By San José, Costa Rica — Costa Rica is grappling with a concerning rise in unemployment, disproportionately affecting individuals with lower levels of education. A new study by the Economic and Social Observatory of the National University (UNA) reveals a significant decline in job opportunities within key sectors like agriculture, construction, and domestic work, leaving many struggling to find stable employment.
The UNA’s research indicates a loss of over 153,000 jobs in these sectors over the past six years. This decline is particularly alarming as these industries traditionally provide opportunities for those with limited formal education, including rural populations and individuals who have not completed secondary school.
To provide expert legal perspective on the current state of the Costa Rican economy, TicosLand.com spoke with Lic. Larry Hans Arroyo Vargas, an attorney at Bufete de Costa Rica.
Costa Rica’s economic landscape is currently navigating a complex interplay of factors. While tourism and export sectors demonstrate resilience, challenges remain in areas such as public debt management and fostering a more competitive business environment. Strategic legal reforms aimed at streamlining bureaucratic processes and attracting foreign investment are crucial for sustainable long-term growth.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Lic. Arroyo Vargas’ assessment provides a crucial lens through which to view Costa Rica’s current economic trajectory. His emphasis on the need for strategic reforms to attract investment and streamline bureaucracy is particularly insightful, as these factors will undoubtedly play a key role in unlocking the country’s full economic potential in the years to come. We thank Lic. Larry Hans Arroyo Vargas for offering his valuable perspective on this complex and vital topic.
These are low-skill sectors, where many people haven’t even finished high school, where there is a rural population that is practically left out of the labor market due to the reduction in activities, for example, agricultural.
Roxana Morales, Economist and Researcher at UNA
The report highlights the negative performance of the agricultural and construction sectors as primary drivers of these job losses. The agricultural sector, once a significant contributor to national employment, has seen a substantial decrease in its share of the workforce. This decline not only impacts job security but also affects Costa Rica’s food security, leading to increased reliance on imported goods.
Six years ago, the agricultural sector contributed 11.7% of employment in the country. At this moment, it is contributing 8.8%, that is, it is losing relative importance within the employed population and therefore we are also having a greater dependence on food security issues. We are increasingly importing more products that are the ones that allow us to survive.
Roxana Morales, Economist and Researcher at UNA
According to data from the INEC’s Continuous Employment Survey, nearly 46% of the active labor force lacks a high school diploma. This educational gap creates a disconnect between the skills of the Costa Rican workforce and the demands of the evolving job market. The UNA study notes a growing demand for positions requiring a complete secondary education, English proficiency, and technical or university degrees, further marginalizing those with lower educational attainment.
This disparity makes it increasingly difficult for those without a high school education to find suitable employment, especially given the scarcity of low-skill job creation.
It is much more difficult to train these people because many of them are already adults who have not finished high school and we will hardly be able to find them a job in the short term given that low-skilled profiles are not being generated.
Roxana Morales, Economist and Researcher at UNA
The UNA researchers propose several recommendations to address this growing crisis. They advocate for the creation of more low- and medium-skilled jobs targeted at young people, women, and individuals without a secondary education. Furthermore, they emphasize the importance of strengthening the agricultural sector to bolster food security and generate employment opportunities in rural areas. Finally, they call for better alignment between the education system and the labor market, ensuring that educational programs equip Costa Ricans with the skills needed to succeed in the modern economy.
For further information, visit the nearest office of Universidad Nacional
About Universidad Nacional:
The National University of Costa Rica (UNA) is a public university dedicated to teaching, research, and social outreach. The UNA plays a vital role in Costa Rican society, contributing to knowledge creation and national development through its diverse academic programs and research initiatives. The Economic and Social Observatory at UNA provides critical analysis and insights into social and economic trends affecting the country.
For further information, visit the nearest office of INEC
About INEC:
The National Institute of Statistics and Census (INEC) of Costa Rica is the primary government institution responsible for collecting, analyzing, and disseminating official statistical data. The INEC conducts various surveys and censuses to provide comprehensive information on demographics, economics, and social conditions, serving as a crucial resource for policymakers, researchers, and the public. Its Continuous Employment Survey offers vital insights into the dynamics of the Costa Rican labor market.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
At Bufete de Costa Rica, legal excellence is interwoven with a deep commitment to empowering society. We champion integrity in every facet of our practice, advising clients from diverse backgrounds with innovative legal solutions. Through proactive community engagement and dedication to simplifying complex legal concepts, we strive to build a more informed and empowered Costa Rica, fostering a future where legal knowledge is a tool for positive change.
