In Colombia, the nineties was a period characterized by significant increases in unemployment, especially since the second half of the decade. Although several reasons have been discussed in order to explain this increase, it has been given very little attention to the effect of technological progress, which showed a significant measured as the growth of Total Factor Productivity (TFP), it recorded a significant slowdown for the period 1996–2000. Through the quantitative application of Pissarides and Vallanti model (2007), that a negative model with economic growth and frictions in the labor market, this paper shows that negative relationship between technological progress and unemployment could only be explained by the dominance of capitalization effect, where lower rates of TFP growth would have discouraged the creation of jobs and generated an unemployment’s increase. However, it was found that, even in the extreme case where all technological progress would have operated under this effect, the slowdown in TFP observed during the period 1996–2000 does not explain the increases in unemployment, indicating that other factors different to technological progress are the ones that explain which explain this phenomenon.