Ecuador Unemployment Falls to 3.1% as Informal Employment Holds at 52.8%
Ecuador's unemployment rate fell to 3.1% in May 2026, down from 4.1% in May 2025.
The change represents approximately 86,000 fewer people in unemployment, according to the latest national labor survey.
Labor-Market Indicators
| Indicator | May 2026 | Prior comparison cited |
|---|---|---|
| Unemployment | 3.1% | 4.1% in May 2025 |
| Economically active population | 8.9 million | n/a |
| Global participation rate | 65.9% | 65.4% in May 2025 |
| Adequate employment | 36.6% | 35.2% in May 2025 |
| People with adequate employment | 3.3 million | n/a |
| Subemployment | 18.3% | 20.9% in May 2025 |
| Informal employment | 52.8% | stable versus prior year |
Average monthly labor income reached USD 471 nationally. The urban average was USD 516, while the rural average was USD 365.
Business Implication
The headline unemployment improvement supports a more stable consumption narrative, but the formal-labor base remains limited. Adequate employment covered 36.6% of the labor market, while informality covered 52.8% of employed workers.
For employers, lenders and consumer-facing companies, the income data is as important as the unemployment rate. The national average of USD 471 and rural average of USD 365 frame household purchasing capacity and repayment risk.
What to watch
- Whether adequate employment rises beyond the 36.6% level in future surveys.
- Whether informal employment moves down from 52.8%.
- Whether average labor income improves from USD 471 nationally.
- Whether the rural income gap remains near the USD 365 level reported for May.
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