Q COSTARICA — Not even the pandemic has hit youth employment in Costa Rica as hard as it has in recent months: the number of young people outside the labor force has reached 65%, meaning that practically two out of three are out of the labor market.
It could be argued that this figure isn’t so alarming if it were simply that people between the ages of 15 and 24 (those who fall into the youth employment category) are abandoning jobs and instead staying in classrooms.
However, the data on the increase in people in the Ni-Nis category (those who neither study nor work) suggests a decline in this area as well, to the point that Costa Rica has become one of the international leaders in this disreputable category.
Additionally, the number of young people seeking employment—20.4%, according to the Continuous Employment Survey (ECE) report from the National Institute of Statistics and Census (INEC) for the period from May to July 2025—practically triples the national unemployment average—6.6% in the same Continuous Employment Survey (ECE) report—which reveals a lack of opportunities to enter the labor market.
But also, when looking at the international stage, the country is in a disadvantageous position.
At the Latin American level, Costa Rica stands out among the leaders in youth unemployment—second in the area—and although it has managed to reduce this unemployment in recent months, its position relative to the regional average has deteriorated over the decade, widening the gap from four to ten percentage points. (See box: “Costa Rica lags further behind in youth employment.”)
The Aging Labor Market
A first element to consider in this regard is the reduction in the percentage of young people in the country, a situation linked to demographic factors and a higher number of children per family: the population aged 15 to 24 has decreased from 32.7% in 2015 to 16.5% in 2025, a 16% drop over the decade.
However, the number of young people in the labor market decreased much more: 36% over the decade, from 392,533 in 2015 to 247,329 in 2025, according to ECE reports.
This was also reflected in the number of young people who reported being employed, which fell from 307,208 in 2015 to 196,759: a drop of more than 100,000 young people in jobs over the decade.
In terms of the weight that young people represent in this labor market, they went from representing 17% of the entire labor force in 2015 to only 10% in 2025. Meanwhile, in jobs, young people went from representing 14% to only 9% over the same period.
However, the relevant data points to the growing exodus of young people from the labor force. At first glance, this might not seem like a critical figure; it goes from 454,000 in 2015 to 458,000 in 2025. But when reviewing their representation of young people of working age, it goes from 53% to 65%.
In other words, in just ten years, the young population went from half to just a third in terms of participation in the labor market. And this has not been reflected in improvements in the percentages of education and training.
Unaddressed Debt
Researcher Roxana Morales of the Economic and Social Observatory of the National University (UNA) commented that this is not a recent situation, as the youth unemployment rate has long been plagued by unresolved challenges.
“The unemployment rate has always had its face, such as women and young people. When it comes to young people, it is difficult for them to find work because some have not completed their studies or lack work experience. This is a situation the country must reverse,” she stated.
Morales indicated that medium- and long-term actions are required, not limited to productive aspects. She emphasized that this agenda requires attracting more people to study, both high school and higher education, and expanding the offerings by increasing technical training.
The researcher made special mention of the Ni-Nis, those who neither study nor work (approximately 20% of young people), with special emphasis on those in this category without any obligation and without preparing for the future: approximately 62,000 young people, approximately 8% of the total, and a 20% increase in six years.
Furthermore, at the policy level, Morales emphasized the need for a more comprehensive vision, which also includes the need to generate lower-skilled jobs, without abandoning the creation of quality jobs. “Free trade zones generally require skilled labor, but that’s not the only sector; there are also other areas that are losing competitiveness, such as tourism and agriculture. We must think about a diversified economy for all people,” he said.
Looking to the Future
Hence, there are aspects that need to be redefined. Although youth employment has decreased in the country since 2020, it is still at pre-pandemic levels, with no structural improvement.
It is necessary to explore the decline in labor force participation, since if it is not matched by training, it could imply that the country is devaluing its development possibilities.
“Faced with the accelerated growth of the population aged 60 and over, and the reduction of the youth population and the labor force, the country must begin to make decisions. The effects will not be seen in the short term, but they will be felt,” warned Morales.
These challenges arise on several fronts: on the one hand, the possibility of a growing portion of the population that is not preparing for the future, with potential effects on the vulnerability of these sectors; and on the other, an increasingly reduced and fatigued workforce, lacking proper renewal and with a growing workload.
However, for the time being, it seems to be receiving insufficient attention. Just look at a government whose main legislative focus is simply to provide legal certainty to companies that already offer 12-hour workweeks.
Translated and adapted from SemanarioUniversidad.com. Read the original, in Spanish, here.
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