Labor market challenges reported in Chile and Mexico

In Chile, academic Guillermo Riquelme notes that a decrease in layoffs does not necessarily indicate a strengthening labor market. Due to rising labor costs, increased judicialization of terminations, and economic slowdown, companies are adjusting hiring decisions. This shift may lead to a rise in unemployment as indefinite contracts potentially give way to fixed-term agreements or hourly contracts, while companies turn to technological adaptation.

In Mexico, the Confederation of National Chambers of Commerce, Services and Tourism (CONCANACO SERVYTUR) has warned of alleged labor fraud targeting family businesses. The organization reported patterns where individuals work for a short period and subsequently file lawsuits for unjustified dismissal. For small establishments such as restaurants and hotels, these legal costs can represent a month or more of total profits, threatening their operational continuity.