Colombia's unemployment rate falls to 10.9% in January 2026

In January 2026, Colombia's unemployment rate stood at 10.9%, the lowest for any January since 2001, with 324,000 more workers than in the same month of 2025. The number of unemployed people fell by 186,000 to 2.8 million. This improvement was driven by growth in self-employment and people leaving the labor force.

The National Administrative Department of Statistics (Dane) reported that in January 2026, Colombia had 23.2 million employed people, an increase of 324,000 from January 2025. The unemployment rate fell 0.7 percentage points, from 11.6% to 10.9%, according to César Mauricio López, director of Methodology and Statistical Production at Dane: "The unemployment rate is the lowest for any January since 2001".

The Global Participation Rate was 63.6%, down from 64.1% in January 2025, while the Occupation Rate remained at 56.7%. This rise in employed included 195,000 new self-employed workers, bringing their total to 9.58 million from 9.39 million. However, the economically active population dropped by 410,000 people, contributing to the decline in the unemployment rate.

By sex, unemployment was 8.7% for men and 13.8% for women, maintaining a significant gap. Among youth, it reached 15.3% in the mobile quarter. In the 13 main cities, the rate was 8.5%, below the previous 9.4%.

Sectors with the most new jobs were public administration and defense (+172,000) and professional and scientific activities (+155,000). In contrast, trade and vehicle repair lost 149,000 positions. Cities with the highest rates included Quibdó (24.6%), Cartagena (14.6%), and Riohacha (13.6%), while Bogotá (7.5%), Villavicencio (7.7%), and Manizales (7.7%) had the lowest.

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Joyful diverse Colombians on a Bogotá street celebrating record-low 8.9% unemployment rate since 2001, with job growth billboard.
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Colombia's unemployment rate reaches lowest since 2001

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Colombia's National Administrative Department of Statistics (DANE) reported that the unemployment rate for 2025 was 8.9%, the lowest since 2001. This figure marks a 1.3 percentage point decrease from 2024. In December 2025, the rate fell to 8%, with employed population rising by 603,000 people.

In January 2026, Colombia's unemployment rate stood at 10.9%, the lowest for a first month since 2001, according to the Dane. While 324,000 new jobs were created, 60% were self-employment positions. This indicates employment improvement, but raises concerns about job quality.

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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 Philippines' unemployment rate held steady at 4.4% in December 2025, equivalent to 2.26 million jobless Filipinos, according to the Philippine Statistics Authority. While service sector jobs rose due to the holiday season, gains were offset by heavy losses in construction. The average unemployment rate for 2025 reached 4.2%, up from 3.8% in 2024.

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The National Administrative Department of Statistics (Dane) revealed that the Economic Tracking Indicator (ISE) grew 3.1% in November 2025 compared to the same month in 2024, marking 18 consecutive months of positive growth. However, the manufacturing sector showed limited progress with 0.7% production growth, while sales fell 0.4%, and retail commerce rose 7.5%. Overall industrial production varied by 1.7%, driven by electricity supply.

The number of unemployed in Germany rose to 2.908 million in December, with the rate reaching 6.2 percent. The Federal Employment Agency anticipates recovery only from mid-2026, amid economic slowdown and demographic changes. Head Andrea Nahles warns of challenges despite potential economic upturn.

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Colombia's inflation is projected at 4.9% for 2026, missing the Banco de la República's target range for the sixth consecutive year. A Corficolombiana report estimates it will close 2025 at 5.2%, roughly the same as last year, signaling a stall in disinflation. The goal of nearing 3% is now delayed until 2027.

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