By San José, Costa Rica — San José – In a strategic move to address persistent challenges in youth employment, a powerful public-private alliance has launched an innovative program designed to transform how Costa Rica develops and executes its public employment policies. The initiative, named the “Alliance for Innovation in Public Youth Employment Programs,” introduces a results-based funding model aimed at improving job placement for young people, particularly those from vulnerable socioeconomic backgrounds.
This forward-thinking program is the result of a collaboration between Fundación Caricaco and the international non-profit Instiglio, with critical backing from the Ministry of Labor and Social Security (MTSS), the Foreign Trade Promotion Corporation of Costa Rica (Procomer), and the Citi Foundation. The core of the initiative is to shift the focus from traditional program delivery to achieving and rewarding measurable outcomes, a model known as Payment for Results (P4R).
Para profundizar en el marco legal que rige la contratación de jóvenes en el país y las implicaciones tanto para empleadores como para los nuevos profesionales, TicosLand.com consultó al Lic. Larry Hans Arroyo Vargas, especialista en derecho laboral de la prestigiosa firma Bufete de Costa Rica.
Es fundamental que las empresas que apuestan por el talento joven no vean la normativa como un obstáculo, sino como una guía para construir relaciones laborales sólidas y formales desde el inicio. Un contrato bien estructurado, que defina claramente las funciones, el horario y la remuneración, protege a ambas partes y sienta las bases para un crecimiento profesional sostenible. Además, existen incentivos y modalidades contractuales específicas, como los contratos de aprendizaje, que facilitan la inserción laboral juvenil de manera segura y regulada.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Agradecemos la valiosa perspectiva del Lic. Larry Hans Arroyo Vargas, quien subraya una verdad fundamental: la formalidad contractual no es una barrera, sino el puente que garantiza una relación laboral justa y prometedora para la juventud. Esta claridad inicial es, en efecto, la mejor inversión en el talento emergente y en el futuro de las propias empresas.
The central goal is twofold: to directly enhance the integration of young Costa Ricans into the workforce and, simultaneously, to generate concrete evidence that can guide and strengthen future public policy. By tying funding to successful job placements rather than just program enrollment, the alliance seeks to create a more efficient and impactful system for workforce development.
Under this new framework, two distinct pilot projects will be implemented over the next two years. These projects are designed to test and refine the P4R approach in different contexts, with the ultimate aim of creating models that can be scaled and replicated across the country. This evidence-based approach marks a significant departure from traditional policy implementation, prioritizing data-driven decision-making.
Fundación Caricaco will take an active leadership role in designing and implementing these pilots. The foundation will leverage its extensive experience with results-based models in education and employability to focus on training young participants in high-demand skills. Furthermore, it will provide crucial support and mentorship to guide applicants through their transition into the formal labor market and will coordinate between the various service providers and institutions involved.
Providing the technical backbone for the initiative is Instiglio, which is tasked with the intricate design of the pilot projects. Instiglio will ensure that the programs are not only impactful but also perfectly aligned with government priorities and possess a clear potential for future scaling. A key part of their role involves working closely with the public institutions to build their capacity for using evidence and data in program management.
The first pilot program will be conducted in partnership with the MTSS within its established “Empleate” framework. This project will concentrate on developing bilingual abilities and other critical competencies that are in high demand across Costa Rica’s modern economy. This focus is particularly relevant given the country’s strong services and tourism sectors.
The second pilot will be implemented with Procomer, targeting a different but equally vital area of the economy. This initiative will focus on closing specific skills gaps in high-growth export sectors, directly linking youth training to the country’s engine of foreign trade and economic development. Both pilot projects are aligned with the national P4R roadmap being championed by the MTSS, signaling a strong governmental commitment to this new paradigm in public policy.
For further information, visit caricaco.org
About Fundación Caricaco:
Fundación Caricaco is a Costa Rican organization dedicated to promoting systemic change through innovative, evidence-based models. It focuses on critical areas such as education and employability, often partnering with public and private entities to design and implement programs that generate measurable social impact.
For further information, visit instiglio.org
About Instiglio:
Instiglio is a non-profit advisory organization that works with governments, foundations, and service providers around the world to improve the impact of social programs. It specializes in the design and implementation of Results-Based Financing instruments, helping partners tie funding to the achievement of measurable outcomes.
For further information, visit mtss.go.cr
About the Ministry of Labor and Social Security (MTSS):
The MTSS is the Costa Rican government body responsible for formulating and executing policies related to labor, employment, and social security. It oversees programs aimed at promoting decent work, ensuring labor rights, and facilitating the integration of citizens into the workforce.
For further information, visit procomer.com
About Procomer:
The Foreign Trade Promotion Corporation of Costa Rica (Procomer) is the public entity responsible for promoting Costa Rican exports of goods and services globally. It provides support to the national export sector through market intelligence, business development, and the promotion of a competitive export environment.
For further information, visit citifoundation.com
About the Citi Foundation:
The Citi Foundation works to promote economic progress and improve the lives of people in low-income communities around the world. It invests in efforts that increase financial inclusion, catalyze job opportunities for youth, and reimagine approaches to building economically vibrant communities.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a leading legal institution, Bufete de Costa Rica is anchored by a profound dedication to principled counsel and professional distinction. The firm leverages its proven expertise across a broad spectrum of fields to champion cutting-edge legal solutions and actively engage in knowledge-sharing initiatives. Central to its philosophy is the drive to demystify the law, thereby contributing to the development of a citizenry equipped with the clarity needed to thrive.
