework of Reference for Languages. At that point, they proceed with pre-departure logistics and gather the necessary documents, such as passports, police and vaccination records, as well as school transcripts and diplomas. The RREE assists with the issuance of passports and with visa requests for temporary residency. Our Lady of the Rosary school liaises with the Ministry of Education to have the transcripts and diplomas certified. The German School provides the students with preparatory material about life in Germany. The Dual Program in Germany Once the students are in Germany, the Salvadoran Embassy accompanies them throughout the program and creates a supportive structure in each of the cities where they are placed (Berlin, Sandersdorf-Brehna, Lutherstadt Wittenberg, Eisenach, Bad Berka, Gotha, Weimar, and Erfurt). An Embassy official facilitates their adaptation to life in Germany by providing induction, support with practical logistics, and exposure to cul- tural experiences. The sponsoring employers facilitate accommodation arrangements and may provide a salary advance to help students cover their initial expenses. The students enroll in a dual program for nursing technicians focused on elderly care, alternating between a month of classes in a hospital’s nursing school and a month of practice with their employers, while con- tinuing to study German. Their practice includes three areas: hospital care, nursing home care, and ambulatory care. At the end of the program, students take theoretical and practical tests to obtain a nursing technician certifi- cate, which is recognized in all EU countries. Program graduates can also opt to continue their studies, with a view to becoming hospital, geriatric, or pediatric nurses. Returning to El Salvador Unlike for other scholarship programs, graduates of this dual training program can either remain in Germany legally or return to El Salvador. A challenge for returnees, however, is that their nursing technician degree specialized in elderly care does not have an equivalent in El Salvador, and the availability of work opportu- nities for them in the country is uncertain. Source: Hernández García, Ruth (2022). Background note for NCA Migration: Creating Opportunities at Home and Promoting Mutually Beneficial Pathways. Towards Better Labor Migration Systems in Northern Central America 47 Furthering Access: Harnessing Skills to Access New International Markets 41 Box 9: Benchmarking against The Philippines’ Labor Migration Sending System The Philippines is often considered a model for regulated labor migration. The country’s long history of labor migration started with the introduction of the Overseas Employment Program in 1974. The program aimed to address rising unemployment due to the economic impact of high crude oil prices, and to take advantage of demand for migrant workers from Gulf Cooperation Council countries40 (OECD/Scalabrini Migration Center 2017). About 36,000 Filipino migrant workers were deployed in 1975; their number surpassed 1 million in 2006 and reached 2.127 million in 2019. The remittances sent by Overseas Filipino Workers (OFW) in 2019 amounted to more than US$35 billion, or 9.3 percent of the country’s GDP (Adhikari, et al. 2021). To manage such a volume of OFWs, the Philippines has developed a labor migration sending system that is considered a best-practice model for low- and middle-income countries (Adhikari, et al., 2021). The Philippines has a range of national policies governing labor migration. The Philippines Labor Code, established in 1974, provided the framework for the creation of the Overseas Employment Program. The govern- ment later enacted The Migrant Workers and Overseas Filipinos Act of 1995 to ensure greater protection and pro- motion of migrant workers, and further strengthened it with amendments in 2007 and 2009. The Overseas Workers Welfare Administration (OWWA) Law, enacted in 2016, focuses on gender-responsive migration and reintegration programs (Asis, 2007). As of March 2022, the Philippines had signed 54 BLAs and five regional agreements/MLAs. The country has BLAs with Jordan, Kuwait, Lebanon, Saudi Arabia, and the UAE for the deployment and protection of domestic workers, as well as agreements with Israel for the recruitment of caregivers and hotel workers (Government of the Philippines, 2022). In addition, the Philippines has MOUs with the UK, Norway, Spain, Bahrain, and Japan for the recruitment of health workers (Makulec, 2014). China, Germany, Israel, Japan, Korea, Taiwan, and Canada have agreements with the Philippines for the deployment of workers through government-to-government arrange- ments. Finally, the Philippines has signed regional agreements and MLAs with the Association of Southeast Asian Nations (ASEAN),41 Europe, Canada, and the UN. The Philippines has put in place a sophisticated institutional infrastructure to manage its labor migration sending system. The Department of Migrant Workers (DMW), created by President Rodrigo Duterte in December 2021, is the executive agency in charge of implementing policies and guidelines to manage the labor migration sending system and protect the welfare of OFWs. The DMW took over the responsibilities of seven merged agencies, including the former Philippine Overseas Employment Administration (POEA) (DMW website). From 1982 to 2022, the POEA regulated, managed, and monitored the country’s labor migration system; its core functions included regulating the recruitment industry, facilitating overseas employment, and ensuring workers’ protection (POEA website). Established in 1977, the OWWA is the government agency tasked with developing and implementing welfare programs and services for OFWs, and with managing a dedicate welfare fund. The OWWA is a member- ship-based organization, with a contribution fee of US$25 per person payable every two years. Taken together, these agencies make the Filipino pre-departure model one of the world’s best at sup­ porting the placement of migrant workers overseas (Adhikari et al., 2021). Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the UAE. 40 The ASEAN was established in 1967 and it is currently comprised of ten member states: Indonesia, Malaysia, the Philippines, Singapore, Thailand, Brunei, 41 Vietnam, Lao PDR, Myanmar, and Cambodia. 48 Towards Better Labor Migration Systems in Northern Central America Furthering Access: Harnessing Skills to Access New International Markets The Filipino government has enacted strong regulations to protect workers from abuse by private recruit- ers. Recruitment and manning agencies must obtain a license (for which they need to meet capitalization and bonding requirements) and respect minimum labor standards. Unlawful recruitment practices, such as charging illegal fees or deploying minors, attract penalties including fines and license revocation. As of September 2019, approximately 3,700 recruitment agencies were licensed by the POEA (Debonneville, 2021). OFWs benefit from a package of protection measures through the OWWA. Members of the OWWA are entitled to several benefits throughout the migration cycle, which comprise: i) supplemental medical assistance, disability and dismemberment insurance, death benefits, a burial grant, and cash assistance to OFWs and their families in case of incidents not covered by their work insurance (e.g., injuries suffered outside work); ii) scholarships for OFW dependents and short-term training programs for OFWs and their families, including upgrading programs for seafarers; iii) repatriation services for human remains and for OFWs in distress, which include airport assis- tance, temporary shelter, psycho-social support, transport services, or fares coverage; iv) reintegration support, consisting of livelihood cash assistance to returnees, an enterprise development and loan program for OFWs, and a one-time financial grant to support business start-up and expansion for OFWs groups; and v) an array of special programs, including assistance to OFWs during the COVID-19 pandemic. The OWWA has offices in all regions of the Philippines and in 27 countries (OWWA website). The Philippines organizes well developed and comprehensive Pre-Departure Orientations (PDOs). The Commission of Filipinos Overseas (CFO), in partnership with POEA and OWWA, conducts two types of PDOs: i) country-specific PDOs are one-day sessions held before the workers travel abroad; they cover topics such as the conditions that workers can expect to find, the profiles of destination countries, employment contracts, health and safety, financial literacy, available government services and benefits, and tips and tricks for travel; ii) the Comprehensive Pre-Departure Education Program (CPDEP) is a one-week program for domestic workers (POEA website). These PDOs are supplemented by pre-employment orientations offered in some regions of the Philippines (OECD/Scalabrini Migration Center 2017). The Philippines has devised a coherent program of training, upskilling, and skills certification for OFWs. The Technical Education and Skills Develop­ ment Agency (TESDA) provides upskilling and skills certification to potential migrants prior to migra­tion. The DMW and OWWA assist returnees with their reintegration in the country through counseling, job search support and referral, skills training and competence upgrading, as well as business counseling and assistance for OFW groups registered with the Department of Labor and Employment and the Cooperative Development Authority. The Philippines’ mature system shows the road that NCA countries can follow to develop their own labor migration sending systems. Table 9 benchmarks the systems in place in the Philippines and the NCA coun- tries, assessing the stage of development of the various elements that comprise a robust labor migration sending system. Towards Better Labor Migration Systems in Northern Central America 49 Key Findings and Policy Recommendations 7. Key Findings and Policy Recommendations: Critical Factors and Best Strategies to Develop Robust Labor Migration Sending Systems in NCA Countries In recent years, NCA governments have set up migrant labor intermediation programs with the support of USAID, and made significant progress in policy and program implementation. However, the road toward mature labor migration sending systems in the three countries is still long. This section outlines some of the challenges and limita- tions of the existing systems, while benchmarking the NCA countries’ frameworks against that of the Philippines. This section also provides a set of policy recommendations to develop robust labor migration sending systems. 7.1. Challenges for NCA countries The labor migration sending systems in NCA countries are still nascent or in development and lack many of the elements of more mature systems. Key issues include: • Even though all three countries have signed up to international agreements and established multiple BLAs and MLAs, the national policy framework on labor migration is still developing in Guatemala and Honduras, and in much earlier stages in El Salvador. • Few people in NCA countries benefit from the existing BLAs with the US and Canada, especially in El Salvador and Honduras, where the number of H-2A and TFWP visas received has stalled. On the other hand, all NCA countries have been experiencing an increase in the number of H-2B visas received. • Most labor intermediation is conducted by private recruiters, which governments have limited or no capacity to regulate. • The Ministries of Foreign Affairs and Labor are responsible for most migration matters, b  ut have limited resources and institutional capacity, and the division of responsibilities between them is ambiguous. • In the pre-migration phase, the Ministries of Labor are typically responsible for preventing, identifying, and combating fraud and abuse against migrant workers. However, migrants hired by unregulated private recruit- ers are vulnerable to illegal or unethical recruitment practices. 50 Towards Better Labor Migration Systems in Northern Central America Key Findings and Policy Recommendations Table 9 : Benchmarking key elements of labor migration sending systems Framework Key Elements of Public Labor Migration Sending Systems Philippines El Salvador Guatemala Honduras The Framework for Access National migration policy to regulate labor migration Regulations governing legal labor migration Policies for the protection of migrant workers Bilateral/Multilateral Labor Agreements/MoUs Bilateral Social Security Arrangements Facilitating Access Programs/Actions to facilitate labor flows through Helping workers access government-to-government arrangements overseas labor markets Outreach to international labor markets and identification of jobs Regulated public employment intermediation services Regulated private employment intermediation services Travel documentation Health/Medical Screening Production and dissemination of data on migra- tion for evidence-based policymaking Institutional coordination among stakeholders, including with those in countries of destination Fortifying Access Pre-departure orientation Strengthening the protection of Legal assistance and representation through labor attachés labor migrants Diaspora services and networks Portability of benefits Reintegration assistance through healthcare and social protection services Furthering Access Skills training and certification Harnessing skills to access international Information and referral for wage and self-employment upon return labor markets Color code Advanced Emerging Nascent Not yet available Source: Adapted from Adhikari, Samik; Chaudhary, S. & Ekeator, N. (2021). “Of Roads Less Traveled: Assessing the Potential of Economic Migration to Provide Overseas Jobs for Nigeria’s Youth.” World Bank. Washington D.C. • During migration, consulates are often responsible for the welfare of migrants, but they are under-resourced. In addition, migrant workers frequently lack access to social security and healthcare coverage.  he NCA countries lack clear policies to support the return and reintegra- • At the end of the migration process, t tion of migrant workers. • Work abroad programs in NCA countries are not linked to national programs to promote formal and techni- cal education. A more comprehensive analysis of market demand and greater coordination with recruiters can contribute to tailor-made training programs for seasonal workers.  or the skills that migrants have acquired abroad. • NCA countries lack accreditation programs f Towards Better Labor Migration Systems in Northern Central America 51 Key Findings and Policy Recommendations Table 9 benchmarks key elements of the labor migration sending systems in NCA countries against the more mature system in the Philippines. The table draws a stylized comparison of 19 key features of a robust labor migration sending system. The factors considered to draw the comparison include those described in Annex 1, “Development stages of labor migration sending systems”, which outlines the key elements of labor migration systems at each development stage from nascent to advanced. These elements encompass the length of time for which the pro- grams/ services/policies have been in place, the extent to which they achieve their objectives, the quality of the services provided, administrative efficiency, and the existence of a grievance redressal mechanism, among others. 7.2. Policy recommendations The following recommendations are extracted from the background country reports, the Salvadoran Journey Map, as well as the Access Framework, which details the key elements of a mature labor migration sending sys- tem. The recommendations are organized around the four pillars of the Access Framework, and include country-spe- cific measures. Legal Framework for Access: Regulations Governing Legal Labor Migration • Ratify all relevant international agreements on labor migration. El Salvador and Honduras have not ratified four ILO agreements on migrant workers’ rights and placement agencies, and Guatemala has ratified only two of them. Committing to these agreements will provide an opportunity to strengthen policy dialogue and update national regulations on these topics. The agreements are: • Convention No. 97 on Migrant Workers – ratified by Guatemala only; • Fee-Charging Employment Agencies Convention; – ratified by Guatemala only; • Recommendation on the protection of migrant workers (developing countries); and • Migrant Workers (Supplementary Provisions) Convention. • Finalize the set-up of a coherent policy framework on labor migration, and of the government structures to implement it. Finalize drafting pending legislation and policies to regulate labor migration. It is important that the NCA countries include labor migration and its governance in their respective National Government Plans. Introducing and implementing such policies can help ensure the wellbeing of migrant workers throughout all migration stages. • Engage in diplomatic dialogue with receiving countries to promote agreements and opportunities for migrants. The Los Angeles Summit declaration on migration and protection provides a framework for such a dialogue, and sets out shared responsibilities among the US, Canada, and certain Latin-American and Caribbean countries, including those in northern Central America (The White House 2022). It is important that the design and implementation of labor migration programs considers input from all key stakeholders, including labor migrants themselves. The use of international instruments and platforms can help NCA countries advocate effectively for favorable work conditions for labor migrants. • Promote strategic partnerships with international organizations and national stakeholders. The NCA insti- tutions responsible for labor migration can seek support from: i) international organizations, which can help them mobilize technical and financial resources and offer knowledge; ii) universities and think tanks, which can 52 Towards Better Labor Migration Systems in Northern Central America Key Findings and Policy Recommendations contribute research and evidence for the formulation of labor migration policies and programs; iii) the private sector (including trade and business associations), which can facilitate the hiring of returning migrants; and iv) NGOs and civil society organizations, which can contribute their experience of working with migrants and returnees. Country-specific recommendations Guatemala • Ratify two ILO agreements. • Complete the design of the National Development Plan K’atun; the Innovation and Development National Plan; the Government General Policy; and the Public Policy for the Protection of the Migrant Person. • Sign the Memorandum with Mexico (Memorandum on Labor Cooperation between the Secretariats of Labor and Social Welfare of the United Mexican States with the Republics of El Salvador, Guatemala, and Honduras). • Continue exploring bilateral agreements with Spain, Israel, and Serbia. • Conclude the formulation and approval of the National Migration Policy. El Salvador • Ratify four ILO agreements. • Start developing a national strategy and specific regulation for labor migration. • Formulate and establish a National Migration policy. • Formulate and enact legislation to regulate private recruiters. Honduras • Ratify four ILO agreements. • Draft and approve the National Policy for the Protection of Migrants; and the National Policy for Returnees, to promote their reinsertion into society. These policies are mandated by the Law for the Protection of Honduran Migrants and their Relatives • Finalize and approve the National Migration Policy. Facilitating International Access: Helping Workers Seize Foreign Labor Markets • Strengthen coordination between all institutional stakeholders involved in managing labor migration. Coordination instruments are necessary in relation to matters that may facilitate the labor migration process, from expediting logistical steps (e.g., issuing passports and medical certificates), to creating synergies for greater institutional capacity, and achieving a common vision for the management of labor migration. • Build the capacity of the government agencies in charge of temporary work abroad programs, to help them meet the needs of employers, workers, and recruiters. Relevant steps include: i) train civil servants and pro- gram administrators on managing the entire labor migration cycle, and not just the labor intermediation stage; ii) allocate resources to ensure the continuity and sustainability of the work abroad programs once support Towards Better Labor Migration Systems in Northern Central America 53 Key Findings and Policy Recommendations from USAID ends; iii) strengthen the ability of consular networks to oversee the wellbeing of migrant workers; and iv) empower labor migrants to influence labor migration policies, from design to implementation, monitor- ing, and evaluation. • Increase the capacity of government institutions to regulate private recruiters. This includes establishing registration and licensing requirements for both recruitment agencies and individual recruiters, so they can be monitored and supervised. Without appropriate regulation, governments are unable to prevent fraud and abuse in the recruitment process, nor can they ensure that the working conditions offered meet the standards of decent work. • Consider decentralizing government-run intermediation services to municipal or regional authorities. The participation of local governments in the process can help local development and discourage irregular migra- tion. Institutional intermediation services would be closer to potential migrants, particularly in rural areas. The time commitment and monetary cost (e.g., for transportation and food) of the application process would be less onerous. Coordination with local stakeholders would be facilitated, including with churches and NGOs, which can play an important role in raising awareness of the programs. • Reach out to foreign employers, particularly in Canada and the US, to broaden opportunities for NCA migrant workers. Establishing relationships with foreign employers and learning more about their demand for skills will help better prepare the domestic labor force and enhance the effectiveness of labor intermediation. Labor attaches or labor liaisons in local consulates are well placed to establish such relationships. Building on existing sister city programs, or creating new ones, can also facilitate access to international employers.42 • Address gender-related biases and gaps in the temporary work abroad programs. This requires a targeted analysis of women’s conditions and the factors that limit their participation in labor migration; or, when women do participate in work abroad programs, of specific gaps and vulnerabilities to be addressed by adjusting pro- gram design, adapting the legal framework, or raising awareness among stakeholders. • Improve information systems and registries to monitor and evaluate the temporary work abroad programs. NCA countries would benefit from creating tools and platforms to generate data on labor migration, as well as from standardizing methodologies and harmonizing data across institutions, so that it can be linked, cross-ref- erenced, and incorporated into national labor and migration statistics. Such data could also inform public pol- icy and advocacy. In addition, governments should consider establishing digital repositories of all applicable national and international legal provisions on labor migration. • Design and activate labor migration online portals with comprehensive information on access to foreign labor markets. Such portals can centralize information and provide step-by-step guides for users to access labor migration opportunities. University departments can be recruited for the elaboration of educational material on labor migration and provide valuable support to the creation of information portals. Information on labor migration services can be made available both digitally and on paper. For example, in Guatemala, Ipala (Chiquimula) has an agreement with Riverdale Park, Maryland; Antigua has one with Coral Gables, Florida; and 42 Quetzaltenango with Livermore, in the San Francisco Bay Area. In El Salvador, Morazán has an agreement with Montgomery County, Maryland; San Miguel with Arlington County, Virginia, and the capital San Salvador with Los Angeles, California, and Washington, DC. In Honduras, La Ceiba has an agreement with Tulsa County, Oklahoma; San Pedro Sula with North Miami Beach, Florida; and Tegucigalpa with New Orleans, Louisiana, among others. 54 Towards Better Labor Migration Systems in Northern Central America Key Findings and Policy Recommendations Country-specific recommendations Guatemala • Ensure resources for the continuity of the temporary work abroad programs once USAID support ends. • Learn from the labor migration pilot with Germany and develop it into a full-fledged program. • Develop a strategy to increase the share of publicly intermediated US H-2 and Canadian TFWP visas, while regulating intermediation by private recruiters. • Strengthen the government-run labor migration sending system toward Canada, leveraging the long-stand- ing agreement in place and high Canadian demand for Guatemalan agricultural workers. This includes drawing a government-led strategy to facilitate and regulate the labor flow, adjusting the supply of labor, and negotiating good terms and conditions with the Canadian government and employers. The new con- sulate in Vancouver and the upcoming one in Ontario province can contribute to this strategy. • Expand government capacity to manage the transborder migration flow between Guatemala and Mexico. • Continue developing municipal employment intermediation offices, to bring services closer to workers and reduce the transaction costs they face. • Introduce a registry of private recruiters, as established by a regulation approved in June 2022. El Salvador • Ensure resources for the continuity of the temporary work abroad programs once USAID support ends. • Expand government capacity for the regulation and oversight of private recruiters. • Enhance the government’s ability to facilitate the uptake of US H-2 and Canadian TFWP visas. Currently, Salvadorans are the NCA citizens that receive the lowest number of such visas. • Implement measures to reduce the uncertainty that workers face during the migration cycle. • Facilitate the re-hiring of workers who successfully completed contracts abroad by the same or similar foreign employers. • Bring institutional services for labor migration to rural areas, particularly in the northeast of the country. Honduras • Ensure resources for the continuity of the work abroad programs once USAID support ends. • Establish a registry of private recruiters and implement norms to regulate them. • Establish the Inter-institutional Roundtable for Labor Migration for coordination and information exchange among institutional stakeholders. • Strengthen the Labor Market Observatory to produce data on labor migration and use it not only for moni- toring, but also to inform policy and advocacy. The SETRASS can compile and analyze information on labor market trends and scenarios to strategically match the development of workers’ skills with market demand. Towards Better Labor Migration Systems in Northern Central America 55 Key Findings and Policy Recommendations Fortifying Access: Strengthening the Protection of Labor Migrants • Strengthen the policy framework and institutional capacity to ensure respect of migrants’ human and labor rights throughout the migration journey. Relevant measures encompass raising awareness of labor rights, monitoring workers’ conditions abroad, and enacting grievance redress mechanisms through which migrants can denounce abuses and obtain prompt resolution. In addition to a universal approach to uphold the human and labor rights of all migrants, more targeted approaches should be adopted with a focus on the rights of LGBTQ+ people, women, children, and other groups. • Establish targeted safety nets that migrant workers can access in case of need, both while abroad and upon their return. For example, a solidarity fund could provide cash transfers to migrants or their families at home, to ensure those left behind have access to healthcare and education. Moreover, healthcare and psychological assistance should be available to migrants who struggle with the challenges of migration or reintegration. • Facilitate the participation of migrants in social insurance schemes. Relevant measures include: strength- ening the legal framework and operational procedures so that migrant workers can contribute to the social insurance schemes of their home countries, and access health insurance coverage for themselves and their dependents; enacting national legislation as well as agreements with host countries to facilitate the portability of social insurance benefits; and engaging with the Social Security Institutes and Ministries of Health of host countries in the design of labor migration systems. • Establish institutional mechanisms to follow up with and receive feedback from migrant workers upon their return. It would be beneficial for the institutions in charge of temporary work abroad programs to maintain a registry of returnees, and to seek their feedback on their experience abroad, their treatment by employers, and how to improve the program. In addition, clear communication about opportunities to migrate again would reduce the uncertainty that workers face regarding potential future trips. • Facilitate workers’ remittances to their families and communities of origin. This includes ensuring that work- ers have the full details of applicable fees and charges at both ends of the transaction, so they can fully assess their options. Country-specific recommendations Guatemala • Increase capacity of consular network to conduct in-situ visits to check on labor conditions of migrants in the US. • Provide safety nets to workers engaged in transborder migration between Guatemala and Mexico. • Address the gender gap in opportunities for agricultural work abroad. • Encourage private recruiters to abide by the Code of Conduct of Agencies to Recruit Migrant Workers. • Straighten the capacity and mandate of CONAMIGUA and the Human Rights Ombudsman, currently focused on irregular migration, to serve and protect the rights of labor migrants. 56 Towards Better Labor Migration Systems in Northern Central America Key Findings and Policy Recommendations El Salvador • Continue learning from labor liaisons within the consular network and increase the number of liaisons in the US to strengthen the monitoring of migrants’ wellbeing. • Expand the capacity of the RREE and the MTPS to review the labor contracts offered to migrants, and to verify and authorize their terms. Honduras • Expand the capacity of the consular network so that, in addition to helping in crisis situations, it can also serve labor migrants. Services should go beyond the hotline “ALHO VOZ” to include labor liaisons, as well as monitoring and in-situ verification of labor conditions. • Implement the legislation that establishes the possibility for labor migrants to register with, contribute to, and receive benefits from the Honduran Social Security Institute. Furthering Access: Harnessing Skills to Access New International Markets • Improve linkages between temporary work abroad services and other complementary public and private services, to amplify their impact. Relevant complementary services include skills development and accredita- tion, language training, socio-economic inclusion programs for returnees, lines of credit for entrepreneurship, and continuous labor intermediation in the local and international labor markets. • Encourage investment in workforce development through alliances with providers of technical, formal, and informal education. Temporary work abroad programs can partner with educational institutions to provide training, help create an inventory of technical and soft skills, and identify skills gaps and mismatches. Such institutions can also contribute knowledge and expertise to a workforce development program. • Assess the structure of the country’s labor supply to inform and promote its development. Relevant measures include: i) designing and implementing a talent board, i.e., a tool to identify labor capacity and industrial voca- tions by city, department, province, or state; ii) Tracking occupations in demand in foreign markets, to inform labor development in the home country; iii) starting a workforce development program in the home country with the potential input of employers abroad, while recognizing the importance of cognitive and social skills; iv) investing in apprenticeships and other work-based learning programs; and v) improving collection and transpar- ency of labor market data. • Create a system for the certification of skills and competences. Steps to this effect include: i) developing guide- lines to assess and validate informal learning and professional experience, to facilitate their understanding, and enhance their quality, transferability, and recognition; and ii) ensuring regulatory consistency in relation to job skills certifications, dual learning programs that alternate between school and work, as well as apprenticeships and professional practice. Towards Better Labor Migration Systems in Northern Central America 57 Key Findings and Policy Recommendations Country-specific recommendations Guatemala • Develop in the short run a system of skills certification run by MINTRAB and INTECAP. • Learn from the pilot project “GUATE TE INCLUYE” to help returnees rejoin domestic society. Explore how to scale up the pilot project into a full-fledged program. • Promote services and programs to develop competencies, bringing together INTECAP, technical and voca- tional schools, the Ministry of Education, and private centers for technical education. El Salvador • Develop instruments to classify and validate skills acquired overseas, to aid migrant workers rejoin the domestic labor market upon their return. For example, considering the dual education pilot program with Germany on elderly care, the skills acquired by returnees should be recognized and promoted to facilitate access to valuable employment opportunities. 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Available from https://data.worldbank.org/indicator/VC.IHR.PSRC.FE.P5 World Bank, Poverty and Inequality Indicators. (2022). Available from https://datatopics.worldbank.org/world-development-indi- cators/themes/poverty-and-inequality.html Yansura J. (2022). Extortion in the Northern Triangle of Central America: Following the Money. Global Financial Integrity (GFI). Washington D.C https://secureservercdn.net/166.62.106.54/34n.8bd.myftpupload.com/wp-content/uploads/2022/09/GFI- Extortion-Report-FINAL.pdf?time=1667300880 Towards Better Labor Migration Systems in Northern Central America 61 62 Annex 1 Annex 1. Development stages of labor migration sending systems Advanced Emerging Nascent Features of an advanced/mature labor sending system Features of an emerging labor sending system Features of a nascent labor sending system Framework • The country has a national law, decree, • The country does not have a national law • The country does not have a national for Access policy, or strategy that outlines its vision that outlines its vision for labor migration. law, decree, policy, or strategy that Regulations and objectives for labor migration. • It has policies for the protection of migrant workers. outlines its vision for labor migration. governing legal • It has policies for the protection of migrant workers. • It has secondary policies with certain specific • It has general policies on migration labor migration • Regulations and programs are in place to regulation relevant to labor migration, but issues, but they do not necessarily operationalize high-level labor migration policies. without a coherent national strategy. address legal labor migration. • There are BLAs or MLAs with host countries • Policies may not be fully implemented. • It has BLAs or MLAs to facilitate legal to facilitate legal labor migration and • It has BLAs or MLAs that provide opportunities labor migration, but they do not include ensure portability of benefits. for orderly labor migration, but do not include mechanisms for the portability of benefits. • There is regulation and oversight mechanisms for the portability of benefits. • There are no specific policies to of private intermediators. • There are policies to regulate private regulate private recruiters. • There is coordination among public recruiters, but they are not implemented. • There is limited or no coordination institutions and relevant stakeholders. • Inter-institutional coordination is limited. among government institutions and other stakeholders. Facilitating Access • The country has a well-developed employment • The country does not research labor • The country does not research labor Helping workers strategy and labor intermediation programs to market demand in receiving countries to market demand in receiving countries Towards Better Labor Migration Systems in Northern Central America access overseas facilitate access to international labor markets. actively promote its labor supply. to actively promote its labor supply. labor markets This includes learning about labor demand in • It may contact potential employers but • It does not have a coherent strategy to receiving countries and contacting potential not within a coherent strategy. actively reach out to potential employers. employers to identify job opportunities. • It has programs and measures to facilitate public • It has programs and measures to facilitate • There are institutions and programs labor intermediation and recruitment under BLAs, public labor intermediation and recruitment to facilitate public and private labor MLA, or MoUs, but they are relatively recent, and under BLAs, MLA or MoUs, but they have intermediation and recruitment, within the their reach and share of labor intermediation only been implemented within the last framework of BLAs, MLAs, or MoUs (including have not reached their full potential. three years, and their reach and share government-to-government arrangements). • Available programs provide a full range of services of labor intermediation are limited. • There is regulation of private labor intermediators, for the identification, recruitment, and hiring of • Public intermediation programs have including registration and licensing requirements workers, including pre-departure logistics (e.g., limited capacity and budget. Thus, their and monitoring and oversight of their activities. assistance with obtaining travel documents, health promotion is modest and does not reach • Government institutions manage a large share screening, transportation to the receiving coun- all sectors of the population evenly. of the regulated labor intermediation. tries), but some of their elements may be limited. • Programs may provide a range of services for • There are strategies and campaigns to promote the • Private recruiters are registered and licensed, the identification, recruitment, and hiring of identification, recruitment, and hiring of workers. but the mechanisms to ensure their adequate workers, including pre-departure logistics, • The migrant worker is supported throughout the regulation and oversight are not fully in place. but some elements may be missing or limited. recruitment process and pre-departure logistics. • There is no regulation or oversight of private recruiters. Advanced Emerging Nascent Features of an advanced/mature labor sending system Features of an emerging labor sending system Features of a nascent labor sending system Fortifying Access • The country has institutions and services to • The country has institutions and services to • The country has institutions and services to Strengthening protect and reduce labor migrants’ vulnerability. protect labor migrants, but not necessarily protect labor migrants, but not necessarily the protection of • Assistance is available to review and throughout the migration cycle or providing throughout the migration cycle. labor migrants explain labor contracts to migrants. all relevant protection measures. • Most relevant protection measures • There are pre-departure workshops to provide • There are pre-departure workshops to are missing or they are devised for migrant workers with information on their review contracts and provide information on migrants in general, rather than for rights and responsibilities overseas. worker’s rights and responsibilities. However, labor migrants specifically. • There are grievances redress mechanisms the country may have limited capacity to • There are pre-departure workshops, to denounces abuses or issues with the monitor compliance with applicable contract but they may be limited and not intermediation process (both private and terms once the worker is overseas. discuss labor contracts. public) and with employers overseas. • There are labor attaches providing legal repre- • There is no verification or monitoring of • Embassies have labor attaches that provide sentation in host countries, but there may not labor migrants’ welfare while overseas. legal representation in host countries. be practical mechanisms to report grievances. • The reach of labor attaches, as well • There is portability of social insurance benefits. • They country may offer repatriation benefits, as of public services and networks in • There are welfare funds43 and repatriation services. but does not have a welfare fund, nor does it support of the diasporas, is limited. • There are social protection and ensure portability of social insurance benefits. • They country may or may not offer health services for returnees. • Social protection upon return, including repatriation benefits or welfare funds. access to healthcare services, is limited. • There is no portability of benefits. • No social protection is available upon return, including with regard to healthcare services. Furthering Access • The country has a national strategy to developing • The country does not have a national • The country does not have a national Harnessing skills the skillsets demanded by receiving countries, strategy to train its labor supply based strategy to train its labor supply based to access new and to reduce information asymmetry between on demand in receiving countries. on demand in receiving countries. international employees and employers across borders. • There are training and skills development • There are training and skills development labor markets • There are programs for skills verification and programs, but without a coherent strategy. programs, but without a coherent strategy. certification upon the migrants’ return. • Skills certification is available for some • There are no programs for skills verification • Migrants can receive information and referrals trades/professions, but not for all. and certification upon the migrants’ return. for wage and self-employment upon return. • There are limited programs for skills verification • Migrants receive no information or referrals and certification upon the migrants’ return. for wage or self-employment upon return. • Migrants receive limited information and referrals for wage and self-employment upon return. 43 A welfare fund is a fund established by governments in sending countries to provide assistance to migrant workers and their families. Such funds may support pre-departure orientation seminars, loans, emergency repatriation, life and medical insurance, and reintegration assistance. Towards Better Labor Migration Systems in Northern Central America 63 Annex 1 Annex 2 Annex 2. Labor Market Statistics Figure A. Share of Informal vs Formal Employment in Northern Central America 100% 90% 18.3% 19.6% 31.3% 80% 70% 60% 50% 40% 81.7% 80.4% 68.7% 30% 20% 10% 0% Honduras Guatemala El Salvador Informal as % of employed Formal as % of employed Source: World Bank (2022e). “Stronger Social Protection and Labor Systems in Central America for a Resilient and Inclusive Recovery.” World Bank. Washington D.C. Notes: Data from El Salvador 2019 (EHPM), Honduras 2019 (EPHPM), Guatemala 2018 (ENEI) using SEDLAC harmonization. Note: infor- mal workers are defined as those not enrolled in a social security scheme, whether they are employers, non-salaried employees, salaried employees, of self-employed. Figure B. Employment, informality, and unemployment in Northern Central American countries Bottom 40% of the population on income distribution 120 20 18 100 16 80 14 12 60 10 8 40 6 20 4 2 0 0 Costa Rica El Salvador Guatemala Honduras Nicaragua Panama Total employment rate Share of informal workers Unemployment rate Top 60% of the population on income distribution 80 7 70 6 60 5 50 4 40 3 30 20 2 10 1 0 0 Costa Rica El Salvador Guatemala Honduras Nicaragua Panama Total employment rate Share of informal workers Unemployment rate Source: World Bank (2022e). “Stronger Social Protection and Labor Systems in Central America for a Resilient and Inclusive Recovery.” World Bank. Washington D.C. Figure based on LAC Equity Lab Tabulations of LABLAC and World Development indicators (2019). Note: Note: informal workers are defined as those not enrolled in a social security scheme, whether they are employers, non-salaried employees, salaried employees, of self-employed. 64 Towards Better Labor Migration Systems in Northern Central America Annex 2 Figure C. Employment rate by education level in Northern Central American countries 90.0 80.0 76 72 72 70.0 64 63 59 61 60.0 58 58 50.0 40.0 30.0 20.0 10.0 0.0 Guatemala El Salvador Honduras Low Medium High Source: World Bank (2022e). “Stronger Social Protection and Labor Systems in Central America for a Resilient and Inclusive Recovery.” World Bank. Washington D.C. Note: Data from El Salvador 2019 (EHPM), Honduras 2019 (EPHPM), Guatemala 2018 (ENEI) using SEDLAC harmonization. Towards Better Labor Migration Systems in Northern Central America 65