Chile’s unemployment rate fell to 8% in January 2025, the lowest in two years, surpassing market expectations. This was due to a 1.3% rise in employed individuals despite a slight increase in female unemployment. Informal employment also decreased, indicating positive trends in formal job growth.
In January 2025, Chile’s unemployment rate decreased to 8%, marking its lowest level in two years and falling short of market expectations of 8.2%. This decline represents a reduction of 0.4 percentage points from the previous year, primarily attributed to a 0.8% growth in the labor force, which was surpassed by a 1.3% increase in employed individuals. Consequently, the number of unemployed citizens fell by 4.1%, driven mainly by a significant 4.2% reduction in those previously employed and a 2.8% drop among first-time job seekers.
While the overall unemployment statistics show improvement, female unemployment rose to 9.1%, reflecting a 0.3 percentage point increase. In contrast, the male unemployment rate experienced a decrease to 7.2%, down by 1.0 percentage point. This disparity highlights ongoing gender-based employment challenges within the labor market.
An important shift was also noted in informal employment, which declined to 26.3%, representing a 1.3 percentage point reduction over the past year. This decrease is largely attributed to fewer informal workers in the commerce and manufacturing sectors, suggesting a positive trend toward formal employment within the country’s economy.
In summary, Chile’s job market demonstrated notable progress with an unemployment rate falling to 8%, the lowest in two years. The overall decrease in unemployment, particularly among males, contrasts with the slight rise in female unemployment rates, indicating ongoing challenges. Additionally, a decline in informal employment signals a potential move towards formal job structures, contributing positively to the economic landscape.
Original Source: www.tradingview.com
