Chile faces significant employment deficit, led by La Araucanía

A study by the Economic and Social Observatory of the Universidad de La Frontera (UFRO) reveals that Chile faces a significant employment deficit. While the absolute number of employed people has increased since the pandemic, the occupation rate has actually dropped from 58.2% to 55.9%. The country requires approximately 393,000 additional jobs to return to pre-pandemic occupation levels.

Regional disparities are stark. The La Araucanía region faces a deficit of 37,200 jobs, representing 7.9% of its required employment. The Southern macro-region, including La Araucanía, Los Ríos, and Los Lagos, faces a combined deficit of nearly 99,000 jobs.

Economic challenges include a rise in informal labor, which now accounts for 26.5% of workers, and a decline in formal employment. This structural issue disproportionately affects women and young people. In response, regional authorities in areas like Biobío and Los Lagos are coordinating investment and employment tables to stimulate formal hiring and infrastructure development.