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Chile employment and SME support – Late July 2026
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2026-07-29 08:40 UTC → 2026-07-31 19:55 UTC ·
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Chile employment and SME support – Late July 2026
Chile’s labour market continued to deteriorate in July 2026, with official unemployment rising to 9.4 % in the March‑May quarter – the highest in five years – and hidden unemployment possibly reaching 13.2 %. Women remain disproportionately affected; about 480 000 women are job‑seekers and only 48 % of working‑age women are employed, an 18‑point gender gap. The Commission of Women and Gender Equity reiterated calls for 5 000 hiring subsidies, reserved positions for women and a universal crèche policy as part of the 50 000‑job target set earlier in the year. The Inter‑ministerial Employment Table, led by Vice‑Minister Daniel Mas, is drafting a short‑term pro‑employment package that will prioritize forestry, mining and expanded public‑works programmes. The government’s “Modo Empleo” framework, announced in early July, provides a 25 billion‑peso wage‑subsidy pool, a 20 billion‑peso public‑works hiring pool and additional support for Sercotec, aiming to create 50 000 formal jobs by October. Corfo’s “Red de Asistencia Digital Fortalece Pyme” contest, open until 27 August, seeks proposals from up to 600 SMEs in Tarapacá, covering up to 80 % of project costs (capped at 550 million CLP) and targeting sectors such as energy, mining, agriculture, manufacturing, logistics and tourism. The agency highlighted eligibility thresholds and a 36‑month implementation window, with regional officials emphasizing the opportunity for digital‑gap diagnostics, AI and IoT adoption. Labor Minister Tomás Rau and SENCE director Rodrigo Valdivia Lefort toured Coquimbo and Magallanes, promoting officials continued to promote the hiring‑subsidy scheme. Rau announced expanded unemployment‑insurance benefits for workers laid off scheme in the catastrophe‑stricken Coquimbo region and urged faster communication of subsidies. In in Magallanes, confirming 399 subsidy slots were confirmed to help firms hire for seasonal workers earning less than three minimum wages, offering and urging faster communication of benefits. The subsidy offers firms a direct monthly bonuses bonus of up to 50 % of the a worker’s minimum wage for men and 60 (60 % for women women) for up to four months. months, targeting employees earning less than three times the minimum wage. On 31 July the Ministry of Labor and Social Welfare formally launched the new hiring‑subsidy programme, allowing each company to receive up to 200 subsidies and running until December 2026. Regional governments pledged an additional 210 billion CLP to the “Modo Empleo” plan, targeting roughly 30 000 new jobs. The private sector’s Confederación de la Producción y del Comercio (CPC) announced a “cruzada por el empleo” initiative, while the FOSIS fund will add 4 000 positions.
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- 2026-07-31 19:55 UTC Chile employment and SME support – Late July 2026
- 2026-07-29 08:40 UTC Chile employment and SME support – July 2026
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