Unemployment in Costa Rica has returned to double-digit levels, marking a significant setback for the economy. This phenomenon is not isolated; rather, it reflects the rigidity of the Central Bank’s monetary policy, which has maintained high interest rates to control inflation. This decision has strengthened the local currency, reducing the competitiveness of key sectors such as tourism and exports, which in turn has triggered widespread labor contraction and a slowdown in real economic growth. Job losses disproportionately affect youth and the tourism sector, exacerbating inequality and poverty. The massive loss of jobs among younger age groups suggests a break in social mobility and renewed difficulty in integrating young people into the formal labor market. Although inflation has declined, the social cost of this monetary stabilization is high, as financial austerity has slowed economic activity across most productive sectors, leaving behind large vulnerable segments of the population. This article is relevant to open data because it highlights the importance of linking multiple datasets—employment, exchange rates, and interest rates—to understand economic causality. Transparency in INEC data enables civil society and analysts to monitor the real-time impact of public policies. Moreover, it emphasizes how access to disaggregated information by gender, age, and sector is crucial for designing effective employment policies that combat poverty and inequality in a context of technological and economic transformation.
Source:Published on 2023-07-12