Chile’s January 2025 Unemployment Rate Reaches Two-Year Low at 8%

Chile’s unemployment rate fell to 8% in January 2025, the lowest in two years and below expectations of 8.2%. This was driven by a 1.3% increase in employment, though female unemployment rose to 9.1%. The informal employment rate decreased to 26.3%, indicating improved labor conditions.

In January 2025, Chile experienced a decline in its unemployment rate to 8%, marking the lowest level in two years and surpassing market expectations of 8.2%. This 0.4 percentage point reduction compared to the previous year was facilitated by a 0.8% increase in the labor force; however, this growth was overshadowed by a notable 1.3% rise in employment figures overall.

The number of unemployed individuals dropped significantly, by 4.1%. This decrease can be attributed largely to a 4.2% reduction in those who had been previously employed, alongside a 2.8% decline in first-time job seekers. The labor market shows signs of improvement as more individuals find work.

The jobless rate among women increased to 9.1%, reflecting a rise of 0.3 percentage points, whereas the male unemployment rate saw a decrease to 7.2%, down by 1.0 percentage point. This disparity in unemployment rates highlights ongoing challenges, particularly for female workers in the labor market.

Additionally, informal employment in Chile decreased to 26.3%, which is a reduction of 1.3 percentage points over the past year. This decline was primarily driven by a decrease in informal workers within the commerce and manufacturing sectors, indicating a possible shift toward more formal employment arrangements and improved labor conditions.

In conclusion, the reduction in Chile’s unemployment rate to 8% demonstrates positive trends in the labor market, highlighting both the rise in employment and a significant drop in unemployed individuals. However, the increase in female unemployment calls for ongoing attention to address gender disparities. Furthermore, the decline in informal employment suggests a potential strengthening of formal job opportunities in the economy.

Original Source: www.tradingview.com