Chile Reach Historic Unemployment Rate

Chile's unemployment rate hit an unprecedented 11,2 percent from May to March 2020, amid the impact of the COVID-19 pandemic, about 94 036 people.

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The Statistics National Institute (INE) revealed that the number is the highest the country has had in a decade. At the same time,  the population outside the workforce increased 27.4 percent, influenced by people who were not mostly looking for a job, but were available to work, forming the so-called potential workforce.

The report explains that this transition to inactivity would be due to the mobility restrictions due to the COVID-19 pandemic.

Particularly total employed persons had a decrease of 16.5%, while by occupational category, the most significant reductions were observed in self-employed workers -29.5 percent and formal employees -8.4 percent.

The survey also highlights that the Metropolitan region stands out since the unemployment rate for the March-May 2020 quarter was 11.9 percent. However, the institution remarks that in this area, the unemployed increased by 43.6%.

Commerce, accommodation, food services, and construction were the most affected sectors in the economic crisis unleashed by the COVID-19 pandemic.

On the other hand, women have been impacted by unemployment more than men showing figures of 11,5 percent and 11 percent, respectively.
On June 17, the Central Bank forecasted the worst economic crisis for the country in 35 years.