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Paraguay's population, regions and labor market: where people live and work

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Last verified: 2026-10-28 · Status: Stable

The 2022 Census counted 6,109,903 people, a young population with a median age of 29 and one in four under 15; Asunción and the surrounding Central department hold about 38 percent of residents and Alto Paraná, on the Brazilian and Argentine borders, another 12.5 percent. The country is divided into 17 departments plus the capital, with elected governors and autonomous municipalities that set local fees. In the second quarter of 2026 unemployment was 4.1 percent and 3,267,192 people were employed, but about 60 percent of non agricultural jobs are informal and small firms dominate employment.

USD figures use PYG 5,868.31 per US dollar, the Banco Central del Paraguay reference quotation for 28 October 2026, retrieved on the verification date, unless another rate is named (the MEF budget assumptions of PYG 7,545 average for 2025 and PYG 6,458 for 2027 are labeled where used). Conversions are for orientation only.

Key facts

Population, Census 2022 final results	6109903 peopleINE, CNPV 2022, as of 2024-08-21 · in force
Population of Asunción (capital), Census 2022	462241 peopleINE, CNPV 2022, as of 2024-08-21 · in force
Asunción plus Central department share of population, Census 2022 (calculated)	38.4 %INE, CNPV 2022 (2,346,168 of 6,109,903), as of 2024-08-21 · in force
Population aged 0 to 14, Census 2022	25.0 %INE, CNPV 2022, as of 2024-08-21 · in force
Population aged 65 or more, Census 2022	8.6 %INE, CNPV 2022, as of 2024-08-21 · in force
Median age, Census 2022	29 yearsINE, CNPV 2022, as of 2024-08-21 · in force
Dependents per 100 people of working age, Census 2022	51 per 100INE, CNPV 2022, as of 2024-08-21 · in force
Population projection for 2026	6460 thousand peopleMEF Panorama Macroeconómico, July 2026, Indicadores Económicos, as of 2026-07-31 · pending
Departments (plus the capital district of Asunción)	17 departmentsConstitución art. 156 and 157; INE, CNPV 2022 by department, as of 2024-08-21 · in force
Labor force participation rate, Q2 2026	72.7 %INE, EPHC Q2 2026, as of 2026-06-30 · in force
Employment rate, Q2 2026	69.7 %INE, EPHC Q2 2026, as of 2026-06-30 · in force
Open unemployment rate, Q2 2026	4.1 %INE, EPHC Q2 2026, as of 2026-06-30 · in force
Time related underemployment, Q2 2026	4.8 %INE, EPHC Q2 2026, as of 2026-06-30 · in force
Employed people, Q2 2026	3267192 peopleINE, EPHC Q2 2026 (Agencia IP), as of 2026-07-31 · in force
Informal share of non agricultural employment, 2025	60.1 %INE, EPHC 2025 annual, as of 2025-12-31 · in force
Share of employment in micro, small and medium enterprises, Q2 2026	77 %MEF IFP 2026, section 1.2.2 (INE data), as of 2026-06-30 · in force

The rule

1. For political and administrative purposes the territory is divided into departments, municipalities and districts, which within the Constitution and the laws have political, administrative and regulatory autonomy and collect and invest their own revenue. Asunción is the capital and seat of the powers of the State; it is a municipality independent of any department. Creating, merging or changing departments, municipalities and districts requires a law, and departments may group into regions.Constitución Nacional de la República del Paraguay (1992, with the 2011 amendment to art. 120), Art. 156, art. 157, art. 159 and art. 160, 1992-06-20 official text · verified 2026-10-28

2. Each department is governed by a governor and a departmental board (junta departamental), elected directly by residents at the same time as the general elections for five years; the governor represents the Executive in carrying out national policy and may not be reelected. Each municipality is governed by a mayor (intendente) and a municipal board elected directly.Constitución Nacional de la República del Paraguay (1992, with the 2011 amendment to art. 120), Art. 161 and art. 167, 1992-06-20 official text · verified 2026-10-28

3. Municipalities are autonomous local governments. Within their territory and under the law they manage urban planning, environment, supply, education, culture, sport, tourism, health and social assistance, inspection and local police; draw up their own budget; share in national revenue; issue ordinances; access public and private credit; and regulate traffic and public transport. Fees for services actually provided may not exceed the cost of the service.
Example: A municipal fee for a waste collection or inspection service must be tied to the cost of the service actually provided (art. 168 numeral 5); a fee set as a share of turnover with no service behind it can be challenged.Constitución Nacional de la República del Paraguay (1992, with the 2011 amendment to art. 120), Art. 166 and art. 168, 1992-06-20 official text · verified 2026-10-28

4. Paraguay is a multicultural and bilingual country: Spanish (castellano) and Guaraní are both official languages, and a law sets how each is used. Indigenous and other minority languages are part of the national cultural heritage.Constitución Nacional de la República del Paraguay (1992, with the 2011 amendment to art. 120), Art. 140, 1992-06-20 official text · verified 2026-10-28

5. The national statistics institute (Instituto Nacional de Estadística, INE) published the final results of the 2022 National Population and Housing Census on 21 August 2024: 6,109,903 inhabitants (3,057,674 men and 3,052,229 women); 25 percent aged 0 to 14, 66.4 percent aged 15 to 64 and 8.6 percent aged 65 or more; median age 29 (24 in 2012); and 51 dependents per 100 people of working age.INE, Censo Nacional de Población y Viviendas 2022, final results, Indicadores de población; población por departamento, 2024-08-21 official text · verified 2026-10-28

6. INE's continuous household survey (Encuesta Permanente de Hogares Continua, EPHC) for the second quarter of 2026: labor force participation 72.7 percent of the working age population, employment rate 69.7 percent (68.1 percent a year earlier), unemployment 4.1 percent (5.0 percent a year earlier) and time related underemployment 4.8 percent. Employed people were 3,267,192 and the labor force 3,406,553. The survey excludes the Chaco departments of Boquerón and Alto Paraguay, indigenous communities and collective dwellings.INE, Encuesta Permanente de Hogares Continua, Cuadro Nº 1 (Tasas), 2017 to 2026, Total país, second quarter 2026, 2026-07-31 official text · verified 2026-10-28

7. In 2025, 60.1 percent of non agricultural employment was informal (1,663,276 of 2,765,982 employed): 57.3 percent in urban areas and 72.1 percent in rural areas, 58.2 percent for men and 62.5 percent for women. Micro, small and medium enterprises employ 77 percent of workers, microenterprises alone 64.3 percent and large firms 12.4 percent (second quarter of 2026).INE, EPHC 2022 to 2025 annual, informal employment by area and sex (Cuadro Nº 1); MEF, Informe de las Finanzas Públicas 2026, section 1.2.2, Informal non agricultural employment, 2025; employment by firm size, Q2 2026, 2026-10-23 official text · verified 2026-10-28

Department	Population	Share of total
Central	1,883,927	30.8%
Alto Paraná	763,702	12.5%
Asunción (capital)	462,241	7.6%
Itapúa	449,642	7.4%
Caaguazú	431,519	7.1%
San Pedro	355,175	5.8%
Cordillera	268,037	4.4%
Concepción	206,181	3.4%
Paraguarí	200,472	3.3%
Canindeyú	191,114	3.1%
Guairá	179,555	2.9%
Amambay	179,412	2.9%
Caazapá	139,479	2.3%
Presidente Hayes	123,313	2.0%
Misiones	111,142	1.8%
Ñeembucú	76,719	1.3%
Boquerón	71,078	1.2%
Alto Paraguay	17,195	0.3%
Total	6,109,903	100%

Population by department, Census 2022 (INE final results; shares calculated)

Indicator	Total	Men	Women	Urban	Rural
Labor force participation	72.7	83.2	62.2	72.6	73.0
Employment rate	69.7	80.2	59.2	69.3	70.8
Unemployment	4.1	3.5	4.8	4.5	3.0
Time related underemployment	4.8	3.3	6.7	4.4	5.7

Labor market by area and sex, second quarter 2026, percent (INE, EPHC, Cuadro Nº 1)

Quarter	Participation	Employment	Unemployment
Q1 2025	70.8	66.9	5.5
Q2 2025	71.7	68.1	5.0
Q3 2025	73.0	69.4	4.9
Q4 2025	73.4	70.8	3.6
Q1 2026	72.4	68.6	5.3
Q2 2026	72.7	69.7	4.1

Labor market trend, percent (INE, EPHC, Cuadro Nº 1)

Group	Employed	Informal	Informal share
Total	2,765,982	1,663,276	60.1%
Men	1,540,852	897,107	58.2%
Women	1,225,130	766,169	62.5%
Urban	2,237,205	1,281,984	57.3%
Rural	528,777	381,292	72.1%

Informal non agricultural employment, 2025 (INE, EPHC annual)

Worked example

Market sizing. A consumer business based in Asunción reaches the capital and Central department, 2,346,168 people or 38.4 percent of the 2022 Census population, within one metropolitan area. Adding Alto Paraná (Ciudad del Este, on the Brazilian and Argentine borders) brings coverage to about 51 percent.
Hiring pool. With unemployment at 4.1 percent and 139,361 unemployed people in the second quarter of 2026 (labor force 3,406,553 less 3,267,192 employed), skilled hires are competitive; INE reports that job growth was led by services such as commerce, restaurants and hotels, and community, social and personal services.
Formality as a selling point. Six in ten non agricultural workers are informal, so formal employment with social security (IPS) and the legal minimum wage is an advantage in recruiting; see labor/employing-people for costs.

Step by step

1. Size your market with the 2022 Census by department and the INE population projections for later years.
2. Check the municipality where you will operate: local fees, permits, urban planning and traffic rules are municipal (Constitution art. 168).
3. Use the quarterly EPHC tables on INE's employment page for wages and labor indicators by area; note that the Chaco departments of Boquerón and Alto Paraguay are excluded.
4. Plan for a bilingual market: Spanish and Guaraní are both official languages (art. 140), and a law sets how each is used.
5. Budget labor costs with the minimum wage and IPS contributions in labor/minimum-wage and labor/social-security-ips.
6. For departments on the Argentine border such as Itapúa, Misiones, Ñeembucú and Alto Paraná, check Argentine labor and tax rules separately in the Argentine guide if you hire or sell across the border.

Common traps

Using the survey for the whole country. The EPHC excludes Boquerón and Alto Paraguay, indigenous communities and collective dwellings.
Mixing census and projections. The census count of 6,109,903 is lower than the MEF's 2026 projection of 6,460 thousand; do not mix them in the same per capita calculation.
Two underemployment measures. INE publishes two time related underemployment series (4.9 and 4.8 percent in Q2 2026); the 4.8 percent series is the one cited by the official news agency for INE's Q2 2026 release.
Reading low unemployment as a tight formal market. About 60 percent of non agricultural jobs are informal and microenterprises employ 64.3 percent of workers.
Assuming national rules cover local charges. Municipal fees are set by each municipality within the cost of service limit in art. 168 numeral 5.

Sources

← Paraguay's external sector: trade, foreign direct investment, binational dams, reserves and the guaraníInvesting in Paraguay: the foreign investment regime and the main incentive laws →

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