Paraguay's labor market showed an improvement in key indicators in the second quarter of 2026, but with signs of fragility in job quality. According to the National Institute of Statistics (INE), the unemployment rate fell from 5.2% to 4.1% compared to the same period in 2025, representing approximately 32,000 fewer people without work.
However, in contrast, there was a significant increase in underemployment, which rose from 3.8% to 4.8% of the workforce. This indicator measures people who, even while employed, work less than 30 hours per week, wish to work more, and are available to do so. This group grew from about 148,000 to 169,000 individuals, an increase of 37,464 people in one year.
The employed population reached about 3.08 million people, an increase of approximately 114,563 employed persons compared to the second quarter of 2025. Growth was driven mainly by self-employed workers, whose numbers increased by about 96,000 people. There was also an increase among private-sector wage earners.
The sectors that contributed most to the generation of new jobs were commerce, restaurants, and hotels, followed by community, social, and personal services and construction. In contrast, the agriculture, livestock, hunting, and fishing sector recorded a reduction in the number of employed persons.
The labor force, composed of people aged 15 or older who are employed or seeking employment, reached 72.7% of the working-age population, equivalent to 3,406,553 people. This number grew by 86,346 people in one year, with 68,482 of that increase being women.
The final result for the period shows that, despite the drop in unemployment, 302,449 people remain in a situation of unemployment or underemployment. The increase in workers seeking to extend their work hours indicates that part of the employed population still cannot access sufficient income or levels of employment, revealing the pending challenges in job quality in Paraguay.