ZCZC
BCN-01
CHILE-ECONOMY-UNEMPLOYMENT
Chile unemployment hits new record of 13pc
SANTIAGO, Aug 29, 2020 (BSS/AFP) – Unemployment in Chile has reached a new
record high of 13.1 percent, the national statistics institute said Friday.
Unemployment rose by 5.6 percentage points in the rolling May-July quarter
compared to the same period in 2019.
The statistics institute said it was the highest figure since 2010, when
the body changed its calculation method.
That means that more than a million people are out of work, leaving 8.1
million employed after the loss of 1.8 million jobs over the last year.
However, the unemployment figure doesn’t take into account the 760,000
people that took advantage of a government initiative launched in March to
protect jobs affected by the coronavirus pandemic by allowing the temporary
suspension of contracts and access to unemployment insurance.
The institute said that taking into consideration those unemployed, those
on the government scheme, and those not looking for work but able to, then
the number of people out of employment rises to 30 percent of the potential
workforce.
“These are the most severe figures… that we’ve had in the history of our
country,” said Labor Minister Maria Jose Zaldivar.
The institute said that of those still employed, a third have reported a
drop in their income.
“The numbers speak for themselves and show why this has to be the
priority,” said Finance Minister Ignacio Briones, while asking Congress to
approve laws that would reactivate the economy by creating jobs.
Chile is one of the worst-affected countries in Latin America by the
coronavirus, with 400,000 cases and close to 15,000 deaths.
The Central Bank expects the economy to shrink by 7.5 percent in 2020.
BSS/AFP/SSS/0824 hrs