What Happened
An opinion piece published in La Prensa examines Panama’s unemployment statistics and questions how the Instituto Nacional de Estadística y Censo (INEC) classifies informality, underemployment and other labour categories. The author, a former minister of Commerce and Industries and ambassador to the United States and Italy, draws on a personal hiring experience to illustrate gaps between official figures and on-the-ground realities.
Key Figures
The article cites INEC data for a working‑age population of 2,200,000. Of these, 1,970,000 are recorded as employed (89.5%) and 230,000 as unemployed (10.5%). The author further breaks down the labour universe into 1,200,000 in full employment (54%), 300,000 in underemployment (14%), 100,000 in domestic service (5%) and approximately 780,000 classified as informal (35%). Adding those categories produces a total of 2,380,000, or 108% of the working‑age population, prompting the author to question overlaps and measurement methods.
Analysis
The author argues that the 35% informal category may aggregate very different realities: seasonal or temporary workers, self‑employed microentrepreneurs, and independent service providers. He notes that many Panamanians work informally by choice or necessity—selling farm produce on the street, providing home‑delivered meals, or operating small service businesses—and questions whether they should automatically be counted as unemployed or subemployed.
The piece also cites definitions: according to the Real Academia Española, “desempleado” refers to persons who lack employment or salary; the International Labour Organization defines unemployed people as those who have looked for work but have not obtained employment in the previous four weeks. The author uses these definitions to argue for clearer measurement categories.
The Author’s Proposal
Rather than accepting broad aggregates, the author proposes creating clearer labour categories and a legislative project to make social security affiliation simpler for informals, underemployed workers and housewives who perform unpaid but productive work. He stresses that better classification is a prerequisite for accurate measurement and effective policy, warning against mixing distinct groups when estimating national unemployment.
What This Means
The article highlights a common policy challenge in Panama and other countries: how to reconcile large informal workforces with official unemployment statistics. Clarifying definitions and improving registration mechanisms could change the headline unemployment rate, affect social protection coverage and guide targeted labour policies. The author’s experience and INEC figures underscore the need for a nuanced approach to measuring and addressing Panama’s labour market.