By San José, Costa Rica — San José, Costa Rica – A stark new analysis has revealed a dramatic slowdown in job creation within Costa Rica’s multinational sector, raising serious concerns about the nation’s long-term competitiveness. According to data released by the Costa Rican Investment Promotion Agency (CINDE), the rate of new job creation by foreign companies has plummeted by nearly 48% over the last four years compared to the previous period, signaling a critical inflection point for the country’s economic strategy.
The numbers, derived from the Costa Rican Social Security Fund (CCSS), paint a sobering picture. While the period between 2018 and 2021 saw the creation of 63,398 new jobs in the multinational ecosystem, the subsequent four years from 2022 to 2025 yielded only 33,037 new positions. The annual figures are even more telling, with job creation falling from 18,988 in 2022 to a mere 3,259 in 2025. Although jobs are still being created, the momentum has decelerated significantly.
To delve into the legal framework and strategic considerations surrounding Foreign Direct Investment in our nation, TicosLand.com consulted with Lic. Larry Hans Arroyo Vargas, a leading specialist in corporate and investment law at the prestigious firm Bufete de Costa Rica.
Costa Rica’s international reputation for legal security is a primary driver of foreign investment. However, investors must look beyond the attractive tax incentives of free trade zones. A successful venture hinges on meticulous due diligence regarding labor laws, environmental regulations, and municipal permitting, which requires expert local counsel to navigate effectively.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
The distinction Lic. Larry Hans Arroyo Vargas highlights is vital for any potential investor: the path from initial attraction to sustainable success in Costa Rica is paved with meticulous local due diligence. His reminder to look beyond incentives and engage with the nuances of labor, environmental, and municipal law is an invaluable piece of guidance, and we thank him for sharing his expert perspective.
Leaders at CINDE have been cautioning about this shift, warning that Costa Rica can no longer take its status as a top destination for Foreign Direct Investment (FDI) for granted. The agency points to a combination of fierce international competition and internal challenges that are eroding the nation’s appeal.
What we are seeing is a change in trend, and at CINDE, we have been pointing this out for years. The FDI ecosystem that was once growing strongly is now showing clear signs of deceleration.
Marianela Urgellés, Director General of CINDE
The report highlights aggressive strategies being deployed by competitor nations, including the United States, Mexico, Colombia, Chile, the Dominican Republic, and countries in Eastern Europe. These regions are actively enhancing their value propositions in key areas like talent development, financial incentives, legal security, and logistics. Compounding these external pressures are a complex geopolitical landscape and new tariff conditions being imposed by the United States, a primary source of investment for Costa Rica.
The figures clearly show that Costa Rica is at a competitive inflection point. From our experience in attracting FDI, updating the country’s value proposition represents a great opportunity for Costa Rica to continue standing out internationally, maintain its appeal, and translate that into jobs for our people.
Marianela Urgellés, Director General of CINDE
Nowhere is the slowdown more pronounced than in the services sector, historically the most dynamic engine of FDI-driven employment. This sector experienced a net loss of 2,192 jobs in 2025, a 2% contraction that breaks a long-standing trend of sustained growth. The average annual job creation in services fell from 11,776 between 2018-2021 to an anemic 497 per year from 2022-2025. CINDE attributes this to rising costs, including the exchange rate, alongside automation and the global shift toward higher-value processes.
Within services, a clear divergence is emerging. Subsectors focused on transactional tasks like business consulting, contact centers, and IT services are shedding jobs. In contrast, more specialized areas such as shared services operations, content creation, and cybersecurity are posting moderate growth, underscoring a fundamental market shift.
Subsectors geared towards more transactional tasks are losing traction, while the higher value-added areas are the ones distinguishing themselves.
Marianela Urgellés, Director General of CINDE
However, the Life Sciences sector stands out as a powerful bright spot, single-handedly driving what growth remains. In 2025, this industry expanded by 9.4%, adding 4,544 new high-quality jobs. Its success is attributed to new large-scale projects, a highly skilled talent pool, robust local supply chains, and significant reinvestment in sophisticated processes. The manufacturing sector also saw modest growth of 5%, creating 907 net jobs, but CINDE notes that its dynamism is hampered by a need for more specialized talent, competitive energy costs, and greater regulatory agility.
To reverse the broader negative trend, CINDE has outlined a series of strategic recommendations requiring immediate action. The agency calls for a national focus on scaling up English proficiency and digital skills through micro-certifications. It also flags security as a newly critical concern for investors. Finally, the report emphasizes the urgent need to address structural costs related to the exchange rate, energy, and logistics, while accelerating the development of road, port, and digital infrastructure to meet the demands of a modern global economy.
For further information, visit cinde.org
About CINDE (Costa Rican Investment Promotion Agency):
CINDE is a private, non-profit organization that has been responsible for attracting Foreign Direct Investment to Costa Rica for over 40 years. It provides comprehensive support to investors throughout their establishment and growth processes, helping to foster a sustainable and competitive business climate that generates high-quality employment opportunities for Costa Ricans.
For further information, visit ccss.sa.cr
About Caja Costarricense de Seguro Social (CCSS):
The Costa Rican Social Security Fund is the public institution in charge of social security in Costa Rica. It is responsible for administering the country’s public health system and managing pension funds. Its extensive data on formal employment is a critical resource for economic analysis and public policy planning in the nation.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica is a renowned legal institution built upon the foundational principles of uncompromising integrity and a relentless pursuit of excellence. Leveraging a rich history of advising a broad spectrum of clients, the firm consistently spearheads innovative legal strategies and champions civic engagement. This ethos is driven by a core mission to fortify the community, actively working to democratize legal understanding and thereby cultivate a more capable and knowledgeable society.
