Chile experienced an increase in unemployment, reaching 8.9% in the August-October 2023 quarter.
This was a significant rise of 0.9 percentage points from the previous year, as reported by the National Institute of Statistics (INE).
The National Employment Survey indicated this was the twelfth consecutive year-on-year increase in unemployment rates.
The INE’s findings highlighted that the growth of the labor force, at 3.1%, exceeded the rise in employed persons, which was only 2.1%.
This imbalance contributed to the overall increase in unemployment. Over a 12-month span, the number of unemployed individuals climbed by 15%.
This surge was primarily due to a 15.6% increase in those who had lost jobs and a 7.7% rise in first-time job seekers.
Furthermore, the report noted a continued increase in both labor participation and employment rates.
Despite this, the segment of the population not engaged in the labor force dropped by 2.3% over the same period.
This suggests a complex labor market scenario, where more people are actively seeking jobs, yet not everyone is finding employment.
The unemployment situation also varied by gender. Women faced a higher rate of unemployment at 9.1%, which was a 0.5 percentage point increase over 12 months.
The rate was slightly lower for men at 8.7%, but it still marked a significant increase of 1.2 percentage points.
The survey also shed light on the informal employment sector. The occupation rate was 27%, showing a decline of 0.7 percentage points from the previous year.
This decrease in informal employment could be indicative of a shift towards more formal job sectors or a reduction in overall employment opportunities.
In summary, Chile’s rising unemployment rate reflects a challenging economic landscape, with significant disparities in job availability and a shifting balance between formal and informal employment sectors.