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Chile labour market strain deepens with record unemployment

Updated 4 times since CLSTR started tracking revisions of this situation.

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2026-08-13 17:04 UTC → 2026-08-14 13:47 UTC · added ~~removed~~

Chile’s labour market remains under significant strain. For the April–June 2026 quarter, the national unemployment rate held at 9.4%, the highest level in five years. This figure was driven by a 1.5% increase in the labour force that outpaced employment growth. A persistent gender gap remains, with female unemployment at 10.4% compared to 8.7% for men. Informal employment has become a critical issue, reaching 27% of the workforce. This sector is heavily concentrated among self-employed individuals, who make up 64.3% of informal workers. In response, the government has announced an “employment mode” featuring hiring subsidies and tax incentives to promote formal ~~jobs.~~ jobs, such as the Pro Empleo training initiative in the Maule region. New data ~~from the Labor and Pension Barometer~~ highlights a worsening crisis for younger workers. The number of employed individuals aged 18 to 34 fell by approximately 95,000 over the last year, representing a 3.3% decline in the April–June quarter. This downward trend has persisted for 18 months, with three out of four lost jobs occurring in the formal sector. ~~Structural challenges regarding employment quality are intensifying.~~ Youth unemployment (under 25) has reached ~~23.6%, compounded by~~ 23.6%. Regional disparities are emerging, with long-term unemployment becoming a ~~skills gap~~ growing concern in the Biobío region, where ~~young workers lack~~ 15.6% of the ~~digital and transversal competencies required by sectors like mining, logistics, and technology. Additionally,~~ unemployed have been out of work for over a year. Structural challenges regarding employment quality are intensifying; approximately 1.5 million workers with higher education degrees are experiencing qualification-based ~~underemployment, working in roles that do not require their level~~ underemployment. Amidst these shifts, 76% of ~~training. This mismatch is being exacerbated by rapid technological transformation and~~ surveyed workers expressed a willingness to accept temporary or eventual employment to supplement their income. Experts note that the ~~integration~~ rise of artificial ~~intelligence.~~ intelligence is redefining professional requirements, necessitating a shift toward digital skills to prevent professional obsolescence.

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