Colombia's January unemployment rate falls to 10.9%

DANE reported a 10.9% unemployment rate for January 2026, the lowest in recent history for a first month of the year, despite a 23% minimum wage increase. Informality dropped to 55%, and the employed population grew by 324,000 people. Yet, these official figures are sparking political polarization.

The National Administrative Department of Statistics (DANE) released data showing a 10.9% unemployment rate in January 2026, a historically low level for that period, following a 23% minimum wage adjustment that sparked debates on potential layoffs. Labor informality fell to 55%, one point lower than in January 2025, excluding the rural sector, while self-employed workers have risen, boosting employment.

In the labor market, notable increases occurred among public employees, teachers, and armed forces members. Positions also grew in professions such as caregivers, nurses, doctors, and administrative services. However, the overall labor participation rate dropped by half a percentage point, with 410,000 additional people classified as economically inactive.

Job losses were recorded in sectors like commerce (149,000), accommodation and food services (109,000), and public services (69,000), attributed to post-December holiday adjustments. Conversely, the employed population rose by 324,000, mainly in public administration, education, and health (172,000), professional activities (155,000), and manufacturing (134,000). Compared to January 2025, the employed population increased from 22.9 million to 23.2 million, a 1.5% annual growth.

La República's editorial warns that distrusting DANE's figures could lead to informational chaos, particularly ahead of presidential elections. It emphasizes the need to examine independent workers' compliance with parafiscal contributions and social security, and notes that DANE, despite its flaws, remains the reliable source for the OECD and researchers.

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Colombian workers in Bogotá celebrating falling unemployment with a graph overlay showing 8% rate
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Unemployment in Colombia falls to 8% in May according to DANE

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The national unemployment rate stood at 8% in May 2026, one percentage point lower than the previous year, the DANE reported. The figure is the lowest for that month since 2001.

The Departamento Administrativo Nacional de Estadística (DANE) reported that Colombia's unemployment rate fell to 8.8% in March 2026—the lowest for any March since 2001, continuing the downward trend from 10.9% in January and 9.2% in February—with 2.34 million people unemployed (down 174,000). This marks a 0.8 percentage point drop from 9.6% in March 2025. The employed population grew by 650,000 (2.7%), while the January-March quarter rate stood at 9.6%. Neiva ranked among cities with the lowest unemployment.

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Dane reported the national unemployment rate stood at 8.8% in April 2026, unchanged from the prior year. The number of unemployed rose by 67,000 people.

Colombia's Net Employment Outlook would reach 22% between July and September 2026, according to a ManpowerGroup survey of more than 500 employers.

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