Chile unemployment rises to 9.6% in the June-August quarter

Chile's unemployment rate rose to 9.6% in the June-August rolling quarter, according to data released on September 30 by the Instituto Nacional de Estadísticas (INE). The reading represents an increase of one percentage point over twelve months and marks the highest jobless rate since the March-May 2021 period. With this result, unemployment has spent five consecutive months above 9% and 44 months above 8%.

According to the agency, the increase reflected a 0.3% expansion in the labor force alongside a 0.9% drop in employed individuals. The total number of employed workers stood at 9,273,745, which is 81,352 fewer people than a year earlier. This represents the second consecutive annual contraction in employment and the sharpest yearly decline since the February-April 2021 quarter.

Unemployed individuals increased 13.0% over twelve months to reach 989,400 out of a total labor force of 10,263,145. The rise was driven by a 12.1% increase in laid-off workers and a 23.2% jump in first-time job seekers. The population outside the labor force grew 1.8% to 6,424,651 people, led by increases of 1.6% in habitually inactive individuals and 3.4% in potentially active inactive individuals.

The release follows the announcement two days prior of the Chile Despega plan, through which the government aims to deploy 1,350 million dollars to create more than 100 thousand jobs by March 2027.