Key Developments and Context
The unemployment rate has plummeted to a historic low of 2.2% in March, according to the National Employment and Occupation Survey (ENOE). This significant decrease is linked to a monthly reduction of 166,739 people from the unemployed population and robust job creation.
Historical Context
Prior to this data release, the lowest unemployment rate was recorded in March 2024 at 2.3%. Over the past year, the unemployment rate consistently stayed below 3%, demonstrating a stable labor market.
Trends in 2025
In 2025, unemployment has maintained a downward trend, with an accumulated reduction of 0.2 percentage points.
Inactivity Reduction
Moreover, 825,450 individuals left the Población No Económicamente Activa (PNEA) in the first quarter of 2025, breaking a four-month streak of increases. This movement led to a decrease in the extended unemployment rate from 10.2% to 9.7%, which includes both the unemployed and those available from the PNEA as a proportion of the labor force potential.
Milestone Achievements in March 2025
The labor market yielded positive results in March 2025, with the addition of 562,560 individuals to the employed population. This marked the highest job creation since July of the previous year.
Types of Employment
Subordinated work (+318,772) and independent work (+330,918) were the primary contributors to job growth. Only non-remunerated work saw a slight decrease of around 100,000 individuals.
Formal vs. Informal Employment
61% of the job creation was concentrated in formal employment, which finally reported a positive outcome for the year and reached a level of 27.2 million people. The remaining growth was observed in the informal sector, although the informality rate experienced a minor monthly decrease of 0.1 percentage points, settling at 54.4%, due to the strengthening of formal employment.
Key Questions and Answers
- What is the current unemployment rate? The unemployment rate has dropped to a historic low of 2.2% in March.
- What factors contributed to the decrease in unemployment? The reduction is attributed to a monthly decline of 166,739 people from the unemployed population and robust job creation.
- How has the labor market performed in 2025? The labor market has maintained a downward trend, with an accumulated reduction of 0.2 percentage points in unemployment.
- What is the extended unemployment rate? The extended unemployment rate, which includes both the unemployed and those available from the PNEA as a proportion of the labor force potential, has decreased from 10.2% to 9.7%.
- What types of employment saw the most growth? Subordinated work and independent work were the primary contributors to job growth in March 2025.
- How has formal employment fared compared to informal employment? Formal employment saw a positive outcome for the year, reaching 27.2 million people, while informal employment experienced a minor decrease in its rate (54.4%).
