Figures recently revealed by the National Institute of Statistics and Censuses (INEC) indicate that Ecuador lost 132,000 full jobs between November 2023 and November 2024reducing the adequate employment rate from 35.8% to 33.7%. This decrease occurs in a context where the unemployment rate also increased, reaching 3.7%. Underemployment affects 22.7% of the employed population.
Adequate employment, which guarantees income equal to or greater than the minimum wage and a working day of at least 40 hours per week, continues to be a challenge for the Ecuadorian economy. In November 2024, the number of people with full employment fell to 2,905,637, compared to the 3,037,803 reported in November 2023.
The INEC report indicates that, in November 2024, only the 26.5% of employed women They had adequate employment, compared to the 38.9% of men. These figures are lower than those recorded in the same period of the previous year, when the percentages were 27.8% and 40.2%, respectively. At the same time, underemployment and labor informality continue to affect a large part of the population that does not have access to decent working conditions.
At the same time, the government of Daniel Noboa has announced the implementation of strategies for economic reactivation, such as public investment programs in infrastructure aimed at generating employment in the short term, and incentive policies to attract private investment. According to the Ministry of Economy and Finance, these actions seek to boost the economy. In addition, lines of credit have been managed with multilateral organizations such as the Inter-American Development Bank (IDB) and the International Monetary Fund (IMF) to support macroeconomic stability and support key sectors of the economy.
However, the results of these policies are not yet reflected in a significant recovery of the labor market. Economic analysts highlight that high informality, which affects more than 50% of workers in Ecuador, and structural inequalities in access to quality employment are persistent problems. Added to this is a complex global environment, with International Labor Organization projections (ILO) that warn of a prolonged labor crisis in Latin America and the Caribbean, which could further complicate the recovery of employment in Ecuador. This is just before the start of the presidential campaign for the February 2025 elections.
According to INEC figures, unemployment in November 2024 was 3.7%, an increase of 0.2 percentage points compared to the same month in 2023. In urban areas, the unemployment rate reached 5.1%, while which in rural areas was 1.3%. Additionally, underemployment, which includes those who work less than the legal hours or earn less than the minimum wage, remains a concern with a national rate of 22.7%.
Unemployment in Ecuador has experienced significant ups and downs over the last decades due to factors such as economic crises, changes in oil prices and natural disasters. Since dollarization, the labor market has reflected periods of relative stability followed by increases in unemployment due to global or local crises, such as falling oil prices and the coronavirus pandemic. Despite attempts to stabilize the economy and improve working conditions, high informality has become a constant characteristic.
According to official information, the government has expressed its intention to promote the labor inclusion of women and young people through training and technical education programs, in addition to strengthening the formalization of employment. Experts point out that these measures must be complemented by a comprehensive approach that addresses both the immediate and structural needs of the Ecuadorian economy. This includes creating a favorable environment for private investment, diversifying income sources and strengthening the country’s competitiveness.
