BRIEF DESCRIPTION OF THE COUNTRY'S RELATIONSHIP WITH SDG 8

As one of Latin America’s most stable and prosperous economies, Costa Rica has made substantial progress towards several dimensions of SDG 8, maintaining consistent economic growth over recent decades, with real GDP per capita growing by an average of 3% annually between 2004 and 2023, leading to the country becoming a high-income economy in 2025 (World Bank, n.d.). Costa Rica has demonstrated a strong institutional commitment to the UN’s 2030 Agenda. In 2016, Costa Rica became the first country in the world to sign a National Pact for the Advancement of the SDGs, establishing a multi-stakeholder governance framework for their domestic implementation (Ministry of National Planning and Economic Policy of Costa Rica [MNPEPCR], 2024, p. 13).

However, Costa Rica faces major challenges that hamper the achievement of SDG 8. Widespread informal employment, low female labour force participation, and significant skills mismatches in the labour market limit the ability of workers to benefit from the country’s growing economy (Organisation for Economic Co-operation and Development [OECD], 2025, p. 10).

CURRENT CHALLENGES AND RECENT DEVELOPMENTS

A major challenge in achieving SDG 8 in Costa Rica is the persistence of informal employment. Although the number of informally employed workers has declined since the end of the COVID-19 pandemic, around 40% of Costa Rica’s workers were still informally employed in 2025 (OECD, 2025, pp. 13, 20). Workers within the informal economy face significant risks to their financial security and their health. Employment within the informal economy is typically accompanied by precarious working conditions, unregulated working arrangements, and a complete lack of social and legal protection that leave most workers in an extremely vulnerable position (ILO, 2015).

Another pressing issue in Costa Rica is the growing skills shortages and the related skills mismatches in the economy. Surveys to Costa Rican employers signal that significant skills mismatches in the labour market are becoming a growing barrier to the firms’ ability to boost their operations, particularly in knowledge-intensive sectors and in high-tech manufacturing (OECD, 2025, p. 20). As remarked by the MNPEPCR (2024), Costa Rica is currently prioritising the development of in-demand skills in its education system, such as those related to STEM fields, with the goal of mitigating skills mismatches and ensuring sustained economic growth in the medium- and long-term (p. 120).

Low female labour force participation is another major challenge in Costa Rica. In 2023, female labour force participation in Costa Rica was 27 percentage points lower than men’s, barely surpassing 50% and lagging behind almost all OECD countries (OECD, 2025, pp. 12-13). This represents a substantial loss of productive potential and limits the inclusiveness of Costa Rica’s economic growth.

Costa Rica’s struggling youth is another concern. Although progress has been made since the adoption of the UN’s 2030 Agenda in 2016, the proportion of youth not in education, employment or training stood at a concerning 18.3% in 2024 (United Nations Department for Economic and Social Affairs, n.d.). Moreover, many Costa Ricans are leaving the education system before completing their secondary education, while many emerging jobs increasingly demand specialised and technical skills. Enhancing access to education and training is therefore another important priority in Costa Rica (OECD, 2025, p. 19).

LIST OF REFERENCES AND USEFUL LINKS

Ministry of National Planning and Economic Policy. (2024). III Informe Voluntario Nacional: Costa Rica 2024. United Nations High-Level Political Forum on Sustainable Development. https://hlpf.un.org/sites/default/files/vnrs/2024/VNR%202024%20Costa%20Rica%20Report_0.pdf

Organisation for Economic Co-operation and Development. (2025). OECD Economic Surveys: Costa Rica 2025. https://doi.org/10.1787/048cf07b-en

United Nations Department of Economic and Social Affairs. (n.d.). SDG Country Profile: Costa Rica. Retrieved September 7, 2026, from https://unstats.un.org/sdgs/dataportal/countryprofiles/cri

World Bank. (n.d.). Overview: Costa Rica. Retrieved September 7, 2026, from https://www.worldbank.org/ext/en/country/costarica#tab-about