Colombia | Labor market robust in July, with dynamic job creation

Summary

The national unemployment rate stood at 8.1% in July, down from 8.8% a year earlier and its lowest level for the month since 2001. The decline was driven by higher employment, which more than offset the increase in labor force participation.

Key points

• Key points:
• Job creation remained solid, although it continued to lose momentum. Employment grew by 2.4% year-on-year, equivalent to 578 thousand new jobs. Non-wage employment once again outpaced wage employment, driven mainly by self-employment, while informality resumed its downward trend.
• Public administration, health and education once again led job creation, adding 404 thousand jobs, followed by trade and construction. The sector's renewed momentum could be related, at least in part, to the increase in public-sector contracting observed between late June and July.
• Job creation remained concentrated outside the main cities. Other urban areas and populated centers and dispersed rural areas accounted for most of the increase, while employment growth in the 13 largest cities remained moderate and below its historical average.
• Looking ahead, the contribution from public administration, health and education could moderate. The incoming government and the potential implementation of a fiscal adjustment plan could reduce the sector's contribution to job creation in the coming months.

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