Countries › Uruguay › Guide › 2. Macro and country context › Uruguay's population, regions and labor market: where people live and work

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

Argentina. For full detail on Argentina, go to The Argentine Thread.

Last verified: 2026-10-27 · Status: Changing

Uruguay had 3,499,451 residents at the 2023 census. Population grows about 0.2 percent a year and is ageing: 16 percent are 65 or older and 18 percent are under 15. Montevideo holds 37 percent of residents but is shrinking, while Canelones and Maldonado are growing fastest. The country has 19 departments, each with an elected Intendente and Junta Departamental, plus municipalities for towns over 2,000 people. In September 2026 unemployment was 7.1 percent and the employment rate 59.6 percent. Informality, measured as workers not registered with social security, was 21 percent. Nominal wages rose 5.89 percent in the 12 months to August 2026, against CPI inflation of 4.55 percent.

Key facts

Resident population, Census 2023 (reference date 31 May 2023)	3499451 peopleINE, Censo 2023, as of 2023-05-31 · in force
Average annual population growth, 2011 to 2023	0.2 %INE, Censo 2023, Table 1, as of 2023-05-31 · in force
Population of Montevideo department, 2023	1302954 peopleINE, Censo 2023, Table 1, as of 2023-05-31 · in force
Montevideo share of national population, 2023 (computed from INE Table 1)	37.2 %INE, Censo 2023, Table 1, as of 2023-05-31 · in force
Population aged 65 and over, 2023	16 %INE, Censo 2023, section 3, as of 2023-05-31 · in force
Population under 15, 2023	18 %INE, Censo 2023, section 3, as of 2023-05-31 · in force
People born abroad counted in Census 2023	107578 peopleINE, Censo 2023, Table 4, as of 2023-05-31 · in force
Residents born in another country, share of census respondents, 2023	3.5 %INE, Censo 2023, Table 6, as of 2023-05-31 · in force
Departments (first level subnational governments)	19 departmentsINE, Censo 2023, Table 1; Constitución art. 262, as of 2023-05-31 · in force
Population above which a town must be a municipality	2000 inhabitantsLey Nº 19.272 art. 1, as of 2026-10-27 · in force
Unemployment rate, September 2026	7.1 %INE, Encuesta Continua de Hogares, as of 2026-10-23 · in force
Activity (participation) rate, September 2026, population aged 14 and over	64.1 %INE, Encuesta Continua de Hogares, as of 2026-10-23 · in force
Employment rate, September 2026, population aged 14 and over	59.6 %INE, Encuesta Continua de Hogares, as of 2026-10-23 · in force
Workers not registered with social security, September 2026	21.0 %INE, ECH Boletín Técnico September 2026, Cuadro 4, as of 2026-10-23 · in force
Underemployment rate, September 2026	8.8 %INE, ECH Boletín Técnico September 2026, Cuadro 4, as of 2026-10-23 · in force
Unemployment rate, ages 14 to 24, September 2026	21.6 %INE, ECH Boletín Técnico September 2026, Cuadro 3, as of 2026-10-23 · in force
Average Wage Index, 12 month change to August 2026	5.89 %INE, Índice Medio de Salarios, as of 2026-09-30 · in force

The rule

1. The National Statistical System is made up of the National Statistics Institute (INE) and the statistical offices of the branches of government and other public bodies. Its job is to produce and publish reliable, timely statistics and to coordinate public statistics. INE runs the population census, the Continuous Household Survey (ECH) that measures employment, the CPI and the average wage index. These are the official figures used on this page.Ley Nº 16.616 (Estadística Nacional), Art. 1 and art. 2, 1994-10-20 official text · verified 2026-10-27

2. Each of the 19 departments is governed by a Junta Departamental and an Intendente, except for public security, which is national. The departmental elections, together with local authorities, are held on the second Sunday of May of the year after the national election. A Congress of Intendentes coordinates departmental policies. Departmental governments levy and administer taxes on urban and suburban property, taxes on vacant or inadequately built urban land, fees and charges for their services, and taxes on vehicles, public shows and advertising. The national Parliament sets the rural property tax, but its proceeds go to the departments.
Example: The last departmental and municipal elections were held on 11 May 2025. Under the constitutional rule, the next are due on 12 May 2030.Constitución de la República (art. 77 and art. 262 as worded by the 1996 reform), Art. 262, art. 77 numeral 9 and art. 297, 1996-12-08 official text · verified 2026-10-27

3. Municipalities (Municipios) are a third level of government and administration. Every town of more than 2,000 inhabitants is a municipality. Smaller towns can have one if the Junta Departamental decides so on the Intendente's initiative, or at the request of 15 percent of registered residents. Municipalities inside departmental capitals need the Intendente's initiative and the Junta's approval.Ley Nº 19.272 (Ley de Descentralización y Participación Ciudadana), Art. 1 and art. 2, 2014-09-18 official text · verified 2026-10-27

4. INE estimates the resident population at 3,499,451 on 31 May 2023. This adjusts the 3,138,813 people counted for a 10.3 percent census omission rate. The population grew 2.5 percent between 2011 and 2023, about 0.2 percent a year. Montevideo lost 72,586 residents (minus 5.3 percent), while Maldonado grew 23.7 percent and Canelones 13.5 percent. Natural growth turned negative in 2021 to 2023. People aged 65 and over rose from 13 to 16 percent of the population between 1996 and 2023, while those under 15 fell from 25 to 18 percent. The census counted 107,578 people born abroad. Of these, 56,906 arrived between 2012 and 2023, mainly from Venezuela, Argentina and Cuba.INE, Censo 2023: Población estimada, crecimiento intercensal y estructura por sexo y edad, Sections 1 to 3, Tables 1, 4 and 6, 2023-05-31 official text · verified 2026-10-27

5. In September 2026 the activity rate was 64.1 percent, the employment rate 59.6 percent and unemployment 7.1 percent, all similar to August. Unemployment was 7.1 percent in both Montevideo and the interior, 5.8 percent for men, 8.6 percent for women and 21.6 percent for people aged 14 to 24. Underemployment was 8.8 percent. Informality, measured as not being registered with social security, was 21.0 percent: 15.2 percent in Montevideo and 24.8 percent in the interior. That is 1.3 points below September 2025. The survey covers people aged 14 and over.INE, Encuesta Continua de Hogares, Boletín Técnico Actividad, Empleo y Desempleo, September 2026 (IN_SOC_MEL_2026_M_09), Cuadros 1 to 5, 2026-10-23 official text · verified 2026-10-27

6. INE's Average Wage Index (Índice Medio de Salarios) rose 0.32 percent in August 2026, 5.14 percent so far in 2026 and 5.89 percent over 12 months. INE's CPI rose 4.55 percent in the 12 months to August 2026. That means average real wages rose about 1.3 percent over the year. This is our calculation (1.0589 divided by 1.0455, minus 1), not a published INE figure.
Example: A payroll of UYU 10,000,000 a month in August 2025 that tracked the average wage index would be about UYU 10,589,000 a month in August 2026. / About US$248,670 rising to about US$263,316 a month at UYU 40.214 per US dollar.INE, Índice Medio de Salarios, August 2026 (published 30 September 2026); INE, IPC August 2026 (published 3 September 2026), Monthly technical reports, 2026-09-30 official text · verified 2026-10-27

Department	Population 2023	Change 2011 to 2023	Annual rate
Montevideo	1,302,954	-5.3%	-0.5%
Canelones	608,956	13.5%	1.1%
Maldonado	212,951	23.7%	1.8%
Salto	136,197	5.7%	0.5%
Colonia	135,797	6.6%	0.5%
Paysandú	121,843	4.1%	0.3%
San José	119,714	8.5%	0.7%
Rivera	109,300	2.6%	0.2%
Tacuarembó	96,013	3.0%	0.2%
Cerro Largo	91,025	2.0%	0.2%
Soriano	83,685	-1.0%	-0.1%
Rocha	80,707	9.8%	0.8%
Artigas	77,487	1.9%	0.2%
Florida	70,325	1.5%	0.1%
Durazno	62,011	5.1%	0.4%
Lavalleja	59,175	-1.7%	-0.1%
Río Negro	57,334	2.4%	0.2%
Treinta y Tres	47,706	-5.7%	-0.5%
Flores	26,271	-0.9%	-0.1%
Total	3,499,451	2.5%	0.2%

Population by department, Census 2023 (INE, Table 1; resident population at 31 May 2023)

Group	Activity	Employment	Unemployment	Not registered with social security
Total	64.1	59.6	7.1	21.0
Montevideo	65.4	60.7	7.1	15.2
Interior	63.3	58.8	7.1	24.8
Men	70.7	66.6	5.8	Not stated
Women	58.0	53.1	8.6	Not stated

Labor market by region and sex, September 2026, percent (INE, ECH Boletín Técnico, Cuadros 1, 2 and 4)

Indicator	Jul to Sep 2025	Apr to Jun 2026	Jul to Sep 2026
Activity	64.3	64.2	64.1
Employment	59.8	59.5	59.6
Unemployment	6.9	7.4	7.1
Underemployment	9.6	8.9	8.9
Not registered with social security	22.0	21.1	21.0

Labor market trend, rolling quarters, percent (INE, ECH Boletín Técnico September 2026, Cuadro 5)

Country of birth	Total	Arrived 2012 to 2023
Argentina	31,894	12,186
Venezuela	16,115	15,230
Cuba	11,838	11,338
Brazil	10,731	3,513
Spain	8,187	1,591
United States	3,085	1,151
Other or unknown	25,728	11,897
Total	107,578	56,906

People born abroad by country of birth, Census 2023 (INE, Table 4)

Worked example

Choosing a location. Montevideo has 1,302,954 residents (37.2 percent of the total) and lower informality: 15.2 percent against 24.8 percent in the interior. Canelones and Maldonado added 72,195 and 40,821 residents between 2011 and 2023, and the census shows Montevideo losing people to Canelones through internal migration.
Planning pay. If your wage bill tracks the average wage index, a UYU 10,000,000 monthly payroll in August 2025 (about US$248,670) becomes about UYU 10,589,000 (about US$263,316) a year later. That is roughly 1.3 percent more in real terms. Wage Council agreements set the actual raises by sector; see labor/minimum-wage-and-wage-councils.
Youth hiring. Unemployment among 14 to 24 year olds was 21.6 percent in September 2026, against 4.5 percent for ages 35 to 44. For subsidies and internship rules, see labor/hiring-incentives-and-internships.

Step by step

1. Use INE as the reference for population, employment, CPI and wages (Ley Nº 16.616). The September 2026 labor figures came out on 23 October 2026, and the wage index comes out at the end of the following month.
2. Size your local market with the census department tables before choosing a site. Then check the departmental property taxes and fees that apply there (Constitución art. 297; see taxes/local-taxes).
3. Benchmark pay against the wage index and your sector's Wage Council agreement, not national averages alone. See labor/employing-people.
4. Register every worker with BPS from day one. Informality is 21 percent nationally and higher in the interior, so check that contractors and suppliers comply too. See labor/social-security-and-pensions.
5. If you bring staff from abroad, including from Argentina or other Mercosur countries, see immigration/residence-and-work-rights.
6. Track monthly releases on /dashboard/ and the country page /country/uruguay/.

Common traps

Using the counted census figure. The census counted 3,138,813 people; INE's official 2023 population of 3,499,451 adds a 10.3 percent omission adjustment.
Assuming the capital is the growth market. Montevideo's population fell 5.3 percent between 2011 and 2023, while Maldonado and Canelones grew fastest.
Treating informality as uniform. It is 15.2 percent in Montevideo and 24.8 percent in the interior, which affects competitors' cost bases and your supply chain due diligence.
Reading the wage index as real growth. The index is nominal. Real wages rose about 1.3 percent in the year to August 2026 by our calculation.
Ignoring departmental politics. Intendentes are elected separately from the national government (art. 77 numeral 9) and control urban land taxes, local fees and permits (art. 297).

Sources

← Uruguay's external sector: trade, foreign direct investment, the balance of payments and reservesForeign investment regime: guarantees, COMAP incentives, free zones and the few limits →