While Peru has made great strides in reducing poverty in the last 10 years, Peru has some of the most rigid labor laws in the world, which have helped spawn a massive informal economy. About three quarters of Peruvian workers are employed outside the legal system. Peruvian economist Hernando de Soto’s research into Peru’s informal economy inspired the World Bank’s Ease of Doing Business rankings.
Unemployment rate in Peru compared to greater Latin America. Latin America data only available from 2005.
Total Peruvian labor force in millions and participation rate by year.
Unemployment in Peru vs. Latin America
Source: World Bank