Unemployment Falls in Şili's La Araucanía Region, Health and Education Boost Employment

In the La Araucanía region of Şili, the unemployment rate decreased by 11.7% over the past year, falling to 41 thousand 894 people. While the regional unemployment rate reached 8.7%, it remained below the national average of 9.4%. According to data covering the March-May 2026 period, the number of employed individuals in the region reached 439 thousand 313, recording a 0.8% increase on an annual basis. A Labor Observatory report conducted by La Frontera Üniversitesi indicates that a period of stability has begun in regional employment growth. However, this small increase occurred in an environment of economic contraction, where the regional gross domestic product (GDP) shrank by 2.4% in the first quarter of 2026.

When evaluated on a sectoral basis, it is notable that the health sector was the main driving force behind the employment increase in the region. In the last twelve months, 9 thousand 311 new individuals were employed in the health sector, and this sector achieved an impressive growth rate of 30.3%. It was followed by the education sector with 5 thousand 96 new workers. The strong performance of both sectors, in line with national-level economic indicators, reinforces the contribution of the service sector to regional employment. Furthermore, employment rates among mid-level professionals and technical personnel increased by 9.2% and 18.8%, respectively. The increase in employment for these two groups created a significant momentum covering more than 12 thousand 700 people on an annual basis.

Another notable detail was that the rise of women in the labor market continued for the second consecutive quarter. While the employment rate for women increased by 1.6 percentage points, the female unemployment rate recorded a 1.2 percentage point decrease. Juan Pablo Carrasco, the Regional Secretary of Labor and Social Security, emphasized that preserving the workforce in critical sectors such as health and education during an economically challenging period is a significant achievement. Carrasco also stated that the increase in technical and professional occupations and women's leadership in employment are commendable. However, in his speech, he reminded that job quality needs to be improved due to the still high rates of informal employment in the region.

Despite this apparent stability in employment, some striking internal dynamics and problems are also emerging in the market. A significant portion of the increase in the number of employed individuals stems from informal jobs, which rose by 6.6% (10 thousand 101 people) in the past year. This situation is particularly associated with the increase in personnel working in a self-employed status in the public sector; because these workers pay their own insurance premiums and generally have less job security. Therefore, the informal employment rate in the region reached 37.4%, reaching the highest level in the country. On the other hand, directly linked to the loss of vitality in the trade sector, formal salaried employment in the private sector shrank by 7.0%.

The fact that economic contractions are one of the factors that directly and earliest affect formal employment is being closely monitored by experts. Camilo Rosas Flores, Director of the Labor Observatory, stated that the data clearly reveals how the slowdown in the regional and national economy hinders growth in the labor market and the strong ties between economic cycles and job quality. Rosas Flores added that there is a recurring pattern where formal employment is the first to suffer when the economy contracts, and this situation needs to be continuously monitored. In the upcoming periods, when the regional economy recovers, it will be a matter of curiosity whether the vitality in sectors such as health and education will help increase formal employment. All these statistics reveal that regional economic recovery should not only reduce unemployment but also improve job security and employment quality.