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🇻🇪 Venezuela /Economy & Trade

Venezuelan workers depart Chilean labor market, impacting key sectors

From El Nacional · () Spanish

Translated from Spanish, summarized and contextualized by DistantNews.

At a glance

News Sources not specified Context piece
  • Over 45,000 Venezuelan workers have left Chile's labor market in the past year, marking an 8% annual decrease in the Venezuelan workforce.
  • The departing workers primarily had less than five years of residency and often held informal or low-skilled jobs.
  • While the net job creation in Chile was positive, the departure of Venezuelan workers impacts sectors like delivery services, potentially leading to longer wait times and altered payment conditions.

Chile's labor market is experiencing a significant shift as over 45,000 Venezuelan workers have departed in the last 12 months. This trend, representing an 8% annual drop in the Venezuelan workforce, is the first sustained decline since the large-scale migration to Chile began.

The majority of those leaving have resided in Chile for less than five years and were often employed in informal or low-skilled positions. While Chile created over 68,000 new jobs in the analyzed quarter, the net increase in employment, after accounting for Venezuelan departures, stands at 113,813.

Academics attribute this exodus to precarious labor insertion. "Most of those with this educational level who are employed are underemployed due to their qualifications, meaning they are performing medium or low-skilled jobs that do not align with their educational background. In this sense, it is not surprising that this profile of Venezuelans is gradually beginning to leave the country," explained Juan Bravo, director of the Economic Context Observatory at Diego Portales University.

Most of those with this educational level who are employed are underemployed due to their qualifications, meaning they are performing medium or low-skilled jobs that do not align with their educational background. In this sense, it is not surprising that this profile of Venezuelans is gradually beginning to leave the country.

— Juan BravoJuan Bravo, director of the Economic Context Observatory at Diego Portales University, explains the reasons behind the departure of Venezuelan workers.

Sectors heavily reliant on Venezuelan labor, such as motorcycle delivery services where they constitute 61.1% of workers, are particularly exposed. Other affected areas include vehicle cleaning, gas stations, hospitality, technical services, aesthetics, and restaurant service.

Experts suggest that the reduced availability of delivery workers could disrupt platform operations, potentially leading to longer wait times and changes in service payment conditions. Despite the significant number of departures, economists believe the impact on the overall unemployment rate will be limited. Juan Bravo noted that the emigration also reduces domestic demand, partially offsetting the lower labor supply.

As they emigrate, this demand for goods and services is reduced, and along with it, there would be a negative effect on the demand for labor.

— Juan BravoJuan Bravo discusses the macroeconomic effects of Venezuelan workers leaving Chile.
DistantNews Editorial

Originally published by El Nacional in Spanish. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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