Compared to other Latin American countries, Colombia’s unemployment rate has always been notably higher. Currently, the average rate for Latin America and the Caribbean, according to the International Labor Organization, is 5.5%, whereas Colombia’s is 8.3%. This leaves many people and families in the country impoverished and food insecure, especially in families where both parents cannot work. However, despite being much higher than average, Colombia’s decreasing unemployment rate is the lowest it has been since 1994.

Unemployment in the Past

The lowest Colombia’s unemployment rate has been in recent decades was 7.8% in 1993, aligning with Latin America’s lowest until the average hit a new low in 2024. Despite this all-time low in the ’90s, the highest the unemployment rate reached was just seven years later in 2000 after Colombia’s 1999 economic crisis. This was caused by a rapid increase in public expenditure and major debt within private sectors, leading to a sharp drop in GDP growth. At its peak, the unemployment rate reached 20.5%, almost triple what it was in 1993.

Though Colombia was able to recover steadily after the recession, the rate began to increase again from 8.6% in 2015 to 16% in 2020, with the major spike mostly caused by the COVID-19 pandemic. This worldwide event left people jobless everywhere, so it is no surprise that Colombia faced similar circumstances. However, despite this spike, the country recovered much faster than in 2000, with Colombia’s decreasing unemployment rates now being the lowest they have been this century, just three years after the pandemic was declared over.

What Has Changed?

• The fertility rate has decreased. From 2000 to 2024, the fertility rate in Colombian women went from 2.5 to 1.6 children. A lowered fertility rate leads to fewer people requiring jobs as well as fewer parents being financially insecure, while also allowing more women to join the workforce since they have fewer, if any, children to care for at home.
• Education rates have been rising as well. Colombia’s decreasing unemployment rate has gone hand-in-hand with rising education rates, especially among women. In 2019, only 73% of the population had an upper-secondary education, but that has already increased to 83% as of 2024. Higher education typically means more job opportunities, allowing more people to have jobs overall.
• The enactment of mandatory disability hiring. As part of Colombia’s 2025 labor reform, policies forcing companies to meet a disability hiring quota, as well as training and accommodation for these new hires, are giving more people the opportunity to work in various sectors. This mandatory act is employing people who previously would have struggled to find places of work, causing the unemployment rate to decrease.
• The enactment of new anti-discrimination policies. Another key part of the 2025 labor reform was various policies to prevent discrimination and harassment to make the workplace safer, especially for minorities. This will not only give more minorities, especially women, the chance to be hired, but it also will keep them working by helping them feel safe in the work environment.
• Increased job availability in specific industries. Specifically, accommodation and food services, education and health care, transportation, and public administration have all contributed to the increasing job market. In addition to those, more citizens have been able to find work in the arts than in previous years.
• Receiving outside organizational help. Specifically, nonprofits like the AVSI Foundation and Mercy Corps work to provide more job opportunities to those in need. The AVSI Foundation has educational programs and job placement help specifically targeted at low-income households and women. Meanwhile, Mercy Corps works in the agricultural sector of Colombia by helping farmers acquire land and better crops, having now supported over 3,200 farmers.

Looking Ahead

Colombia’s decreasing unemployment rate still has a long way to go to be on par with some of the surrounding countries, most notably in rural areas, which have seen much less improvement than urban ones. However, if it maintains its current decreasing rate by continuing the implementation of labor laws and giving more citizens the opportunity to work, mass unemployment in Colombia will be a thing of the past.

– Ally Jones

Ally is based in Bethany, OK, USA and focuses on Good News for The Borgen Project.

Photo: Unsplash