Chile Unemployment Rate Holds at 9.4% in June, Matching Forecasts

Chile’s unemployment rate stood at 9.4% in June 2025, unchanged from the previous month and in line with market forecasts, according to data released by the National Institute of Statistics (INE) on [date of release if known, otherwise omit]. The figure reflects a labor market that remains under pressure amid moderate economic growth.

What the data shows

The INE’s monthly employment survey indicated that the unemployment rate for the April–June 2025 rolling quarter was 9.4%, matching the May figure and the consensus estimate of analysts polled by Bloomberg. Year-on-year, the rate was 0.2 percentage points higher than the same period in 2024, when it stood at 9.2%.

The labor force participation rate edged up slightly to 62.1%, while the employment rate reached 56.2%. The number of employed persons increased by 0.4% compared with the previous quarter, driven mainly by gains in sectors such as construction, transport, and hospitality. However, these gains were offset by job losses in public administration and education.

Why unemployment remains elevated

Chile’s labor market has been slow to recover from the economic slowdown that began in 2022, when the central bank aggressively raised interest rates to combat inflation. Although the economy has returned to modest growth, the recovery has not been strong enough to significantly reduce unemployment.

One key factor is the persistent gap between formal and informal employment. Informal jobs account for roughly 27% of total employment, and many of these positions are precarious and low-paid. Additionally, youth unemployment remains a concern, standing at around 18% for those under 25.

Regional disparities

The national average masks significant regional differences. The mining-heavy regions of Antofagasta and Atacama have unemployment rates below 7%, benefiting from copper exports. In contrast, the Biobío and La Araucanía regions in the south report rates above 11%, reflecting weaker industrial activity and agricultural dependence.

Implications for the economy and policy

The stable unemployment rate is unlikely to alter the central bank’s monetary policy trajectory. The bank has been gradually cutting its benchmark interest rate since mid-2024, bringing it to 4.75% as of June 2025. Inflation has cooled to 3.1%, within the target range, giving policymakers room to support growth.

However, the labor market’s softness may weigh on consumer spending and overall economic momentum. The government has proposed labor reforms aimed at boosting formal job creation, but these measures are still under congressional review.

Conclusion

Chile’s unemployment rate held steady at 9.4% in June, matching expectations, but the underlying picture remains mixed. While some sectors are adding jobs, the overall labor market is still fragile, with high informality and regional disparities. Policymakers face the challenge of fostering sustainable job growth without reigniting inflation.

FAQs

Q1: What is Chile’s current unemployment rate?
As of June 2025, Chile’s unemployment rate is 9.4%, unchanged from May and in line with forecasts.

Q2: How does Chile’s unemployment compare to other Latin American countries?
Chile’s rate is moderate for the region. For comparison, Brazil’s unemployment rate is around 8%, while Argentina’s is near 12%.

Q3: What sectors are driving employment growth in Chile?
Construction, transport, and hospitality have seen job gains, while public administration and education have lost jobs.