Unemployment rate in Chile stands at 8.5%, registering eighth consecutive annual increase

The unemployment rate in Chile has recorded its eighth consecutive yearly increase, growing by 0.7% over the last year, though it remained steady at 8.5% for the April-June 2023 period, as reported by the National Statistics Institute (INE).

The INE attributes this trend to the growth of the labor force (3%) outpacing that of employed individuals (2.2%).

The number of unemployed persons expanded by 12.5% in a year, impacted by those unemployed (13.6%) and those seeking employment for the first time (0.9%).

Participation and employment rates saw an increase, though at a slower pace, standing at 60.9% and 55.7% respectively. In contrast, the population outside the labor force decreased by 2.2%.

The unemployment rate for women in the country stood at 8.9%, marking a 0.5% increase over the past year. Participation and employment rates for this group were at 51.5% and 46.9%, respectively, marking an increase of 1.8% and 1.4% each.

For men, the unemployment rate was at 8.2%, up by 0.8 percentage points, while the participation rate grew by 0.6 points and the employment rate remained unchanged.

After a rapid recovery from the pandemic with a growth rate of 11.7% in 2021, Chile’s economy began to slow down in the second half of 2022, ending the year with a growth of 2.4% compared to the previous year.

Additionally, Chile closed 2022 with the highest inflation rate in 30 years, recording an annual increase of 12.8%, marking the second consecutive year with record figures.

The Central Bank raised the benchmark interest rate, the Monetary Policy Rate (TPM), to 11.25% last October, its highest level since 2001 and has remained there since.

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