Ecuador's Economy Is Growing, But Formal Jobs Are Still Hard To Find

What happened

Ecuador's economy has been growing, but the labor market is still not delivering enough formal jobs.

The source points to economic growth in 2025 and the first part of 2026, while informality remains above 60% of the economically active population.

It also says only three in 10 Ecuadorians have adequate employment, meaning a job with at least the basic salary and a full daily schedule.

That is the tension: the economy can grow while many households still feel stuck.

Why growth is not enough

The article points to two studies: one international study covering 163 countries between 1992 and 2023, and another focused on Ecuador.

The conclusion is that growth alone does not automatically create enough good jobs, especially in countries with high informality.

Economists often talk about the relationship between output growth and unemployment. The source notes that this relationship weakens when much of the labor market is informal, because people may be working without stable income, benefits, or adequate pay even when they are not officially unemployed.

The Ecuador problem

For Ecuador, this is not only about GDP. It is about the type of growth.

If new activity appears in sectors that do not absorb many formal workers, or if businesses stay small and informal, the headline growth number can look better than the street-level job market feels.

That matters for families, consumer demand, public revenue, and migration pressure.

What This Means for Expats

For expats, this is one of the more important background stories in Ecuador.

If you are retired, the job market may not affect your own income directly, but it shapes wages for local families, service pricing, rental pressure, informal work, and how many Ecuadorians are trying to piece together several income streams.

If you are working in Ecuador, hiring locally, opening a business, or depending on local clients, it matters even more.

A growing economy can still feel fragile when formal employment remains limited. That is why many Ecuadorians may be busy and still under financial stress.

The practical takeaway is to read Ecuador's recovery numbers with a second question attached: what kind of jobs are being created, and are they formal enough to change household stability?