Chile's Long-Term Unemployment Soars: Skills Gap and Vulnerable Groups Hit Hard

Chile's Long-Term Unemployment Soars: Skills Gap and Vulnerable Groups Hit Hard

elpais.com

Chile's Long-Term Unemployment Soars: Skills Gap and Vulnerable Groups Hit Hard

In Chile, long-term unemployment increased by 69.1% in the February-April 2025 quarter compared to the same period in 2024, reaching 147,768 individuals. This rise is attributed to a mismatch between education and job market demands, and disproportionately affects vulnerable groups, including women, migrants, and people with disabilities, leading to economic hardship and severe mental health issues.

Spanish
Spain
EconomyLabour MarketEconomic CrisisUnemploymentChileSocial InequalityLong-Term Unemployment
Instituto Nacional De Estadísticas (Ine)Universidad Diego PortalesFundación EmpleaMunicipalidad De Puente AltoFonasa
Juan BravoJorge GajuPaulina SalinasMatías HozvenXimena OriasDiego Castillo
How do factors like age, education level, gender, migration status, and disabilities influence the duration and impact of unemployment in Chile?
The rise in long-term unemployment reflects a persistent weakness in the Chilean labor market. A mismatch between educational offerings and labor demands contributes significantly, particularly impacting those with higher education. Furthermore, societal vulnerabilities like age, gender, migration status and disabilities worsen the situation for at-risk groups, extending joblessness and its associated consequences.
What are the key factors driving the significant increase in long-term unemployment in Chile, and what are the immediate consequences for individuals and the economy?
In Chile, long-term unemployment has surged, with 35,894 individuals (95.8% of the total increase of 37,479 unemployed in the last year) experiencing prolonged joblessness. This represents a 69.1% increase in long-term unemployment from February to April 2025 compared to the same period in 2024, the largest jump since October 2021. The overall unemployment rate climbed to 8.8%, ending a 14-month period of decline.
What policy interventions or structural changes could effectively address the persistent issue of long-term unemployment in Chile, focusing on bridging the skills gap and supporting vulnerable groups?
The long-term effects of unemployment in Chile are profound. Prolonged joblessness leads to a decline in human capital, increased poverty, and poor mental and physical health. The high number of unemployed university graduates (24,800 of the 35,894 new long-term unemployed) highlights a critical skills gap and the need for educational reform to address evolving labor market demands. Government interventions to support long-term unemployed individuals, and address the challenges faced by vulnerable groups, are crucial to mitigate the negative social and economic consequences.

Cognitive Concepts

2/5

Framing Bias

The framing of the article emphasizes the human cost of long-term unemployment. By focusing on personal stories of individuals struggling to find work, the article evokes empathy and highlights the societal impact of the issue. While this approach is effective in humanizing the problem, it may unintentionally downplay the systemic economic factors contributing to the issue. The headline, while not explicitly stated in the text provided, could further emphasize this human angle, potentially overshadowing broader economic context.

3/5

Bias by Omission

The article focuses heavily on the struggles of individuals facing long-term unemployment, offering a compelling narrative. However, it omits discussion of potential government initiatives or policies aimed at addressing long-term unemployment in Chile. Additionally, a broader economic analysis explaining the underlying causes of the persistent weakness in the Chilean labor market beyond simply an imbalance of supply and demand for certain professions would provide a more complete picture. While the article acknowledges the challenges faced by vulnerable groups like women and migrants, a deeper exploration of the specific policies or societal factors exacerbating their unemployment would enhance the analysis.

2/5

Gender Bias

The article includes stories of both men and women experiencing long-term unemployment. While it mentions that women are disproportionately affected, particularly due to caregiving responsibilities, this aspect could be explored in greater depth to provide a more thorough analysis of gender-based disparities in the Chilean labor market. More statistical data or expert opinions on this specific aspect would strengthen this analysis.

Sustainable Development Goals

Decent Work and Economic Growth Negative
Direct Relevance

The article highlights a significant rise in long-term unemployment in Chile, impacting economic growth and individual well-being. The inability of many, including those with higher education, to find stable employment points to structural issues in the labor market, hindering economic progress and increasing societal vulnerability.