The labour market is bringing bad news for the current Chilean administration. Some of the reasons include the Constitutional Court’s resolution about the labour reform and the figures that show the impact of the economic slowdown on employment.

First, there was a significant raise in the unemployment rate. A survey by the University of Chile shows that it went to 9.4%. Then, the deterioration of the National Institute of Statistics (INE) numbers, which reflect higher levels of unemployment and greater levels of informality among employed people.

During the first quarter 2016 the unemployment rate went to 6.3% from a previous 5.9%, which reflects major deterioration in March.

Even though 104 thousand new jobs were created, there were 112 thousand new self-employed workers, and employment barely grew.

The female labour market situation is alarming as there are drawbacks from the advances made between 2010 and 2013. The female unemployment rate reached 7.2% despite the drop of the participation rate. Employment levels fell when compared to the same quarter in 2015, and there were 56 thousand new self-employment jobs created.

It is important to consider that the unemployment rate does not measure three elements that are also signs of alert: the growth of involuntary part-time employment, the drop of the average worked hours, and the increase of the number of inactive people who could be working but have dropped out of the workforce.

Clearly, urgent measures must be taken to invigorate the labour market, particularly considering the negative signals it is giving.