In a context of a sharp drop in economic activity, the government decided to increase the minimum wage by 2.63% as of 1 March.
The increase, which was agreed by the Ministry of Labor and which will affect ten economic activities, was endorsed by the authorities on 6 February. Workers in free zones will be the only ones not to be subject to this increase, since wages in this sector were raised at the beginning of the year.
Between the third and fourth quarters of 2019, the open unemployment rate in Costa Rica rose from 11.4% to 12.4%, partly because of the increase in women's unemployment.
In a year-on-year comparison, the National Institute of Statistics and Censuses (INEC) report states that the national unemployment rate for the fourth quarter of 2019 remains unchanged from the fourth quarter of 2018 at 12.4%. By sex, men showed 9.6% and women 16.7%, both rates with no significant year-on-year change.
From January to November last year, 201,466 work contracts were registered in the country, 16% less than the figure reported in the same period in 2018.
Reports from the Ministry of Labor and Labor Development detail that between the first eleven months of 2018 and the same period in 2019, the types of indefinite contracts registered a decrease, falling from 66,472 to 50,843.
After heeding the objection made by the Executive to the project approved in October 2019, the Assembly proceeded to give its endorsement to the law that establishes the rights and responsibilities of employers and workers in the country who use the telework modality.
Because the private sector believes that the conditions to formalize companies and generate new jobs do not exist, the employers are urging the government to declare an emergency due to the unemployment situation.
It is estimated that only 33,000 new jobs were generated in the country last year, which includes jobs in companies and government institutions.
Between 2018 and 2019, the unemployment rate in the country did not vary significantly, falling by just 0.3% from 2.8% to 2.5%.
Data from the 2019 National Income and Employment Survey (ENEI 1), prepared by the National Statistics Institute (INE), show that at the time of the survey the unemployed population was 179,000, down from 194,000 in the ENEI I of 2018.
After the approval in second legislative debate of the law authorizing employers to suspend, from the first day of demonstration, the payment of wages to public servants who go on strike, the file will go to the President, Carlos Alvarado.
The Plenary Session of the Legislative Assembly approved, with 35 deputies in favor and 13 against, in its second and final debate, Bill 21,049, which will regulate strikes by establishing new rules so that workers can exercise this right, the Legislative Assembly reported.
After listening to the observations made by Chamber IV, the deputies approved in first debate the law authorizing employers to suspend, from the first day of demonstration, the payment of wages to civil servants who go on strike.
The average rise is 3.3%, varying from 1% to 8% depending on economic activity, and will be in effect from January 15, 2020.
In the case of the education sector, free zones, hotels, agriculture and water supply the increase will be 1%, while in the area of Bocas del Toro where banana companies operate the adjustment will be 8%.
For workers in non-agricultural, maquila and export activities, the minimum wage will increase by 3% this year in relation to what was paid in 2019.
Government agreement 320-2019, published in Diario de Centroamérica on December 30, 2019, specifies that the minimum monthly wage for agricultural activities will remain unchanged for the second consecutive year, and will continue at $388.12.
For the first quarter of 2020, only 10% of companies in Panama expect to increase their payrolls, a proportion that is slightly lower than the 11% recorded in the same period of 2018.
Panamanian employers report slow hiring plans for the January-March period, with 10% of employers expecting to increase workforces, 10% anticipating a decrease and 75% remaining unchanged, resulting in a Net Employment Trend of 0%, reported Manpower.
With the recent signing of the U.S.-Canadian-Mexican trade agreement, a precedent was set for future negotiations, as this agreement sets binding labor conditions, such as making exports subject to the payment of a minimum wage.
For example, one of the conditions of the Treaty between Mexico, United States and Canada (T-MEC), which was signed on December 10, 2019, is that vehicles exported from one state of Mexico to the other two countries "must come from plants that pay wages not less than $16 an hour.
For the first quarter of 2020, 7% of the companies consulted plan to reduce their payrolls, and only 10% plan to increase them.
Employers in Costa Rica report slow growth in their hiring plans for the first quarter of 2020. According to Manpower, 10% of companies are contemplating an increase in their workforce, 7% anticipate a decrease and 82% remain unchanged.
After in the fourth quarter of 2019, 15% of companies reported that they planned to increase their payrolls, for the first quarter of 2020 this proportion drops to 12%.
Guatemalan employers report moderate hiring intentions for the first quarter of 2020. With 12% of employers expecting an increase in their workforces, 5% predicting a decrease and 83% remaining unchanged, reported Manpower.
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