The Labor Market and Human Capital Development

Abstract

Today's economic growth depends on the accumulation of human capital. Countries that stimulate investments in productive assets achieve higher rates of increase in their production, with the increase in human capital accumulated through education being important among these. The danger of social segmentation is serious between those who join the new technologically advanced society qualified and those who are excluded and therefore marginalized from the global increase in the benefits of productivity. This labor segmentation widens the remuneration gap between qualified and unskilled personnel, while worsening income inequalities. In the short term, the labor market in Panama indicates limited prospects that benefit low-income labor, semi-skilled workers, construction workers and others, who do not have the option and training of teleworking, work on digital platforms, and the possibility of entering higher productivity activities. It is traumatized by the impacts of the pandemic and the prevailing structural imbalances. These include those that arise from the development of informality. A path remains to be laid out for these restructurings that ensures sustainability by encouraging the participation of the private sector. What impact could this have on Panama as a financial services center and what steps should be considered to ensure that the country is adequately prepared to play a role in protecting its development in an increasingly multipolar world with potential geopolitical conflicts? We need to develop a “global business country” mentality. In summary, disruptions in the global context will likely have effects on some elements of the structure, form of development and management that would possibly merit specific consideration in future deliberations, analysis and planning.