Colombia Hits Lowest February Unemployment in 25 Years

Colombia just proved that paying workers better doesn't destroy jobs. The country's unemployment rate fell to 9.2% in February, the lowest February figure in 25 years, even after raising the minimum wage by nearly 24%.

More than 624,000 Colombians found work compared to the previous year, according to DANE, the country's national statistics department. The gains came primarily from professional and scientific jobs, which added 250,000 positions, and public sector roles in administration, education, and health, which contributed 244,000 new jobs.

The numbers matter because they challenge a common fear. Critics warned that Colombia's 23.7% minimum wage increase would trigger an employment crisis. Instead, the country achieved its lowest unemployment rate since 2018.

President Gustavo Petro celebrated the milestone on social media, pointing out that raising wages to a living standard didn't create the catastrophe opponents predicted. The data backs him up: unemployment has been falling steadily from a pandemic peak of 15.7% in 2020-2021 to today's single digits.

Not every sector saw gains. Agriculture lost 363,000 jobs, and transportation shed 86,000 positions compared to February 2025. But the professional sector's growth more than compensated for those losses.

The improvement extends beyond a single month. When looking at the three-month rolling average from December through February, Colombia's unemployment rate hit its lowest point in a decade. The International Labor Organization had projected this gradual decline, estimating Colombia would reach 8.3% unemployment by 2025.

The Ripple Effect

Colombia's success sends a powerful message to countries worldwide debating minimum wage policies. When workers earn more, they spend more, creating demand that drives job growth rather than destroying it.

The data also reveals ongoing challenges that make this progress even more significant. Women still face an 11.7% unemployment rate compared to 7.4% for men, though that gap has narrowed from 5.2 percentage points the previous month to 4.3 points. Every percentage point improvement means thousands of women gaining economic independence.

The results come from Colombia's Great Integrated Household Survey, a comprehensive tool that tracks employment, income, and living conditions across the population. These aren't estimates or projections but real people finding real work.

Colombia's labor market is showing what's possible when wage growth and job creation work together instead of against each other.