Chile unemployment rises above 9% as central bank warns of sluggish growth

Chile's unemployment rate has climbed to 9.1% in the February‑April period, the highest level since mid‑2021, according to Central Bank President Rosanna Costa. Costa highlighted weak performance in construction, rising labor costs for low‑wage workers, and the growing influence of automation and artificial intelligence as factors hampering job creation. She called for urgent policies to address both cyclical and structural drivers of the labour market slowdown.

At the same time, five university deans of economics discussed the outlook after the Central Bank lowered its growth forecasts in the June Monetary Policy Report. The bank now projects 1.0‑1.75% growth this year and an average of 2.04% for 2026‑2028, with some experts doubting the economy can sustainably exceed a 2% annual expansion due to structural constraints even if large investment projects were launched.