What Happened
Panama’s Labor Minister Jackeline Muñoz presented Law No. 513 to the Panama Chamber of Commerce, Industries and Agriculture, outlining the internship program created to expand job opportunities for young people. The law was signed in March by President José Raúl Mulino and is now moving forward as the government works to build support with the private sector.
The initiative is being promoted as a tool to help bridge the gap between education and employment, especially for young people who struggle to enter the labor market because they lack experience. The government is pushing ahead with outreach efforts even though the law has been challenged in court.
Legal Challenge and Government Response
A demand for unconstitutionality has been filed against the law, but that does not automatically stop it from moving ahead. Former government attorney Rigoberto González Montenegro said the measure can remain in force until the Supreme Court of Justice issues a ruling.
If the court finds part of the law unconstitutional, only the section that conflicts with the Constitution would be set aside. That legal framework allows the executive branch to continue promoting the program while the judicial process runs its course.
How the Internship Program Would Work
Muñoz said the program will be developed together with private companies and job seekers, whom she described as key partners in reducing youth unemployment. She said the goal is also to create training spaces that match the current needs of the labor market.
According to CCIAP board member Ashok Nandwani, member companies will seek to hire young participants, who would receive a monthly payment of $450 for their services. He said that amount will not be subsidized by the government.
Nandwani added that the sectors with the strongest demand for workers are logistics, tourism and port-related activities. He also said no specific profile will be required and that the main condition to apply will be having “the desire to work.”
Youth Unemployment in Panama
The internship plan comes amid persistent youth unemployment in Panama. Muñoz said the labor market has stabilized, even after the situation in Bocas del Toro affected employment in the region.
Nandwani said the unemployment rate remains a concern, but employment is also growing. He argued that official labor data should be updated more frequently than once a year, noting that the National Institute of Statistics and Census publishes those figures in September.
INEC data show that 113,347 young people between the ages of 15 and 29 are unemployed in Panama. Of that total, 52,064 are between 20 and 24 years old, while 40,905 are between 25 and 29.
Youth unemployment has climbed in recent years, rising from 17.8% in October 2024 to 19.9% in September 2025. That trend explains why Law No. 513 is being promoted as one of the main efforts by the government and private sector to improve access to work for young Panamanians.