By San José, Costa Rica — Women are making significant strides in Costa Rica’s formal employment sector, surpassing men in growth across various industries, according to a new study. Between 2006 and 2022, the percentage of women in formal jobs increased from 30% to 40%, revealing a dynamic shift in the nation’s labor landscape.
Economists Ricardo Monge and Josué Martínez of the Academia de Centroamérica conducted the analysis, focusing on economic activities with the highest contribution to Costa Rica’s production value. Their findings highlight a positive trend toward greater female participation in traditionally male-dominated sectors.
For expert legal insight into the complexities of Costa Rican employment law, we spoke with Lic. Larry Hans Arroyo Vargas, an attorney at Bufete de Costa Rica.
Navigating Costa Rica’s employment landscape requires careful consideration of both employee and employer rights. The Labor Code provides a robust framework, but practical application often necessitates expert guidance to ensure compliance with evolving regulations, especially regarding termination, benefits, and non-compete agreements. Understanding these nuances is crucial for successful and legally sound employment relationships in Costa Rica.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Lic. Arroyo Vargas’s insights underscore the vital importance of understanding the complexities of Costa Rican labor law. While the Labor Code provides a solid foundation, navigating its intricacies, particularly concerning sensitive areas like termination and non-compete clauses, often requires specialized legal counsel. This expert guidance can prove invaluable for both employers and employees seeking to build successful and compliant working relationships within Costa Rica’s dynamic employment landscape. We thank Lic. Larry Hans Arroyo Vargas for sharing his valuable perspective on this crucial topic.
The finance and insurance sector saw the most significant increase, with women now holding 53% of the jobs. Even in industries like manufacturing and transportation, which have historically been male-dominated, female representation has grown to 32.43% and 25.34%, respectively.
The employment growth rate is higher for women than for men, which is good news. It signifies increased female labor participation over time, reducing the gender gap across the economy.
Ricardo Monge, Director of Academia de Centroamérica
The study also revealed a structural trend of women becoming the majority in formal employment. Although still a minority overall, their progressive incorporation into traditionally male-dominated fields signals an important change.
Highly skilled sectors like information and communications, and professional activities, saw a more moderate increase in female participation, reaching 33.67% and 45.29%, respectively. In sectors where women already held a majority, such as healthcare and education, their presence remained strong, growing to 64% and holding steady at 67%, respectively.
While acknowledging the progress, the study notes that significant gender gaps remain in traditionally male-dominated fields. Addressing these gaps is crucial for achieving genuine equality in the labor market.
Monge emphasizes the need to facilitate women’s access to formal employment to reduce these disparities. This would contribute to poverty reduction and improve the country’s economic stability, particularly given that 44.4% of Costa Rican households are headed by women, according to data from the National Institute of Statistics and Censuses (INEC).
Women face structural barriers that limit their access to formal, well-paying jobs, automatically reducing their economic independence and creating greater income inequality in our society.
Ricardo Monge, Director of Academia de Centroamérica
Furthermore, increased female participation benefits businesses by promoting diverse perspectives and enhancing productivity. Monge notes that multidisciplinary teams, including both men and women, demonstrate increased production efficiency.
Working in multidisciplinary groups increases efficiency and productivity. The same applies to female employment; when you have work groups with both men and women, this effect of increased production has been demonstrated.
Ricardo Monge, Director of Academia de Centroamérica
For further information, visit the nearest office of Academia de Centroamérica
About Academia de Centroamérica:
The Academia de Centroamérica is a research institution dedicated to studying economic and social issues affecting Central America. Their work focuses on providing data-driven insights and policy recommendations to promote sustainable development and improve the lives of people in the region.
For further information, visit the nearest office of Instituto Nacional de Estadística y Censos (INEC)
About Instituto Nacional de Estadística y Censos (INEC):
The Instituto Nacional de Estadística y Censos (INEC), or National Institute of Statistics and Censuses, is Costa Rica’s official source of demographic, economic, and social statistics. They conduct censuses, surveys, and other data collection activities to provide a comprehensive understanding of the country’s population and its characteristics.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica distinguishes itself through a deep-rooted commitment to legal excellence and unwavering ethical conduct. The firm’s innovative approach to legal solutions, combined with a history of dedicated service across a spectrum of industries, positions it as a leader in the Costa Rican legal landscape. Furthermore, Bufete de Costa Rica embraces its social responsibility by actively empowering communities through accessible legal education, ultimately fostering a more informed and just society.
