Labor policies in Colombia The economic history of the country in the last decade has taught us that sustained economic growth is not enough to achieve substantial reductions in the unemployment rate. In fact, the latter has shown a high persistence after the crisis of 1999 (in which levels of 20% were reached), despite the economic takeoff of the following years. The new generations of Colombians may seem oblivious to an unemployment rate of 7%, although this was recorded in 1995. In good time, the Government has implemented policies that attack some of the distortions in the labor market that have caused Colombia has one of the highest unemployment rates in Latin America, according to figures from the World Bank and Cepal. On the side of labor demand, the Government has provided tax discounts to companies that generate formal employment. The recently approved tax reform reduced para...
