Honduras faces rising unemployment and structural economic challenges

Honduras is facing significant structural economic challenges despite maintaining macroeconomic stability. According to an analysis by the Universidad Nacional Autónoma de Honduras (UNAH), the country has failed to transform its productive structure, increase productivity, or expand formal employment.

Data from the Instituto Nacional de Estadística (INE) reveals that the unemployment rate has risen to 7.1%, up from 4.9% in the previous period. Furthermore, over 2 million people are experiencing underemployment or job precariousness. A critical issue remains the high level of informality, with more than 70% of the workforce operating outside formal employment structures.

Poverty levels remain severe, with 61.1% of Honduran households living in poverty, including 53.7% in extreme poverty. Economic obstacles identified include a heavy reliance on remittances, low-value-added exports, infrastructure deficiencies, electricity system losses, and vulnerability to climate change.