Article written: October 1, 2026
What is Panama’s unemployment rate in 2026? It is 8.5%, according to the National Institute of Statistics and Census (INEC). That is down from 10.4% in September 2025. The figure comes from the August 2026 Labor Market Survey, which INEC released on September 29.
Over the same period, Panama added 77,231 employed people, a rise of 3.9%, bringing total employment to 2,045,979. Informal work fell from 47.1% to 45.8%.
Panama Labor Market at a Glance
| Indicator | September 2025 | August 2026 | Change |
|---|---|---|---|
| Total unemployment rate | 10.4% | 8.5% | -1.9 points |
| Unemployed people | 227,302 | 189,188 | -38,114 |
| Employed people | 1,968,748 | 2,045,979 | +77,231 |
| Labor force | 2,196,050 | 2,235,167 | +39,117 |
| Labor force participation | 64.0% | 64.0% | No change |
| Female unemployment rate | 13.2% | 10.4% | -2.8 points |
| Informality rate | 47.1% | 45.8% | -1.3 points |
Of the 189,188 unemployed people, 148,659 were actively looking for work. That puts open unemployment at 6.7%. The other 40,529 are counted as hidden unemployment: people who want a job but have stopped looking or have not taken concrete steps to find one.
Where Did the New Jobs Come From?
The private sector employs about 46% of all workers. Self-employment and the public sector follow. INEC’s figures show that 61.5% of workers are employees and 31.5% are self-employed.
Services account for 69.6% of employment. The largest employers in August were:
| Sector | Workers (August 2026) |
|---|---|
| Wholesale and retail commerce | 346,622 |
| Construction | 165,068 |
| Transport, storage and mail | 162,665 |
| Manufacturing | 151,265 |
| Hotels and restaurants | 131,162 |
| Public administration | 130,486 |
| Education | 124,961 |
According to La Estrella de Panamá, agriculture accounted for 32% of the new jobs. Administrative and support services followed with 18%, construction 16%, hotels and restaurants 14%, and logistics 10%.
The same report counted 49,101 new formal jobs outside agriculture. They were concentrated in Panamá Oeste (29%), Chiriquí (28%), Veraguas (18%) and Los Santos (15%).
The Ministry of Labor registered 206,942 employment contracts from January through July 2026, up 20.6% from the same period of 2025.
Which Provinces Have the Highest Unemployment?
Unemployment varies widely across the country. It is 9.7% in urban areas and 5.2% in rural areas.
| Province | Unemployment rate (August 2026) |
|---|---|
| Colón | 11.9% |
| Bocas del Toro | 8.8% |
| Darién | 3.6% |
| Los Santos | 3.4% |
Young people still face the most difficult job market. Unemployment was 26.3% for ages 15 to 19, 22.6% for ages 20 to 24 and 14.4% for ages 25 to 29.
Is the Quality of Jobs Improving?
Economists and labor experts have welcomed the drop in unemployment but questioned the quality of the new jobs.
Labor consultant René Quevedo pointed to stronger consumer spending, which averaged about $160 million a month more than in 2025 from January through July. He also noted a recovery in agricultural jobs that were lost in 2025.
Corporate labor adviser Luis Eduardo Valle said informality in commerce is still above 50%. He noted that farm work is seasonal and low-paid, and that construction jobs depend on project timelines. He estimated that one in two workers still lacks social security coverage.
Economist Raúl Moreira said contract registrations fell 32.5% in August. He also cited a CID Gallup poll in which 83% of Panamanians said finding a job was very difficult.
Rolando Gordón, a dean at the University of Panama, said the survey does not yet show whether the new jobs are formal or whether wages have risen.
Underemployment is another concern. Noticias de Panamá reported that invisible underemployment rose from 10.8% to 20.2% of workers. These are people who work 40 hours or more a week but earn less than the minimum wage.
President José Raúl Mulino said the results reflect an orderly economy and renewed confidence. He also noted that private-sector job growth outpaced public hiring.
What Does This Mean for Panama Real Estate?
More people working usually means more demand for housing, both to rent and to buy.
Formal job growth in Panamá Oeste and Chiriquí is worth watching. Both are active markets for first-time buyers, rental investors and retirees.
The quality of the new jobs matters too. Mortgage approval depends on formal, documented income, so a drop in informality matters more for housing demand than the headline unemployment rate. If more workers move into formal jobs with social security, more households can qualify for mortgages.
Casa Solution Can Help
If you are thinking about buying or investing in Panama, Casa Solution can help you compare neighborhoods, rental demand and property values across Panama City, Panamá Oeste, Chiriquí and the beach markets. Contact our team to talk through your options.
