2026 is Shaping Up to be the Year of Job Growth in Panama
“The severe contraction in consumption recorded in the first half of the year has been overcome,”. Labor consultant René Quevedo, pictured above, indicated that 2026 should be a year of recovery.
Just days before the end of 2025, the Minister of Labor, Jackeline Muñoz, assured that next year will be more favorable in terms of job creation. According to the Minister of Labor, one of the main drivers that will boost the economy and employment will be the start of important works recently announced by the Ministry of Public Works (MOP) , projects that will revitalize the circular economy and employability at the national level. Muñoz, in an interview with a local media outlet, confirmed that 73 strikes were avoided and 107 collective bargaining agreements were negotiated during 2025. He also reported that 1,248 young people were hired through the My First Job program. Minister of Labor, Jackeline Muñoz is pictured below.
The minister also highlighted the increase in permanent contracts, which, she indicated, is a sign of confidence in the labor market. Furthermore, unemployment is expected to reach single digits by 2026. Currently, the number of unemployed people stands at 202,609. Among them is Raúl Matos, a 25-year- old who says he has been unable to find a job for over a year and a half, despite submitting his resume to many employers. “I hope 2026 will be different, because there is a lot of unemployment,” he emphasized. For his part, labor consultant René Quevedo pointed out that 2026 should be a year of recovery, in which positive trends such as increased consumption and private investment will be consolidated, key factors for job creation.
Quevedo explained that the severe contraction in consumption recorded in the first half of 2025, caused by the massive loss of formal employment in 2024, especially in Panama and West Panama, as a consequence of the mine closure and the loss of the investment grade by Fitch Ratings in March of last year, has already been overcome. “Through October 2025, bank financing to the productive sector registered a 9% growth compared to the same period of the previous year. In addition, during the third quarter of 2025 there was an additional $100 million per month in consumption compared to the first half of the year,” he indicated.
According to the expert, this trend will solidify in 2026 and accelerate with the start of the infrastructure projects planned by the government and the imminent reopening of the mine in Donoso. These factors suggest a significant recovery in formal employment in the short and medium term. In that same vein, President José Raúl Mulino affirmed that next year (2026) will see a surge in investments that will generate thousands of jobs, thanks to the $11.2 billion allocated for investment in the 2026 General State Budget. “Especially in infrastructure projects, water, schools, and healthcare, as we are seeing today. All of this will continue to create new jobs,” he noted at the time.
Furthermore, he reiterated that “I am pushing for private enterprise, encouraging foreign investment, and seeking that investment in such important areas as the Panama Canal Authority projects: the port, the gas pipeline, and the route around the Canal . Everything we are going to promote in logistics, as well as highways throughout the country. Each of these initiatives will generate employment in its respective sectors.”
Meanwhile, the Minister of Public Works, José Luis Andrade, announced that in 2026 the MOP will lead an “employment revolution” with the start of 35 projects nationwide between January and March. It is worth noting that on Friday, December 19, the execution of more than 30 road projects was announced, with an investment of approximately $1.22 billion, intended to reactivate the economy and generate more than 10,000 direct and 20,000 indirect jobs.
