The Panamanian labor market deteriorated sharply in the first half of 2026, with the share of layoffs rising by 10 percentage points compared to the same period last year.
The data, sourced from employment platform Konzer, indicates a significant tightening in local hiring conditions and a reversal of the stability seen in earlier quarters.
0% in May and South Korea reported a modest employment recovery in June, Panama’s data points to localized stress.
This spike in separations marks a notable shift for the Central American economy, which has often served as a regional hub for business process outsourcing and logistics.
A double-digit percentage point increase in layoff rates suggests that companies are actively adjusting headcounts, potentially in response to broader macroeconomic pressures or sector-specific slowdowns.
The development contrasts with recent labor market resilience observed in other emerging markets.
While Malaysia’s unemployment rate held steady at 3.0% in May and South Korea reported a modest employment recovery in June, Panama’s data points to localized stress.