Colombia’s Unemployment Rate Hits 9.4%, Highest in Nearly Two Years

Colombia's unemployment rate climbed to 9.4% in August, its highest level in almost two years, according to figures released by the National Administrative Department of Statistics (DANE). The indicator jumped by 0.8 percentage points from the 8.6% recorded in August 2025, marking a significant deterioration in the nation's labor market.

The number of employed people declined during this period, and the percentage of Colombians actively participating in the labor force also decreased. Women were disproportionately affected, with an unemployment rate of 11.6% compared to 7.7% for men. The Integrated Household Survey (GEIH) showed that the unemployment rate rose from 8.6% in August 2025 to 9.4% in August 2026, reversing a trend that had been in place since July 2026.

The employment rate fell from 58.4% to 57.4%, and the labor force participation rate declined from 63.9% to 63.3%. The manufacturing sector, arts and entertainment, and agriculture experienced the most significant job losses, while other sectors saw increases in employment that partially offset the losses. The deterioration was not limited to rural areas but also extended to major urban centers, with the 13 analyzed cities and metropolitan areas recording a 9.1% unemployment rate in August, compared to 7.8% a year earlier.

Key cities like Quibdo, Cartagena, and Sincelejo had particularly high unemployment rates of 23.8%, 14.4%, and 12.9%, respectively. As the new government takes office and implements its first economic measures amid international instability and rising inflation, the coming months will be crucial in determining whether this increase in unemployment marks a break from the downward trend of the past two years.