Panama: Economic Growth Vs. Employment

While the unemployment rate remains the lowest in Latin America, an even greater level of preparedness of the workforce is needed to achieve dynamic and sustainable growth.

Monday, October 7, 2013

According to an article in Capital.com.pa the rate of employment growth is no longer parallel to economic growth, noting that "According to official figures, between March 2012 and March 2013 there was a decrease in the labour force of nearly 7,000 jobs. "

"... This is not a recession, but a fall in the rate of expansion. The most important thing is that there are about 21,000 unemployed young people aged between 20 and 24 years. "

The writer points out the already recognized rigidity of the Panamanian labor market , which "has one of the highest compensation costs, as well as the number of days off."

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Laws restricting the recruitment of foreign personnel are obstacles to competitiveness and development.

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