Searcher
Searcher
See main menu

Published on Friday, May 9, 2025

Colombia | Non-Wage Employment, Major Driver of National Employment

Summary

National employment grows, mainly driven by non-wage employment (+8% annually in March). Of 1.1M jobs created, most are independent and informal, raising the informality rate to 57.2%. The challenge is to formalize this employment to improve conditions and reduce poverty.

Key points

  • Key points:
  • Creation of non-wage employment widely surpasses wage employment (947 thousand vs 110 thousand in the last year).
  • More than 70% of wage employment in Colombia is formal, with better working conditions and social security coverage.
  • 80% of independent workers are informal, with the majority being self-employed.
  • High labor informality is directly related to higher levels of multidimensional poverty in Colombian households.
  • Effective measures are required to reduce informality in independent employment and promote formalization.

Geographies

Documents and files

Audio (MP4)

Non-Wage Employment, Major Driver of National Employment

Spanish - May 9, 2025

Press article (PDF)

Non-Wage Employment, Major Driver of National Employment

Spanish - May 9, 2025

Authors

ML
María Claudia Llanes BBVA Research - Senior Economist
New comment

Be the first to add a comment.

You may also be interested in