According to data released by the National Institute of Statistics (INE), unemployment in Paraguay has reached a historic low, falling from 4.9% to 4.1% in the third quarter of 2026. With more than 66,000 people joining the employed population, the INE data shows that unemployment has decreased again to the record level.
In the last three years almost 260,000 new jobs have been created. This is a historic record for Paraguay, INE states, as never before in a three-year period have so many jobs been created, with a clear increase in formal employment that allows workers to access social security and retirement benefits.
Falling unemployment in Paraguay details
According to data from the National Institute of Statistics, based on the Continuous Permanent Household Survey 2026 corresponding to the third quarter, the employed population reaches 3,290,206 people. This means an increase of approximately 66,149 employed people compared to the same period last year.
The increase in the employed population by around 66,149 people was mainly due to the expansion of the workforce in the tertiary sector, resulting from the statistically significant rise in commerce, restaurants and hotels, according to the report. Regarding unemployment, approximately 141,250 people were classified as unemployed.
Compared to the same period last year, this represents a decrease in the unemployment rate from 4.9% to 4.1% cent. In absolute terms, this represents a reduction in unemployment of approximately 24,176 people.
Expansion of formal employment
The report also highlights the growth in formal employment. In the last year alone, the number of formally employed non-agricultural workers increased by 92,166, and so far during this administration, 227,081 workers have transitioned to formal employment, expanding their access to labour rights and social protection.
Paraguay’s labour market already showed significant growth in the first three months of 2026, with an increase of over 117,000 new jobs compared to the same period in 2025.
