In Chile, the unemployment rate among young women has reached the highest level of recent years. This clearly reflects the impact of country’s economic slowdown on the labour market. According to data that is released by the National Statistics Institute (INE), women between the ages of 18 and 24 become the demographic group which is the highest unemployment rate in the country.[i] Due to its scope, this situation cannot be explained only by the loss of momentum in economic growth. Moreover, this points to structural problems within the labour market. Therefore, the current situation can regard not only in terms of short-term economic fluctuations, but also the effectiveness of employment policies and the sufficiency of mechanisms supporting women’s participation in the labour force.
Despite the recent increasing on participation of labour force in Chile, the failure to create new employment areas at the same pace has played a decisive role in the rise in unemployment. In an environment where approximately 981,000 people are seeking jobs, only around 70,000 new jobs have been created over the past twelve months, indicates a growing imbalance between labour supply and demand. Although the increase in women’s labour force participation might be regarded as a positive development in the long-term, the contraction in economic activity that is observed in recent months has prevented the creation of sufficient employment opportunities to absorb this expanding workforce.[ii]
In addition, macroeconomic indicators support this picture. In Chile, the national unemployment rate rose to %9.4 during the March–May period, reaching its highest level since the COVID-19 pandemic. President José Antonio Kast described this development as an “economic illness” that adversely affects the living standards of country. In response to this, Minister of Finance Jorge Quiroz rejected claims that the economy had entered a technical recession, arguing that economic activity may have returned to growth in June. However, the Central Bank of Chile lowered its 2026 growth forecast to a range between 1% and 1.75%. This indicates that the country’s economic recovery may remain limited. A weaker growth outlook also suggests that the economy’s capacity to generate new employment opportunities will remain constrained.[iii]
The challenges facing the labour market cannot be attributed only about economic growth performance. The unemployment rate has remained above 8% for a long time, highlighting the influence of structural factors.[iv] Especially, social policies that aims improving employees’ quality of life for instance increasing in the minimum wage and the reduction of the standard working week from 45 to 40 hours may raise labour costs for employers if they are not accompanied by corresponding gains in productivity. In this situation may limit the private sector’s capacity to create registered employment. Therefore, maintaining a balance between expanding social rights and improving economic productivity is crucial for the success of employment policies.
On the other hand, social factors affecting women’s employment are as decisive as economic indicators. A report prepared by the Labour Market Recovery Commission, established by Chile’s Ministry of Labour, proposes a number of policy measures designed to facilitate women’s access to formal employment. According to the Commission’s Chair, David Bravo, while stating that there is a deepening “employment emergency” after the pandemic in the country, he emphasized that young women are the most affected by this process. According to Bravo the failure to make employment one of the priority agendas of the public policy has contributed to existing problems to deepen.[v]
Another important factor limiting women’s participation in the labour force is the care economy. The responsibility for caring for children, older persons, and individuals requiring long-term care continues to fall predominantly on women, making it more difficult for them to participate in full-time formal employment. Thus, experts argue that policy tools such as a universal childcare system should be considered not only as a family policy but also as essential employment policy. Expanding publicly supported care services is therefore considered one of the key mechanisms for strengthening women’s participation in the labour market.
The example of Chile brings back the relationship between economic growth and inclusive employment, which has been discussed for s long time in Latin American countries. Although women’s educational attainment has continued to improve across much of the region, their transition into the labour market has not progressed at the same pace. This situation is shaped not only by economic growth rates but also by labour market flexibility, productivity levels, private-sector investment, and the effectiveness of social policy instruments. Therefore, accelerating economic growth alone may not be enough to reduce women’s unemployment, it may be necessary to encourage investments that increase productivity, support registered employment and implement social policies that strengthen the care economy together.
The persistently high level of unemployment among young women might be regarded not only as an employment issue but also as a strategic challenge with demographic and international mobility dimensions. In particular, the inability of highly educated young people to secure stable employment in their home country may encourage them to seek better wages, stronger career prospects, and greater social protection abroad. In recent years, countries such as Canada, Australia, Spain, and some European Union member states have expanded immigration policies aimed at attracting highly skilled workers, creating new opportunities for young Chilean professionals. Over the long term, this trend may increase the risk of a brain drain from Chile.
Moreover, the persistence of labour market difficulties may have indirect consequences for fertility rates, household incomes, and overall social welfare. Delays in achieving economic independence may lead young people to postpone decisions related to starting a family, purchasing a home, and making long-term consumption investments. Consequently, reducing unemployment among young women is strategically important not only for improving employment indicators but also for sustaining Chile’s long-term economic growth, preserving its human capital, and retaining its highly skilled workforce.
As a result, the level reached by young women’s unemployment in Chile is considered as a common result of the economic and structural problems facing the country. When considered alongside increasing in labour supply, productivity constraints, and the disproportionate burden of care responsibilities placed on women, it becomes the problem that extends well beyond short-term economic fluctuations. Accordingly, the employment and social policy reforms that Chile implements in the coming years will play a decisive role not only in supporting economic recovery but also in ensuring women’s equal and sustainable participation in the labour market.
[i] Castro, Maolis. “Las chilenas jóvenes, las más afectadas por el desempleo: ‘Nos piden experiencia, pero no están dispuestos a darnos oportunidades’”, El País, https://elpais.com/chile/2026-07-12/las-chilenas-jovenes-las-mas-afectadas-por-el-desempleo-nos-piden-experiencia-pero-no-estan-dispuestos-a-darnos-oportunidades.html, (Date Accessed: 19.07.2026).
[ii] Ibid.
[iii] Ibid.
[iv] Ibid.
[v] Ibid.
