Chiles unemployment rate dropped to 8.0% between November 2024 and January 2025, according to the National Institute of Statistics (INE).This marks a 0.4 percentage point (pp) decline over the past year, driven by a 1.3% rise in employment, which outpaced the labor forces 0.8% growth.
However, the improvement was smaller than market expectations and slightly below the previous quarters rate of 8.1%.Unemployment decreased by 4.1%, with declines among previously employed individuals (-4.2%) and first-time job seekers (-2.8%).
The participation rate remained steady at 62.1%, while the employment rate edged up to 57.1%, reflecting a modest recovery in overall labor activity.Gender disparities persisted in the labor market.
Women faced a higher unemployment rate of 9.1%, up 0.3 pp from last year, as their labor force expanded by 0.5%, while employment grew only 0.2%.This imbalance led to a 4.5% increase in unemployed women, with their participation and employment rates slightly declining by 0.2 pp and 0.3 pp, respectively.Chiles Job Market Improves Slightly, Women and Regions Face Challenges.
(Photo Internet reproduction)Meanwhile, men saw improved conditions, with unemployment dropping to 7.2% (-1 pp), as their employment rose by 2.2%, surpassing labor force growth of 1.1%.
Male unemployment fell sharply by 11.2%.Chiles Labor MarketInformal employment continued to decline, with the informal rate falling to 26.3% (-1.3 pp).
Informal workers dropped by 3.4%, particularly in commerce (-7.9%) and manufacturing (-12.9%).Self-employed workers and unpaid family workers saw notable declines of -5.3% and -17.6%, respectively.
Regional disparities also stood out, with Atacama recording the highest unemployment at 9.2%, followed by uble (8.9%) and La Araucana (8.8%).Magallanes had the lowest rate at just 3.9%.
In Santiagos Metropolitan Region, unemployment fell to 8.7% (-0.4 pp), bolstered by gains in public administration (13.1%), professional services (12.8%), and healthcare (5.4%).The data highlights uneven progress across demographics and regions, providing critical insights for policymakers and businesses navigating Chiles evolving labor market landscape.