Chile labor market faces rising unemployment and youth job losses

Chile is facing a complex labor market crisis characterized by rising unemployment, youth job losses, and significant underemployment. Recent data shows unemployment reaching 9.4%, the highest in five years. In the Biobío region, long-term unemployment is a growing concern, with 15.6% of the unemployed having been out of work for over a year.

Younger populations are particularly affected; the 18-34 age group lost approximately 95,000 jobs over the past year, with three out of four of these being formal positions. Furthermore, youth unemployment for those under 25 has reached 23.6%. This trend is compounded by a mismatch in qualifications, where roughly 1.5 million workers with higher education are underemployed in roles that do not utilize their training.

In response to these challenges, 76% of workers surveyed expressed a willingness to accept temporary or eventual employment to supplement their income. Meanwhile, government initiatives like the Pro Empleo training in the Maule region are attempting to support hiring through subsidies. Experts emphasize that the rise of artificial intelligence is redefining professional requirements, necessitating a shift toward digital skills and continuous learning to prevent professional obsolescence.