---
title: "Business Groups Back Panama’s New Internship Law as Practical Fix for Youth Unemployment"
date: 2026-03-22
author: ""
url: https://panamadaily.news/panama-internship-law-youth-employment/
categories:
  - "Business"
  - "Economy"
  - "Politics"
tags:
  - "Cciap"
  - "internship law"
  - "José Raúl Mulino"
  - "Panama economy"
  - "youth employment"
---

# Business Groups Back Panama’s New Internship Law as Practical Fix for Youth Unemployment

## What Happened

Panama’s recently sanctioned internship law has drawn support from the Cámara de Comercio, Industrias y Agricultura de Panamá (Cciap), which called the measure a concrete step to address the country’s youth employment challenges. The law, approved by President José Raúl Mulino, establishes a framework for paid internships meant to help young Panamanians gain the experience many employers currently require.

Under the new rules, interns receive a monthly allocation of $450 for up to one year, and the program includes a risk insurance policy. The legislation explicitly states that internships should not be used to replace formal jobs.

## Key features of the law

The statute targets young people between 18 and 25 years old who are in training or are recent graduates of secondary, technical or university programs, and also allows participation of minors who hold a secondary diploma. It sets implementation rules intended to prevent abuse: the number of interns a company may host is defined according to company size, oversight mechanisms are established, and sanctions are provided for noncompliance.

At the end of an internship, participants receive a certification that validates the experience obtained, a measure designed to strengthen their professional profiles and improve labor-market prospects.

## Why business supports it

The Cciap emphasized that the law addresses a structural obstacle to youth employment: the catch-22 in which employers demand prior experience that candidates cannot obtain without first being hired. The chamber praised the law for both promoting hands-on experience and recognizing the efforts of participating young people.

Business groups also noted the timing of the law amid a favorable economic backdrop: the country showed 4.4% growth in 2025 and low inflation, conditions the Cciap said make this a strategic moment to invest in workforce development.

## What this means

Supporters see the law as a practical tool to bridge the gap between education and employment by creating supervised, paid opportunities and formal recognition of acquired skills. However, the Cciap warned that success will depend on correct implementation and the commitment of the private sector to open spaces and invest in training. The law’s built-in oversight and sanctions aim to limit misuse, but enforcement and corporate participation will determine whether the initiative translates into sustained improvements in youth employability.