Overview and Key Figures
The labor market demonstrated a positive trend in September, generating 797,353 jobs, the best figure since July 2024, according to the National Occupation and Employment Survey (ENOE). However, these newly created positions only offset 61% of the job loss recorded in August.
With this performance, the cumulative job creation for the year stands at 923,311 positions, representing 77% of the annual target for job generation to meet population growth in working age individuals.
Growth in Ongoing Employment
The increase in the employed population in September was driven by a rise of 1,070,730 subordinated jobs, the best-performing category and the highest figure since December 2023. Meanwhile, employers reported a more moderate increase of 19,144 individuals in employment. Both independent work (-89,065) and non-remunerated work (-255,811) experienced losses.
Of those who joined the employed population, 38% did so through formal employment, while the remainder entered informal economic activities. Despite this, the informality rate remained unchanged at 54.8%.
Rising Unemployment Rate
The employed population saw a slight increase of 52,355 individuals. Consequently, the unemployment rate rose from 2.93% to 2.97% between August and September, marking three consecutive months of growth.
The unemployment rate reached its highest level since August 2024, when it was reported at 3.03% of the employed population and began a downward trend.
“September’s results reflect a mixed evolution of the labor market,” explained Janneth Quiroz, director of Economic Analysis, Cambiario and Securities at Monex. “On one hand, the unemployment rate continues to rise, reaching its highest level in thirteen months. On the other hand, labor participation and the employed population for the period showed a slight uptick, which may indicate heterogeneous performance across sectors.”
Key Questions and Answers
- What was the total number of jobs created in September? The labor market generated 797,353 jobs in September.
- How does this figure compare to previous months? This is the best job creation figure since July 2024.
- What is the cumulative job creation for the year so far? There have been 923,311 jobs created this year, which is 77% of the annual target.
- Which job categories experienced growth in September? Subordinated jobs increased by 1,070,730, the highest figure since December 2023.
- What happened to independent and non-remunerated work in September? Both categories experienced losses, with -89,065 and -255,811 respectively.
- What is the current unemployment rate? The unemployment rate rose to 2.97% in September.
- How has the unemployment rate changed over the past few months? The unemployment rate has increased for three consecutive months, reaching its highest level since August 2024.
