Paraguay’s employment rate reached 68.1% during the fourth quarter of 2024, marking its highest level in the past four years, although it has not yet fully recovered to pre-pandemic values. This indicator reflects significant growth in job creation, with 2,996,550 people employed from a total workforce of 3,139,430, representing two-thirds of the working-age population (WAP). In absolute terms, the Paraguayan economy incorporated 37,823 new workers compared to the same period the previous year, demonstrating a positive trend in post-pandemic economic recovery.
Labor participation showed a slight increase, reaching 71.4% of the working-age population, compared to 71.1% recorded in the same period of 2023. However, marked gender gaps persist in the Paraguayan labor market: while the male employment rate stood at 79.2%, the female rate barely reached 57.7%, a difference of 21.5 percentage points. This disparity highlights the structural obstacles women face in entering the labor market. In contrast, the geographic distribution of employment shows a relatively balanced picture, with an employment rate of 68.3% in rural areas and 68.1% in urban areas.
Analysis by age groups reveals significant patterns in employment distribution: only 6% of young people between 15 and 19 years old are working, a proportion that increases to 11% in the 20 to 24 year segment and to 13% among people aged 25 to 29. The group of adults between 30 and 59 years old accounts for 58% of total employment, while adults over 65 represent 12% of the employed population. Meanwhile, an underemployment rate of 3.4% was recorded, corresponding to people who work fewer hours than they would like or have available, reflecting insufficient utilization of existing labor capacity.
Labor inactivity experienced a slight decrease, closing the quarter at 28.6%, equivalent to 1,257,803 people outside the labor market for various reasons such as studies, domestic tasks, retirement, or illness. This indicator also presents a notable gender gap: while only 17.5% of working-age men were inactive, this condition affects 39.1% of women. This disparity reflects cultural patterns where women predominantly assume household care responsibilities, although it also responds to greater female permanence in the educational system, a factor that could positively contribute to the quality of their future labor market insertion.
In the regional context, Paraguay shows a relatively favorable performance according to the 2024 Labor Outlook of the International Labour Organization (ILO). The country presents an employment rate higher than the Latin America and Caribbean average (59.0%) and unemployment lower than the regional 6.0%. However, the gender gap in labor participation is more pronounced than in other Latin American countries, despite positive developments in female participation and employment rates. Additionally, Paraguay ranks among the countries with the highest labor informality alongside Peru and Ecuador, with rates exceeding 60%, significantly above the regional average of 47.6%.
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The sectoral structure of Paraguayan employment reveals a high concentration in the tertiary sector, which encompasses 67.1% of those employed, followed by the secondary sector with 17.6% and the primary sector with 15.4%. This distribution, combined with the predominance of micro, small, and medium enterprises that employ 75.4% of workers, poses important challenges for formalization and improvement of working conditions. While the data show a sustained recovery in employment after the health crisis, persistent gender gaps and high levels of informality highlight the need for comprehensive public policies that promote not only job creation but also the quality and equity of employment. The challenge for Paraguay is to consolidate the progress made and create conditions that allow inclusive economic growth, with quality jobs that guarantee better working conditions, greater equity, and sustainability of income over time.
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