Colombia Enjoying Historically Low Unemployment Rates

Colombia’s Finance Minister Mauricio Cardenas said Friday from Puerto Inirida, Guainia, that the unemployment rate in Colombia dropped to 10.8% for January 2015, “in an environment of increased labor force participation by Colombian households with an increase in employment, which reaffirms the outlook on the strength of domestic demand.”

According to figures from DANE, Colombia’s government statistics agency, the overall participation rate recorded in the first month of the year showed an increase of 0.2 percentage points in the national total and stood at 63.8%. Meanwhile, the employment rate recorded an increase of 0.3 percentage points, reaching 56.9%.

The figures are even more significant when period from November 2014-January 2015, is analyzed, showing the overall participation rate rose from 64.1% to 64.6% (0.5% increase) and the occupancy rate showed a increase of 0.5 percentage points, reaching a level of 58.7%. “This represents more well-being for families across the country, who now have better jobs and quality of life,” said Cardenas.

Finance Minister Mauricio Cardenas, said that during the quarter ending in January, the total number of employed Colombians increased by 509,000, an increase of 2.4%, while for the 13 largest metropolitan areas there was an increase of 345,000 jobs (3.4%).

DANE reported that for last three months, the unemployment rate also recorded historic lows, standing at 9.1% at the end of the quarter (9.3% in January 2014). In this regard, Minister Cardenas said “this dynamism in the labor market is proof of the confidence of Colombian producers in the resilience of the economy to international shocks”.

During the quarter ending in January, the total number of employed increased by 509,000, which in annual terms represents an increase of 2.4%. For the 13 metropolitan areas the increase was 345,000 jobs (3.4%).

The sectors focused on domestic demand created the most jobs. The real estate sector was the largest contributor to the increase in employment, with an increase of 11.2%, followed by construction (9.1%) and transportation (7.3%). Manufacturing represented a growth rate of 3.1%.

According to Cardenas, improvements in the labor market are found throughout the country, considering that 16 of Colombia’s 23 cities reduced unemployment and in seven of them, the unemployment rate is in single digits.

Cities with lowest unemployment rate were: Monteria (6.9%), Barranquilla (6.9%) and Cartagena (7.9%), while cities with highest unemployment rate were Cúcuta (14.5%), Armenia (14.4%) and Florencia (13.6%).

Headline photo credit: Emilio Aparicio – MHCP; courtesy Minhacienda