ECONOMY

Unemployment in Chile on the rise, as bankruptcy among Chilean companies skyrocket

SANTIAGO – Unemployment in Chile has risen to 7,3% during the May-July quarter. The National Institute of Statistics (INE) revealed the new figures last week. The rise was said to be due to the growth of work force, in combination with the large amount of Chilean companies that went bankrupt last year.

The figures released last week show an increase of 0.4% in unemployment, in comparison to the same quarter last year. In the Metropolitan region, which includes the capital of Santiago, the unemployment rate was on 7.5%, representing an increase of 0.8%. The National Institute of Statistics (INE) explained that the demand for employment increased with 1.9%, while there isn’t enough work for these people.

“The rate of unemployment is on 7.3%, increasing 0.4%, due to the increasing demand for employment. The amount of Chilean companies that went bankrupt in this quarter, increased with 56 % in comparison with the numbers a year ago, causing more people to look for a job. The employment rate, which was on 1.4%, caused a major pressure in the labor market,” the report released by the institute said.

According to news Diario Financiero, employment in the private-sector employment grew with 1.4%, being the sector with the best growth. In addition, the amount of self-employed people grew with 1.3%.

Figures analyzed by sector

The INE also made an analysis per sector, to analyze the development of different economic activities. The sector that grew the most was the housing- and catering sector with 14.3%. The educational sector grew with 5.8%, while the transport sector grew with 6%, and the construction sector with 3.5%. In contrast, the categories that registered reductions were the sectors of commerce- and manufacturing (2.4%), and public administration (4.2%).

Figures analyzed by gender

The unemployment rate among Chilean women is currently on 8.1%, an increase of 0.7% in one year. Due to the increase of 2.5% in labor force, the amount of women who had employment, increased with 1.6%. The participation rate expanded with 0.4%, while the occupancy rate decreased with 0.1%.

On the other side, the rate of unemployed men is currently on 6.8%, registering an increase of 3.3% in comparison with last years numbers. The reason for the increase of unemployment in men was the rise in employment demand (1.5%), which surpassed the rate of men employed (1.3%).     

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