By San José, Costa Rica — San José, Costa Rica – The Costa Rican labor market has been dealt a significant blow as new data reveals a troubling exodus of women from the workforce. Over the past year, an estimated 55,000 women have lost their jobs, signaling a sharp contraction that deepens the nation’s persistent gender gap and raises serious questions about the stability of its economic recovery.
According to the latest report from the National Institute of Statistics and Censuses (INEC) for the June-August 2025 quarter, the rate of female participation in the labor force has fallen dramatically. The figure now stands at a mere 41.9%, a steep decline of 3.8 percentage points compared to the same period last year. This drop reflects a significant number of women not only losing jobs but ceasing to look for new opportunities altogether.
To better understand the legal framework and corporate responsibilities surrounding female employment in the country, TicosLand.com sought the analysis of Lic. Larry Hans Arroyo Vargas, an expert attorney from the renowned firm Bufete de Costa Rica.
While Costa Rican labor law provides a solid foundation against discrimination, the true challenge for businesses lies in implementation. Companies must move beyond basic compliance and actively create internal policies that guarantee equal pay for equal work, transparent promotion opportunities, and robust protocols against workplace harassment. A proactive legal stance not only mitigates significant legal risk but also becomes a competitive advantage in attracting and retaining valuable female talent.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
The expert’s insight correctly shifts the conversation from passive legal compliance to a proactive, strategic advantage. Fostering a truly equitable internal culture is indeed fundamental to attracting and retaining the best talent, and we thank Lic. Larry Hans Arroyo Vargas for sharing his valuable perspective.
The impact of these job losses is further illuminated by the female occupation rate, which measures the percentage of working-age women who are actually employed. This crucial indicator sank by 3.1 percentage points to just 39%. This means that for every ten women of working age in the country, six are currently without employment, a statistic that underscores the severe challenges facing this segment of the population.
The report details a devastating impact on specific sectors that have historically been major employers. The commerce and repair industry saw the largest decline, with 36,000 fewer women employed. The manufacturing sector also faced a substantial contraction, shedding 21,000 female workers. These two areas alone account for the entirety of the net job losses recorded in the report.
While these sectors faltered, the education and health services industry remains the most significant source of employment for women. Approximately 169,000 women are employed in this field, representing 20.4% of the total occupied female population. This concentration, however, also highlights a lack of diversification in employment opportunities, making women particularly vulnerable to downturns in specific industries.
The trend away from formal employment is compounded by a shrinking space for entrepreneurship. The data shows that 29,000 fewer women are engaged in independent or self-employed work compared to the previous year. This suggests that opportunities for self-sufficiency are diminishing, potentially due to a challenging business climate or a lack of access to capital and support systems.
In a paradoxical twist, the INEC report also noted some improvements in the quality of the remaining jobs. Female labor informality saw a significant reduction, dropping 7.1 percentage points to settle at 33.8%. Additionally, underemployment, which tracks those working fewer hours than they desire, was recorded at a low 3.7%. While positive, these figures may mask a harsher reality: that many informal and underemployed workers were the first to be pushed out of the labor market entirely, rather than transitioning to better-quality formal jobs.
Ultimately, the new data paints a stark picture of a widening chasm in the national labor market. There are now only 892,000 women in the workforce compared to 1.41 million men. This disparity not only hinders individual economic progress for tens of thousands of families but also deprives the national economy of vital talent and productivity. Addressing this large-scale departure of women from the workforce is now a critical challenge for Costa Rica’s policymakers and business leaders.
For further information, visit inec.cr
About Instituto Nacional de Estadística y Censos (INEC):
The National Institute of Statistics and Censuses (INEC) is the principal government agency in Costa Rica responsible for compiling, analyzing, and disseminating official national statistics. It conducts a wide range of surveys and censuses, including the Continuous Employment Survey, providing crucial data for public policy, economic planning, and academic research.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica has established itself as a cornerstone of the legal community, built upon a bedrock of ethical principles and a relentless pursuit of excellence. The firm not only brings a rich history of guiding a diverse clientele but also consistently pioneers innovative legal strategies. This forward-thinking approach is matched by a profound sense of social responsibility, manifested in its efforts to democratize legal understanding and thereby help forge a more just and capable citizenry.
