Chile's National Institute of Statistics (INE) reported that the unemployment rate rose to 8.4% in the September-November 2025 quarter, up 0.2 percentage points from the previous year. This figure ends a streak of labor market improvements, with experts voicing concerns over slowing job creation. The rate has remained above 8% for 35 consecutive months.
Chile's labor market showed signs of weakness in the final quarter of 2025 data. According to the INE, the unemployment rate rose 0.2 percentage points year-over-year to 8.4%, though it remained stable from the previous quarter. This increase stems from a 1.5% growth in the labor force outpacing the 1.2% rise in employed individuals, signaling more job seekers than jobs created.
For women, the rate dipped slightly to 8.8% (-0.3 pp annually), driven by a 2.3% increase in employed versus 2% in labor force. For men, it climbed to 8.1% (+0.6 pp), with unemployed up 8.8%. Job creation added 115,624 positions, a 1.2% annual rise and the lowest since May-July, nearly all formal. Key sectors included administrative services (+31%), transport (+5.5%), and information and communications (+13.6%).
Experts highlighted the disconnect between economic growth and employment. David Bravo from UC stated: “We have had rates above 8% for 35 months, which has been a constant. A rate that we cannot think is normal.” Rodrigo Montero from U. Autónoma called the figures “undoubtedly negative news” and a “fragile and frozen labor market that is retreating.” Carmen Cifuentes from Clapes-UC pointed to “persistent weakening” in formal job generation.
Analysts like Cristián Duarte and Pablo Pérez see little chance of dropping below 8% in the medium term without policy shifts. Montero added that “it is difficult to cultivate expectations of unemployment below 8%” and urged awaiting the new administration's agenda. Benjamín Villena noted a rise in informal employment (+6.2%), especially among women, with the SU3 rate at 16.4%. Ricardo Ruiz de Viñaspre called for lowering the corporate tax and enhancing training subsidies.
The backdrop reflects a moderately recovering economy but with longstanding structural employment challenges.
