This paper describes the evolution of the Uruguayan labor market between 2000 and 2010 based on household surveys data (Encuesta Continua de Hogares, ECH). This period covers the 2002 economic crisis, where labor market conditions substantially worsened - employment rates fell, unemployment peaked and real wages sharply fell - as well as a significant recovery since 2004. At present, unemployment rates are located at a historical minimum. Also, since 2007 labor earning inequality started to decline, reversing the upwards trend observed since the mid 1990s. However, there are still some difficulties thar involve challenges for emplyment policies. First, the possible constraints to economic growth thar could arise due to supply constraints that have already been identified prevailing both in previus studies (Perazzo, 2008; CINVE, 2007, for example) and in the recent national dialogue promoted by the MTSS. Secondly, although total unemployment is no longer considered a concern, it still exhibits hight levels for certain vulnerable groups, such as women and youth. Thirdly, despite the significant dynamism in the economy and policies deplodyed to reduce the levels of non-social security registration, the percentage of workers without pension rights remains high.