The Unemployment rate of Chile attained a value of 8.76 % in 2023
The indicator recorded a historical change (bps difference) of 181 bps between 2020 to 2023, and is expected to decline by...
GlobalData projects the figure to change by 193 bps between 2024 and 2028, reaching...
Unemployment
Unemployment is a term used to describe people who are actively looking for work but are unable to find one. The unemployment rate is derived by dividing the total number of unemployed persons by the total number of people in a certain region or workforce. It is one of the most important markers of a country's economic health.
Global Unemployment
As per the International Labour Organization, the average regional unemployment rate at the end of 2021 has been estimated at 9.6%, which represents an improvement from the 10.6% it reached in 2020, but a setback compared to the 8% that was recorded for 2019, which in this case is used as a reference to calculate the impact of two years of the pandemic.
According to the Organization for Economic Cooperation and Development (OECD), April 2022 published its February 2022 unemployment figures: the unemployment rate in the OECD areas dropped below the pre-pandemic rate. This is the lowest level since the start of this data series in 2001. The number of unemployed workers in the OECD area also continued to fall, reaching 34.9 million, 0.7 million below its pre-pandemic level.
Unemployment Rate of Chile
The unemployment rate in Chile in 2021 stood at 9.2%. Between 2018-2021, the unemployment rate in Chile was highest in 2020 at 10.5% and lowest in 2018 at 6.9%. The unemployment rate decreased by 12.2% on a year-on-year basis in 2021 and increased by 32.5% between 2018-2021.
As per GlobalData estimates, Chile witnessed the unemployment rate increase to 10.5% in 2020. Even though many job opportunities have been revived from April–August 2020, there existed a high level of uncertainty among employers. However, with the easing of restrictions and support from the government, the unemployment rate decreased to 9.3% in 2021, according to GlobalData. GlobalData forecasts, that with more job creation, unemployment to further reduce to 7.6% in 2022.
In April 2022, Chile's new leftist President Boric announced an economic recovery plan worth $3.7 billion, which envisages the creation of half a million jobs. This is expected to reduce the unemployment rate in the coming years. GlobalData forecasts the unemployment rate to decrease to 7% in 2022, which will be lower than its pre-pandemic levels of 7.2% in 2019.
Factors that Cause Unemployment
Recession, government policies, geographical labor mobility, technological advancements, global economy, expanding population, and education, training, and skill development of workers are some of the primary elements that influence unemployment in a country.
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