Chilean unemployment rises to 9.5% in May-July

Chile's unemployment rate climbed to 9.5% in the three-month period from May to July, marking a significant increase of 0.8 percentage points compared to the same period last year. The National Statistics Institute (INE) reported that this rise is a result of a 0.7% expansion in the labor force coupled with a 0.2% reduction in the number of employed individuals.

The number of unemployed people surged by 10.4%. This increase was driven by those who had lost their jobs, up 9.4%, and a substantial 20.9% rise in individuals seeking work for the first time. The data highlights a growing challenge in the job market, affecting both experienced workers and new entrants.

Gender disparities persist in the unemployment figures. Among women, the unemployment rate stood at 10.3%, an increase of 0.6 percentage points over the year. For men, the rate was 8.9%, experiencing a more pronounced annual growth of 1.0 percentage point. Despite these figures, the INE noted that the total number of employed individuals decreased by 0.2% over the past 12 months, solely due to a 1.1% decline among men, as employment for women saw a 1% increase.

The rate of informal employment also saw a slight uptick, reaching 26.5%, an increase of 0.5 percentage points compared to the previous year. This suggests a growing reliance on informal work arrangements, which often come with less security and fewer benefits.