In December 2023, Uruguay experienced a decline in its unemployment rate, reaching 7.8% of the Economically Active Population (EAP).This marked a decrease from Novembers 8.3%, as the National Institute of Statistics (INE) reported.The Continuous Household Survey revealed a rise in the employment rate.
In December, it climbed to 58.9% from Novembers 58.4%.Additionally, the activity rate, representing the labor supply, increased to 63.8%, a slight rise from the previous months 63.7%.Subemployment impacted 9.8% of those employed, indicating underutilization of the workforce.Uruguays Jobless Rate Drops to 7.8%.
(Photo Internet reproduction)Meanwhile, 22.6% of workers did not register for social security with their main job.Montevideo, the capital, showed a lower average unemployment rate of 6.5%, contrasting with 8.6% in other regions.Comparatively, the national unemployment figure in December 2022 was slightly higher at 7.9%.President Luis Lacalle Pous administration interprets these statistics as a sign of the labor markets ongoing recovery.They suggest a return to the employment levels seen before the pandemic.BackgroundIn 2023, Uruguays unemployment rate was forecasted at 8.13%, positioning it in the middle range compared to other South American countries.For comparison, Colombia had the highest forecasted rate at 10.8%, while Ecuador had the lowest at 3.8%.Uruguays rate was slightly higher than Argentinas 7.35% and lower than Brazils 8.33%.This suggests that Uruguays job market was relatively stable, with its unemployment rate being neither the highest nor the lowest in the region.