Peru’s employment numbers saw a notable increase in 2025, marking a positive shift from the previous year. The growth in jobs, particularly within the agricultural sector, signals a strengthening labor market despite ongoing economic challenges.
Paola Herrera, a senior analyst at the Peruvian Institute of Economy (IPE), highlighted the positive trend in employment within primary activities, specifically agriculture.
“With improved weather conditions following previous challenges, we’ve seen better performance, for example, in agro-exports. Increased consumer spending in the commerce and services sectors also provided a significant boost,” Herrera observed.
Carlos León, an economist with the Network of Studies for Development (REDES), commented that whereas the growth is encouraging, the pace remains slow. This comes as the Peruvian economy experienced overall growth exceeding 3%.
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Labor Income in Peru
A key development in the Peruvian labor market in 2025 was the increase in average monthly income from employment. The report showed this figure reached S/ 1,887.2, a nominal increase of 6.9%, equivalent to more than S/ 121.
In real terms, accounting for inflation, wages in Peru grew by 5.3%, marking the fastest pace of growth in 16 years, since 2009, according to IPE’s Herrera.
after six years, income levels surpassed pre-pandemic levels, albeit by a narrow margin of 1.1% compared to 2019.
This positive result was driven by improved performance in quality employment. While overall employment increased by 1.5% last year, quality employment grew at more than four times that rate (6.9%), adding 634,300 people and bringing the total to 9.81 million.
Looking at age groups, the largest nominal wage variation was among those aged 45 and older, with a 7.4% increase (S/ 130 more, reaching S/ 1,893.7).
Geographically, Lima Metropolitan Area and the Callao province recorded the highest average income, at S/ 2,486, followed by Moquegua (S/ 2,426.4), Chachapoyas (S/ 2,392.5), Arequipa (S/ 2,324.6), and Puerto Maldonado (S/ 2,249.9). Pucallpa (S/ 1,790), Chiclayo (S/ 1,671.5), and Juliaca (S/ 1,323.8) reported the lowest averages.
Youth Employment Lags
However, these improvements are not evenly distributed across all worker groups.
“Employment and quality jobs remain concentrated in sectors with higher levels of formality and experience, leaving younger workers behind,” Herrera noted.
In the fourth quarter of 2025, the employed population aged 25 to 44 and 45 and older saw increases of 0.7% and 4.9%, respectively. However, employment among younger workers fell by more than 2.5%.
With this decline, Herrera pointed out that youth employment has now experienced its fourth consecutive year of contraction, a decrease of nearly 15% in the employed population since 2022, equivalent to almost 400,000 fewer people. In contrast, the older age group added nearly 830,000 workers, a 14% increase.
“Recovery following the pandemic has yet to reach younger workers,” Herrera said. “Where is youth employment going? It’s appearing in informal activities and in the realm of illegality,” León added.
The REDES analyst observed that the growth in employment among older workers correlates with the increase in formal employment and dynamism in large companies. However, he dismissed the idea that this indicates increased productivity, stating it’s more a recovery of the formal workforce.
Herrera expressed serious concern that current government plans – and campaign promises – do not address measures to reverse this unfavorable situation. This lack of focus on youth employment could have long-term consequences for the country’s economic development.
Looking ahead, León indicated that the cost to the country of this employability gap is an aging labor force, losing the demographic dividend. This will ultimately impact the country’s productivity levels.
Election Period Impact?
While no significant negative impact from the election period has yet been observed in the national economy, Herrera indicated that its effect on employment is often delayed.
She recalled that private investment provided a significant boost to national activity in the last quarters of 2025, a trend expected to continue into the first quarter of 2026, and potentially throughout the first half of the year.
