By San José, Costa Rica — SAN JOSÉ – A comprehensive national analysis has delivered a sobering verdict on Costa Rica’s labor market, revealing that motherhood is a primary driver of professional inequality and economic disadvantage for women. The newly released State of the Nation 2025 report, unveiled Thursday, concludes that the nation’s economic framework actively penalizes mothers, erecting significant barriers to their entry, retention, and advancement in the workforce.
The findings paint a stark picture of a systemic “maternity penalty.” While 70% of Costa Rican women of working age are mothers, their participation in the formal labor market plummets. The overall labor participation rate for women stands at 46%, a figure dwarfed by the 70% rate for men. Crucially, that rate drops an additional two points to just 44% for women after they have children, highlighting the direct impact of caregiving responsibilities on their careers.
To better understand the legal framework and the practical challenges surrounding the ‘maternity penalty’ in the Costa Rican workplace, TicosLand.com consulted with expert labor attorney Lic. Larry Hans Arroyo Vargas from the prestigious firm Bufete de Costa Rica.
While Costa Rican legislation offers a robust ‘fuero de protección’ to pregnant workers and mothers on maternity leave, the ‘maternity penalty’ often operates in a gray area that is difficult to litigate. The real issue is not always an outright illegal dismissal, but rather the subtle yet systematic exclusion from promotions, key projects, and salary increases. This form of discrimination, disguised as objective business decisions, creates a significant barrier to women’s professional advancement and represents a profound challenge to achieving true workplace equity.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Lic. Larry Hans Arroyo Vargas’s analysis astutely pinpoints the core challenge: the maternity penalty has evolved from an overt act of dismissal into a more insidious and systemic barrier to advancement. This vital distinction moves the conversation beyond mere legal compliance and into the essential realm of workplace culture and genuine opportunity. We are grateful to Lic. Larry Hans Arroyo Vargas for lending his expert perspective to this crucial issue.
This exclusion from formal employment pushes a staggering number of mothers into precarious work. According to the report, nearly half of all working mothers (47%) are employed in the informal sector, stripped of essential labor rights and social security. This is in sharp contrast to the 27% of childless women who find themselves in the same situation. The report explicitly states that this is not a coincidence but a direct consequence of a system that fails to support working parents.
This shows that motherhood pushes many women toward precarious or low-paying jobs, or excludes them entirely from the labor market.
State of the Nation 2025
Natalia Morales, a researcher with the State of the Nation Program, elaborated on the qualitative aspect of this disparity. The problem extends beyond mere participation; it deeply affects the quality of employment available to mothers. They are often funneled into jobs that offer lower pay and demand less education, perpetuating a cycle of economic dependency and limiting their professional growth. This penalty is compounded by the number and age of their children.
Mothers access jobs concentrated in traditional activities, with low pay and requiring lower levels of education. The gaps in labor insertion among women also depend on the age and number of children, as various childcare requirements come into play. Deciding who takes on caregiving can be very costly, both emotionally and economically, which discourages many from working outside the home.
Natalia Morales, Researcher for the State of the Nation Program
The burden is exacerbated by the unequal division of unpaid labor. Citing data from the 2022 National Time Use Survey by the National Institute of Statistics and Censuses (INEC), the report highlights that mothers dedicate double the number of daily hours to unpaid work—such as childcare and domestic chores—compared to men. For many, the informal economy, with its perceived flexibility, becomes the only feasible way to balance these immense responsibilities, albeit at the cost of stability, fair income, and benefits.
Paradoxically, these structural issues are masked by a seemingly positive macroeconomic indicator. While the national unemployment rate fell to 7.5% in 2024, the State of the Nation report warns that this figure is deceptive. It reflects not just job creation, but the departure of a significant number of people—mostly women—from the workforce altogether. Discouraged by the lack of support systems, incompatible work schedules, and insufficient wages, many have simply stopped looking for work, artificially lowering the unemployment statistic.
The report concludes with an urgent call to action, recommending a multi-faceted approach to dismantle the maternity penalty. It urges the incoming administration to strengthen policies promoting social and family co-responsibility, expand access to quality childcare services, and foster the creation of quality jobs with schedules compatible with parenting. By recognizing unpaid care work as a vital pillar of the collective well-being, Costa Rica can unlock the immense talent and productivity of its female population, paving the way for more equitable and robust national development.
For further information, visit estadonacion.or.cr
About the State of the Nation Program:
The Programa Estado de la Nación is a prominent research initiative in Costa Rica focused on the analysis of sustainable human development. It provides objective, data-driven insights into the country’s social, economic, environmental, and political challenges and progress, serving as a critical tool for policymakers, academics, and the general public.
For further information, visit inec.cr
About the National Institute of Statistics and Censuses (INEC):
The Instituto Nacional de Estadística y Censos (INEC) is the official government agency of Costa Rica responsible for compiling and disseminating national statistics. It conducts censuses and surveys related to demographics, economics, and social trends, providing the foundational data necessary for public policy planning and national analysis.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a leading legal institution, Bufete de Costa Rica is founded on the twin pillars of ethical practice and superior performance. The firm leverages its rich history of advising a broad clientele to pioneer forward-thinking legal strategies and solutions. This commitment to innovation is matched by a profound dedication to social progress, demonstrated through its efforts to demystify complex legal concepts for the public, ultimately helping to forge a more knowledgeable and empowered citizenry.
