Ecuador Unemployment Fell to 3.1% in May, but Informality Remains High

Ecuador's unemployment rate fell to 3.1% in May 2026, down one percentage point from May 2025.

The national statistics agency estimates that about 86,000 people left unemployment over the year.

Adequate Employment Stayed Limited

Adequate employment stood at 36.6% in May 2026. The rate was 35.2% in May 2025, but the change was not considered statistically significant.

Adequate employment refers to workers who earn at least the $482 basic salary and work a full 40-hour week.

Subemployment was 18.3% in May 2026. The rate was 20.9% a year earlier, but that change also was not considered statistically significant.

Another category, other non-full employment, reached 32.1%. In May 2025, that indicator was 30.2%.

Informal Work Is Still the Bigger Story

In May 2026, 52.8% of employed people in Ecuador were in the informal sector.

That means the headline unemployment number does not fully describe the labor market. Many people who are technically employed may still be working without formal conditions or enough hours.

What This Means for Expats

For foreign residents, the labor data helps explain both sides of daily life in Ecuador: unemployment may be low, but stable formal work remains limited.

That can affect household incomes, service-sector reliability, wages, rental demand and the broader consumer economy. For expats hiring staff or evaluating local business opportunities, the informal-sector number is the one to watch alongside unemployment.