Chile’s Job Market Improves Slightly, Women and Regions Face Challenges

Chile’s unemployment rate dropped to 8.0% between November 2024 and January 2025, according to the National Institute of Statistics (INE).

This marks a 0.4 percentage point (pp) decline over the past year, driven by a 1.3% rise in employment, which outpaced the labor force’s 0.8% growth. However, the improvement was smaller than market expectations and slightly below the previous quarter’s rate of 8.1%.

Unemployment decreased by 4.1%, with declines among previously employed individuals (-4.2%) and first-time job seekers (-2.8%). The participation rate remained steady at 62.1%, while the employment rate edged up to 57.1%, reflecting a modest recovery in overall labor activity.

Gender disparities persisted in the labor market. Women faced a higher unemployment rate of 9.1%, up 0.3 pp from last year, as their labor force expanded by 0.5%, while employment grew only 0.2%.

This imbalance led to a 4.5% increase in unemployed women, with their participation and employment rates slightly declining by 0.2 pp and 0.3 pp, respectively.

Meanwhile, men saw improved conditions, with unemployment dropping to 7.2% (-1 pp), as their employment rose by 2.2%, surpassing labor force growth of 1.1%. Male unemployment fell sharply by 11.2%.

Chile’s Labor Market

Informal employment continued to decline, with the informal rate falling to 26.3% (-1.3 pp). Informal workers dropped by 3.4%, particularly in commerce (-7.9%) and manufacturing (-12.9%).

Self-employed workers and unpaid family workers saw notable declines of -5.3% and -17.6%, respectively. Regional disparities also stood out, with Atacama recording the highest unemployment at 9.2%, followed by Ñuble (8.9%) and La Araucanía (8.8%).

Magallanes had the lowest rate at just 3.9%. In Santiago’s Metropolitan Region, unemployment fell to 8.7% (-0.4 pp), bolstered by gains in public administration (13.1%), professional services (12.8%), and healthcare (5.4%).

The data highlights uneven progress across demographics and regions, providing critical insights for policymakers and businesses navigating Chile’s evolving labor market landscape.