Informality and Entrepreneurship Mark Youth Labor Landscape in Panama

Young people in Panama are increasingly finding income through informal work, entrepreneurship, and creative industries as they face challenges entering the formal job market. Activities like reselling products, gastronomy, content creation, and roles in the creative sector have become viable alternatives for those under 35, even with academic preparation or acquired skills.

Economist Ana Patiño highlighted that out of roughly 455,000 employed young people, a significant 54% are in the informal sector. This situation stems directly from a lack of formal employment opportunities, forcing many to learn and adapt. David Hernández, a university student, expressed his desire for independence through self-employment, citing his interests in cooking and finance as potential drivers for opening his own restaurant.

Experts note that new technologies have significantly expanded opportunities for young entrepreneurs, particularly in areas like the "orange economy," creative industries, and digital content creation. However, traditional trades continue to provide income for those unable to secure formal employment. Luis Enrique Castro, a DJ, shared his journey from working in other jobs, like valet parking, to finding a consistent opportunity in music over the past 14 years.

Commerce remains a primary sector for young individuals seeking to establish themselves when formal employment doors remain closed. Patiño also pointed out that young women encounter greater obstacles in accessing employment, underscoring the need to strengthen gender-focused entrepreneurship initiatives. Despite these efforts, youth unemployment persists, with approximately 113,000 young people actively seeking work without success, representing about one in five young individuals.