The effects that covid-19 has had on so many nations around the world was previously unimaginable. It’s caused the unemployment rate in Costa Rica to skyrocket.
The International Labor Organization carried out a comparison of unemployment in nine Latin American nations. Costa Rica had the highest unemployment rate, 24%. It has doubled since the start of the pandemic.
The average unemployment rate in Latin America is now 11.5%, up 2.2% from the first to second quarter of 2020. Uruguay and Paraguay are the most well off in Latin America in terms of current employment. Paraguay actually faced a decrease in unemployment and Uruguay increased just 0.3%.
Covid-19 caused the loss of at least 34 million jobs just in Latin america and the Caribbean, according to the report. Unemployment rates are based on those who lost a job but are still looking for another. Taking into account those who lost a job and entered a period of inactivity, the rates would be much higher. The labor participation rate reflects this. It dropped from 61.3% to 52.% between the first and second quarter.
There are some preliminary signs of recovery in the third quarter. There is hope that many can return to the workforce.