The cushion that cushioned unemployment in Central America is deflating: mass deportations, two million with pending arrest warrants, and a $4 billion drop in remittances.

Central America is facing the deflation of a critical economic cushion that has historically buffered regional unemployment and informal labor markets. According to an Inter-American report, the region is experiencing massive deportations, two million pending deportation orders, and a USD 4 billion drop in remittances.

This development marks a potential turning point for the region, as it threatens to strip away the primary financial safety net that has sustained households and mitigated severe job market pressures over the past decade.