Chile's Job Market Stalls As Unemployment Rises And Wages Lose Momentum

(MENAFN- The Rio Times) Chile's job market is showing clear signs of stress in 2025. Official figures reveal unemployment hit 8.9% between March and May, the highest in over a year. This means nearly one in eleven people looking for work cannot find a job.

The total number of employed people dropped to 9.39 million in March, down from 9.4 million in February. The labor force shrank by 3,000 people, and 13,000 jobs disappeared. Women face even tougher conditions, with unemployment at 10.1%, compared to 8.1% for men.

Wages are rising, but not fast enough to make a real difference. The average hourly wage reached 6,914 pesos in April, a record high. The minimum monthly wage increased to 510,636 pesos in January, up just 2.1% from last year.

Still, the total wage mass-meaning all workers' combined earnings-grew only 5% in April, a slowdown from previous years. Job quality is also an issue. Informal work, which often lacks security and benefits, still makes up more than a quarter of all jobs.

The informal employment rate was 25.8% in the first quarter of 2025. Some sectors, like finance, hospitality, and mining, added jobs. Others, including commerce, construction, and transport, lost positions.



The public sector shrank by 32,000 jobs over the past year, and public wages rose just 4.9%, less than in the private sector. Long-term unemployment is rising, with nearly 150,000 people out of work for more than a year.

The economy is growing slowly-between 1.75% and 2.75% this year-but not enough to create enough stable jobs. Chile 's labor market has not recovered from the pandemic.

There are still about 400,000 fewer jobs than if pre-pandemic trends had continued. Many Chileans now depend on unstable work, and households face more financial uncertainty.

These facts show Chile's job market is fragile. Without stronger job creation and better job quality, many people remain at risk of economic hardship.

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