Costa Rica's labor market in 2026: less unemployment, but greater challenges for businesses

By Kimberly Esquivel, Esq.

Costa Rica began 2026 with positive news: an improvement in its unemployment rate. According to the INEC's Continuous Employment Survey, the unemployment rate stood at 6.7% in the December 2025–January–February 2026 quarter, representing an estimated 154,000 unemployed people.

However, structural challenges persist despite this improvement. The same report revealed a net labor force participation rate of 54% and an informal employment rate of 38.2%. In other words, although unemployment has decreased, a significant portion of the population remains outside the formal labor market or is engaged in activities that lack full formalization.

From a business perspective, the analysis must go beyond unemployment figures. It is no longer enough to ask if there are people available to work; it is also necessary to ask if companies are finding talent with the required skills.

In March 2026, the Ministry of Labor launched the Hello Brete job fair, featuring approximately 1,500 vacancies offered by over 60 companies. This initiative demonstrates an effort to connect job seekers with employers. Furthermore, the BRETE strategy has facilitated the posting of 382,000 job openings during the current administration and has promoted English language training as a key employability tool.

The workplace is also undergoing significant institutional changes. Law No. 10857 granted legal status to the Social and Solidarity Economy, strengthening a model that connects employment, inclusion, and territorial development. Furthermore, in March 2026, the Ministry of Labor formalized a protocol for the detection, referral, and reintegration into the workforce of potential victims of labor trafficking, thus expanding the scope of compliance.

However, the cost of formalization remains a key factor. The Costa Rican Social Security Fund (CCSS) maintains that, from January 2026 to December 2028, the contribution to the Disability, Old Age, and Survivors Insurance (IVM) program is 11.66%, which implies a constant financial commitment for companies.

Therefore, the 2026 job market demands a more technical, proactive, and strategic approach. Hiring well is just the beginning; fulfilling obligations correctly is equally important. For organizations, this year represents an opportunity to strengthen their recruitment, training, and compliance practices, ensuring sustainability and competitiveness in an evolving labor market.

References

National Institute of Statistics and Censuses (INEC). Unemployment rate stands at 6.7%. Published on April 10, 2026.

Ministry of Labor and Social Security (MTSS). More than 1,500 job opportunities available at the Old Customs House during the Hello Brete job fair. Published on March 18, 2026.

Ministry of Labor and Social Security (MTSS). Costa Rica grants legal status to the social solidarity economy. Published on March 18, 2026.

Ministry of Labor and Social Security (MTSS). MTSS signs protocol to strengthen the handling of potential cases of human trafficking in the workplace. Published on March 17, 2026.

Costa Rican Social Security Fund (CCSS). Employer Portal, current information on IVM and employer operations 2026.