Chile government launches 5,000 job subsidies to curb rising unemployment

The Chilean government, led by President José Antonio Kast, announced a package of 5,000 hiring subsidies to be administered through the SENCE system. The subsidy will cover 50 % of a worker’s minimum wage for four months, with a cap of 200 hires per company, and is aimed at accelerating job creation, especially for women who have been disproportionately affected by recent labour market weakness.

Unemployment in Chile has risen to 9.4 % for the March‑May quarter, the highest level since June 2021, with rates of 10.5 % for women and over 11 % for workers aged 25‑34. The slowdown is accompanied by a 0.9 % contraction in the May IMACEc index, bringing the economy close to a technical recession. Public opinion polls show 80 % of respondents view the situation as a labour emergency, and 67 % say employment should be the government’s top priority.

The subsidy programme is part of a broader effort that includes a national reconstruction law, tax cuts for companies, and proposals from a technical table convened by the Ministry of Labour to overhaul the labour market. Regional authorities in La Araucanía and Coquimbo have already earmarked funds to generate 500 jobs, and additional public‑sector hiring in areas such as environmental cleanup and infrastructure is under review.