Labor: Formal salaried employment falls by 4% and marks its worst start to the year since the pandemic
Self-employed and government-hired workers increase. Photo: iStock
TL;DR
- Unemployment in Colombia decreased to 8.8% in March 2026, the lowest rate in the 21st century.
- Formal private sector employment declined by 435,000 jobs (nearly 4%) between Q4 2025 and Q1 2026, marking its worst start to the year since the pandemic.
- Job growth was primarily driven by self-employment (457,000 new jobs) and public administration (370,000 new jobs).
- Economists and business leaders express concern over the quality and sustainability of the jobs being created, highlighting a rise in informal work and precarious conditions.
- Concerns are raised about the discrepancy between the reported decrease in unemployment and the rise in self-employment, suggesting potential data distortions and questioning the impact of a significant minimum wage increase without productivity gains.