Study shows transmission of labor informality across Colombian regions

Research by Codess and Universidad Externado de Colombia indicates that labor informality spreads between municipalities, while formalization does not produce the same expansive effect.

The study examined the labor market in intermediate cities and their areas of influence. In Rionegro, Antioquia, informality rose 7.24 percentage points between 2018 and 2024, despite the area's economic dynamism. Only the integrated system between Bogotá and Sabana municipalities such as Chía, Zipaquirá and Facatativá shows a positive effect on the transmission of labor formalization. Effective social security coverage in intermediate cities remains near 74 %. The research highlights an informality gap exceeding 22 percentage points between men and women in rural zones. Codess and Universidad Externado recommend designing formalization policies with a differentiated territorial approach.

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Illustration of joyful diverse Colombian workers celebrating the unemployment rate drop to 8.8%, featuring job signs, graphs, and national flag.
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Colombia's unemployment rate drops to 8.8% in March 2026

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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.

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.

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A report by the Anif research center shows that food insecurity in Colombia fell to 21.1 percent in 2025, yet large regional gaps persist and are tied to labor informality.

The Mexican Social Security Institute reported a monthly drop of 29,922 formal jobs in May 2026.

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A report from Universidad Andrés Bello shows police cases tied to illegal commerce grew 15 percent between 2020 and 2025, with sharp rises in regions such as Antofagasta and Valparaíso.

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