Paraguay - Paraguay is demonstrating strong progress in advancing employment and social protection through its engagement in the Global Accelerator on Jobs and Social Protection for Just Transitions, with results already translating into tangible labour market gains.
At the Global Accelerator Steering Group meeting on 4 March 2026, the country highlighted it has generated 242,000 additional jobs since 2023, as per latest data from the National Statistical Institute, reaching nearly half of the Government’s target of 500,000 jobs by August 2028. Notably, more than seven six out of ten of these jobs are formal, marking a significant step forward in reducing informality and creating decent jobs. At the same time, the unemployment rate has fallen to 3.6 per cent, its lowest level in over 25 years.
Women have been at the centre of this progress, accounting for 60 per cent of the newly created jobs. This reflects a deliberate policy focus on expanding opportunities for women and the youth, while addressing broader demographic shifts shaping the labour market.
Supported by the Global Accelerator Technical Support Facility and through funding from the Joint SDG Fund and the Government of Korea, Paraguay is reinforcing evidence-based policymaking and promoting integrated approaches that link employment generation with the expansion of social protection. This includes a strong emphasis on navigating digital and sustainable transitions while ensuring that growth translates into formal, inclusive employment.
The country has also made important advances in aligning policies across sectors, strengthening the connection between employment formalization and social protection systems. This integrated approach is central to building resilience and ensuring that economic gains translate into improved living standards.
All the interventions under the Global Accelerator in Paraguay are fully aligned with national public policies, right from their design to implementation and evaluation, ensuring strong country ownership and coherence with national development priorities.
Paraguay’s experience highlights how coordinated, evidence-driven policies can accelerate progress towards decent work and social protection. As implementation continues, the focus will remain on scaling results, sustaining formal job creation and ensuring that no one is left behind in the country’s transitions.
Paraguay joined as a Pathfinder Country in February 2024 and endorsed its road map in July 2024. The road map has four priority areas:
- Strengthening the institutional coordination of employment formalization, social protection and care programmes
- Industrial policy alignment
- Development of MSMEs, including through local development programmes
- Domestic resource mobilization