Unemployment in Colombia Reached Its Lowest Point Since 2017 in September – ColombiaOne.com

Analysis of Colombia’s Labor Market: September Report and Alignment with Sustainable Development Goals

Data released by the National Administrative Department of Statistics (DANE) for September indicates a notable improvement in Colombia’s labor market. However, significant structural challenges persist, hindering the nation’s progress toward key Sustainable Development Goals (SDGs), particularly SDG 8 (Decent Work and Economic Growth), SDG 5 (Gender Equality), and SDG 10 (Reduced Inequalities).

Key Labor Market Indicators for September

The national unemployment rate for September was recorded at 8.2%, the lowest figure for this month since 2017. This represents a decrease from the 9.1% rate observed in the same month of the previous year. This positive trend is a step towards achieving Target 8.5 of the SDGs, which aims for full and productive employment and decent work for all.

Statistical Overview

• Unemployment Rate: 8.2%
• Number of Unemployed Persons: Approximately 2.13 million
• Overall Labor Market Participation Rate: 63.9%
• Employment Rate: 58.7%

Sectoral Performance and Contribution to Economic Growth (SDG 8)

The reduction in unemployment was driven by job creation in several key economic sectors, reflecting progress in fostering sustained and inclusive economic growth.

Primary Sectors for Job Creation

1. Manufacturing: This sector was a primary driver, adding approximately 244,000 new jobs, contributing to industrialization goals under SDG 9 (Industry, Innovation, and Infrastructure).
2. Public Administration, Education, and Health: An increase of around 188,000 positions was recorded, supporting essential public services.
3. Accommodation and Food Services: The recovery of tourism and gastronomy led to the creation of approximately 168,000 jobs.

Conversely, a significant contraction was observed in professional, scientific, and technical services, which saw a decrease of approximately 212,000 jobs, indicating uneven growth across the economy.

Persistent Structural Challenges and SDG Misalignment

Despite the positive headline figure, the labor market faces deep-seated issues that prevent the full realization of the 2030 Agenda for Sustainable Development. The current improvements are considered more cyclical than structural, with informality and inequality remaining major obstacles.

The Challenge of Informality vs. SDG 8 (Decent Work)

High informality remains the most significant barrier to achieving decent work. With over 55% of the workforce engaged in the informal economy, a large segment of the population lacks social protection, stable income, and fundamental labor rights, directly contravening the principles of SDG 8.

Gender Disparities and SDG 5 (Gender Equality)

The labor market continues to exhibit significant gender inequality. While the gender gap in unemployment has narrowed, it remains substantial.

• Female Unemployment Rate: 9.6%
• Male Unemployment Rate: 7.1%

This 2.6 percentage point gap underscores the persistent barriers women face in accessing equal economic opportunities, a core target of SDG 5.

Regional Inequalities and SDG 10 (Reduced Inequalities)

Economic opportunities are not distributed evenly across the country, highlighting a critical challenge for SDG 10. Stark regional disparities persist, with some areas facing extreme levels of unemployment while others thrive.

• Quibdó: Unemployment rate near 24%
• Medellín Metropolitan Area: Unemployment rate of 6.4%

This imbalance demonstrates a need for targeted policies to promote inclusive growth and ensure that economic development benefits all regions, a key component of both SDG 10 and SDG 11 (Sustainable Cities and Communities).

Analysis of Sustainable Development Goals in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

1. SDG 5: Gender Equality
   • The article directly addresses gender inequality in the labor market by highlighting the disparity in unemployment rates between women and men in Colombia. It states, “the unemployment rate for women was 9.6%, compared to 7.1% for men,” pointing to unequal economic opportunities and outcomes based on gender.
2. SDG 8: Decent Work and Economic Growth
   • This is the central theme of the article. It discusses Colombia’s labor market performance, including the national unemployment rate (8.2%), job creation in sectors like manufacturing and tourism, and the persistent challenge of high informality affecting over 55% of workers. The focus is on achieving productive employment and decent work.
3. SDG 10: Reduced Inequalities
   • The article emphasizes significant regional disparities in employment opportunities. It provides a stark contrast between cities like Quibdo, with an unemployment rate near 24%, and the Medellin metropolitan region, with a rate as low as 6.4%. This highlights the “unequal regional distribution of opportunities” as a key challenge, directly relating to the goal of reducing inequalities within the country.

2. What specific targets under those SDGs can be identified based on the article’s content?

1. Under SDG 5: Gender Equality
   • Target 5.5: Ensure women’s full and effective participation and equal opportunities for leadership at all levels of decision-making in political, economic and public life. The article’s focus on the gender gap in unemployment rates directly relates to the goal of ensuring equal opportunities for women in economic life.
2. Under SDG 8: Decent Work and Economic Growth
   • Target 8.3: Promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity and innovation, and encourage the formalization and growth of micro-, small- and medium-sized enterprises, including through access to financial services. The article’s concern over “high informality” affecting “more than 55% of Colombian workers” and the need to create “formal, high-quality jobs” directly aligns with this target.
   • Target 8.5: By 2030, achieve full and productive employment and decent work for all women and men, including for young people and persons with disabilities, and equal pay for work of equal value. The entire article, which analyzes unemployment rates for the general population as well as for men and women separately, is centered on this target.
   • Target 8.9: By 2030, devise and implement policies to promote sustainable tourism that creates jobs and promotes local culture and products. The article mentions that the “accommodation and food services sector added approximately 168,000 jobs, driven by the recovery of tourism and gastronomy,” linking job creation directly to the tourism sector.
3. Under SDG 10: Reduced Inequalities
   • Target 10.2: By 2030, empower and promote the social, economic and political inclusion of all, irrespective of age, sex, disability, race, ethnicity, origin, religion or economic or other status. The discussion of “unequal regional distribution of opportunities” and the vast difference in unemployment rates between Quibdo (24%) and Medellin (6.4%) points to a lack of economic inclusion for people based on their geographic location.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

1. Indicators for SDG 5 & 8
   • Unemployment rate by sex: The article explicitly provides data that serves as an indicator for Target 8.5 and Target 5.5. It states the unemployment rate for women is 9.6% and for men is 7.1%. The “gap of 2.6 percentage points” is a direct measure of gender inequality in the labor market. This corresponds to indicator 8.5.2 (Unemployment rate, by sex).
   • Proportion of informal employment: The article mentions that “high informality remains the main challenge, affecting more than 55% of Colombian workers.” This percentage is a direct indicator for Target 8.3, corresponding to indicator 8.3.1 (Proportion of informal employment in total employment).
   • Job creation in specific sectors: The article notes that the “accommodation and food services sector added approximately 168,000 jobs.” This figure can be used as a proxy indicator to measure progress towards Target 8.9, which focuses on job creation through tourism.
2. Indicators for SDG 10
   • Unemployment rate by region/city: To measure progress on Target 10.2, the article provides data on regional disparities. The specific figures for Quibdo (unemployment rate of 24%) and the Medellin metropolitan region (6.4%) serve as a clear indicator of economic inequality between different parts of the country.

4. Summary Table of SDGs, Targets, and Indicators

Source: colombiaone.com