Chilean labor force unemployment hit 10% during the June-August 2026 quarter, marking the highest rate since the March-May 2021 period, according to a report from the Universidad Diego Portales’ Observatorio del Contexto Económico. While domestic workers faced double-digit joblessness, foreign unemployment dropped to 6.8%, representing a 1.3-point decline compared to the previous year. However, the study points out that this decrease stems from a shrinking foreign labor force rather than actual job creation.
Chilean Labor Force Unemployment Reaches Two-Digit High
The notable drop in foreign unemployment is driven by a gradual emigration trend within the Venezuelan community. The report indicates that unemployed individuals are leaving at higher rates, pushing down the jobless rate for this demographic through 10 months of declines involving unas 57 mil personas menos. Juan Bravo, director of the research center, detailed additional factors influencing these shifts across the national economy.
Did You Know? The Venezuelan demographic leaving Chile consists primarily of men between the ages of 25 and 49 who hold completed higher education and have lived in the country for less than five years.
Private Sector Job Losses Deepen Across the Economy
The broader labor market continues to experience significant structural deterioration, led by a severe contraction in formal private sector salaried employment. Private salaried jobs fell by nearly 154,000 positions over the course of a year, including about 99,000 positions held by Chileans—marking the highest level of job destruction since 2021. Foreign workers lost approximately 55,000 formal salaried roles, representing a drop worse than the figures recorded during the COVID-19 pandemic.
The simultaneous rise in informal employment among those who stay highlights ongoing structural vulnerabilities in the domestic labor market.
Precarious Employment Rises Among Remaining Workers
For Venezuelan citizens who choose to stay in the country, the nature of available work has grown increasingly precarious. The informal employment rate among this group climbed from 27.9% to 34.4%, whereas formal employment among other foreign nationalities has expanded solidly. José Noguera, an economist and academic at the Universidad de Santiago’s Faculty of Administration and Economy, stated that Venezuelan workers from lower social strata secure higher earnings within the informal sector, which displaces local workers.
Chilean Unemployment Hits Highest Rate Since 2021
What was the unemployment rate for Chilean workers in the June-August 2026 quarter?
The unemployment rate for the Chilean labor force reached 10%, which is the highest recorded rate since the March-May 2021 quarter according to data from the Universidad Diego Portales.
Why did the unemployment rate drop among foreign workers?
The study clarifies that the drop to 6.8% is not a result of increased job creation, but rather stems from a shrinking foreign labor force as unemployed members of the Venezuelan community emigrate.
How much did formal private sector employment fall in one year?
Formal private sector salaried employment dropped by nearly 154,000 positions over a 12-month period, affecting roughly 99,000 Chileans and 55,000 foreign workers.
How might ongoing structural shifts in the workforce alter wage trends across private industries in the coming months?