Colombia's labor market heading towards a gradual cooling scenario according to JP Morgan calculations
The labor market in Colombia faces challenges for 2026. Photo: Image generated with artificial intelligence.
TL;DR
- Job creation in Colombia is slowing down after a significant minimum wage increase.
- Unemployment remains near historic lows, with the rate at 8.4% in February.
- Real wage growth has accelerated, benefiting household consumption.
- Sectors like manufacturing, construction, entertainment, and communications have contributed to job growth, mainly driven by the private sector.
- Informality remains around 55% nationally, with no significant improvement or deterioration.
- Labor participation is still below historical levels, potentially limiting future growth.