Labor market instability affects workers in Costa Rica and Honduras

Labor market reports from Costa Rica and Honduras highlight significant challenges regarding minimum wage compliance and employment stability.

In Costa Rica, approximately 55% of employed youth (ages 15-24) earn less than the legal minimum wage. According to the Colegio de Ciencias Económicas de Costa Rica (CCECR), this is driven by high levels of informality and part-time work. The report notes that 20% of the youth population is categorized as ‘nini’ (neither studying nor working), a rate nearly double the OECD average. Economists warn that these economic hardships contribute to poverty and higher homicide rates among young people.

In Honduras, an estimated 1.3 million workers do not receive the minimum wage, forcing many to seek additional employment to cover basic expenses. Of the approximately 1.7 million employed people in the country, 70% work in the informal sector without contracts or social security. Economists indicate that the labor market lacks the capacity to absorb the growing workforce, particularly in the agriculture and commerce sectors.