Unemployment in Honduras

The most recently located official labor force survey (EPHPM) from July 2025 reported an unemployment rate of 4.9 percent and 211,015 unemployed people in Honduras. The rate was 6.8 percent for women, 3.7 percent for men and 8.1 percent for people between 15 and 29 years of age. Unemployment there includes people aged 15 and over who have no job, are available and, during the previous four weeks, have sought work, started an activity or prepared to start a business. The low unemployment rate does not fully describe income security: the statistics also recorded 2,045,156 people with employment problems, including 1,359 thousand and 617 people in the TSI category, 327,692 in TST and 146,832 in the potential labor force. TSI and TST refer to forms of underemployment; the potential labor force comprises available workers who do not appear in the narrow unemployment rate. Honduras has no general statutory unemployment insurance and no nationwide entitlement to unemployment benefits. Protection therefore depends heavily on whether the person previously held formal employment in the private sector. In the event of unjustified dismissal or a termination provided for by law, a statutory severance payment (Auxilio de Cesantía) may arise for the ended employment. For employment lasting three to six months, the entitlement corresponds to ten paid days; for more than six and less than twelve months, to twenty days; and after more than one year, it is generally one monthly wage per year of employment. The entitlement is generally capped at 25 monthly wages. In the event of voluntary termination after at least 15 years, 35 percent of the corresponding entitlement may be provided for. For microenterprises with no more than ten employees, the upper limit is 15 monthly wages. Depending on the case, unpaid vacation and the payments known as the 13 and 14 monthly wages may also remain outstanding. In addition, the Private Contributions Regime (Régimen de Aportaciones Privadas, RAP) maintains an Individual Capitalization Labor Reserve Fund (Fondo de Reserva Laboral de Capitalización Individual) for generally covered private employers. The employer usually contributes four percent of the normal monthly wage; the contribution base is capped at three of the highest statutory minimum wages. When the contract ends, the accumulated reserve is paid out regardless of the reason for termination. In the event of unjustified dismissal, the reserve is credited against the severance payment, and the employer pays any possible difference. Any amount beyond that may be treated as a seniority premium. The rules contain exceptions, including certain annual payments under Article 379 of the Labor Code (Código del Trabajo). A RAP account is not automatically available to people in informal work, self-employed people or public-sector employees. RAP information referring to six months or one year concerns the historical Housing Fund and does not automatically establish an entitlement from the Labor Reserve Fund. The Secretariat of Labor and Social Security (Secretaría de Trabajo y Seguridad Social, STSS), its General Directorate of Employment (Dirección General de Empleo), the National Employment Service of Honduras (Servicio Nacional de Empleo de Honduras, SENAEH) and the employment service (SI Empleo) are responsible for job searches and re-entry into work. The Empléate platform (Empléate) or regional offices provide access to SI Empleo, which offers job placement, career guidance, business counseling, referrals to institutions and regional support, among other services. A national identity card (Tarjeta de Identidad) is required for the procedure. Registration does not automatically lead to placement, and there is no general statutory benefit duration or fixed unemployment benefit that begins after registration. There is also no general statutory reporting or notification obligation for unemployed people. Before termination, the notice period may affect preparation for the job search. It is 24 hours for employment lasting less than three months, one week for three to six months, two weeks for more than six and up to twelve months, one month for more than one and up to two years, and two months for more than two years. During the notice period, one paid day per week is generally available for job searching. After termination, the written dismissal or a record of findings (Acta de Constatación), proof of identity, evidence of the employment duration and wage, and RAP documents should be secured. For outstanding claims, the STSS labor inspectorate, calculation and conciliation services, mediation or proceedings before the legal authority (Procuraduría) can provide assistance.