Rigidity of structural unemployment in the honduran economy

Abstract

This study examines the persistence of structural unemployment in Honduras (6–7 %), attributed to chronic mismatches between labor supply and demand, regulatory rigidities, and the expansion of the informal sector. A significant portion of so-called resolved unemployment transitions into informal employment, characterized by limited social protection and salary precarity. A literature review (2019–2024), comprising peer-reviewed articles, official reports, and theses, identified four critical variables: structural unemployment rate, labor market rigidity, informality, and employment/training policies. Regulatory constraints related to credit access, dismissal costs, and contractual barriers hinder the creation of formal jobs. Informality emerges as an adaptive mechanism, especially for women, youth, and rural populations. While current policies show progress, they exhibit deficiencies in coordination, territorial inclusion, and impact assessment. The study recommends targeted interventions: market-aligned training programs, incentives for formalization, institutional flexibility, and autonomous monitoring frameworks. These measures aim to alleviate structural unemployment rigidity and facilitate a transition toward quality formal employment.