Seven in ten young workers enter labor market informally

A University of Buenos Aires report reveals that nearly 70% of young people aged 16 to 24 work informally in Argentina. Factors such as lack of education and poverty drive this situation, which particularly affects young men. Meanwhile, the overall unemployment rate fell to 6.6% in the third quarter of 2025.

The report coordinated by Roxana Maurizio and Luis Beccaria from the Employment, Distribution and Labor Institutions Area (EDIL) of the Interdisciplinary Institute of Political Economy (IIEP) at the University of Buenos Aires Faculty of Economic Sciences indicates that in the second quarter of 2025, the labor informality rate among 16- to 24-year-olds reached 67%, equivalent to nearly seven out of ten workers in that age group.

Overall informality in Argentina's labor market stood at 43.3% during the third quarter of 2025, according to the Permanent Household Survey (EPH) from INDEC. This rate is lower in older age groups: 34.6% for ages 45 to 64, 42.9% for 25 to 44, and 53.1% for those over 65. By gender, women show higher rates in most groups, except youth, where men register 67.3%.

Education level significantly influences outcomes: only 17.8% of university-educated workers are informal, compared to 43% with intermediate education and 65.1% without completed secondary school. This means those with lower education have four times the likelihood of informal jobs.

Meanwhile, the unemployment rate fell to 6.6% in the third quarter of 2025, from 6.9% the previous year, with a 1.8% increase in employed people and a 3.6% decrease in unemployed. Formal salaried employment remained stable. Modernization Minister Federico Sturzenegger hailed the data: “Very positive the employment data just published. 240,000 new jobs compared to a year ago, and unemployment rate down to 6.6%”.

Informality deprives workers of labor, tax, and social security rights, worsening poverty among youth.

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Realistic depiction of Colombia's informal labor market precarity, with worried workers and pension shortfall graph.
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Anif warns of intermittent formality impacts in Colombia

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Anif has warned about the consequences of 'intermittent formality' in Colombia's labor market, affecting the accumulation of quoted weeks and social protection. According to Asofondos, only one in four workers accesses a pension due to persistent informality. This leads to employment precarization and challenges for the retirement of millions of Colombians.

In December 2025, Colombia created 603,000 new jobs, lowering the unemployment rate to 8.0%, a drop of 1.1 percentage points from 2024. Yet, 55.5% of workers, or about 13.45 million people, remain in informal employment. Experts note progress but warn of ongoing structural challenges in the labor market.

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Mexico's informal economy reached its highest contribution to GDP in 2024, accounting for 25.4% of the total, according to preliminary INEGI data. This marks a 3.2 percentage point increase since 2020, underscoring the persistence of labor informality affecting 54.4% of the employed population.

Colombia's rural sector recorded 4.8 million occupied people in 2025, the highest figure since 2021, according to DANE. The rural unemployment rate dropped to 6.7%, the lowest in seven years, driven by 103,000 new jobs in agriculture. Agriculture Minister Martha Carvajalino credited these advances to policies under President Gustavo Petro's government.

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Chile's Casen 2024 survey reports income poverty falling to 17.3% under stricter methodology—a drop of over 600,000 people since 2022—but experts caution against complacency. With one-fifth of the population still vulnerable and rising state subsidy reliance, analysts advocate sustainable reforms like negative income tax and enhanced job opportunities.

South Korea added 193,000 jobs in October, bringing the total employed to 29.04 million, but youth employment declined sharply. Manufacturing and construction sectors continued to lose positions, while hiring among older adults drove the overall gains. Officials noted ongoing challenges for young job seekers.

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Argentina's domestic consumption ended 2025 with a slight 1.3% uptick during the Christmas holidays, according to Salvador Femenia, CAME's Press Secretary. Yet, formal employment has lost over 240,000 jobs since Milei's government began, with ongoing challenges in reserves and exchange stability. Experts like Roberto Rojas emphasize the need to accumulate dollars to meet 2026 debt maturities.

 

 

 

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