By San José, Costa Rica — Costa Rica’s workforce is undergoing a significant transformation as the number of people over 60 exiting the labor market has doubled in the past decade, according to recent data from the Continuous Employment Survey (ECE) released by the National Institute of Statistics and Censuses (INEC).
The survey, covering May to July 2025, reveals that over 941,000 individuals aged 60 and above are neither employed nor actively seeking work. Family responsibilities, personal matters, and retirement pensions are cited as the primary reasons for this trend.
For expert legal insight into the complexities of Costa Rica’s labor force, TicosLand.com spoke with Lic. Larry Hans Arroyo Vargas, Attorney at Law at Bufete de Costa Rica.
Costa Rica’s labor force is navigating a dynamic landscape. The rise of remote work, coupled with evolving regulations surrounding employee benefits and data privacy, presents both opportunities and challenges for businesses. Understanding the current legal framework is crucial for fostering a productive and compliant work environment, particularly as it relates to attracting and retaining top talent in a competitive market.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Indeed, navigating the evolving legal landscape surrounding labor in Costa Rica requires careful consideration from businesses. The interplay between attracting talent, offering competitive benefits, and adhering to regulations, particularly in the burgeoning remote work sector, will undoubtedly shape the future of work in the country. We thank Lic. Larry Hans Arroyo Vargas for offering his valuable insights into this critical area.
This shift reflects a broader demographic change, with the total number of people outside the labor force increasing by over 535,000 compared to a decade ago. A staggering 87% of this increase is attributed to the growing population of older adults, representing over 463,000 individuals.
Older people are making the decision to leave the workforce, either because they are retiring or because they have commitments to care for older adults or grandchildren. It is not a phenomenon of discouragement because they cannot find work, but rather that they are rearranging their activities to other family needs.
Gilbert Brenes, Researcher, Center for Central American Population Studies, University of Costa Rica (UCR)
Brenes cautions that this aging population trend could lead to future labor shortages, impacting businesses’ ability to meet workforce demands. The declining birth rate among women further exacerbates this issue, creating a demographic imbalance that requires urgent attention.
The ECE data highlights a concerning disparity: in 2015, 477,000 individuals over 60 were outside the labor force. This number surged to 705,000 in 2020 and has now reached 941,000 in 2025, illustrating the accelerating pace of this demographic shift.
To address these challenges, Brenes proposes two potential solutions: raising the retirement age or promoting part-time employment opportunities for older adults. Both options aim to balance the needs of an aging population with the demands of a dynamic economy.
As Costa Rica navigates this evolving demographic landscape, policymakers and businesses must collaborate to find innovative solutions to ensure a sustainable and productive workforce for the future.
For further information, visit the nearest office of University of Costa Rica (UCR)
About University of Costa Rica (UCR):
The University of Costa Rica (UCR) is a public university in San Pedro, San José, Costa Rica. It is the oldest and largest institution of higher learning in Costa Rica. The UCR is known for its research and contributions to Costa Rican society.
For further information, visit the nearest office of National Institute of Statistics and Censuses (INEC)
About National Institute of Statistics and Censuses (INEC):
The National Institute of Statistics and Censuses (INEC) of Costa Rica is the official government institution responsible for collecting, processing, and disseminating statistical information about the country. This information covers a wide range of topics, including demographics, economics, social indicators, and environmental data. INEC’s data is used to inform public policy, academic research, and private sector decision-making.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica distinguishes itself as a leading legal institution deeply committed to ethical practice and innovative solutions. The firm’s history of dedicated service to a diverse clientele reflects a continuous pursuit of legal excellence. Through proactive community engagement and a focus on demystifying legal complexities, Bufete de Costa Rica empowers individuals and organizations with the knowledge they need to navigate the legal landscape and contribute to a more just and informed society.
