Uruguay’s Jobless Rate Drops to 7.8%

In December 2023, Uruguay experienced a decline in its unemployment rate, reaching 7.8% of the Economically Active Population (EAP).

This marked a decrease from November’s 8.3%, as the National Institute of Statistics (INE) reported.

The Continuous Household Survey revealed a rise in the employment rate. In December, it climbed to 58.9% from November’s 58.4%.

Additionally, the activity rate, representing the labor supply, increased to 63.8%, a slight rise from the previous month’s 63.7%.

Subemployment impacted 9.8% of those employed, indicating underutilization of the workforce.

Meanwhile, 22.6% of workers did not register for social security with their main job.

Montevideo, the capital, showed a lower average unemployment rate of 6.5%, contrasting with 8.6% in other regions.

Comparatively, the national unemployment figure in December 2022 was slightly higher at 7.9%.

President Luis Lacalle Pou’s administration interprets these statistics as a sign of the labor market’s ongoing recovery.

They suggest a return to the employment levels seen before the pandemic.

Background

In 2023, Uruguay’s unemployment rate was forecasted at 8.13%, positioning it in the middle range compared to other South American countries.

For comparison, Colombia had the highest forecasted rate at 10.8%, while Ecuador had the lowest at 3.8%.

Uruguay’s rate was slightly higher than Argentina’s 7.35% and lower than Brazil’s 8.33%.

This suggests that Uruguay’s job market was relatively stable, with its unemployment rate being neither the highest nor the lowest in the region.