Unemployment Rate Drops to 8.4% in Chile: INE Reports Modest Improvement Driven by Rise in Employment

Original article: Desempleo baja a 8,4% en Chile: INE reporta leve mejora impulsada por aumento de personas ocupadas

The National Institute of Statistics (INE) announced that Chile’s unemployment rate reached 8.4% during the mobile quarter from August to October 2025, marking a slight but significant improvement in the country’s labor market. This figure represents a decline of 0.2 percentage points compared to the same period last year.

This improvement in the indicator is primarily attributed to the dynamism of the labor market. According to the report, «the figure declined by 0.2 percentage points over twelve months, due to a 1.5% increase in employed individuals, which was higher than the 1.3% increase in the labor force.»

As a result, the number of unemployed individuals fell by 0.2%, «with the decrease being solely due to those who were laid off (-0.9%).»

It is noteworthy that the unemployment level is the lowest since the November–January 2023 quarter and marks five consecutive months of decline.

Additionally, over twelve months, the total employed population expanded by 1.5%, driven by those classified as present at work (2.6%), while absent employed individuals, who represented 5.0% of the total employed, decreased by 15.7%, equivalent to 87,430 individuals.

Unemployment Figures by Gender

The INE report details a mixed evolution based on gender. For women, the results were positive: «the female unemployment rate stood at 8.8%, decreasing by 0.5 percentage points annually, attributed to a 2.2% increase in the labor force, lower than the 2.7% recorded by employed women; while the number of unemployed females contracted by 2.9%, exclusively affected by layoffs (-3.8%).» Furthermore, their participation and employment rates showed significant advances, reaching 53.0% and 48.3%, respectively, with increases of 0.7 and 0.8 percentage points in each case.

Women outside the labor force decreased by 0.6%, influenced solely by habitual inactivity.

In contrast, the situation for men showed slight deterioration, with the male unemployment rate at 8.2%, increasing by 0.1 percentage points over the year. This is due to a 0.7% rise in the labor force, greater than the 0.5% growth recorded among employed men. Simultaneously, the number of unemployed men rose by 2.1%, influenced by layoff cases (1.6%) and those seeking job for the first time (9.1%).

Moreover, over twelve months, the total number of employed individuals increased by 1.5%, influenced by both women (2.7%) and men (0.5%).

Sectors That Boosted Employment and Informality

An analysis by economic sectors reveals the industries that led to job creation.

«By economic sector, the expansion of the employed population was influenced by administrative and support services (17.3%), health activities (7.1%), and transportation (7.2%).» Regarding job quality, «growth was observed among formal employees (1.2%) and informal employees (6.0%),» the report stated.

As for labor informality, an improvement was noted, with the informal employment rate at 26.2%, decreasing by 0.9 percentage points over twelve months.

During the same period, informal employed individuals decreased by 1.7%, influenced by men (-4.2%) and self-employed workers (-7.5%).

The sectors that contributed most to this reduction were «commerce (-5.0%) and manufacturing industry (-9.1%).»

Other Relevant Indicators

The INE report also includes data on the quantity of work.

«Over twelve months, the workload, measured by the total number of effective hours worked by employed individuals, increased by 2.4%; while the average hours worked grew by 0.8%, reaching 36.5 hours.» The gender gap in work hours persists, with an average of «38.7» hours for men and «33.8» hours for women.

The combined unemployment and potential labor force rate, which provides a broader view of labor underutilization, «reached 16.4%, with a reduction of 0.3 percentage points in the period.»

However, a 4.6 percentage point gender gap remains in this indicator, with rates at «14.3%» for men and «18.9%» for women.

Unemployment Decreases in the Metropolitan Region

One of the most significant findings of the report is the performance of the Metropolitan Region, which holds the majority of the country’s population and economic activity. According to INE data, the unemployment rate for the August-October 2025 quarter reached 8.6%, with a decrease of 0.3 percentage points over twelve months.

The growth in employment in the capital was 2.1%, primarily driven by the sectors of «administrative and support services (23.4%) and information and communications (20.0%).»