URUGUAY · JOBS
Key Facts
- —The country Uruguay is a small South American country between Brazil and Argentina.
- —Why it matters Jobs data shows whether the economy keeps people working, which matters to investors and expats.
- —Why now The statistics office INE published the September figures on Friday 23 October 2026.
- —What happened The jobless rate dipped to 7.1% in September from 7.2% in August.
- —The numbers Youth joblessness was 21.6%, women 8.6% and men 5.8%.
- —What it means for you Hiring is steady but not growing, with employment 0.3 points below a year ago.
- —Still open Whether youth joblessness eases and employment recovers in October.
- —Power Index Uruguay ranks 7th of 14 in The Rio Times Latin America Power Index, with 45.9 points (October 2026 edition).
The Uruguay unemployment rate dipped to 7.1% in September 2026, down from 7.2% in August, the national statistics office INE said on Friday 23 October. INE calls the level similar to both the previous month and September 2025, so the labour market is steady rather than turning.
For US readers the figure matters because Uruguay is a destination for investors and for Americans who retire, work remotely or move there. A jobless rate near 7% with no sharp swing suggests that wages, rents and consumer demand are not under sudden pressure.
INE is the Instituto Nacional de Estadística, the government agency that runs the monthly household survey behind these numbers. Our guide Uruguay Economy 2026, Who Runs It and How explains how the wider economy fits together.
In plain English
- —Jobless rate The share of people who want work, look for it and could start now but have no job.
- —Activity rate The share of everyone aged 14 or older who has a job or is looking for one.
- —Informality Workers who pay nothing into the social security system through their main job.
- —Underemployment People who work under 40 hours, want more hours and cannot find them.
How the Uruguay Unemployment Rate Moved
INE put the jobless rate at 7.1% for September, against 7.2% in August, which it described as similar. The activity rate stayed at 64.1% and the employment rate rose a tenth of a point to 59.6% from 59.5%.
Compared with September 2025, activity is 0.2 points lower and employment 0.3 points lower, while the jobless rate is about unchanged. That means slightly fewer people are working or looking for work, even though the share of jobless people did not rise.
Montevideo, the capital, and the rest of the country, which INE calls the interior, both recorded 7.1%. The employment rate was 60.7% in the capital and 58.8% in the interior.
INE counts as unemployed anyone aged 14 or older who has no work, searches actively and could start now. The monthly sample rotates, so each household answers the survey for six months in a row.
Young People and Women Face Higher Joblessness
The gaps by age are wide, and they were the main finding in local coverage of the September report. Young people aged 14 to 24 had a jobless rate of 21.6%, about three times the national 7.1%.
Jobless rate by age, September 2026
- —Aged 14 to 24 21.6%
- —Aged 25 to 29 9.2%
- —Aged 30 to 34 7.3%
- —Aged 35 to 44 4.5%
- —Aged 45 to 54 3.8%
- —Aged 55 to 64 3.8%
- —Aged 65 and over 2.2%
Only 33.0% of people aged 14 to 24 had a job, and the business daily Ámbito noted that many in that group are still in education. The employment rate peaks at 88.2% for people aged 35 to 44.
Women had a jobless rate of 8.6%, against 5.8% for men, a gap of 2.8 points that INE says is similar to earlier months. Among women of working age 53.1% had a job, against 66.6% of men.
Informal Work and Underemployment
Informality, measured as workers who make no social security contributions in their main job, stood at 21.0% in September. INE says that is similar to August and 1.3 points below September 2025.
The gap between regions is large, with 15.2% informality in Montevideo against 24.8% in the interior. Underemployment was 8.8% nationally, at 7.9% in the capital and 9.5% in the interior.
INE also tracks how people moved between August and September. Of those employed in August, 97.5% still had work in September, 1.1% became jobless and 1.4% left the labour force.
Of those jobless in August, 18.4% found work in September, 62.5% stayed jobless and 19.1% stopped looking. INE’s own transition table counts roughly 1.77 million employed and 135,000 jobless people in September.
Informality is therefore the one major indicator that improved over twelve months, while underemployment was similar to a year earlier. INE’s measure counts missing social security contributions in the main job, so it does not by itself show whether the work is legal.
What the Rolling Quarter Shows
A rolling three-month average smooths out the noise in a monthly survey. For July to September 2026 the jobless rate was 7.1%, the same as June to August and below the 7.4% of April to June.
Jobless rate, rolling three months
- —July to September 2025 6.9%
- —April to June 2026 7.4%
- —May to July 2026 7.2%
- —June to August 2026 7.1%
- —July to September 2026 7.1%
So the rate has eased from its spring level but is 0.2 points above the same quarter a year ago. Employment in the quarter was 59.6%, against 59.8% a year earlier.
Prices are the other half of the picture, and our report Uruguay Inflation Climbs to 4.68% in September shows annual inflation of 4.68% in September. A cabinet bill that would let workers with 30 years of contributions retire at 60, covered in Uruguay Bill Lets Workers Retire at 60, is headed to Parliament.
What It Means for You
For investors, a 7.1% rate that barely moves supports the view that Uruguay’s economy is stable but not accelerating, because a slightly smaller share of adults is in the labour force than a year ago. Employers hiring there will find jobless rates of only 3.8% to 4.5% among workers aged 35 to 54.
Americans living in or visiting Uruguay are more likely to notice the informal-work and youth figures in shops and services than any headline rate. Our Montevideo expat city guide and What to Do in Montevideo in October 2026 cover daily life, and Uruguay in Latin America 2026: Role, Weight, Allies places the country in the region.
Uruguay counts everyone aged 14 or older and follows International Labour Organization definitions, so its rate is close to, but not identical with, a US jobs report that starts at age 16. Check the definition before comparing two countries.
What Is Not Known
INE’s report does not say why the jobless rate edged down, and a 0.1 point move sits within the normal noise of a monthly survey. It also gives no outlook for October.
We could not confirm an official or consensus forecast for the September reading from a primary source, so we make no comparison with expectations. Local news reports repeat INE’s numbers rather than adding an independent count.
The survey covers a sample of households, and the bulletin text we reviewed gives no margin of error for the monthly figures. A change of 0.1 point should therefore be read as no real change.
It is not known whether the lower employment and activity rates since September 2025 reflect an ageing population, emigration or weaker hiring. The next release, which on INE’s recent pattern comes about a month after the last, will show whether September was a turning point.
Frequently Asked Questions
What is the Uruguay unemployment rate?
INE put it at 7.1% in September 2026, down from 7.2% in August. The rate is similar to the one in September 2025.
Who has the highest unemployment in Uruguay?
Young people aged 14 to 24 had a jobless rate of 21.6% in September. Women had 8.6%, against 5.8% for men.
Is unemployment higher in Montevideo?
No, INE recorded 7.1% in both Montevideo and the interior. Informal work is far more common in the interior, at 24.8% against 15.2%.
How does Uruguay measure unemployment?
INE counts people aged 14 or older who have no job, search actively and could start now. It surveys households monthly and follows International Labour Organization definitions.
What does it mean for US readers?
It signals a steady labour market for investors and Americans who live in or move to Uruguay. The youth and informality gaps are the main weak spots.
Sources: INE Uruguay, Activity, Employment and Unemployment, September 2026 (23 October 2026); INE technical bulletin, September 2026; INE Uruguay, August 2026 release (24 September 2026); Montevideo Portal, 23 October 2026; Ámbito, 23 October 2026.
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief