Colombia | A 2025 with record-low unemployment and dynamic job creation

Summary

The national unemployment rate stood at 8.9% in 2025, down from 10.2% in 2024, marking the lowest level on record since data have been available. This outcome occurred in a context where the labor force expanded (2.0%), while employment grew at an even faster pace (3.4%).

Key points

• Key points:
• In December 2025, the national unemployment rate declined to 8.0%, below the 9.1% recorded a year earlier and reaching its lowest level for a December since 2001. In seasonally adjusted terms, the unemployment rate was 8.3%, remaining stable compared with November. Relative to December 2024, 603 thousand new jobs were created, equivalent to an employment growth rate of 2.6%.
• Throughout 2025, an average of 791 thousand jobs were created. Employment growth was observed in both the formal and informal sectors; as a result, the informality rate did not decline significantly, edging down from 55.9% in 2024 to 55.7% in 2025. Wage-earning and non-wage-earning employment increased by 3.6% and 3.3%, respectively.
• The main drivers of employment growth were accommodation and food services, manufacturing, public administration, health and education, and transportation.
• The decline in the unemployment rate to historic lows was broad-based, affecting men and women, youth, and all regions. However, the gender gap remained unchanged.
• Overall, the labor market posted a strong performance in 2025: not only did the unemployment rate reach historic lows, but employment also expanded at a solid pace. Looking ahead to 2026, however, two factors cloud the outlook: the 23% increase in the minimum wage and the labor reform. We expect these developments to have negative effects on the labor market, particularly on job creation, which we anticipate will grow only marginally, as well as on formality.

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