High rates of labor informality in Costa Rica reveal a crisis in which workers lack social protection and pensions. This vulnerability stems from the formal sector’s inability to generate sufficient employment, forcing individuals into precarious self-employment to survive, despite modest overall economic growth. The disparity between the performance of the formal and informal economies highlights a systemic failure, exacerbated by the pandemic. As the formal economy stagnates while the informal segment expands, the labor market becomes increasingly characterized by instability and a lack of safety nets for the workforce. This situation is crucial for open data because it demonstrates how transparent, accessible statistics expose hidden socio-economic inequalities. By tracking these trends, researchers and policymakers can better understand the true scale of informal labor, enabling data-driven interventions to improve workers’ rights and economic resilience.

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Published on 2023-07-13