El Salvador continues to demonstrate robust economic growth and stability, recording 1,022,167 formal jobs as of January 2025, according to the latest report from the Ministry of Labor. This figure represents an increase of 22,148 new jobs compared to January 2024—a 2.2% year-over-year growth.
The government’s pro-growth policies under President Nayib Bukele have played a decisive role in sustaining this upward trend in employment. The private sector has been particularly dynamic, showing a 3.5% increase in contributors, while the public sector saw a slight decline of 2.2%.
According to the 2025 Employment Trends Report, major sectors driving job creation include commerce, restaurants, and hotels (32%), as well as manufacturing and industrial activities (23%). Other contributors to job growth include professional services (20%), the general service sector (10%), and finance, insurance, and construction (4%).
Strong Business Growth Fuels Employment
In addition to job creation, the private sector has also expanded in terms of business establishments. As of January 2025, El Salvador registered 36,705 active companies, a 4% increase over the previous year, with 1,408 new businesses created in just 12 months.
Sectors leading this growth include:
- Trade, restaurant, hotel, transport, and food services (43%)
- Professional and administrative services (13%)
- Service industries (22%)
- Manufacturing and industrial activities (9%)
- Construction (4%)
The Labor Market Information System (Simel) shows a clear trajectory of formal job growth since 2019, with a major recovery and milestone reached in 2024 when El Salvador surpassed one million formal jobs for the first time.
Economic Strategy Driving Results
Authorities highlight that this economic performance reflects the success of strategic reforms, investment in security, and economic liberalization. The Ministry of Labor emphasized that sectors such as real estate, agriculture, forestry, and fishing are also contributing to the nation’s labor market recovery and diversification.
As El Salvador strengthens its reputation as a rising economic force in Central America, international observers and investors are taking note of the country’s consistent performance in job creation, private sector growth, and institutional reform.
