Chile unemployment rises to 9.5% amid growing labor informality

Chile is experiencing a significant labor market crisis, with the national unemployment rate rising to 9.5% for the May-July quarter, the highest level in five years. This increase is accompanied by a rise in informal employment and a notable impact on women, who face higher unemployment rates than the national average.

In the Ñuble region, the situation is particularly acute, with unemployment reaching 11.0% and informality at 34.5%. Regional authorities have called for government intervention to address this economic lag, noting that the agricultural sector—which accounts for 45.1% of regional employment—has been impacted by the end of beet reception at the Iansa plant in Concharcas.

While the probability of unemployed individuals finding formal work has increased slightly, the overall rate of exiting unemployment into any form of work has declined. Data suggests that those without university education are significantly more likely to fall into informal labor compared to university graduates.