Chilean President Kast announces emergency labor plan to combat unemployment

President José Antonio Kast is set to announce ‘Plan Chile Despega’, an emergency labor plan designed to combat a rising unemployment rate, which has reached 9.5% with nearly one million people seeking work. The initiative, presented from La Moneda, focuses on three primary pillars: employment subsidies, financing for small and medium-sized enterprises (SMEs), and increased public investment.

The plan includes accelerating public works and housing projects, with the Ministry of Housing anticipating an investment of US$200 million by the end of the year. To boost job creation, the government is considering proposals to expand public works to two or three shifts. Additionally, the administration intends to add 75,000 slots to employment subsidies to provide immediate relief to the workforce.

This economic intervention comes amid a period of contraction, with the economy showing a 0.4% decline between January and July and GDP growth projected to remain below 1%. The plan involves coordination across several ministries, including Finance, Labor, Housing, and Public Works.