Colombia | The labor market partially recovered in September

The labor market showed a partial recovery in September, following the sharp deterioration recorded in August, partly due to the earthquake. The national unemployment rate declined to 8.0%, from 8.2% a year earlier. However, the slowdown in job creation persists.

Key points

• Key points:
• In seasonally adjusted terms, the unemployment rate fell from 9.7% in August to 8.7% in September, but remained above its pre-earthquake level (8.3% in July).
• Four out of every five jobs lost in August were recovered in September, although job creation continues to slow. In seasonally adjusted terms, employment grew by 1.4% year-on-year, below its historical average (2.0%) and the average growth rate over the past twelve months (2.6%).
• Year-on-year employment growth was mainly driven by trade, manufacturing, transportation and professional activities. In contrast, public administration, health and education recorded job losses, in line with our expectation of weaker job creation amid the new government's fiscal austerity policy.
• Year-on-year employment growth remained concentrated outside the country's major cities. Other urban areas and smaller population centers and dispersed rural areas accounted for most of the growth in national employment, while the 13 largest cities made a positive contribution again, after accounting for a large share of job losses in August. In contrast, the next 10 largest cities continued to record job losses.
• The effects of the earthquake on the labor market may not have fully dissipated yet. Based on rolling-quarter data, the slowdown in employment continued to deepen in the five affected cities, while it stabilized in unaffected cities. However, the affected cities account for only 8% of total national employment, meaning that their deterioration is not reflected to the same extent at the national level.

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