Chile unemployment hits 9.4% in March‑May 2026, highest since 2021

The National Institute of Statistics (INE) reported that Chile’s unemployment rate rose to 9.4 % for the March‑May 2026 quarter, up 0.5 percentage points from a year earlier and the highest level since mid‑2021. The increase reflects a labour‑force growth of 1.3 % that outpaced job creation (0.8 %), leaving 981 315 people unemployed, a 6.9 % rise. Female unemployment stood at 10.5 % versus 8.6 % for men, widening the gender gap. Informal employment reached 27 % of all workers, up one point year‑on‑year, with women at 28.8 % and men at 25.6 %.

Regional data showed variation: the Metropolitan Region recorded 9.8 %, O’Higgins 10.2 % (the highest in the country), Biobío 9.8 % and Atacama 8.3 % (a decline). The government, through Labour Minister Tomás Rau, acknowledged the loss of more than 42 000 formal jobs while 112 000 informal positions were created, netting a modest 70 000 new jobs that did not keep pace with labour‑force growth. Rau cited an agenda to curb labour‑costs, a new minimum‑wage law and measures to promote female employment.

The Minister of Labour also presented the final report of the “Mesa de Reactivación Laboral”, which delivered 22 consensus proposals—including a universal childcare subsidy, adjustments to severance pay, flexible 40‑hour contracts and a new tourism‑sector labour statute—to stimulate formal hiring. Economists warned that the persistent rise in unemployment and informal work poses risks to consumption and overall economic recovery, urging faster implementation of pro‑employment policies.