The National Administrative Department of Statistics (DANE) reported that unemployment in Colombia fell to 8.8% in July 2025, the lowest figure for this month since 2001. However, a significant percentage of those employed remain in the informal sector.
Informality, from a legal perspective, is characterized by the absence of a written employment contract, lack of social security affiliation, and a lack of benefits such as bonuses, severance pay, or paid vacations. Despite these limitations, many informal workers report being better off than formal wage earners due to higher incomes or greater autonomy.
Among the advantages of formal employment are stability, access to pensions and healthcare, and the possibility of obtaining credit or subsidies. In contrast, informal employment offers flexibility and a lower contribution burden, although it exposes people to vulnerability to illness, old age, or economic crises.
The debate over informality in Colombia remains ongoing: while some criticize it as an obstacle to development and social protection, others emphasize that it offers a real economic solution to a limited labor market.