Deterioration of Labor Participation Rate in Chile

20, December

Interest in working is decreasing in Chile, as the reverse in the Labor Participation Rate reveals. The last ...

Interest in working is decreasing in Chile, as the reverse in the Labor Participation Rate reveals.

The last figures informed by INE, remark that the workforce expanded 1.2% in twelve months, below the population of age to work which grew 1.6%. This situation determined a fall in the labor participation rate, not only men but also women, which is worrying if we consider that Chile keeps a high gap with OECD, being situated among the five nations with lower figures.

These figures show the other face of the unemployment rate, which goes up to 5.8%. Even though this rate is close to the full employment, the lack of interest to enter the labour market must not be ignored.

In the last 24 months, the total inactive population has grown to 230.730 people. From them, the proportion that declare not to work because of permanent illness reasons, represent 12.6% overcoming the 10.2% of 2010. Apart from a population with a higher illness rate, there is a growth of people that do not want to work, which means that the alternatives of the market are not enough for their expectations. On the contrary, the inactive population for retirement is declining in 30.000 people in three years and people who receive pensions decline to 38.380 during the same period.