Peru's Unemployment Rate Holds Steady at 5.90% in December 2025
Table of Contents
Peru’s unemployment rate for December 2025 was reported at 5.90%, unchanged from November 2025’s 5.90%, according to the latest release from the Sigmanomics database. This figure also matches the prior month’s reading and remains slightly below the 12-month average of 6.00%, signaling a stable labor market environment heading into 2026.
Drivers this month
- Steady domestic demand supporting job retention in services and manufacturing sectors.
- Moderate inflation and stable consumer confidence sustaining employment.
- Seasonal adjustments reflecting typical year-end labor market patterns.
Policy pulse
The unemployment rate remains comfortably below the central bank’s threshold for labor market overheating, supporting the current neutral monetary policy stance. Inflation targeting remains the priority, with the Central Reserve Bank of Peru (BCRP) maintaining steady interest rates amid global uncertainty.
Market lens
Financial markets responded with muted volatility post-release. The USDPEP currency pair showed a slight appreciation of 0.10%, reflecting confidence in Peru’s economic resilience. Local equities such as BCP remained stable, while bond yields held steady.
Examining the broader macroeconomic context, Peru’s unemployment rate has shown resilience amid mixed signals from other core indicators. December’s 5.90% rate compares favorably to the 6.40% peak recorded in July 2025 and the 6.10% in August 2025, reflecting a gradual improvement since mid-year. The rate also edges below the 6.00% recorded in September 2025 and October 2025’s 5.70%, indicating some month-to-month volatility but an overall stable trend.
Monetary Policy & Financial Conditions
The BCRP has held its benchmark interest rate steady at 4.50% since October 2025, balancing inflation control with growth support. Inflation has moderated to an annualized 3.20% as of December, within the target band. Financial conditions remain accommodative, with credit growth steady at 6.50% year-over-year, supporting employment in key sectors.
Fiscal Policy & Government Budget
Fiscal discipline continues to underpin macro stability. The government’s budget deficit narrowed to 2.80% of GDP in Q4 2025, down from 3.10% in Q3. Targeted social spending and infrastructure investments have helped sustain labor demand, particularly in construction and public services.
External Shocks & Geopolitical Risks
Global commodity price volatility, especially in copper and gold, remains a risk factor for Peru’s export-driven economy. Geopolitical tensions in South America and trade uncertainties with key partners like China and the US add layers of uncertainty that could affect employment indirectly.
What This Chart Tells Us
Market lens
Immediate reaction: The BTCUSD crypto pair showed a mild uptick of 0.30%, reflecting risk-on sentiment linked to stable employment data. Meanwhile, the GRUPOSURA stock price remained flat, indicating investor caution amid external uncertainties.
Looking ahead, Peru’s labor market faces a mix of opportunities and risks. The baseline scenario projects unemployment holding near 5.90% through Q1 2026, supported by steady domestic demand and moderate inflation. The BCRP’s cautious monetary stance should continue to underpin this stability.
Bullish Scenario (30% probability)
- Stronger-than-expected global commodity prices boost mining sector employment.
- Fiscal stimulus accelerates infrastructure projects, creating new jobs.
- Improved geopolitical environment enhances trade and investment.
Base Scenario (50% probability)
- Unemployment remains stable around 5.90%, reflecting balanced growth.
- Monetary policy remains neutral, with inflation within target.
- External risks contained but monitored closely.
Bearish Scenario (20% probability)
- Commodity price shocks lead to layoffs in export sectors.
- Geopolitical tensions disrupt trade flows, dampening job creation.
- Monetary tightening in response to inflation pressures slows growth.
Peru’s December 2025 unemployment rate of 5.90% reflects a labor market that has stabilized after mid-year volatility. The steady reading, supported by prudent monetary and fiscal policies, suggests resilience amid external uncertainties. However, vigilance is warranted given ongoing geopolitical risks and commodity price fluctuations. Policymakers should continue balancing inflation control with growth support to sustain employment gains in 2026.
Key Markets Likely to React to Unemployment Rate
The unemployment rate is a critical barometer for Peru’s economic health, influencing multiple asset classes. The BCP stock, representing Peru’s banking sector, often reacts to labor market shifts as credit demand and defaults fluctuate. The USDPEP currency pair is sensitive to employment data, reflecting investor confidence in economic stability. The BTCUSD crypto pair can serve as a risk sentiment proxy, moving with broader market optimism or caution. Additionally, GRUPOSURA, a major conglomerate, is influenced by domestic economic conditions. Lastly, the EURUSD pair may react indirectly through global risk appetite shifts tied to Peru’s economic outlook.
FAQ
- What does the December 2025 unemployment rate indicate about Peru’s economy?
- The 5.90% rate signals a stable labor market with balanced growth and controlled inflation, reflecting resilience amid external uncertainties.
- How does the unemployment rate affect monetary policy in Peru?
- Stable unemployment supports the central bank’s neutral stance, allowing focus on inflation targeting without aggressive rate changes.
- What risks could change the unemployment outlook in early 2026?
- Commodity price shocks, geopolitical tensions, or tighter monetary policy could increase unemployment, while fiscal stimulus and global recovery could lower it.
In summary, Peru’s labor market remains steady as 2026 begins, with unemployment holding at 5.90%. This stability underpins cautious optimism but requires ongoing monitoring of external and domestic risks.
Updated 1/15/26
BCP – Peru’s leading bank, sensitive to labor market shifts impacting credit demand and defaults.
USDPEP – The USD to Peruvian Sol currency pair, reflecting investor confidence tied to economic data.
BTCUSD – Bitcoin against USD, a proxy for global risk sentiment reacting to macroeconomic stability.
GRUPOSURA – A major Peruvian conglomerate, influenced by domestic economic conditions.
EURUSD – Euro to US Dollar pair, indirectly affected by shifts in global risk appetite linked to Peru’s outlook.
This has been drafted with AI assistance and then thoroughly reviewed, refined, and approved by our human editorial team to ensure accuracy, and originality.
Peru’s unemployment rate held steady at 5.90% in December 2025, unchanged from November’s 5.90%, and slightly below the 12-month average of 6.00%. This stability follows a peak of 6.40% in July 2025 and a low of 5.70% in October 2025, illustrating a moderate but consistent labor market recovery over the past six months.
The chart below highlights the month-over-month and year-over-year trends, showing a flattening trajectory after mid-year volatility. Seasonal factors and policy measures appear to have stabilized the labor market heading into the new year.