Sunday , April 11 2021

Despite GDP growth in the region, Chile is third in job creation




Economic growth, which will record around 4% of the country in 2018, is expected to rise to 3.6% in 2019 and 3.5% in 2020 (according to the Central Bank's projections), data that the government is proud of after four years of inadequate dynamics of the previous administration.

In fact, both LatinFocus Consensus Forecast and the above-mentioned forecast survey show that the local economy with higher returns compared to average global growth (with projected GDP this year to be 3.3% 3.1% in 2019 and 2.9% in 2020) , as well as for Latin America, which forecasts an average of 1.7% this year; 2.3% in 2019 and 2.6% in 2020.

However, as has been seen in recent months, shortcomings have emerged in the labor market, and in particular job creation was a central debate during the diagnosis of central banks that official surveys underestimated the impact of immigration in the country.

Faced with this scenario, according to official figures available in September and October, it appears that Chile is third in terms of job creation in countries such as Mexico and Brazil.

Thus, according to data, the domestic economy generated a 1.01% rise in employment, while the Mexican economy grew by 6.49% and in Brazil by 1.48%.

In any case, Chile surpassed jobs in Peru (0.83%) and Colombia (0.71%).

Minister of Labor Nicolas Monckeberg, in consultation with these figures, said that "any analysis that was carried out objectively in relation to the creation of this government's employment should consider the circumstances in which we receive employment when we arrived in March," he said.

In this regard, he explained that "just a year ago, private contracts were destroyed in Chile. Today over 150,000 privately funded contracts are under pension supervision, and according to INE, there are over 80,000. These changes are extremely important."

He added that, with regard to the divergences of numerical values ​​found by the Central Bank with regard to employment surveys, "we are convinced that, whatever the number used to estimate, it will increase" and that in the coming months it will be shown better job creation rates.

"We are rebuilding the economy, with activity rising to 4% and increasing investment if it is seen in better job creation, and this will undoubtedly be seen in the coming months," he said.


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