Chile’s unemployment rate reached 9.6% in the June–August quarter, its highest level since May 2021, the National Statistics Institute (INE) reported Wednesday, 30 September. That’s 1.0 percentage point higher than a year earlier. Unemployment has remained above 9% for five consecutive rolling quarters.
The Numbers Behind the Rate
The Encuesta Nacional de Empleo points to a labour market that’s shrinking, not just stalling. The unemployed population grew 13.0% in a year. People who lost jobs accounted for a 12.1% rise, while first-time job seekers jumped 23.2%. Total employment fell 0.9%, driven by a 1.7% decline among men. Women’s employment rose 0.2%.
The seasonally adjusted rate reached 9.4%, up 0.1 point from the previous quarter. Participation slipped to 61.5%, and the employment rate fell to 55.6%. Women’s unemployment stood at 10.3%, against 9.1% for men. In the Santiago Metropolitan Region, unemployment hit 9.8%, up 0.9 points in a year.
The sector figures are blunt. Employment fell 16.8% over 12 months in information and communications, 7.6% in manufacturing and 1.1% in commerce. Formal salaried jobs dropped 2.9%. Informal work accounted for 26.3% of employment, an increase of 0.3 points, with growth concentrated in transport, administrative and support services, and domestic work. Total hours worked fell 2.4% in a year, and the average workweek shortened to 36.4 hours.
Business Costs and Budget Choices
The report arrived during a politically charged week. The head of shipping line CSAV said labour reforms were costing US$4 billion. Industrial production fell 5.7% in August. Copper output dropped 12.8%, reaching its lowest level in about 15 years.
At Antofagasta Minerals’ Centinela mine, unions voted 98.73% in favour of a strike over equal pay and took their protest to Santiago. The vote adds another risk to a sector already producing less.
The government delivered its 2027 budget the same week, raising spending by 1.5%. The finance ministry said it would scrutinize outlays. President José Antonio Kast also sent Congress a bill to extend a monthly fuel bonus of 100,000 pesos (about US$103) for taxis, shared taxis and school transport until December. Separately, the Senate president ruled that migrant detention reform could return with 29 Senate votes.
Currency, Contracts and the Hiring Pool
The dólar observado stood at 972.60 pesos for Thursday, 1 October, compared with 970.46 on Wednesday. The UF inflation unit was 41,065.38 pesos, about US$42.22. At 972.60 pesos per dollar, US$1,000 converts to CLP 972,600, and a CLP 800,000 rent equals about US$823. Rents and contracts indexed to the UF adjust with inflation, not the dollar.
The report said local hiring was slowing, especially in sectors where expatriates often compete for formal jobs. It described foreign-contract remote workers as insulated from local hiring but exposed to exchange-rate changes. A weaker job market broadens the candidate pool for employers, the report said, while making it more important to check contracts and social-security enrolment. INE’s next reading, for July–September, is due at the end of October. The report said no official forecast accompanied the release.
Why This Matters: A 9.6% jobless rate is more than a statistic. Formal salaried positions fell 2.9% while informal work grew to 26.3% of employment, a shift that matters for tax revenue and worker protections. Copper output at a roughly 15-year low and a 5.7% drop in industrial production point to a weaker productive base just as the 2027 budget adds 1.5% in spending. The finance ministry’s pledge to scrutinize outlays will face pressure for more fuel subsidies. The CSAV head’s US$4 billion estimate puts the cost of labour reform at the centre of debate over how to rebuild hiring. From a market perspective, the end-of-October reading will show whether the five-quarter run above 9% is easing or hardening.