CHILE · ECONOMY
Key Facts
- —The country Chile, South America’s leading copper producer, has been governed since 11 March 2026 by right-wing President José Antonio Kast.
- —Why it matters Unemployment reached 9.5% in the May–July quarter, with about 981,000 people out of work, according to the national statistics institute (INE).
- —What happened On Monday 28 September Kast presented the “Chile Despega” jobs plan at La Moneda palace, promising more than 100,000 jobs through 2027, BioBioChile and T13 reported.
- —The numbers 75,000 new hiring-subsidy places on top of 25,000 existing ones, and up to US$311 million in fresh capital for the Fogape loan-guarantee fund, T13 reported.
- —What it means for you Firms that hire jobless workers on open-ended contracts can receive four months of wage support, claimed through Sence, the state training and employment service.
- —Still open How much of the money is new, how the extra places will be targeted and whether jobless numbers fall. New figures follow on Wednesday 30 September.
Chile’s President José Antonio Kast on Monday 28 September presented an emergency jobs plan, “Chile Despega, con más pega” (“Chile takes off, with more work”). It promises more than 100,000 jobs between now and 2027, BioBioChile reported.
Unemployment stood at 9.5% in May–July, with about 981,000 people out of work, according to the statistics institute INE. Kast said joblessness had now been above 8% for 43 consecutive months.
The pressure had already pushed Kast toward stimulus, as reported in Chile Unemployment Crisis Pushes Kast Toward Stimulus as Allies Attack His Cabinet.
What Kast announced
A government summary seen by BioBioChile puts the emergency jobs plan at about US$1.35 billion. It has four pillars: faster public works, more hiring subsidies, cash for firms and suppliers, and local execution with monitoring.
“It is a plan to carry out with maximum speed what is already budgeted,” Kast said at La Moneda, T13 reported.
How the hiring subsidy works
The subsidy adds 75,000 places to the 25,000 already offered under the Modo Empleo scheme, with about US$94 million for 2026–2027, T13 reported. The first places had drawn 66,000 applications by Friday, La Tercera reported.
Employers get half a monthly minimum wage per man hired and 60% per woman, for four months, Radio Universidad de Chile reported. Hires must be on open-ended contracts, with pension contributions paid.
Gross pay may not exceed three minimum wages, about US$1,720 a month, El Desconcierto reported. Applications run through Sence until 30 November. A separate unified employment subsidy opens for applications on Thursday 1 October.
Credit for small firms and faster building
Fogape, a loan-guarantee fund for small firms run by the state bank BancoEstado, gets up to US$311 million. With leverage of up to 13.5 times, that could back about US$4.2 billion in loans, T13 reported. Early CNN Chile reports had named a different fund, Fogaes.
“A company that recovers its liquidity can go back to buying and hiring,” Kast said. The health ministry will also pay suppliers about US$135 million early.
The public-works ministry is to spend about US$3.2 billion and the housing ministry about US$477 million by December. A further US$603 million goes to quick new works, plus 623 municipal projects, T13 reported.
What Is Not Yet Known
Totals differ: T13 put the short-term works-and-jobs strand at about US$1.14 billion. It is unclear how much money is new beyond the extra US$603 million. INE publishes unemployment for June–August on Wednesday 30 September.
Business leaders doubt the government’s longer-term aim. Susana Jiménez of the CPC business confederation called its 6.5% jobless target for 2030 “super ambitious”, La Tercera reported.
More: Chile news in English, every day from The Rio Times.
Frequently Asked Questions
What is Chile’s Chile Despega jobs plan?
A US$1.35 billion package presented on 28 September, promising more than 100,000 jobs through 2027, including 75,000 new hiring-subsidy places.
How does the hiring subsidy work?
Firms that hire jobless workers on open-ended contracts can receive four months of wage support, claimed through Sence, the state employment service.
How high is unemployment in Chile?
9.5% in the May–July quarter, about 981,000 people, according to the statistics institute INE; new figures follow on 30 September.
What else is in the plan?
Up to US$311 million in fresh capital for the Fogape loan-guarantee fund for small firms, plus faster public works.
Sources: BioBioChile; T13; La Tercera; CNN Chile; Radio Universidad de Chile; El Desconcierto; La Tercera (CPC) (all 27–28 September 2026).
In depth
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