MercoPress. South Atlantic News Agency

Slight drop in unemployment in Uruguay and Chile

February was Uruguay's last month under President Luis Lacalle Pou. Photo: Sebastián Astorga

Uruguay's unemployment rate slightly decreased to 7.9% in February from 8.1% in January, according to a National Statistics Institute (INE) report released Friday. This represents a 0.2% drop month-over-month and a 0.4% decrease compared to February 2024, with approximately 150,900 people unemployed. The employment rate remained stable at 59.4%, while the activity rate saw a minor decline from 64.6% to 64.5%. It was President Luis Lacalle Pou's last month in office. Yamandú Orsi was sworn in on March 1.

Unemployment was lower in Montevideo (6.6%) than in the interior of the country (8.8%). Job creation year-over-year was around 25,000, as noted by economist Aldo Lema, who described the labor market as stable with no major changes.

However, informality rose sharply, with 22.5% of workers not registered for social security, up 1.2 points from January and 0.4 points from February 2024.

Underemployment also increased to 9.2%, though it remains below last year’s levels. Overall, the labor market shows slight improvement in unemployment but faces challenges with growing informality.

Chile

In Chile, unemployment reached 8.4% during December 2024–February 2025, marking a 0.1 percentage point decrease compared to the same period a year ago but an increase from the previous quarter (8.0%). Employment rose by 0.9%, driven by gains in transport, financial activities, and public administration.

The National Employment Survey (ENE) drafted by Chile's National Institute of Statistics of Chile (INE) showed that the informal employment rate dropped to 26.1%, with fewer informally employed in sectors like commerce and manufacturing.

However, a disparity among genders was reported as joblessness went up 0.3 points for women for a total of 9.3% against a 0.4 point decrease for men, who now account for 7.7% of the population seeking work.

The participation and employment rates were 52.7% and 47.8%, falling 0.1 pp. and 0.2 pp. in each case. Women outside the labor force, on the other hand, expanded by 1.2%. Among men, the unemployment rate was 7.7%, decreasing 0.4 pp. in one year, as a result of the 1.0% increase in the labor force, lower than the 1.4% increase recorded by employed men. The number of unemployed decreased by 3.9%. The participation rate reached 72.3%, with no variation, while the employment rate reached 66.7%, expanding 0.3 pp. in the period. Men outside the labor force increased by 0.9%.

Seasonally adjusted unemployment was 8.5%, and average working hours declined slightly, it was also reported.