Chile's labor market under strain as unemployment climbs and govt unveils job stimulus

Chile faces a deepening labour crisis. Official unemployment rose to 9.4% in the March‑May 2026 quarter, the highest in five years, while hidden unemployment that includes discouraged workers could reach 13.2%. About 480,000 women are searching for work, with only 48% of women of working age employed, an 18‑point gender gap. The Commission of Women and Gender Equity called for urgent measures, including a plan to create 50,000 jobs in four months, 5,000 hiring subsidies and reserved slots for women, as well as a universal crèche policy.

The government’s Inter‑ministerial Employment Table, co‑led by Economy and Mining Vice‑Minister Daniel Mas, is preparing a short‑term pro‑employment package targeting sectors such as forestry and mining, and expanding public‑works programmes.

In Spain, the public employment service SEPE placed only 1.7% of all contracts in 2025, its lowest share in a decade, while the private staffing sector showed a 19.3% year‑on‑year increase in hours worked through temporary work agencies, positioning Spain among the leading European markets for agency‑mediated employment.

Both countries highlight structural challenges in matching job seekers with opportunities and the growing reliance on agency‑based labour solutions.