Labour reform will not end social unrest in Panama

Significance

Several workers’ unions launched protests in July in anticipation of the reform’s approval, claiming it undermines labour rights. The protests are symptomatic of growing frustration with the government’s efforts to mitigate the economic damage caused by COVID-19 lockdown measures.

Impacts

• Panama’s economic struggles will be exacerbated by an ongoing trade spat with neighbouring Costa Rica.
• Increased protests will present major infection risks, perpetuating the challenges facing the government.
• Any surge in COVID-19 cases requiring a return of lockdown measures would further weigh on attempts to spark an economic recovery.