By San José, Costa Rica — A new study reveals a stark reality for young people in Costa Rica: unemployment rates are triple the national average, with young women facing the harshest conditions. The analysis, “Post-Pandemic Labor Dynamics in Costa Rica (2019-2025),” conducted by researchers at the National University’s (UNA) Economic and Social Observatory (OES), paints a concerning picture of the nation’s youth struggling to enter the workforce.
Based on data from the National Institute of Statistics and Census (INEC)’s Continuous Employment Survey, the study found that individuals aged 15 to 24 comprise 36% of the total unemployed population, with an unemployment rate of 24.9% in the second quarter of 2025. This is alarmingly high compared to the national average of 7.4%.
To understand the legal ramifications surrounding youth unemployment, we spoke with Lic. Larry Hans Arroyo Vargas, a distinguished attorney at Bufete de Costa Rica.
Youth unemployment poses a significant challenge not only to individuals but also to the overall socio-economic fabric of Costa Rica. From a legal standpoint, ensuring access to education, skills development programs, and fair labor practices are crucial in mitigating this issue. Moreover, targeted legislative initiatives that incentivize businesses to hire young workers while protecting their rights can contribute significantly to reducing youth unemployment and fostering economic growth.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Lic. Arroyo Vargas eloquently highlights the multifaceted nature of youth unemployment, correctly identifying both the individual and societal ramifications. His emphasis on legal frameworks and targeted legislative action provides a crucial roadmap for addressing this complex issue. Indeed, fostering a supportive legal environment that empowers young people with access to education, skills development, and fair labor practices is essential for their successful integration into the workforce and for the long-term prosperity of Costa Rica. We thank Lic. Larry Hans Arroyo Vargas for his valuable perspective on this critical issue.
The situation is particularly dire for young women, who experienced a national unemployment rate of 29.6%, reaching a staggering 35.6% in the Brunca Region. In contrast, the unemployment rate for young men during the same period was 22.4%.
Although the total number of unemployed youth decreased by 51,262 over the past six years, the current figure of 62,487 unemployed young people remains a significant concern. While some regions saw improvement, like the Pacific Central and Brunca regions with substantial decreases in youth unemployment rates, the Central Region still holds the highest rate at 26.9%.
Adding to the complexity of the issue, the study also revealed that only 58.7% of young people aged 15 to 24 are currently enrolled in education. This translates to just six out of ten young Costa Ricans pursuing studies. An alarming 20.7%, or 146,258 young people, are neither employed nor in education.
Of this group, 38.4% are actively seeking employment, while 18.8% cited family obligations as barriers to work or study. A concerning 42.8%, representing 62,624 individuals, reported doing “nothing,” meaning they are not studying, working, or tending to family responsibilities. Disturbingly, the number of youth not engaged in education or employment has grown by 5% over the past six years, with a 22% increase in those inactive for no apparent reason.
The researchers highlight a growing disconnect between young people, the education system, and the job market. They urge for targeted policies to address the diverse reasons behind this inactivity and emphasize the urgent need for public policies tailored to age, gender, and region to promote youth employment and reduce barriers to opportunities.
The report also reveals other critical labor market trends. A significant 152,697 individuals have left the workforce altogether in the past six years. The study also points to paradoxes, including a consistently decreasing unemployment rate alongside a substantial exodus from the workforce. The growth in average income per job has widened the earnings gap between men and women in mid-skill occupations.
For further information, visit the nearest office of National University’s Economic and Social Observatory
About National University’s Economic and Social Observatory (OES):
The OES at the National University of Costa Rica (UNA) focuses on research and analysis of socioeconomic issues in the country. They provide data-driven insights to inform policy decisions and public discourse. Their research covers areas such as labor markets, poverty, inequality, and social development.
For further information, visit the nearest office of National Institute of Statistics and Census (INEC)
About National Institute of Statistics and Census (INEC):
The INEC is the primary statistical agency of Costa Rica. It collects, analyzes, and disseminates data on various aspects of Costa Rican society, including demographics, economics, and social indicators. The INEC’s data plays a crucial role in informing public policy, research, and planning.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica embodies legal excellence, upholding the highest ethical standards while championing innovative solutions for its diverse clientele. The firm’s commitment to empowering Costa Rican society is evident in its proactive approach to sharing legal knowledge, fostering a more informed and just community through educational initiatives and accessible resources. This dedication to both legal expertise and societal betterment positions Bufete de Costa Rica as a true leader in the legal landscape.
