Panama is not Experiencing an Economic Crisis but rather an Employment Crisis
To date, 1.9 million Panamanians are working in the country, both in the public and private sectors.
Expanding development centers, making changes to the job offer, and improving recruitment dynamics are just some of the recommendations put forward. With economic growth reaching 5.2% through the first quarter of 2025, we should see results in salary increases or more jobs; however, what is accentuated is unemployment and informality, experts warned. Currently, the country has approximately 4 million people, of whom 2.1 million are economically active and 1.9 million are employed. Of these workers, approximately 870,000 are self-employed or work in the private sector, 256,000 are civil servants, and approximately 771,000 are informal workers, explained economist Eric Molino Ferrer during a presentation on the short- and medium-term economic challenges facing Panama.
Likewise, according to the economist, unemployment is around 9.5%, affecting nearly 200,000 people. Furthermore, six out of ten unemployed people are young people. Molino said that as a nation, we must make decisions not only in the short term to address these problems, but also figure out how to put a face to these numbers, because right now, unemployment is among young people and young women. “That’s a statistic we shouldn’t forget,” he warned. For Yariela Zeballos, president of the College of Economists of Panama, right now “the most urgent thing is to create jobs” and develop a strategic plan to boost economic sectors. “We have approximately 4.5 million inhabitants, but the economic growth reflected in our numbers doesn’t permeate the entire society; there’s too much inequality,” Zeballos said. Nearly 84% of the country’s gross domestic product (GDP) is concentrated in Panama City, West Panama, and Colón.
In terms of wages, this inequality reflects the fact that 80% of Panamanians earn less than $800, but the figure is even more pronounced when analyzed by province. For example, the median salary in Bocas del Toro is 25% less than in Panama City and West Panama, Molino revealed. As a result of this situation, the economist stated, “People are emigrating to Panama and Western Panama because they can’t find opportunities in the interior of the country, a situation that is leading to a labor crisis in Panama.” The president of the College of Economists asserted that to address the unemployment issue, changes must be made to “hiring mechanisms” to adapt them to the reality of the Panamanian economy, since digital technology has transformed the way we do business, yet we continue to hire in the old-fashioned way. “The hardest hit here are the younger generations who can’t find a space where they can demonstrate their talent,” Zeballos said.
People are emigrating to Panama and Western Panama because they can’t find opportunities in the interior of the country, a situation that is leading to a labor crisis in Panama.
