Unemployment Drop in January Doesn't Reassure Market and Unions, Which Warn of Persistent Fragility
The labor market in Colombia faces challenges for 2026. Photo: Image generated with artificial intelligence.
TL;DR
- Unemployment in Colombia fell to 10.9% in January 2026, the lowest for the month since 2001.
- The decrease is primarily due to a drop in the labor force participation rate, with more people becoming inactive.
- Analysts predict the minimum wage hike could increase unemployment to 10.2% in 2026.
- Job creation growth slowed to 1.4%, significantly lower than the 4% seen a year prior.
- Sectors like public administration, education, health, and professional activities drove job creation, while retail and food services saw losses.
- The majority of new jobs were non-salaried, particularly for self-employed individuals and employers, indicating a rise in self-employment over formal positions.
- Informality remains high at around 55%, despite a slight reduction.
- Concerns exist about the sustainability of the employment structure and potential links to public spending.