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

Chile’s unemployment rate dropped to 8% in January 2025, the lowest in two years and below expectations. This decline was supported by a 0.8% increase in the labor force and a 1.3% rise in employment. However, the female unemployment rate rose to 9.1%, while informal employment decreased to 26.3%, reflecting changes in the workforce dynamics.

In January 2025, Chile witnessed a decline in its unemployment rate, which fell to 8%, marking a two-year low and surpassing market expectations of 8.2%. This reduction reflects a notable 0.4 percentage point decrease from the previous year and can be attributed to a labor force increase of 0.8%, which was notably outstripped by a 1.3% rise in employment figures.

The number of unemployed individuals in Chile experienced a 4.1% decrease, primarily due to a 4.2% reduction in those previously employed, alongside a 2.8% decline in first-time job seekers. However, this positive trend was accompanied by a rise in female unemployment, which climbed to 9.1%, while male unemployment decreased to 7.2%.

Furthermore, the rate of informal employment fell significantly to 26.3%, indicative of a 1.3 percentage point reduction over the year. This decline was especially pronounced in the commerce and manufacturing sectors, where fewer workers engaged in informal employment. Such changes reflect ongoing shifts within the Chilean labor market as it continues to adapt and recover.

In summary, Chile’s unemployment rate decreased to 8% in January 2025, the lowest in two years, supported by rising employment levels. Though female unemployment increased, informal employment saw a notable drop, particularly in key economic sectors. These trends indicate a significant evolution within the labor market, contributing to a more robust economic landscape.

Original Source: www.tradingview.com