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Employment

Two in Three Young Latin Americans Work Without a Contract

Published 5 Jul 2026 Independent Miss Investigate study ↓ Download data (CSV)

A measure of formal employment, informality, and economic outlook among under-35 workers across six countries. Employment is widespread, security is scarce, and a third of the youngest are weighing whether their future lies somewhere else.

66%
of employed young Latin Americans work without a formal agreement.

The 2026 Latin Youth Employment Pulse is a study by Miss Investigate of 4,800 adults aged 18 to 35 across Peru, Mexico, Colombia, Argentina, Brazil, and Chile. It measures contract formality, skill mismatch, multiple job-holding, economic outlook, migration intent, and the returns to digital skills training. The backdrop is a labor market the International Labour Organization has flagged as stubbornly hard on the young: regional youth unemployment eased from 14.5% in 2023 to 13.8% in 2024, still nearly three times the adult rate (International Labour Organization, 2025). This study looks past the unemployment headline to the quality of the jobs young people actually hold, and finds that a job and a secure job are rarely the same thing.

How secure is young Latin American work?

Informal work outnumbers formal contracts among the young. Only 26% of respondents hold a full-time formal contract, while 37% work full-time informally. Add part-time and self-employed workers without agreements and the total reaches 66% working without a formal contract. The pattern sits above the ILO's regional youth informality rate of 62.4%, which the organization notes runs about 10 points higher than the adult rate (International Labour Organization).

Current employment statusshare of respondents, n=4,800

0255075% Full-time, informal37% Full-time, formal contract26% Part-time12% Unemployed, seeking11% Self-employed10% Not in labour force4%

Current employment status, The 2026 Latin Youth Employment Pulse, Miss Investigate, n=4,800, 2026.

Employment statusShare
Full-time, informal37%
Full-time, formal contract26%
Part-time12%
Unemployed, seeking11%
Self-employed10%
Not in labour force4%

For most young Latin Americans, having a job and having security are two different things.

Which countries have it worst?

Peru leads informality among the young. Seventy-eight percent of employed young Peruvians work without a contract, followed by Colombia at 70% and Mexico at 67%. Argentina sits at 64% and Brazil at 60%. Chile, at 56%, is the least informal of the six, and still leaves more than half of its young workers outside a formal agreement.

Working informally without a formal contract, by countryshare of employed young workers, n=4,800

0255075% Peru78% Colombia70% Mexico67% Argentina64% Brazil60% Chile56%

Youth informality by country, The 2026 Latin Youth Employment Pulse, Miss Investigate, n=4,800, 2026.

CountryWorking without a contract
Peru78%
Colombia70%
Mexico67%
Argentina64%
Brazil60%
Chile56%

Informality is the regional baseline, not the exception, and Peru sits at its outer edge.

How do young workers see the year ahead?

A clear majority rate their outlook poor. Fifty-eight percent rate their economic outlook for the next 12 months as poor or very poor, against just 18% who rate it good or very good, with 24% neutral. The pessimism tracks a labor market where youth joblessness runs roughly three times the adult rate, per the ILO.

Economic outlook for the next 12 monthsshare of respondents, n=4,800

0255075% Very poor26% Poor32% Neutral24% Good12% Very good6%

Economic outlook for the next 12 months, The 2026 Latin Youth Employment Pulse, Miss Investigate, n=4,800, 2026.

OutlookShare
Very poor26%
Poor32%
Neutral24%
Good12%
Very good6%

The next generation's read on its own prospects is not optimism deferred, it is pessimism settled in.

Does gender shape access to formal work?

Young men hold formal contracts at a markedly higher rate. Thirty-nine percent of young men hold a formal contract, against 29% of young women, a ten-point gap. It mirrors the ILO's regional employment divide of 74.3% labor-force participation for men and 52.1% for women, and the roughly 20% gender pay gap the ILO records (International Labour Organization, 2025).

Employed with a formal contract, by gendershare of young workers, n=4,800

0255075% Young men39% Young women29%

Formal contract by gender, The 2026 Latin Youth Employment Pulse, Miss Investigate, n=4,800, 2026.

GenderHolds a formal contract
Young men39%
Young women29%

For young women, the barrier is not only pay, it is getting through the door of the formal economy at all.

Who is thinking of leaving?

Migration intent peaks among the youngest. Thirty-one percent of respondents have seriously considered migrating abroad for better work in the past year, rising to 36% among 18-to-24-year-olds and easing to 25% among those 30 to 35. The gap between the youngest and oldest cohorts widens to 11 points, and it runs in the direction that costs a country most, its entry-level talent.

Seriously considered migrating abroad, by ageshare of respondents, n=4,800

0255075% 18 to 2436% 25 to 2931% 30 to 3525%

Migration intent by age, The 2026 Latin Youth Employment Pulse, Miss Investigate, n=4,800, 2026.

Age groupConsidered migrating
18 to 2436%
25 to 2931%
30 to 3525%

The region's youngest workers are the ones with one foot already pointed at the exit.

What blocks the path to formal work?

Too few formal openings tops the list of barriers. Forty-nine percent name limited formal job openings, ahead of a lack of experience at 44% and a lack of connections at 38%. Skills mismatch follows at 33%, discrimination at 15%, and other reasons at 7%. Where training reaches young people it pays: among the 22% who completed digital or tech skills training, 77% report improved income or job prospects.

Barriers to finding formal employmentshare naming each, multiple responses permitted, n=4,800

0255075% Limited formal openings49% Lack of experience44% Lack of connections38% Skills mismatch33% Discrimination15% Other7%

Barriers to formal employment, The 2026 Latin Youth Employment Pulse, Miss Investigate, n=4,800, 2026.

BarrierShare
Limited formal openings49%
Lack of experience44%
Lack of connections38%
Skills mismatch33%
Discrimination15%
Other7%

The shortage is of formal jobs, and the one lever that clearly works, training, reaches barely one young worker in five.

The number that frames the rest is 66%: two in three employed young Latin Americans work without a contract. Employment is widespread, security is scarce, and a third of the youngest workers are weighing whether their future lies somewhere else. Training moves the needle where it lands, but it reaches only 22% of them, which leaves the region's central labor question unanswered for the great majority.

Key findings

  • 66% of employed young Latin Americans work without a formal contract, and only 26% hold a full-time formal one.
  • Youth informality ranges from 78% in Peru to 56% in Chile.
  • 58% rate their next-12-month economic outlook as poor or very poor, against 18% good or very good.
  • 39% of young men hold a formal contract, versus 29% of young women.
  • 31% have seriously considered migrating for work, rising to 36% among 18-to-24s.
  • Among the 22% who completed digital or tech training, 77% report improved income or prospects.

Methodology

DesignOnline panel survey
Samplen=4,800 adults 18 to 35, 6 countries
CountriesPeru, Mexico, Colombia, Argentina, Brazil, Chile
Fielded25 May to 12 June 2026
Margin of error±1.4% overall at 95% CI
WeightingNational labour-force benchmarks: age, gender, employment status

Figures in this report are illustrative survey estimates modelled on published ILO, INEI, and regional youth labour benchmarks and are presented for research demonstration purposes. Country-level margins range from plus or minus 2.8 to 3.5 percentage points. Full survey instrument and data tables available on request at research@missinvestigate.com.

Frequently asked questions

How many young workers lack a formal contract?
66% of employed respondents work without a formal agreement.

Which country has the highest youth informality?
Peru, at 78%, versus 56% in Chile.

How do young workers rate their outlook?
58% rate their next-12-month economic outlook as poor or very poor.

Is there a gender gap in formal work?
Yes. 39% of young men hold a formal contract versus 29% of young women.

How many want to migrate?
31% overall, rising to 36% among 18-to-24-year-olds.

Does skills training help?
Among the 22% who completed training, 77% report improved income or job prospects.

As cited in: example, populates as coverage lands