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.
The Dane reported that the unemployment rate in January 2026 was 10.9%, a 0.7 percentage point reduction from January 2025's 11.6%. This figure marks the lowest for a January since 2001. However, compared to December 2025, the number of unemployed rose from 2.1 million to 2.8 million.
Of the 324,000 new jobs created, 60% were in self-employment or informal work, equivalent to six out of ten positions. Jackeline Piraján, chief economist at DaviBank, noted that this increase 'might indicate a deterioration in the quality of jobs generated, especially in the private sector'.
Other notable categories include 115,000 new employer positions, 45,000 as government workers or employees, and 33,000 as day laborers. Informality affects 12.7 million of the 23.2 million employed, while formal workers number 10.4 million. Self-employed individuals reached 9.58 million, up from 9.39 million in January 2025. Informality decreased by one percentage point, though it remains a concern for Andi.
Bruce Mac Master, president of Andi, stated: 'One of the biggest challenges in the labor market is the high levels of informality. It is not clear how it decreased by one percentage point in January's results'. Additionally, 410,000 people became economically inactive, and the Global Participation Rate was 63.6%, with an Occupation Rate of 56.7%, similar to a year earlier.
By gender, unemployment was 8.7% for men and 13.8% for women. Among youth, it reached 15.3% in the mobile quarter. Nationally, the unemployed population decreased by 186,000 people. The highest rates were in Quibdó (24.6%), Cartagena (14.6%), and Riohacha (13.6%), while the lowest were in Bogotá (7.5%), Manizales (7.7%), and Villavicencio (7.7%).
César Mauricio López, Director of Statistical Production at the Dane, commented: 'January usually records the highest unemployment rate of the year; this result is the lowest in the historical series for the first month since 2001'. Bruce Mac Master also questioned: 'We must ask if the higher occupation is explained by public spending on service provision orders prior to the Guarantees Law'. Carlos Mario Sandoval, partner leader of People Advisory Services at EY Colombia, added: 'The effect that the minimum wage may have on the labor market we will feel soon. The fact that the minimum increases does not necessarily mean that workers' income will increase'.
