The president of Panama’s leading private sector association has called for a sweeping reduction in bureaucratic red tape to stimulate job creation. Giulia De Sanctis of the Panamanian Association of Business Executives (APEDE) issued the warning this week, stating that inefficient public administration is delaying investments and stifling employment opportunities.
De Sanctis made her remarks in a column titled ‘The Voice of APEDE,’ framing administrative agility as a critical component for economic recovery. She argued that predictable rules and a functional state apparatus are non-negotiable prerequisites for attracting the capital needed to grow Panama’s workforce.
“Investment and employment do not happen by chance. They depend on clear conditions, stable rules, and, above all, a state that functions with efficiency,” De Sanctis said. [Translated from Spanish]
The business leader specifically highlighted how delays in permits and public sector procedures can paralyze new business initiatives. She connected these administrative hurdles directly to postponed hiring. Her comments arrive amid a mixed economic landscape where job gains coexist with persistent structural challenges.
Employment Gains Mask Underlying Challenges
Recent data from the National Institute of Statistics and Census (Panama) provides context for APEDE’s urgent appeal. The figures show a national labor force participation rate of 64 percent. Approximately 2.19 million people are economically active, with 1.96 million currently employed.
This represents a net gain of over 27,000 jobs. Sectors like transport, logistics, commerce, and financial activities drove much of this growth. Despite these positive numbers, De Sanctis pointed to several concerning trends that threaten long-term stability.
Panama’s overall unemployment rate remains at 10.4 percent. About 227,000 people are actively seeking work. The situation is markedly worse for young people aged 15 to 24, where unemployment soars to 23.2 percent.
Another critical issue is the high level of labor informality. An estimated 47.1 percent of non-agricultural employment falls into the informal economy. This indicates nearly half of all workers lack formal contracts, social security benefits, and legal protections.
“When procedures are prolonged or become unpredictable, investments are postponed and with them new job opportunities are also delayed,” De Sanctis affirmed. [Translated from Spanish]
Her statement directly links government efficiency to private sector confidence. Each stalled permit or convoluted process, she suggests, acts as a deterrent to the very companies that could hire more Panamanians.
A Collaborative Path Forward
APEDE’s president concluded her message by reiterating the association’s commitment to collaborate with the public sector. She expressed a readiness to work on concrete reforms designed to improve the investment climate. The goal is a more dynamic partnership focused on practical solutions.
For De Sanctis, every streamlined process sends a powerful signal. It demonstrates Panama’s seriousness about fostering a competitive and growth-oriented environment. Digitalization and procedural efficiency are not merely technical upgrades but foundational economic policies.
“Each procedure that is simplified, each process that is digitized, and each permit that is resolved efficiently sends a clear signal that Panama is ready to grow,” she concluded. [Translated from Spanish]
The call to action sets the stage for potential policy discussions. It places the burden of job creation not solely on businesses but on a shared commitment to modernize state functions. Whether this leads to tangible regulatory changes will be closely watched by investors and job seekers alike.