What conditions make a person count as unemployed in Paraguay's unemployment statistics?

The INE counts a person aged 15 or older as unemployed when the person worked zero hours in the previous seven days, was available for work and actively searched for a job.

What income support is available during unemployment in Paraguay?

As of September 2026, Paraguay has no enacted general unemployment insurance scheme or ongoing unemployment cash benefit. IPS contributions do not provide a general unemployment payment.

What can a worker claim after an unjustified dismissal during unemployment in Paraguay?

Under the Código del Trabajo, the worker may be entitled to 15 days of wages for each year of service or a fraction of six months, calculated from the average wage of the previous six months, plus statutory notice pay where applicable. A claim concerning missing notice or unjustified dismissal has a 60-day period.

How can a job seeker use Paraguay's public employment service after losing work?

The person can register a free profile and résumé with EmpleaPY, review vacancies and apply for positions. The DGE may also provide profile review, psychological testing, occupational diagnosis, guidance, placement support and access to job fairs, but registration does not guarantee a job.

Unemployment in Paraguay

Unemployment in Paraguay is measured by whether a person has no work, is available to work and has actively looked for work. Paraguay has no enacted general unemployment insurance or ongoing unemployment cash benefit as of September 2026. Financial protection therefore mainly comes from dismissal compensation, limited post-dismissal IPS health coverage and public job-placement services.

byAna&Carlos

The Instituto Nacional de Estadística (INE) uses the Encuesta Permanente de Hogares Continua (EPHC) to measure unemployment among people aged 15 and older. A person counts as unemployed when they worked zero hours during the previous seven days, were available for work and actively searched for a job. The verified Q1 2026 benchmark counted 177,961 unemployed people, corresponding to 5.3% of the labor force. The rate was 4.6% for men and 6.2% for women, 5.6% in urban areas and 4.4% in rural areas. The latest EPHC publication available in Q2 2026 also reports broader underuse of labor: unemployment combined with time-related underemployment reached 9.1%, or 309,444 people. Paraguay does not currently operate an enacted general unemployment insurance scheme. A Seguro de Desempleo was proposed in 2020 and 2021, with later legislative proposals still under discussion in 2024, 2025 and 2026, but no live system has established contributions, eligibility, benefit duration, payment rates or an application register. IPS contributions do not create a general unemployment payment. Independent IPS contributions cover retirement and do not provide health coverage through this arrangement. A worker dismissed without just cause may have a claim under the Código del Trabajo, Ley 213/93. The statutory dismissal compensation is generally 15 days of wages for each year of service or a fraction of six months, calculated using the average wage from the previous six months. Statutory notice pay may be due as well. The employer should provide a constancia when the contract ends. A claim concerning missing notice or unjustified dismissal has a 60-day period. The exact calculation depends on the employment history, contract end and available documents. IPS health services can continue for up to 60 days after dismissal or another involuntary exit when the employer's contributions are current. A voluntary resignation ends this continuation immediately. This post-dismissal health coverage is not an unemployment benefit and does not replace income. Informal workers and self-employed workers do not automatically receive the dismissal compensation and labor-law protections that apply to covered employment. For re-entry, the MTESS through the Viceministerio de Empleo and the Dirección General de Empleo (DGE) operates the Servicio Público de Empleo. EmpleaPY offers free profile and résumé registration, vacancies and applications. The DGE can review a profile, conduct a psychological test and occupational diagnosis, provide guidance, support placement and organize job fairs through online and territorial services. Registration does not create an automatic right to a job. EmpleaPY Joven is a narrower re-entry program for people aged 18 to 29. It requires registration with EmpleaPY, between zero and twelve IPS contribution months and participation in an SNPP or SINAFOCAL course. The supported formal employment period lasts eight to twelve months, and the State can cover up to 18% of the IPS contribution under Decreto 3822/2025. This program is a targeted employment measure, not a general unemployment payment. The practical response to unemployment in Paraguay therefore depends on the reason for job loss, formal employment status, contribution records, dismissal documents, access to IPS health coverage and available employment-service support.

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