Bogotá Cuts Unemployment, Reduces Informal Jobs Despite Cautious Hiring Plans

Bogotá’s unemployment rate reached 8.8% in the first quarter of 2026, down 1.3 percentage points from 10.1% in the same period of 2025. The improvement coincides with measurable gains in formal employment at the lowest wage tier and a clear drop in informal work.

Unemployment and Job Quality Trends

The reduction in the jobless rate occurred alongside a shift toward more stable positions. Formal employment for workers earning exactly one minimum wage rose by 146,400 people, or 21.9%, between the first quarter of 2025 and the first quarter of 2026. In contrast, positions paying between 1.1 and 1.2 minimum wages fell by 74.4% over the same interval. These changes point to a concentration of new formal roles at the entry-level wage floor.

Decline in Informal Employment

The informal employment rate stood at 34% in the first quarter of 2026, a 4.2 percentage point decrease from 38.2% in the first quarter of 2025. The lower share of informal work suggests a modest rise in job stability for those who remain employed. Services continue to account for 77% of the city’s workforce, with tech and software, business process outsourcing, and professional services such as finance and consulting accounting for most current hiring activity.

Employer Plans for the Second Half of 2026

Survey responses indicate restrained expansion. Only 40% of Bogotá companies expect to add staff in the second half of 2026, citing economic uncertainty. Of recent layoffs, 73% were attributed directly to the national economic situation. These figures suggest that while headline unemployment has eased, the pace of new hiring remains limited.

Workers and job seekers may therefore focus on opportunities within the services sector, particularly in roles tied to technology, customer service, and professional support functions. Continued monitoring of quarterly labor data will clarify whether the observed gains in formal employment at the minimum wage level extend to higher wage bands or persist through the remainder of the year.

This article is general information only and is not personal financial or investment advice. Consider your own circumstances and seek licensed professional advice before making financial decisions.