Unemployment fell to 2.85% in November, its lowest level in 15 years

In November the unemployment rate had a monthly reduction of 0.5 points and with it dropped to 2.85% of the Economically Active Population (EAP), according to the National Occupation and Employment Survey (ENOE). With this decline, unemployment reached its lowest level in 15 years.

The drop in unemployment levels is explained by the departure of 268,806 people from this condition and a growth in the employed population. “The labor market is in one of its best moments ever recent economic situation”, says Marcos Daniel Arias Novelo, an economic analyst at Monex.

The unemployment rate includes people who do not have a job, but say they are actively looking for a job opportunity. Between June and September 2020, this indicator remained above 5% of the EAP, largely as a response to a greater demand for work. It was not until the last quarter of 2021 when unemployment began to stabilize at its average figures.

“This dynamic, in which there were more new jobs than the new people who joined the labor market, caused a significant drop in the unemployment rate: from 3.30% to 2.85% with original figures and from 3.20% to 3.00% with seasonally adjusted figures. In either case, the rate is at its lowest levels in the last 16 years, which is undoubtedly one of the outstanding results of the year, but at the same time it will represent a challenge to combat the high inflation that we are experiencing. living”, exposes Marcos Daniel Arias.

By adding to the “available” of the Non-Economically Active Population (PNEA) -unemployed who are not looking for work, but would accept it if offered- the extended unemployment rate is obtained and in November it also had a reduction with which it was located at 10.8%, which represents its lowest level since record.

In the job creation pole, in the penultimate month of 2022, the labor market added 444,035 people to the employed population. The movements to incorporate people into an occupation and the drop in unemployment brought the Economically Active Population (EAP) to a total of 60.5 million people.

As a result of this, the participation rate maintained its growth and reached 60.8% of the total population of working age. This figure represents its highest level in the last 7 years.

72% of the growth in employment levels was driven by formality, in the previous month, formal jobs also pushed more than 50% of job creation. On the other hand, despite the fact that the informal sector incorporated just over 120,000 people, the informal work rate had a slight monthly reduction, with which it stood at 55.2 percent.

By economic sectors, the gains were concentrated in the service activities that together contributed 428,207 jobs. The fastest growing subsectors were professional and social services. In the past month, seasonality was not reflected in job creation, as commerce and restaurant activities reported losses.

The second engine of employment in November was the industrial sector, manufacturing was the one that contributed the most with 187,580 positions and construction, with a moderate pace, added 65,265 people to an occupation.

Both results helped to offset the losses in primary activities that had a drop of 250,512 jobs.