Chile Unemployment Hits 9.5% as First-Time Job Seekers Jump 20.9%

Chile's unemployment rate reached 9.5% in the May–July 2026 period, as the number of unemployed people increased sharply and total employment declined slightly from a year earlier.

The latest National Employment Survey from Chile's National Statistics Institute shows that unemployment increased by 0.8 percentage points year on year.

More people are looking for their first job

One of the most notable changes in the latest data is the increase in people entering the labour market for the first time.

The number of unemployed people rose by 10.4% compared with the same period a year earlier. That increase included a 9.4% rise among people who had previously worked and a much larger 20.9% increase among first-time job seekers.

The data suggests that conditions have become particularly challenging for people trying to establish themselves in the labour market.

Employment fell slightly

The size of Chile's labour force increased by 0.7% year on year, while the number of employed people fell by 0.2%.

The employment rate consequently declined by 0.5 percentage points to 55.9%, while labour-force participation stood at 61.7%.

Chile's seasonally adjusted unemployment rate was 9.3%, unchanged from the previous moving quarter, indicating that some of the deterioration visible in the annual comparison has not accelerated further in the most recent period.

Tech employment recorded a sharp decline

Several industries contributed to the annual fall in employment.

Employment in information and communications declined by 14.6% compared with a year earlier. Education employment fell by 3.3%, while manufacturing declined by 2.7%.

The trend was even more pronounced in the Metropolitan Region, which includes Santiago. Employment in information and communications there fell by 21.4% year on year.

That does not mean there are no technology jobs available in Chile, but it does indicate a notably weaker employment environment in the sector compared with the previous year.

Women and men face different conditions

The unemployment rate for women reached 10.3%, compared with 8.9% for men.

However, the number of employed women increased by 1.0% year on year, while male employment declined by 1.1%.

Among unemployed men, the number looking for their first job increased particularly sharply — by 54.6% compared with the previous year.

Informal employment is also rising

Chile's informal employment rate increased by 0.5 percentage points to 26.5%.

Informal employment grew by 1.6% overall, driven entirely by an increase among women, while informal employment among men declined slightly.

Together, the latest figures point to a labour market where employment opportunities remain available but competition is increasing, especially for new entrants and in industries experiencing weaker demand.