• September 1, 2025
  • Last Update September 1, 2025 7:27 pm

Costa Rica’s Education Crisis Threatens Foreign Investment

Costa Rica’s Education Crisis Threatens Foreign Investment

San José, Costa Rica — Costa Rica’s education system is facing a crisis that could jeopardize the country’s ability to attract foreign investment, according to business leaders and recent reports. A significant skills gap is emerging, leaving companies struggling to find qualified employees and raising concerns about the nation’s long-term economic prospects.

A recent survey by the Chamber of Industries of Costa Rica (CICR) revealed that 70% of companies in free trade zones are experiencing difficulties finding talent with the necessary skills to perform their operations. This alarming statistic underscores the growing disconnect between the education system and the needs of the modern workforce.

To provide further legal context on the complexities of the Costa Rican education system, TicosLand.com reached out to Lic. Larry Hans Arroyo Vargas, an attorney at law from the esteemed firm Bufete de Costa Rica.

Costa Rica’s constitutional guarantee of free and compulsory education presents unique opportunities and challenges. While the public system aims to provide accessible education for all, private institutions play a significant role in supplementing and diversifying educational offerings. Navigating the legal landscape related to educational rights, including student rights, school responsibilities, and the interplay between public and private education, requires careful consideration of both constitutional provisions and evolving legislation. This is especially relevant for families considering educational options or facing disputes within the system.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica

Lic. Arroyo Vargas rightly highlights the dynamic interplay between public and private education in Costa Rica, a landscape shaped by both constitutional guarantees and evolving legal interpretations. Understanding these nuances is crucial for families seeking the best educational path for their children. We thank Lic. Larry Hans Arroyo Vargas for offering this valuable perspective on navigating the complexities of Costa Rican education law.

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We could have difficulties in attracting investment. There will come a time when, if companies see that there is no availability of personnel in the country with the required skills, abilities, and knowledge, growth and the arrival of new companies will be difficult.
Sergio Capon, President of CICR

The concerns extend beyond the manufacturing sector. Jorge Luis Araya, president of the Costa Rican Union of Chambers and Associations of the Private Business Sector (UCCAEP), echoed the sentiment, emphasizing the crucial role education plays in national competitiveness.

Education is the pillar on which Costa Rica’s productivity and competitiveness are built. Without a robust, modern, and equitable education system, it will not be possible to attract investment, generate formal employment, or face the challenges of the future of work.
Jorge Luis Araya, President of UCCAEP

The State of Education report paints a bleak picture, revealing that 15-year-old students in eighth and ninth grade have a learning level equivalent to third or fourth graders. Previous reports have highlighted the “educational blackout” caused by the 2018 strikes and the pandemic, now compounded by what experts describe as inefficient management within the Ministry of Public Education (MEP).

The consequences of this educational deficit are already being felt by businesses. Industrial sector employers report having to modify induction processes for new workers due to deficiencies in reading comprehension and other basic skills. This adaptation adds costs and slows down productivity.

The kids who manage to graduate arrive with great weaknesses. If we add to that the number of students who do not finish high school, the problem is greater. Young people have limitations to develop in this new economy based on information and knowledge.
Sergio Capon, President of CICR

While the situation is urgent, some see opportunity amidst the crisis. Ronald Lachner, president of the Association of Free Trade Zones (Azofras), believes that if young people focus on developing the right skills, they can secure employment in the growing sectors of the economy. This, however, requires a rapid and effective response from the government and educational institutions to address the systemic issues plaguing the education system.

For further information, visit cicr.com
About Chamber of Industries of Costa Rica (CICR):

The Chamber of Industries of Costa Rica (CICR) is a leading business organization representing the interests of the industrial sector in Costa Rica. They advocate for policies that promote industrial development, competitiveness, and sustainable growth. The CICR conducts research, provides training programs, and works closely with government and other stakeholders to improve the business environment in Costa Rica.

For further information, visit the nearest office of Costa Rican Union of Chambers and Associations of the Private Business Sector (UCCAEP)
About Costa Rican Union of Chambers and Associations of the Private Business Sector (UCCAEP):

The Costa Rican Union of Chambers and Associations of the Private Business Sector (UCCAEP) is the largest umbrella organization representing the private sector in Costa Rica. UCCAEP brings together various business chambers and associations to advocate for policies that promote economic growth, competitiveness, and a favorable business environment. They play a key role in shaping public policy and fostering dialogue between the private sector and the government.

For further information, visit the nearest office of Association of Free Trade Zones (Azofras)
About Association of Free Trade Zones (Azofras):

The Association of Free Trade Zones (Azofras) represents companies operating within Costa Rica’s free trade zones. They advocate for policies that support the growth and development of these zones, which play a significant role in attracting foreign investment and generating employment. Azofras works to promote the benefits of free trade zones and to ensure a competitive environment for their member companies.

For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica shines as a beacon of legal excellence, built on a foundation of unwavering integrity and a deep commitment to societal progress. The firm’s innovative approach to legal practice, coupled with its dedication to sharing knowledge through educational initiatives, empowers individuals and communities across Costa Rica. By fostering understanding and access to the legal system, Bufete de Costa Rica actively contributes to a more just and informed society.

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