Chile had the highest unemployment rate in Latin America in 2025, at 9.0% of the labor force, followed by Panama (8.4%) and Colombia (8.3%), according to the International Labour Organization (ILO) modeled estimate published by the [World Bank](https://data.worldbank.org/indicator/SL.UEM.TOTL.ZS?locations=ZJ), updated on 8 October 2026. The Latin America and Caribbean average was 5.5%, the lowest in a series that starts in 1991.
This ranking compares 18 countries using the same methodology. Below are also the latest official figures from each national statistics office, which are published more often but are not comparable with each other.
Ranking of unemployment in Latin America by country
| # | Country | Unemployment 2025 | Unemployment 2024 | Change |
|---|---|---|---|---|
| 1 | Chile | 9.0% | 8.7% | +0.3 |
| 2 | Panama | 8.4% | 8.5% | -0.1 |
| 3 | Colombia | 8.3% | 9.6% | -1.3 |
| 4 | Uruguay | 7.5% | 8.2% | -0.7 |
| 5 | Argentina | 7.1% | 7.2% | -0.1 |
| 6 | Costa Rica | 6.8% | 6.9% | -0.1 |
| 7 | Brazil | 6.0% | 6.8% | -0.8 |
| 8 | Venezuela | 5.3% | 5.3% | 0.0 |
| 9 | Peru | 5.1% | 5.2% | -0.1 |
| 10 | Dominican Republic | 5.1% | 5.3% | -0.2 |
| 11 | Nicaragua | 5.0% | 5.0% | 0.0 |
| 12 | Honduras | 4.9% | 4.9% | 0.0 |
| 13 | Paraguay | 4.8% | 5.7% | -0.9 |
| 14 | Ecuador | 3.3% | 3.5% | -0.2 |
| 15 | El Salvador | 3.3% | 3.3% | 0.0 |
| 16 | Bolivia | 3.0% | 3.3% | -0.3 |
| 17 | Mexico | 2.7% | 2.7% | 0.0 |
| 18 | Guatemala | 2.6% | 2.6% | 0.0 |
The indicator is SL.UEM.TOTL.ZS (total unemployment, % of labor force, modeled ILO estimate). Values are rounded to one decimal and changes are calculated from unrounded values. Chile is the only country on the list where unemployment rose between 2024 and 2025.
Unemployment in Latin America versus the world
| Region | 2019 | 2020 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Latin America and the Caribbean | 8.0% | 10.2% | 6.2% | 5.9% | 5.5% |
| OECD members | 5.4% | 7.2% | 4.8% | 4.9% | 4.9% |
| World | 5.6% | 6.6% | 4.8% | 4.8% | 4.8% |
The region peaked in 2020 with the pandemic (10.2%) and has fallen every year since. In 2025 it came within one point of the world average for the first time. Chile is moving the other way: its 2025 rate is above its 2019 level (7.5%), according to the same series.
Latest official unemployment data in Latin America
Each country measures unemployment with its own survey and frequency. These are the latest figures from the statistics offices of the main countries, as of 19 October 2026:
| Country | Latest figure | Period | Source |
|---|---|---|---|
| Chile | 9.6% | June-August 2026 | INE |
| Colombia | 9.4% | August 2026 | DANE, via Cambio |
| Argentina | 7.9% | Second quarter 2026 | INDEC, via Bloomberg Línea |
| Brazil | 5.3% | June-August 2026 | IBGE, via A Crítica |
| Peru (Metropolitan Lima) | 4.4% | July-September 2026 | INEI, via La Cámara |
| Mexico | 3.0% | August 2026 | INEGI |
These figures should not be placed in a single ranking: Argentina measures only 31 urban areas, Peru only Metropolitan Lima, and Colombia publishes a monthly figure that is not seasonally adjusted. They do show the trend: unemployment is rising in Chile and Colombia, steady in Argentina and at lows in Brazil and Lima.
Why Chile has Latin America's highest unemployment
Chile's INE reported national unemployment of 9.6% in June-August 2026, 1.0 point higher than a year earlier, with a 13% rise in the number of unemployed and a 0.9% fall in employment. Several reasons are discussed: low economic growth (the IMF estimates 0.6% in 2026, see the IMF cut), high labor-force participation, especially among women, which enlarges the labor force, and the weight of formal employment, which is more sensitive to labor costs.
There is also a measurement effect: countries with a lot of informal employment, such as Mexico, Guatemala or Bolivia, record low unemployment because people who lose a formal job often move into informal work rather than becoming unemployed. Mexico has 55% informality according to INEGI, against 26.3% in Chile according to INE. So low unemployment does not necessarily mean a healthy labor market. For Chile's long-run history, see unemployment in Chile over the last 50 years.
Before and after the pandemic
| Country | 2019 | 2020 | 2025 |
|---|---|---|---|
| Chile | 7.5% | 10.9% | 9.0% |
| Colombia | 10.3% | 16.0% | 8.3% |
| Argentina | 9.8% | 11.5% | 7.1% |
| Brazil | 11.9% | 13.7% | 6.0% |
| Peru | 3.4% | 7.2% | 5.1% |
| Mexico | 3.5% | 4.4% | 2.7% |
Of the six countries in the table, Chile and Peru now have higher unemployment than before the pandemic, according to the World Bank series. Brazil, Colombia and Argentina ended 2025 well below their 2019 levels.
How to read the unemployment ranking
- ILO modeled estimate: adjusts national surveys to a common concept so countries can be compared. That is why it may differ from each country's official figure.
- Unemployment rate: share of the labor force (people working or looking for work) who have no job and are looking for one.
- Informality: not part of the unemployment rate; it has to be looked at separately.
- Updates: the World Bank updates the series several times a year. This ranking is updated at the same address.
This ranking is part of Vivarae News' Latin America data series, along with the minimum wage by country, inflation by country, gasoline prices and how much presidents earn.
How to cite this data
You may use the figures and charts on this page if you credit the original source and Vivarae News. Suggested citation: "Unemployment in Latin America: 2026 ranking by country", Vivarae News, updated 19 October 2026, https://vivaraenews.com/en/unemployment-in-latin-america-ranking-by-country-2026/. We update this page at the same address when new data come out.
Frequently asked questions
Which country has the highest unemployment in Latin America?
Chile, at 9.0% in 2025, according to the ILO estimate published by the World Bank. It is followed by Panama (8.4%) and Colombia (8.3%).
Which country has the lowest unemployment in Latin America?
Guatemala (2.6%) and Mexico (2.7%), although both have very high informality.
What is Latin America's average unemployment rate?
5.5% in 2025, according to the World Bank, against 4.8% worldwide.
Why is Chile's official figure (9.6%) different from the ranking (9.0%)?
The 9.6% is INE's June-August 2026 quarter; the 9.0% is the 2025 annual average estimated by the ILO with a methodology comparable across countries.
