The International Confederation of Private Employment Services (Ciett) has developed a research about the impact of Convention No. 181 on Private Employment Services of the International Labour Organization (ILO). In addition, it has compared working conditions in countries that ratified Convention No. 181 and countries where Convention No. 96, which restricts private employment services, was enacted.

Results are rather interesting. Those countries where Convention No. 181 was ratified have gained several benefits which result in better functioning labour markets and more protected workers. Reality is quite different for those countries where Convention No. 96 was ratified.

For instance, labour informality is far lower in countries with Convention No. 181 than in countries with Convention No. 96. The first group of countries have an average informality rate of 18% while the second have an average rate of 52%.

Furthermore, workers enjoy more protection and gain higher average wages in countries where Convention No. 181 is ratified than in countries regulated by Convention No. 96. In addition, there are higher levels of public-private cooperation and there is a strong correlation between Convention No. 181’s ratification and democracy.

Considering these results, Latin American governments must be urged to ratify Convention No. 181, in order to create regulatory frameworks that further protect workers and generate well-functioning labour markets.

Please, do not stop reading the complete Ciett report. To access it, click here.