Alicia Jiménez, president of the Federation of Chambers of Commerce of the Republic of Panama (FEDECAMARAS), questioned a potential minimum wage increase, arguing that the country is not in a position to support a hike that ignores economic reality. A miscalculation in the formula could trigger mass layoffs, more informality, and the silent closure of hundreds of micro, small, and medium-sized enterprises (MSMEs) that are already "strangled" by a lack of liquidity.
"A stable, formal job is better than an unsustainable salary aspiration," Jiménez stated. She emphasized that the wage review is not a mere ritual but a historical responsibility where all technical and economic variables must be weighed. "The negotiating table is serious, respectful, and coherent. There is no cash available for immediate commitments. We are losing effective productivity and affecting the GDP," she explained.
A poorly calculated increase would cause massive layoffs
The business leader was blunt: if an increase is approved without considering real liquidity, informality, and economic contraction, the impact will be devastating. A recent technical simulation showed that, considering all factors, including the employer's quota, labor costs could rise by up to 23%.
"Where is that liquidity going to come from?" she asked, and capped it with a chilling warning: "If a micro-business owner has 11 employees and the formula forces him to raise costs he cannot cover, he will sacrifice one. Who should take out a loan to pay salaries? A mistake will push us further into underemployment," she emphasized.
"We are losing productivity and young talent"
Jiménez focused on a socially explosive issue: youth underemployment. She recounted how recent graduates in finance, banking, and economics are selling on the streets because they cannot find formal jobs.
"That person is underemployed. It's a real scenario, not a fabricated one. We represent 16 chambers of commerce, and we are all concerned," she said.
