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Original article: Más cesantía y más precariedad: desempleo sube a 9,4% e informalidad llega al 27%

The Chilean labor market has exhibited signs of decline during the March to May 2026 quarter, according to the latest report from the National Employment Survey (ENE) compiled by the National Institute of Statistics (INE). The unemployment rate stood at 9.4%, indicating a 0.5 percentage point increase over the past year.

This rise is attributed to a 1.3% growth in the labor force, which outpaced the 0.8% increase in employed individuals, highlighting that more people are seeking jobs without the market being able to accommodate them.

The number of unemployed individuals rose by 6.9%, primarily driven by those who lost their jobs (5.9%) and more significantly by first-time job seekers (16.4%)—a clear reflection of the challenges facing new entrants to the labor force.

Widening Gender Gap in Employment

While the male unemployment rate reached 8.6%—an increase of 0.5 percentage points over the year—the rate for women surged to 10.5%, with a 0.4 percentage point rise during the same period. This disparity is explained by a 2.0% increase in the female labor force, significantly outpacing the 1.5% growth in employed women, leading to a surplus of unabsorbed labor.

According to the report, the number of unemployed women grew by 6.5%, impacted by both those who were laid off (6.0%) and first-time job seekers (10.5%)—a figure that illustrates the structural barriers women face when trying to integrate into the labor market. Despite a slight increase in female participation to 53.6% and an employment rate of 48.0%—up by 0.6 pp. and 0.3 pp., respectively—these advancements fail to offset the rise in unemployment.

In contrast, the unemployment rate for men reached 8.6%—growing by 0.5 percentage points during the year—resulting from a 0.8% increase in the labor force versus a meager 0.2% rise in employment.

The number of unemployed men rose by 7.3%, with a particularly high incidence among those seeking work for the first time (24.1%). Meanwhile, male participation and employment rates exhibited slight declines, settling at 71.6% and 65.5%, decreasing by 0.1 pp. and 0.4 pp., respectively.

Moreover, the number of men outside the labor force increased by 1.2%, influenced by the rise in both habitually inactive individuals and those potentially active but not currently seeking work.

Informal Employment Rises to 27%

The informal employment rate stood at 27.0%, marking a 1.0 percentage point increase over the year. For women, informality reached 28.8% (up by 1.2 points), while for men it reached 25.6% (an increase of 0.9 points).

According to the INE, the total number of informal workers grew by 4.6%, impacting both women (5.7%) and men (3.7%).

The sectors most affected by this precariousness are retail (7.2%) and manufacturing (15.4%), while by job category, the increase is concentrated among private salaried workers (7.2%) and self-employed individuals (4.2%).

Despite the increase in the number of employed individuals—growing by 0.8% led by women (1.5%) and to a lesser extent by men (0.2%)—the quality of employment is deteriorating. The sectors contributing most to job creation were manufacturing (5.2%), health activities (6.0%), and professional activities (11.6%). However, this growth does not translate into better conditions, as the total number of hours worked declined by 0.1%, and the average weekly hours fell by 0.8%, now standing at 37.0 hours—39.1 for men and 34.3 for women.

The seasonally adjusted unemployment rate was 9.2%, representing an increase of 0.3 points compared to the previous quarter.

Unemployment in the Metropolitan Region

The Metropolitan Region faces the most alarming indicators, with an unemployment rate reaching 9.8%—0.3 points above the record from a year ago. Although the occupied population grew by 0.8% in the area, driven by manufacturing (10.3%), professional activities (15.6%), and retail (3.5%), these increases fail to mitigate the rise in unemployment.

The results from the National Employment Survey paint a picture where the labor market is pushing workers into informality and precariousness, with women and youth being the most affected.

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