Ecuador's unemployment rate hits a one-year low of 3.1% in May 2026

Ecuador's labor market shows signs of improvement, with the unemployment rate dropping to 3.1% in May 2026. This figure represents a significant one-percentage-point decrease compared to the 4.1% recorded in May 2025, translating to roughly 86,000 fewer unemployed individuals. The National Employment, Unemployment, and Underemployment Survey (Enemdu), conducted by the National Institute of Statistics and Censuses (INEC), confirms this positive trend, indicating one of the lowest unemployment levels seen in the past year.

The overall participation in the labor force remained relatively stable, with 8.9 million people engaged in economic activity in May 2026. The Global Participation Rate stood at 65.9%. Crucially, the rate of adequate employment, defined by satisfactory income and working conditions, saw an increase. In May 2026, 3.3 million people, or 36.6% of the economically active population, were in adequate employment, up from 35.2% a year prior.

Despite the positive shifts in unemployment and adequate employment, the Ecuadorian labor market continues to grapple with underemployment and informality. Underemployment, defined by lower-than-desired hours or income below the minimum wage, decreased to 18.3% from 20.9% the previous year. However, a substantial portion of the workforce, 32.1%, remains in 'other non-full employment' categories, and 9.7% are in unpaid work. Informality remains a persistent challenge, with 52.8% of employed individuals engaged in informal activities, a rate that is considerably higher in rural areas (76%) compared to urban centers (40%).