Colombia | Resilient labor market in 2024, with employment rebounding at year-end

Summary

The average national unemployment rate for 2024 was 10.2%, unchanged from 2023. In major cities, the unemployment rate declined between 2023 and 2024, whereas it increased in the rest of areas. Throughout 2024, the seasonally adjusted unemployment rate trended downward, closing at 9.7% in December.

Key points

• Key points:
• Despite remaining stable compared to 2023, the 2024 unemployment rate resulted from a contraction in both labor supply and demand.
• The labor market performance in 2024 was regionally heterogeneous. In major cities, the unemployment rate declined amid a more dynamic labor market, with increases in both the employment rate and the labor force participation rate. In contrast, outside major cities, the unemployment rate rose despite reductions in participation rates.
• In 2024, the number of employed individuals averaged 23.0 million, 248,000 more jobs than in 2023. Over the year, employment grew by an average of 1.1%, marking a slowdown from the 3.4% growth observed in 2023 and the 8.0% growth in 2022. Employment dynamics in 2024 remained below the historical average annual growth of 1.9% recorded between 2002 and 2019.
• Employment growth was not uniform throughout the year. On the margin, in December, job creation exceeded the 1.1% annual average, with employment accelerating toward the end of the year.
• In 2024, two out of three workers were employed in the tertiary sector, which was the primary driver of employment gains toward year-end. Additionally, 93% of the jobs created in 2024 were salaried positions, reflecting continued progress in labor formalization. 94% of the employment generated in 2024 was urban, from the 13 largest cities.

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