June 27, 2025
Expanding development centers, adjusting hiring practices, and improving recruitment dynamics are among the key recommendations being proposed to address Panama’s labor market challenges. Despite economic growth of 5.2 percent in the first quarter of 2025, experts caution that this has not translated into broad-based salary increases or more jobs. Instead, they warn that unemployment and informality remain persistent problems in the country.
Currently, Panama has around 4 million inhabitants, with 2.1 million economically active and 1.9 million employed. Among these workers, approximately 870,000 are self-employed or work in the private sector, 256,000 are civil servants, and about 771,000 are in informal employment. Economist Eric Molino Ferrer shared these figures during a presentation on Panama’s short- and medium-term economic challenges.
Molino also noted that unemployment stands at approximately 9.5 percent, affecting nearly 200,000 people. Alarmingly, six out of ten unemployed individuals are young people. He stressed the need for both immediate and long-term decisions to address these issues, highlighting the importance of recognizing that unemployment disproportionately affects young people and young women. He emphasized that this is a statistic that should not be overlooked.
Yariela Zeballos, president of the College of Economists of Panama, underscored that creating jobs is the most urgent priority. She called for the development of a strategic plan to strengthen key economic sectors. Zeballos pointed out that while Panama has about 4.5 million inhabitants, the benefits of economic growth have not reached everyone, resulting in significant inequality. Nearly 84 percent of the country’s GDP is concentrated in Panama City, West Panama, and Colón.
This inequality is also reflected in wages. Around 80 percent of Panamanians earn less than $800 per month, with even greater disparities between provinces. For example, the median salary in Bocas del Toro is about 25 percent lower than in Panama City and West Panama. As a result, Molino explained, many people are moving to Panama City and West Panama in search of better opportunities, creating a labor imbalance in other regions.
To address unemployment, Zeballos argued that hiring practices must be modernized to reflect the current realities of the Panamanian economy. She pointed out that although digital technology has transformed business operations, hiring methods remain outdated. This situation particularly disadvantages younger generations who struggle to find opportunities to showcase their talents.
Source: (Newsroom Panama)
Disclaimer:
Analyst Certification – The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer(s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation(s) or view(s) expressed by that research analyst in this research report.
Company Disclosure – The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.
