Unemployment Rate Drops to 8.5%: Second Consecutive Decrease, but Informal Employment Rises to 26.2% with Women’s Rate at 9.1%

Original article: Desempleo en 8,5%: segunda baja consecutiva, pero la informalidad llega a 26,2% y mujeres quedan en 9,1%

The National Statistics Institute (INE) has released the findings from the National Employment Survey (ENE) for the period of July to September 2025, revealing that the unemployment rate has decreased to 8.5%.

This marks a decline of 0.3 percentage points (pp) over the past year, representing the second consecutive drop following the results from June–August when unemployment stood at 8.6%, which was also a decrease of 0.3 pp.

According to the study, the results for the July to September period were influenced by a 1.2% rise in the labor force, which is less than the 1.5% increase in employed individuals.

At the same time, the number of unemployed persons fell by 1.3%, driven solely by those who had lost their jobs (-1.4%), as the number of first-time job seekers remained unchanged.

Compared to the same period last year, the participation and employment rates are now at 61.9% and 56.6%, reflecting increases of 0.2 pp and 0.3 pp, respectively. Meanwhile, the population outside the labor force increased by 0.4%, mainly due to habitual inactive individuals (0.5%) and first-time job seekers (27.6%).

Female Unemployment on the Decline

According to ENE data, the unemployment rate for women stands at 9.1%, a decrease of 0.1 pp during the period, driven by a 1.3% increase in the labor force, although this was lower than the 1.4% increase in the number of employed women. Meanwhile, unemployed women dropped by 0.2%, influenced solely by those who were laid off (-0.4%).

«The participation and employment rates for women are now at 52.8% and 48.0%, showing increases of 0.2 pp and 0.3 pp, respectively. The number of women outside the workforce increased by 0.5%, affected by first-time job seekers and potentially active persons,» stated the INE in a press release.

For men, the unemployment rate was recorded at 8.1%, representing a reduction of 0.3 pp over the year, influenced by a 1.2% increase in the labor force, which was less than the 1.5% increase among employed men. The number of unemployed men fell by 2.1%.

«Participation and employment rates for men reached 71.4% and 65.7%, expanding by 0.1 pp and 0.4 pp, respectively. The number of men outside the labor force increased by 0.3%, influenced by habitual inactive individuals and first-time job seekers,» the agency reported.

Increase in Employment and Decrease in Informality

The report highlights a growth in the total number of working individuals. «Over the past year, the estimated total number of employed individuals grew by 1.5%, driven by both men (1.5%) and women (1.4%),» it noted.

By economic sector, the growth in the employed population was influenced by the information and communications sector (21.3%), administrative and support services (12.9%), and health activities (5.4%). Moreover, by occupational category, an increase was observed in formal employees (0.9%) and informal employees (3.7%).

Regarding informality, the INE reported improvements. «The informal employment rate decreased to 26.2%, down by 0.8 pp over the past year. During the same period, informal employment decreased by 1.4%, affecting both men (-2.3%) and women (-0.4%),» the report mentioned.

The sectors that most contributed to the decline in informality were commerce (-5.1%) and manufacturing (-4.8%). In terms of occupational categories, the change in informal employment was influenced by self-employed workers (-5.1%) and public employees (-8.1%).

Unemployment Decrease in the Metropolitan Region

One significant data point from the report is the performance of the Metropolitan Region, which holds the largest population and economic activity in the country. Here, the unemployment rate for the period of July to September 2025 reached 8.8%, marking a decline of 0.3 pp over the past year.

During the same period, the total estimated population of individuals employed grew by 1.2%, mainly influenced by the economic sectors of information and communications (30.8%), manufacturing (8.2%), and administrative services (17.4%).

Other Relevant Indicators

The report also includes data on:

Seasonality: The seasonally adjusted unemployment rate, which removes exogenous factors, was at 8.4%, showing no change compared to the previous moving quarter.

Working Hours: The total number of hours worked increased by 2.2%, and the average hours worked per person grew by 0.7%, reaching 36.4 hours weekly (men: 38.5; women: 33.6).

The combined rate of unemployment and potential labor force (people who want to work but are not actively seeking employment) reached 16.5%, with a gender gap of 5.1 pp (men: 14.2%; women: 19.3%).

You can access the ENE Bulletin for the moving quarter of July to September 2025 at this link.