Colombia’s labor market displayed signs of resilience in September 2024, with the unemployment rate dropping to 9.1%. This figure represents a 0.3 percentage point decrease compared to the same month last year.
The National Administrative Department of Statistics (DANE) released these findings in their latest report. The September unemployment rate is the second-lowest for this month since 2016.
This improvement comes despite ongoing economic challenges faced by the country. The number of unemployed individuals decreased by 22,000, totaling 2.3 million people out of work.
Meanwhile, the employed population grew by 107,000, reaching 23.2 million Colombians. The working-age population stood at 40.3 million, with 14.6 million people outside the labor force.
These figures suggest a gradual recovery in the job market. However, not all sectors contributed equally to this improvement.
Financial activities, information and communications, and transportation experienced job losses. These sectors shed 53,000, 99,000, and 114,000 jobs, respectively.
Mixed Recovery in Colombia’s Job Market
Public administration, previously a leading job creator, also lost 45,000 positions. On the positive side, professional, scientific, technical, and administrative services added 176,000 new jobs.
The hospitality and food service sector created 137,000 positions, while agriculture contributed 97,000 new jobs. These gains helped offset losses in other areas.
City-wise, Quibdó, Riohacha, and Ibagué reported the highest unemployment rates at 24.9%, 15%, and 14%, respectively. Bogotá, the capital, saw its unemployment rate fall to 9.1%, below the national average.
Medellín boasted the lowest unemployment rate among major cities at 7.8%. Analysts from Bancolombia‘s economic research group predicted a slight increase in unemployment to 9.8% for September.
They noted the public sector’s diminishing role in job creation due to fiscal constraints. High inflation may also be driving more people into the labor market.
A report by Corficolombiana’s economic research team confirmed a slowdown in public sector job creation up to August 2024. Public sector employment fell by 1.1%, while private sector employment grew by 0.4% during this period.
As Colombia navigates economic uncertainties, the labor market’s performance will remain a key indicator of the country’s overall economic health. The coming months will reveal whether this positive trend can be sustained amid ongoing challenges.
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