Latin America and the Caribbean reached one of the lowest unemployment rates in the past 15 years during the first half of 2025, according to the International Labour Organization's Panorama Laboral 2025 report.
The ILO found that the regional unemployment rate declined to around 6 percent, supported by a stable labor-force participation rate of approximately 63 percent and an employment rate close to 60 percent.
The organization said the improvement reflects a gradual recovery in labor markets following recent economic disruptions. But it emphasized that the progress remains uneven and constrained by structural weaknesses. "The region cannot be satisfied with figures that appear positive on average," said Ana Virginia Moreira Gomes, the ILO's regional director for Latin America and the Caribbean in the report. "We need active policies that promote decent work, with equality and protection,"
Informality continues to dominate labor markets, affecting 46.7 percent of all workers—nearly one in two people employed. The rate is even higher for younger workers, at 56 percent, compared with 43 percent among adults. The ILO warned that persistent informality reduces productivity, limits social protection and undermines long-term economic development.
Women and youth remain the most affected by labor-market disparities. According to the report, men maintain a participation rate 22 percentage points higher than women. Women also face a jobless rate two points above that of men. Among workers ages 15 to 24, unemployment is nearly triple that of the adult population.
The report states that each movement in the data reflects "millions of real stories" of individuals seeking stable employment and opportunities for advancement. The ILO notes that employment quality—not only employment quantity—will determine whether the region can strengthen its economic foundations.
The publication also highlights differences across countries and sectors, underscoring that regional averages mask sizable national variations. It further analyzes the rise of platform-based work, finding that among digital platform workers, higher education levels correlate with higher earnings.
The release of Panorama Laboral 2025 follows the 20th ILO Regional Meeting, where governments reaffirmed commitments to formalization, reducing structural inequalities and expanding decent work. The ILO said updated regulatory frameworks and targeted labor policies will be essential as Latin America and the Caribbean navigate global economic uncertainty and ongoing transformations in the world of work.
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