San José Congestion Hits Hiring and Logistics

The study by the Federación de Cámaras de Comercio del Istmo Centroamericano, or Fecamco, looked at traffic and urban mobility in five Central American cities, including San José. It found 60% of workers said a company’s location influences whether they accept or keep a job, while seven in 10 reported a moderate or severe hit to family time, rest or personal activities.

The pressure is feeding directly into business operations. Half of employers surveyed said they have had trouble attracting or keeping talent because of mobility or location, and 82% said congestion poses a medium- to long-term risk to competitiveness. About 76% said it harms logistics, distribution or supply, underscoring how traffic can act as a drag on productivity and margins.

For workers, the cost is not just time. Fecamco said traveling less than 10 kilometers can take as long as 2 hours and 10 minutes in the Greater Metropolitan Area, and 50% of workers said transport costs have risen because of mobility conditions. The report also found 55% of students about to enter the labor market say mobility will shape their future job decisions.

Businesses are responding with workarounds rather than fixes. Fecamco said 56% have adopted flexible schedules, 42% offer telework, 31% use hybrid models and 27% have adjusted operations. But in commerce, where physical presence is often required, those options are limited, leaving firms competing with industries that can offer more remote work and flexibility.

Arturo Rosabal, president of Costa Rica’s Chamber of Commerce and Fecamco, said companies are increasingly losing candidates who do not want to travel more than 10 kilometers for work. He said some firms now pay for private transport, especially for night shifts when public transit is limited, adding another cost layer at a time when logistics expenses are already climbing.

The report said congestion has increased logistics and distribution costs by 10%, while some businesses have cut delivery routes from three or four a day to one to three. That raises the stakes for infrastructure spending and public transit reform, even as the government’s electric train project is not expected to begin operating until 2031 and still lacks a published tender.