People with little education and over 60 still cannot find employment in Costa Rica after the pandemic

QCOSTARICA — individuals over the age of 60 and those with limited education and training struggle to secure employment in Costa Rica following the pandemic, according to the latest Growth Outlook report from the World Bank.

This unequal story is repeated for the rest of Latin American countries in relation to opportunities to return to their jobs.

According to the World Bank, the reasons are varied, but there is enormous emphasis on the fact that there is a consistent difficulty in getting jobs, but also that these two groups of people simply leave the labor market.

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“We are particularly concerned about the drop in the participation of elderly people, taking into account that they could have a lower capacity to save for retirement, which amplifies the challenges for the region,” said William Maloney, chief economist of the World Bank for Latin America and the Caribbean.

Costa Rica is not excluded from this reality, and the data show that there is a very uneven employment recovery process, leaving older people and also younger people with the fewest opportunities.

National figures show this behavior, for example, the post-pandemic recovery in employment only favors those people between the ages of 25 and 59, who tend to participate more actively in the labor market.

While those who are between 15 and 25 years old, as well as those over 60 years old, continue below the indicators registered in 2019.

For example, formal employment had a rebound of 10% as of November 2023, compared to February 2020, while informal employment fell by 25%. Added to this, high-skilled employment has recovered, but not medium- and low-skilled employment, which remains below pre-pandemic levels.

According to economist and academic Leiner Vargas, the current labor market requires individuals who are proficient in technological tools or possess updated knowledge in their respective fields.

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Vargas noted that new professions in sectors with high technological demands are emerging, offering increased qualifications and salaries above the national average. However, he also highlighted a trend of certain groups being displaced from the workforce. Vargas emphasized that automation, artificial intelligence, and changes in product marketing strategies are making it challenging for individuals to enter or exit the job market.

This situation disproportionately affects younger individuals and those over 60 years old who may lack the skills demanded by companies or institutions, making it difficult for them to compete for positions and salaries. Consequently, they are often overlooked as viable candidates.

Women affected

In Costa Rica, there is a noticeable trend of age-based exclusion from the workforce, particularly affecting women.

According to economist Ana Rosa Ruiz from the Instituto Tecnológico de Costa Rica (TEC), recent statistics from the Instituto Nacional de Estadísticas y Censos (INEC) – National Institute of Statistics and Censuses – show that younger and older women face significant challenges in finding employment opportunities.

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This issue appears to be structural, as both age groups continue to struggle to secure jobs. However, when examining the data from a gender perspective, it becomes evident that women in these age groups are experiencing a decrease in employment options.

While the percentage of employed men under 25 and over 60 has remained stable since 2019, the same cannot be said for women in these age categories. T

The statistics show that there has been a decline in female employment, particularly for women over 60. Ruiz points out that this highlights a deeper problem of workforce exclusion for women. Additionally, she notes that employed women between the ages of 24 and 48, who have completed secondary school and university education, also face challenges in the job market.

Finding employment in Latin America and the Caribbean is increasingly challenging for individuals aged over 60 and under 25, posing a significant obstacle for vulnerable households.

Additionally, the reduction of State social aid further impacts household income, exacerbating the situation.

This combination of stagnant wages and decreased social programs has resulted in a decline in real family income compared to pre-pandemic levels, leading to increased poverty and inequality, as stated in the World Bank report.

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