COLOMBIA · ECONOMY
Key Facts
- The country Colombia, a major Andean economy, is led by conservative President Abelardo de la Espriella.
- Jobs The unemployment rate fell to 8.0% in September from 9.4% in August; analysts had expected 9.2%.
- Cement Gray cement production rose 2.0% from a year earlier in September; the forecast was 1.7%.
- The catch Cement shipments to Colombian buyers rose only 1.1%, and unemployment in the 13 biggest cities edged up to 8.3%.
- Prediction markets Polymarket gives 55.0% to no change in the central bank’s December rate decision and 31.9% to a quarter-point rise (30 October, 6:12 p.m. ET).
- Power Index Colombia ranks 6th of 14 in The Rio Times Latin America Power Index, with 51.9 points (October 2026 edition).
Colombia’s unemployment rate fell to 8.0% in September 2026 from 9.4% in August, well below the 9.2% that analysts expected, DANE, the national statistics office, said on Friday 30 October. Cement production, a quick gauge of building activity, rose 2.0% from a year earlier and beat the 1.7% forecast.
For US investors in Colombian bonds, stocks and the peso, the two reports show a job market that is firm and a construction sector that is growing slowly. Hours later the central bank held its rate at 12.25% on a split 4-3 vote, as we report in Colombia’s Central Bank Holds Rate at 12.25%.
What Happened With Unemployment
The national unemployment rate was 8.0% in September, down from 8.2% in September 2025 and from 9.4% in August 2026, DANE said. About 24.2 million people had a job, which is 322,000 more than a year earlier.
The participation rate, the share of working-age people who have a job or look for one, was 63.8%, against 63.9% a year earlier. The employment rate stayed at 58.7%, so the yearly drop in unemployment reflects slightly fewer job seekers, not a higher share of people at work.
Women had an unemployment rate of 10.1% in September, against 6.5% for men, a gap of 3.6 percentage points. About 14.1 million men and 10.2 million women had a job.
Why the Rate Fell From August
August was unusually weak, with unemployment at 9.4% against 8.6% a year earlier, and it was also the month of the 10 August 2026 earthquake in western Colombia. DANE data show that factory employment was 240,000 lower in August than a year earlier.
In September factories employed 100,000 more people than a year earlier, and shops and vehicle repair added 162,000 jobs. Transport and storage added 84,000 jobs, which lifted that sector to 1.94 million workers.
Farming went the other way, with 184,000 fewer agricultural jobs than a year earlier. Government employees also fell by 68,000, a loss that the gains elsewhere more than covered.
DANE does not say how much of the rebound is a return to normal after the earthquake month. A swing of 1.4 points in one month is large, so the next report will show whether 8.0% holds.
The Big Cities Tell a Different Story
In the 13 largest cities and their metropolitan areas the rate rose to 8.3% from 8.1% a year earlier. The three-month rate for the whole country to September was 8.5%, the same as a year ago.
Bogotá had the lowest three-month rate at 7.6%, ahead of Villavicencio at 7.7% and Medellín at 7.8%. Quibdó, the capital of the Chocó province on the Pacific coast, had the highest at 23.4%, followed by Cartagena at 13.7% and Tunja at 13.2%.
What Happened With Cement
Colombia produced 1,263.1 thousand tonnes of gray cement in September, 2.0% more than a year earlier, DANE said. Gray cement is the standard cement used in concrete and mortar, so its output is a quick read on building activity.
Shipments to the domestic market, which DANE calls dispatches, rose a smaller 1.1% to 1,194.4 thousand tonnes. The gap of about 69,000 tonnes between production and dispatches is made up of exports and changes in stocks.
Market calendars list this release as cement production, with a 1.7% forecast and a 2.9% prior reading, and we use production (+2.0%) as the headline because it matches DANE’s production figure exactly. The 2.9% prior matches August dispatches as first published, while August production fell 1.9%, and DANE has since revised August with real company data, so the prior may not be a like-for-like comparison.
From January to September production is up 2.1% to 10.59 million tonnes, and dispatches are up 3.6% to 9.87 million tonnes. Over the 12 months to September dispatches rose 4.7%, and all figures are provisional.
Where Cement Demand Is Growing
Ready-mix concrete plants, which turn cement into concrete for large projects, took 7.4% more cement and supplied most of the growth in dispatches. Bagged cement sold to builders and contractors rose 8.2%.
By region, dispatches rose 34.8% in Boyacá, 20.3% in Meta and 18.0% in Atlántico, the department around Barranquilla. They fell 9.3% in the Bogotá area, 4.5% in Valle del Cauca, around Cali, and 4.1% in Antioquia, around Medellín.
Weak orders in the biggest cities fit the small rise in city unemployment, though DANE does not link the two. The data also do not show whether rebuilding after the earthquake has started to lift orders.
What It Means for You
For US investors in Colombian assets, a jobless rate of 8.0% points to steady household income, which supports spending and loan quality at banks such as Bancolombia, the country’s largest bank. It also gives the central bank, which held its rate at 12.25% today while inflation is 6.3%, little reason to rush toward rate cuts.
The peso closed at about 3,167 per US dollar on Thursday 29 October, so 1,000 pesos are worth about US$0.32. Oil prices and the debate in Congress over the Rescue Law explained, a package of spending cuts worth about US$13 billion in 2027, are likely to move the currency more than one month of jobs data.
Cement output of about 1.26 million tonnes a month points to a construction sector that grows slowly, which matters for US suppliers of machinery and building materials. Travelers need not change plans, because nothing in either report affects visas, safety or prices for visitors.
What Prediction Markets Say
Polymarket, a prediction market where users bet real money, gave 55.0% to no change at Colombia’s central bank meeting in December and 31.9% to a quarter-point rise as of 6:12 p.m. ET on Friday 30 October. About US$30,000 has been traded on that market.
Why we show this: prediction markets turn real-money bets into a live probability that moves within minutes of the news, which is why investors, campaigns and newsrooms in the United States now follow them closely. We show them next to polls and official results, never instead of them.
What Would Change the Picture
A rise in unemployment back toward 9% in the next monthly report would suggest that September was the outlier and August the trend. A fall below 8% would point to a labor market tightening further, which would add wage pressure at a time when inflation is more than double the 3% target.
In cement, a lasting rise in dispatches around Bogotá, Cali and Medellín would show that housing and public works are recovering. A US$13 billion spending cut in 2027 under the Rescue Law, if Congress passes it, could slow public works instead.
What Is Not Known
It is not known how much of the fall from 9.4% is a return to normal after the earthquake month. The September jobs figures are survey estimates, and the cement data are provisional and can be revised for up to two years.
It is also unknown whether the weakness in cement orders in the big cities is temporary. The two reports say nothing about wages or informal work, so the quality of the new jobs cannot be judged.
More: Colombia news in English, every day from The Rio Times.
Frequently Asked Questions
What Is Colombia’s Unemployment Rate?
It was 8.0% in September 2026, down from 9.4% in August and 8.2% a year earlier. DANE, the national statistics office, published the figure on Friday 30 October 2026.
How Much Cement Does Colombia Produce?
Colombia produced 1,263.1 thousand tonnes of gray cement in September 2026, up 2.0% from a year earlier. Shipments to the home market rose 1.1%, and all figures are provisional.
Why Does Cement Output Matter?
Cement goes into almost every building, road and bridge, so its output gives an early read on construction. A steady rise suggests housing and public works are growing.
Sources: DANE, Gran Encuesta Integrada de Hogares, Principales indicadores del mercado laboral, September 2026, 30 October 2026; DANE, Estadísticas de Cemento Gris, September 2026 bulletin and August 2026 bulletin, 30 October 2026; Bank of the Republic of Colombia (Banrep), policy rate decision, 30 October 2026; Polymarket, Central Bank of Colombia decision in December, 30 October 2026.
In depth
Editorial responsibility: Matthias Camenzind, Editor-in-Chief · Editorial standards · Report an error