Feb 25 • 22:55 UTC 🇪🇨 Ecuador El Universo (ES)

Formal employment shows better figures at the beginning of 2026

Ecuador's unemployment rate has significantly decreased as of January 2026, with formal employment rising to 36.6%.

As of January 2026, Ecuador's National Institute of Statistics and Censuses (INEC) reported a notable decline in the unemployment rate, which fell to 3.4% from 3.8% in January 2025. The INEC categorized this as a "non-significant decrease" overall, yet marked a statistically significant improvement in urban areas where unemployment dropped from 5.1% to 4%. This transition indicates a strengthening economy in urban sectors, prompting further examination of employment trends nationwide.

Moreover, in rural areas, the INEC's data highlights a drastic reduction in unpaid employment, with figures dropping from 867,707 individuals in January 2025 to just 424,329 in January 2026. Despite this positive outcome, the rural unemployment rate shifted slightly upward from 1.6% to 2.2%, reflecting ongoing challenges within the rural job market. The changes in employment dynamics raise questions about the sustainability of these improvements under varying economic circumstances.

The rise in adequate employment to 36.6% in January 2026, up from 34% the previous year, illustrates a gradual enhancement in job quality across the nation. Although the report does indicate areas that require attention, such as the increase in rural unemployment, the overall trend points to positive adjustments in Ecuador's employment landscape. These developments suggest potential continued economic growth if the government and private sectors can capitalize on these emerging trends and address existing disparities in job availability and quality across urban and rural settings.

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