Chilean President announces labor emergency plan to combat unemployment

President José Antonio Kast has instructed various ministries to develop a short-term labor emergency plan to address rising unemployment and informality in Chile. The initiative aims to create approximately 50,000 jobs through a combination of immediate measures and intersectoral efforts, with specific details expected to be released following the national holidays.

In the Biobío region, the labor situation has shown significant decline. According to the Biobío Labor Observatory, the employed population in the region decreased by 2.7% over the last 12 months, while formal private sector employees fell by 4.7%. The manufacturing industry and forest exports, which dropped by 6.2%, have been particularly affected.

Informal employment has also risen, reaching a rate of 27.6%, with a notable increase among women. Regional authorities and labor unions are currently preparing proposals to ensure local priorities are included in the national emergency plan. The government also intends to emphasize job creation within the 2027 Budget Law to address the economic slowdown.