Chile’s unemployment rate fell to 8% in January 2025, the lowest in two years, while the labor force increased by 0.8%. Unemployment dropped by 4.1%, particularly among previously employed individuals and first-time job seekers. The male unemployment rate decreased to 7.2%, contrasting with an increase in female unemployment to 9.1%. Informal employment also fell to 26.3%.
In January 2025, Chile’s unemployment rate decreased to 8%, marking the lowest rate in two years and coming in below market expectations of 8.2%. This decline represents a 0.4 percentage point drop compared to the previous year, largely due to a 0.8% increase in the labor force, which was outpaced by a 1.3% growth in employment levels.
Unemployment figures improved as the number of unemployed individuals fell by 4.1%. This drop was primarily attributed to a 4.2% reduction in those previously employed along with a 2.8% decrease in first-time job seekers. Notably, the female unemployment rate increased to 9.1%, up by 0.3 percentage points, while the male unemployment rate saw a decline to 7.2%, down by 1.0 percentage point.
In addition, informal employment has declined to 26.3%, reflecting a decrease of 1.3 percentage points over the past year. This reduction is mainly due to fewer informal workers present within the commerce and manufacturing sectors, indicating a potential shift toward more formal employment conditions.
The January 2025 unemployment statistics indicate a positive trend in Chile’s labor market, highlighted by a significant drop in the unemployment rate and growth in employment figures. Despite an increase in female unemployment, the overall downward trend in unemployment, alongside a decrease in informal employment, suggests a strengthening economy. The labor market’s resilience showcases the effect of employment policies and economic recovery efforts, emphasizing the need for continued support in both formal and informal employment sectors.
Original Source: www.tradingview.com
