Panama Labor Force Participation
Labor force participation rate SL.TLF.CACT.ZS
Panama's labor force participation was 66.30% in 2025, ranked 49th globally. This represents a 0.0% decrease from 2024. Data from World Bank, covering 1990–2025.
Overview
Panama's labor force participation stood at 66.30% in 2025, a decline of +0.02pp from 2024. Based on recent trends, this figure is projected to reach 67.48% by 2026. Panama ranked 49th globally.
Panama's labor force participation rate has shown a moderate increase over the past three and a half decades, with the latest figure standing at 66.30%. This represents a slight decline from the peak of 68.51% reached in 2019. The country's labor force participation rate has been steadily rising since 1990, when it was 54.47%, indicating an improvement in the participation rate over the years. Compared to its peer countries, such as Australia which has a participation rate of 66.54%, Panama's rate is relatively stable. The slow decline in participation rate since 2019 could be due to various factors such as a slowdown in economic growth or changes in labor market policies. A sustained economic recovery coupled with targeted labor market policies could potentially improve the labor force participation rate and propel Panama's economy forward.
Data & projection
| Year | Labor Force Participation | YoY change | Rank |
|---|---|---|---|
| 2028* trend | 68.88% | - | - |
| 2027* trend | 68.18% | - | - |
| 2026* trend | 67.48% | - | - |
| 2025 | 66.30% | −0.02pp | #49 |
| 2024 | 66.32% | +1.18pp | #49 |
| 2023 | 65.14% | −1.17pp | #60 |
| 2022 | 66.32% | +3.52pp | #48 |
| 2021 | 62.80% | −3.60pp | #75 |
| 2020 | 66.40% | −2.11pp | #42 |
| 2019 | 68.51% | +0.94pp | #36 |
| 2018 | 67.57% | +1.70pp | #42 |
| 2017 | 65.87% | −0.31pp | #53 |
| 2016 | 66.19% | +0.54pp | #51 |
| 2015 | 65.65% | −0.05pp | #57 |
| 2014 | 65.70% | −0.05pp | #58 |
| 2013 | 65.74% | +0.79pp | #57 |
| 2012 | 64.96% | +1.95pp | #63 |
| 2011 | 63.01% | −1.87pp | #76 |
Detected Pattern
Analysis
Panama matched the Export Boom Cycle pattern in 1994. Historically, 71% of countries showing this pattern (546 out of 768) saw labor force participation improve within 24 months. View full analysis →
Frequently Asked Questions
Panama's labor force participation was 66.30% in 2025. Ranked 49th globally. This represents a 0.0% decrease from the previous year.
Panama's labor force participation peaked at 68.51% in 2019.
The lowest labor force participation in Panama was 54.47% in 1990.
Panama ranks 49th globally in labor force participation as of 2025.
The World Bank indicator code is SL.TLF.CACT.ZS. Data sourced from World Bank.
Panama's labor force participation is projected to reach 67.48% by 2026 based on trend extrapolation.
The labor force participation of Panama in 2025 was 66.30%. This ranks 49th in the world.
Cite this page
@misc{historysaid_panama_labor-force-participation,
title = {Panama Labor Force Participation},
url = {https://historysaid.com/panama/labor-force-participation/},
publisher = {HistorySaid},
year = {2026}
}