Chile’s Job Market Holds Steady as Unemployment Stays at 8.7%

Chile’s National Institute of Statistics reported the country’s unemployment rate at 8.7% for the first quarter of 2025, unchanged from last year.

This stability signals that the labor force and employment both grew by 0.9%, keeping joblessness steady. The number of unemployed people increased 1.3%, mainly from layoffs and new jobseekers.

Women faced a 9.5% unemployment rate, while men saw a slight rise to 8.1%. The labor participation rate stood at 62.4%, with an employment rate of 57%.

Sectors such as finance, lodging, and professional services led job growth, with finance jobs jumping by 19.5%. However, manufacturing and commerce lost jobs, contributing to a 2.3 percentage point drop in informal employment, now at 25.8%.

Chile’s job market reflects a mixed recovery. The private sector created most new jobs, while public sector hiring slowed as the government cut spending.

Construction, restaurants, and transport saw above-normal hiring, but manufacturing lost 37,000 jobs in the last quarter. The public sector’s share of employment continues to shrink, with only 5,000 new jobs added, as fiscal tightening reduces public investment.

Chile’s economy remains resilient, with steady job creation offset by persistent challenges in some industries. Informal employment, though falling, still affects over a quarter of the workforce.

The labor market’s performance matters for businesses, as sectoral shifts and government policy directly impact hiring and wages. The current figures show a stable but cautious outlook, with private sector growth balancing public sector restraint and industry-specific setbacks.

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