[REVISION HISTORY]

Costa Rica job quality and productivity

Updated 4 times since CLSTR started tracking revisions of this situation.

What changed

2026-08-12 22:21 UTC → 2026-08-13 18:43 UTC · added ~~removed~~

In late July, a strategic note from the Academia de Centroamérica highlighted Costa Rica’s struggle to generate high-productivity, well-paying jobs. While unemployment has declined, the report noted this was partly due to reduced labor-force participation. It argued that long-term economic growth and social cohesion depend on raising occupation rates through coordinated policies addressing education, innovation, and technological transformation. A week later, a joint CAF–Universidad EIA study identified the provinces of Heredia and Cartago as critical sites for sustainable productivity. Cartago was recognized for its strong manufacturing and export profile, while Heredia was noted for its knowledge-intensive services and advanced manufacturing. The study recommended targeted technical training, digital transformation, and improved logistics to leverage these regional strengths. Building on these structural diagnoses, Costa Rica has begun implementing workforce development initiatives to support high-value, knowledge-intensive industries. Through PROCOMER, the country's trade and investment promotion agency, programs such as the Talent Development Incentive for Exporting Companies and Free Trade Zone businesses have supported over 10,000 individuals in strengthening the national talent pool. However, recent data from 2026 reveals a disconnect between economic growth and labor market stability. Despite a 25% increase in real GDP between 2019 and 2025, the number of employed persons in the second quarter of 2026 remained nearly identical to levels from seven years ago. While the overall unemployment rate fell to 7.0% in 2026, this decline was driven by 132,169 people leaving the workforce entirely. Youth unemployment remains a critical concern at 18%, with 55% of young workers earning less than the minimum wage. Furthermore, recent employment growth is split between formal roles (53%) and informal sectors (47%), with the latter disproportionately affecting women. To address competitiveness, new initiatives are emerging.

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