Chile unemployment rises to 8.4% as hourly‑contract proposal is debated

Chile's unemployment rate climbed to 8.4%, the highest level since September 2021, affecting roughly 900,000 people. The increase has sparked political debate over existing labor reforms such as the 40‑hour workweek and minimum‑wage hikes, which primarily benefit those already employed.

Lawmakers are discussing a new hourly‑contract scheme intended to extend formal‑sector jobs to workers who cannot commit to full‑time schedules, including students, caregivers and older adults. Proponents argue the model would provide flexibility while preserving labor protections, aiming to pull many out of informal employment and reduce long‑term exclusion from the labour market.