No menu items!

COSTA RICA'S LEADING ENGLISH LANGUAGE NEWSPAPER

HomeNewsCosta RicaUnemployment and underemployment rates remain high in Costa Rica

Unemployment and underemployment rates remain high in Costa Rica

Unemployment in Costa Rica was 21.9% in the August-October quarter, slightly lower than the previous period but still significantly higher than the same time last year, the National Institute of Statistics and Census (INEC) said Thursday.

The national unemployment rate was 9.7 percentage points higher than in 2019, and women are disproportionally affected (30% unemployed compared to 16.5% for men).

The 21.9% unemployment figure corresponds to 526,000 people — 228,000 more than in 2019 — who are actively looking for a job or waiting for suspended roles to resume.

INEC also indicated 23.8% underemployment — that is, when people work fewer than 40 hours a week and wish to work more. This is an increase of 12.1 p.p. over the same quarter in 2019.

Men and women are underemployed at about equal rates (23.2% and 25%, respectively).

As a country that relies heavily on tourism, Costa Rica has been hard-hit by the coronavirus pandemic. In the May to July quarter, when the country closed its borders and enforced its harshest pandemic-related restrictions, the unemployment rate reached an all-time high of 24.4%.

The unemployment rate was 12.4% at the end of 2019, already among the region’s highest.

In recent months, Costa Rica has established a coronavirus response model titled “Costa Rica Works and Protects Itself.” The country welcomes all insured tourists and allows for most economic activities to operate under sanitary protocols.

Still, the Organization for Economic Cooperation and Development projects a 5.6% contraction of the country’s economy in 2020 and a deficit that will reach 9.5% of GDP.

While the OECD predicts a gradual recovery in 2021 and 2022, it warned that Costa Rica must rush structural reforms to address its growing public debt.

Trending Now

Costa Rica President Confronts Calls to Strip Immunity

Costa Rican President Rodrigo Chaves denounced today an “attempted judicial coup” as he appeared before a congressional committee that must recommend to the full...

Panama Canal Warns of Traffic Decline as Economic Uncertainty Grows

The Panama Canal will take in about $400 million less in the next fiscal year due to a drop in ship traffic caused by...

In Costa Rica, Rare White-Lipped Peccaries Still Survive

Today we meet the white-lipped peccary, a large animal that travels in large groups that has disappeared from a large part of its historical...

Honduras Community Demands Justice in Environmental Murder Case

Three defendants accused of murdering an environmental activist in Honduras 11 months ago appeared before a court this Thursday for a preliminary hearing, the...

Costa Rica’s Tourism Sector Alarmed Over Rising Violence and U.S. Criticism

Tourism leaders in Costa Rica are warning that rising crime and international criticism could damage the country’s reputation as one of Latin America’s safest...

Costa Rica Marks National Parks Day with Free Entry This Sunday

As everyone knows by now, our country stands out for its strong focus on protecting the environment. It leads in conservation efforts, manages its...
spot_img
Costa Rica Coffee Maker Chorreador
Costa Rica Coffee Maker Chorreador
Costa Rica Travel Insurance
Costa Rica Rocking Chait
Costa Rica Travel

Latest News from Costa Rica