Chile’s Unemployment Climbs to 9.1%, the Highest in Nearly Five Years

CHILE · ECONOMY

Chile’s unemployment rate climbed to 9.1% in the February–April quarter, its highest in almost five years, as a growing labour force outpaced job creation and women bore the brunt of the deterioration. The data point to a labour market that remains under strain, with formal salaried work shrinking and informality on the rise.

What the unemployment data show

The National Statistics Institute (INE) reported that Chile’s unemployment rate reached 9.1% in the February–April 2026 rolling quarter, an increase of 0.3 percentage points over twelve months and 1.1 points over the final quarter of 2025. It was the highest reading since around the middle of 2021.

The institute said the rise was driven by the labour force expanding 1.0% over the year, ahead of the 0.7% growth in the number of people employed. The number of unemployed people rose 4.1%, with a notable jump among those looking for work for the first time. On a seasonally adjusted basis, the rate stood at 8.9%.

Women hit hardest

Female unemployment rose 0.8 percentage points to 10.5%, the highest rate for women since the February–April quarter of 2021. Male unemployment, by contrast, fell 0.2 points to 8.0%. In the Metropolitan Region around Santiago, the overall jobless rate reached 9.7%.

The INE noted that the rise in unemployment among those with university education or higher was particularly pronounced, marking its eighth consecutive increase and the highest level in the series.

Informality rises as formal jobs shrink

A central feature of the report was the shift in the composition of employment. The informal employment rate rose to 26.8%, up 1.0 percentage point over the year, while the number of formal salaried workers fell 1.7%. The growth in employment that did occur was concentrated in informal salaried and own-account work.

By sector, the expansion in the employed population was influenced mainly by health, manufacturing and professional activities. The rise in informality was concentrated in commerce and manufacturing.

A persistent weakness

The headline unemployment rate has now remained above 8% for 40 consecutive months, underlining how entrenched the weakness in Chile’s labour market has become. Those seeking their first job have been among the hardest-hit groups.

The participation rate stood at 62.3% and the employment rate at 56.7%, the latter showing no change over the period. The figures arrive as policymakers weigh the balance between supporting employment and containing inflation.