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Twin Reports Show Entrenched Informality Despite Job Gains: Peru at 72%, Region at 46.7%

New ILO data shows the region’s low unemployment rate conceals entrenched informal work.

Overview

  • Global network WIEGO estimates more than 13 million Peruvians—72% of the economically active population—work without formal protections.
  • The ILO’s Labor Outlook 2025 finds 46.7% of workers in Latin America and the Caribbean are in informal employment, even as unemployment hovered near 6% in the first half of 2025.
  • WIEGO’s Peru analysis emphasizes urban concentration, drawing on a Lima street‑vendor survey that highlights heavy care responsibilities on women and increased entry into vending since the pandemic.
  • Both reports identify sharper disadvantages for women and youth, with women’s participation about 22 points lower than men’s and 56% of young workers in informal jobs.
  • The organizations cite structural barriers and weak policy responses in Peru, warning that vague electoral plans and high informality could complicate goals such as OECD accession.