Public Sector Layoffs

More than 10,000 public employees, many of them Libre-party hires, have been fired under the controversial Economic Reactivation Law since February 2026, and labor unions report that as of late July many have not received their legally mandated severance payments.

Honduras recorded 437 social conflicts in the first half of 2026—over two collective actions per day across 97 municipalities—with education, labor, and health sectors leading protests; 88.6% of citizen demands remain unaddressed by authorities.

Honduras's Technical Liquidation Commission reported that more than 1,700 state employees have been laid off as part of a government restructuring aimed at reducing costs and redirecting savings to health, education, and security, with the government spending over 700 million lempiras (about $28 million) on severance payments.