Grupo Cibest warned of high labor informality and vulnerable self-employment in Colombia, despite job creation recovery. Dane data showed an unemployment rate of 8.8% in March. The report highlights challenges including 55.6% informality and wage growth without productivity gains.
After Dane reported 2.34 million unemployed in March with an 8.8% rate, Grupo Cibest stated that challenges like high informality and vulnerable self-employment persist despite rising occupation.
Job creation recovered, rising from about 112,000 new monthly posts to around 740,000 since 2025. The national unemployment rate averaged 8.9% in 2025, the lowest on record, with new lows in early 2026 months. These outcomes partly stem from rising inactive population and remittances, keeping the Global Participation Rate below its historical average.
Informality stood at 55.6% in the year to March, at 44% in major cities and nearly 85% in rural areas. Sectors like agriculture, construction, trade, and services hold over 70% informal employment. Self-employed workers account for about 41%, with a significant portion lacking job stability or social protection; independents contributing to social security without contracts make up nearly 23% and grew in 2026.
Public employment rose from a historical 11.8% average to 12.2%, with 9.7% annual growth in the first quarter, tied to higher operating expenses and the election cycle. Incomes rose 13.1% for formal workers and 9.3% for informal ones in early 2026 months, but without evident productivity improvements amid inflationary pressures.
