In Panama, thousands of young people enter the labor market every year without the tools they need to succeed. In fact, a child born in Panama today could reach only half of their potential due to gaps in education and health, a reality that disproportionately affects vulnerable groups.
This lag in human capital contrasts sharply with Panama’s economic evolution. The Panamanian economy has experienced remarkable growth in recent decades, but the data shows that job creation has been concentrated in low-wage sectors with high informality—one of the main obstacles preventing the country from translating its success into shared prosperity.
How can these challenges be addressed? The World Bank Group brought together civil society and private-sector representatives in Panama to discuss the opportunities and priorities needed to achieve a future with better jobs that help reduce poverty in the country. The consensus was clear: education remains one of the top priority action areas so that Panamanians can access more and better formal jobs that boost productivity and strengthen the country’s human capital.
An Educational Revolution: Urgent and Necessary
A good job is the safest path out of poverty and a source of dignity and purpose, but in Panama there are significant “deficiencies in education and in effective training that would allow Panamanians to perform fully,” noted Carlos Araúz, president of Fundación Calicanto.
Participants agreed on the need to guarantee access to education. “It is extremely important to continue addressing education at a massive level; I believe the aspiration is for all Panamanians to have quality education,” explained Jean Pierre de Roux, businessman and chair of Nueva Generación.
However, the challenge goes further than coverage. It also involves understanding the causes of the educational lag. “Perhaps we have become obsessed with the idea of providing schooling for the sake of providing it, without understanding how that person fell behind,” added Araúz, noting that reforms must cover “from early childhood to primary and secondary education, without overlooking universities, which have also fallen behind in technology and modernization.”
Education Aligned with Today’s Business Needs
The report “The Future of Work in Central America and the Dominican Republic” highlights that technological progress can be an opportunity for the subregion's workers. But in Panama, the adoption of these technologies remains limited. This gap must be addressed in the reform, experts emphasize. “The focus must be on education, but on an education adapted to 21st‑century requirements—one that incorporates technology in learning, fosters innovation, and can adapt according to the country’s needs,” said Rosemary Piper, executive director of the National Competitiveness Center.
From the business sector, the priority is clear. For Manuel Ferreira, Director of Economic Affairs and Analytics at the Chamber of Commerce, Industries, and Agriculture of Panama, the key lies in strengthening technical education: “Dual education—combining study and work—is essential. If we manage to prepare people under this model, their employment opportunities will improve, and so will the economic environment.”
A Collaborative Effort for the Country’s Development
Panama has great development potential, but to fully seize it, the country needs a prepared human capital. Social organizations know the challenges on the ground well.
“International educational assessments and youth unemployment show that young people are falling behind compared to similar countries,” said Camila de Vengoechea, president of CAPADESO, the Panamanian Chamber of Social Development. “This is why so many nonprofit organizations invest in education: the need is real,” she added, highlighting their experience supporting groups disproportionately affected by inequality, such as women, youth, and residents of Indigenous comarcas and rural areas.
This investment in human capital also has a multiplier effect: it boosts entrepreneurship and diversifies the economy. “We should not abandon efforts to support entrepreneurs; we also need employers who can drive the country’s growth,” emphasized Piper, noting that “as we better prepare people at the technical and higher‑education levels, we can move toward more advanced sectors with better salaries and higher skill requirements.”
The diagnosis is clear, and so is the consensus: Panama cannot afford to wait. “Public education must be reformed and strengthened; it is everyone’s aspiration and a pending debt,” recalled de Roux.
Only through renewed, inclusive education aligned with 21st‑century demands will all Panamanians have the opportunity to develop their talents, access better jobs, and contribute to the country’s economic development. The challenge is significant, but so is Panama’s potential. With consensus and the will to move forward already in place, it is time to transform education into a driver of job creation.
