Chile and Argentina face economic and labor market instability

Chile and Argentina are facing significant economic and social challenges. In Chile, the administration of President José Antonio Kast is navigating a period of economic instability characterized by a rising unemployment rate, which has reached 9.5%, affecting nearly one million people. The central bank has lowered growth projections for 2026, and inflation has surged, driven by rising costs in food and transport. Additionally, legislative debates regarding the 'Sala Cuna' project have sparked constitutional disputes over parental rights and state involvement in childcare.

In Argentina, the economic model under President Javier Milei is under scrutiny due to a widening gap between controlled exchange rates and rising domestic inflation. While the official exchange rate remains relatively stable, cumulative inflation has reached 21%, leading to a real depreciation of the currency. This disparity has fueled complaints from the productive sector regarding competitiveness. Furthermore, the labor market shows signs of distress, with job growth largely limited to extractive sectors like mining and oil, while many provinces report negative employment variations.