Chile experienced a rise in its unemployment rate, reaching 8.5 percent in the final quarter of 2023, as reported by the National Institute of Statistics (INE).
This figure marks a 0.6 percentage point increase from the same period in the previous year.
The INE‘s National Employment Survey attributes this increase to the labor force’s growth (3.6 percent), surpassing the rise in employed individuals (2.9 percent).
The report further reveals a 11.6 percent year-on-year increase in unemployed individuals, driven by both jobless people (11.5 percent) and first-time job seekers (12.9 percent).
These numbers are significant as they reflect the challenges in the job market, especially for new entrants.
The labor participation and employment rates stood at 61.8 percent and 56.6 percent, respectively.
Interestingly, the population outside the labor force saw a decrease of 3.1 percent over the year.
This decline might indicate a shift as more people either find employment or actively seek jobs.
Gender-wise, the unemployment rate was higher among women at 8.8 percent, compared to 8.2 percent among men.
This disparity highlights ongoing gender differences in the labor market.
Persistent Challenges
The informal employment sector recorded an occupation rate of 27.5 percent, slightly up by 0.1 percentage points over the year.
This slight increase suggests a stable yet significant portion of the workforce remains in informal employment.
Crucially, INE’s report indicates that Chile‘s employment sector has not returned to its pre-pandemic levels.
This lag in recovery is a critical indicator of the broader economic health and challenges in the post-pandemic era.
In summary, the rise in unemployment in Chile during the October–December 2023 quarter, coupled with the slow recovery in employment levels, underscores the ongoing economic challenges.
These trends highlight the need for targeted policy interventions to stimulate job creation and support the labor market’s recovery.