Colombia | Effects of COVID-19 on June employment

Labor dynamics that began in May continued in June, at a slower pace, especially in the cities. The increase in labor supply seemed to moderate in June and less dynamism of employment (labor demand) was observed. The number of unemployed increased in June.

Key points

• Key points:
• In May and June, 49 percent of the new inactive people (who had been affected by the pandemic between February and April) went back to the workforce. The speed of the adjustment was more moderate in June than in May.
• In June, employment (labor demand) was less dynamic than in may, strongly linked to the recovery of the economic activity. To a large extent, this moderation could be explained by the behavior at the urban level.
• In June, there was an increase in the number of unemployed at a national level as some of the inactive people who searched for work since May did not find it.
• Moving forward, we expect that the effects of the COVID on the occupation will continue to be mitigated, to the extent that the economy is allowed to advance in its process of gradual opening. Selective lockdown in some cities or areas of cities will make the urban employment recovery more volatile than the national one.

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