The unemployment rate was at its lowest level since the beginning of the century, according to official data.
Colombia News
Colombia ended 2025 with an average unemployment rate of 8.9%, one of the lowest recorded in the last two decades. The data, revealed by the National Administrative Department of Statistics (Dane), marks a significant reduction compared to 2024, when unemployment stood at 10.2%.
The result confirms a trend of progressive improvement in the labor market throughout the year, with consecutive declines in several months and a particularly favorable end of December, when the rate was 8.0%, one of the lowest for that month in the recent series.
More people working
One of the key factors behind the drop in unemployment was the increase in the employed population. During 2025, hundreds of thousands of people managed to join the labor market, which was reflected in a greater number of employed people both in the main cities and in intermediate areas.
Sectors such as commerce, services and some activities associated with the economic recovery contributed an important part of the new jobs, especially in the second half of the year. In addition, temporary hiring at the end of the year influenced the good result in December.
What does an unemployment rate of 8.9% mean?
The unemployment rate measures the percentage of people who, being of working age, are actively seeking employment and do not find it. That this indicator stands at 8.9% implies that the labor market showed a greater capacity to absorb labor compared to previous years.
In historical terms, this level has not been seen since the beginning of the 2000s, which makes the data a statistical milestone for the country. However, experts warn that a low unemployment figure does not always reflect, by itself, the quality of the employment generated.
The pending challenge: informality
Despite the improvement in the unemployment rate, labor informality continues to be one of the main structural challenges. More than half of the employed people in Colombia work in informal conditions, without access to complete social security or job stability.
This means that, although more people are working, an important part does so in precarious jobs, with low income and high economic vulnerability. For analysts and study centers, the challenge now is to transform employment growth into formal and sustainable jobs.
A positive outlook, but with caution
The 2025 labor balance leaves a mixed message. On the one hand, the Dane figures show a clear improvement compared to the years after the pandemic and consolidate a downward trend in unemployment. On the other hand, important gaps persist in the quality of employment, informality and stability.
Looking ahead to 2026, the challenge will be to maintain job creation in a changing economic context and move towards a more formal, equitable and crisis-resistant labor market. The numbers are encouraging, but the real impact will be measured in the ability to convert these advances into lasting well-being for workers.
