Coronavirus in Chile: Unemployment Rises to 11.2 Percent, Highest Level in Decade

RIO DE JANEIRO, BRAZIL – The novel coronavirus pandemic pushed unemployment in Chile in the March-May quarter to 11.2 percent, its highest figure in a decade, the National Institute of Statistics (INE) reported on Tuesday, June 30th.

The national unemployment rate thereby grew by four percent over the same period in 2019, “the highest since 2010” and burdened by containment measures to slow the spread of the coronavirus in the country, the institute said.

The May result, in line with what the markets projected and above the nine percent recorded in April, was the result of the rise in 35.1 percent of the unemployed, affected in turn by those who were fired (44.3 percent), said the body.

“In twelve months, the rates of engagement and occupation stood at 53.6 and 47.6 percent, contracting 9.2 and 10.6 percent in each case and recording its lowest levels since official records began,” it added.

This is the first report that covers three full months of the pandemic, which is growing rapidly in Latin America and keeps Chile as the seventh most infected country in the world, above Italy and Spain.

“These data show the sharp deterioration that the coronavirus is causing in employment, family income, and economic activity. When health conditions improve, we must rebuild our ability to generate formal, quality jobs with social protection,” said Economy Minister Lucas Palacios.

According to Monday’s balance, Chile is close to 276,000 infections and over 9,000 deaths among confirmed and suspected victims.

The so-called potential labor force – people who were largely not looking for a job but were available to work – rose to 27.4 percent, while the total number of employed people fell by 16.5 percent, according to the INE.

On the other hand, absenteeism, which represents 15.4 percent of the total number of employed people, increased by 149.8 percent, equivalent to nearly 690,000 individuals.

“These are people who could have been dismissed due to the suspension of activities but who, thanks to the Employment Protection Law, keep their employment contract, receive part of their salary and payment of their contributions,” explained the Minister.

Santiago, the main focus of the pandemic in the country and in quarantine since May 15th, is the most affected city in terms of unemployment, with a rate of 11.9 percent in the March-May quarter, which is 4.5 percent higher than the same period last year.

Chile has been under a state of emergency since March 18th, with a night curfew, borders, schools, universities, and all non-essential businesses closed and more than 50 percent of its 19 million inhabitants confined.

The Central Bank estimates that Chile’s GDP, which grew by 0.4 percent in the first quarter of 2020, will contract by up to 7.5 percent this year due to the coronavirus, although international organizations are more optimistic and estimate the drop at around 4.5 percent.

Source: infobae