Panama’s Social Security Fund (CSS) reported a slowdown in formal job creation last year. Director Dino Mon presented the data to a National Assembly committee on March 11, 2026, highlighting growing concerns about economic momentum and social security coverage.
The figures show the number of new individuals entering the contributory social security system was lower in 2025 than the previous year. This trend serves as a key indicator for the health of the nation’s formal economy, according to officials. While the total insured population reached 2,819,622 people by the end of 2025, a significant portion of the country’s workforce remains outside the safety net.
Growing Gap in Social Security Coverage
Mon explained that the CSS’s enrollment data provides a practical snapshot of national economic activity. The statistics reveal a widening gap between those with formal employment and those without. At the close of 2025, some 1,745,937 people lacked CSS coverage. This group includes 507,585 inactive insured individuals and 1,238,352 people classified as completely unprotected.
Compared to 2024, the total uncovered population grew by 43,176 people, a 2.5 percent increase. The number of newly insured individuals entering the system did not keep pace with departures recorded over the year. This dynamic points directly to weaker generation of formal employment opportunities across Panama.
“We are the practical part of the economy, and what this is saying is that fewer jobs were generated than last year,” Mon told lawmakers. [Translated from Spanish]
The director delivered his annual management report before the Labor, Health, and Development Commission of the National Assembly. His presentation connected the CSS data to broader labor market challenges confirmed by other government agencies.
Unemployment Rate Climbs to 10.4 Percent
Recent statistics from the National Institute of Statistics and Census (INEC) align with the CSS’s findings. Panama’s unemployment rate hit 10.4 percent in September 2025. That figure marks the highest level since 2021 and confirms a weakening formal labor market.
The unemployed population rose to 227,302 people. This represents an increase of 17,922 individuals compared to October 2024. The impact is not felt equally. Women are disproportionately affected, with 127,488 women out of work compared to 99,814 men.
This 0.7 percentage point rise in the national jobless rate, from 9.7 percent in 2024, underscores a persistent economic concern. The current level is only surpassed by the peak unemployment experienced during the COVID-19 pandemic.
Mon’s report also included healthcare service data from the Social Security Fund (CSS). The institution provided over 9 million medical consultations in 2025. That number is 383,002 higher than the total recorded in 2024.
Increased demand for medical services coincides with the strain of lower formal employment. The combined data paints a picture of an economy where job creation is struggling to keep pace with population growth and workforce entry. Officials now face the dual challenge of stimulating quality job growth while managing the expanding needs of an underprotected population.