Colombia | Labor market: solid first half and change of drivers in June

Summary

The Colombian labor market closed a solid first half of 2026. In June, the unemployment rate stood at 8.0%, the lowest for this month since 2001. However, sectoral drivers shifted, with public administration playing a less prominent role compared to other sectors.

Key points

• Key points:
• The labor market closed a strong first half of 2026. Job creation remained robust, the unemployment rate fell to historic lows, and informality declined during most of the first half of the year. However, sectoral and regional differences persisted, with stronger job creation outside the main cities, led by public administration, health and education, and professional activities.
• In June, the national unemployment rate stood at 8.0%, its lowest level for the month since 2001. The decline from 8.6% a year earlier reflected the strong performance of employment, whose increase more than offset the rise in labor force participation.
• Job creation remained strong, although it slowed compared with May. Employment grew by 3.0% year-on-year, above its historical average, equivalent to the creation of 706 thousand jobs. Wage employment once again grew faster than non-wage employment, driven by hiring in private firms. However, informality interrupted its downward trend and remained unchanged at 55.1%.
• The sectoral composition of employment changed in June. Public administration, health and education lost prominence, while accommodation and food services, construction, transportation, and arts and entertainment activities led job creation. At the same time, employment growth remained concentrated outside the main cities, and female employment once again outpaced male employment.
• Looking ahead to the second half of the year, it will be important to monitor whether the slowdown in public administration, health and education becomes more pronounced and whether other sectors are able to take on a greater role. Part of the recent strength in accommodation and food services may be linked to the holiday season and the FIFA World Cup period and could therefore prove to be temporary.

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