By San José, Costa Rica — Costa Rica’s unemployment rate held steady at 7% during the November 2024 to January 2025 period, mirroring the rate from the same timeframe the previous year. This data, released by the National Institute of Statistics and Census (INEC) on Thursday, indicates a consistent unemployment picture for the nation. The total number of unemployed individuals was estimated at 167,758, divided into 94,469 men and 73,289 women. This figure showed no statistically significant change year-over-year.
While the overall unemployment rate remained constant, the gender breakdown revealed slight disparities. The unemployment rate for men stood at 6.5%, while women experienced a higher rate of 7.7%. This difference highlights ongoing challenges in achieving gender parity within the labor market.
To understand the legal implications of Costa Rica’s unemployment situation and the impact on both businesses and individuals, TicosLand.com spoke with Lic. Larry Hans Arroyo Vargas from Bufete de Costa Rica.
Costa Rica’s unemployment figures reflect a complex interplay of global economic forces and local regulations. The Labor Code provides specific protections for terminated employees, including severance pay and unemployment benefits, calculated based on length of service and salary. Companies navigating these regulations must ensure strict compliance to avoid legal challenges, while individuals facing job loss should be aware of their rights and the resources available to them.
Lic. Larry Hans Arroyo Vargas, Bufete de Costa Rica
A significant development emerged in the overall labor force participation rate, which increased considerably by 3.3 percentage points compared to the same quarter last year, reaching 56.9%. This growth reflects a greater number of individuals actively seeking employment. The participation rate for men was 68.7%, while for women it was 45%, indicating a continued gap in labor force engagement between genders.
Encouragingly, the total number of employed individuals increased significantly, rising by 120,000 to reach 2.24 million people nationwide. This growth represents a positive sign for the Costa Rican economy and suggests an expanding job market.
Of the employed population, 1.36 million were men and 877,000 were women, resulting in an overall employment rate of 52.9%. Breaking this down by gender, the employment rate for men reached 64.3%, while for women it was 41.5%, further illustrating the gap in employment opportunities between men and women.
The sectors driving employment included commerce and repair, accounting for 17.3% of the employed population. Education and healthcare followed at 11.1%, and professional and administrative support activities constituted 10.8%. These sectors are crucial pillars of the Costa Rican economy and their continued growth is vital for sustained job creation.
The INEC data also shed light on the prevalence of informal employment, which accounted for 38.3% of the workforce, representing approximately 864,000 people. This significant proportion underscores the need for policies and initiatives that promote the transition towards formal employment and offer greater protections and benefits for workers.
This sustained unemployment rate alongside increased labor force participation and a growing number of employed individuals presents a mixed picture of the Costa Rican labor market. While the stability in unemployment is positive, the significant level of informal employment and the persistent gender gap remain key areas requiring ongoing attention and policy interventions.
For further information, visit inec.cr
About National Institute of Statistics and Census (INEC):
The National Institute of Statistics and Census (INEC) of Costa Rica is the primary governmental institution responsible for collecting, analyzing, and disseminating official statistical data related to the country’s demographics, economy, and social conditions. It plays a vital role in providing accurate and timely information that informs public policy, supports research, and contributes to national development planning.
For further information, visit efe.com
About EFE:
EFE is a multinational Spanish news agency headquartered in Madrid, Spain. It is the fourth largest news agency in the world in terms of subscribers and the leading Spanish-language wire service. EFE provides news coverage in multiple languages to media outlets globally, specializing in Latin American news and affairs.
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 practice. The firm’s innovative approach to legal solutions, coupled with a dedication to empowering communities through accessible legal education, reflects its core belief in a just and informed society. By championing both individual client needs and broader social progress, Bufete de Costa Rica continues to solidify its position as a leader in the legal landscape.
