Tuesday , October 26 2021

Not everything that shines is gold: analysts see Chile's work warning signs


Recent INE data show weak labor market developments. And despite the fact that last year the economy has been recovering rapidly, with an increase of 4%, employment remains the "best time". Faced with this, economists point to an unstable situation and warn of some risks.

All that shines on recent data on the labor market in Chile is not gold. Economists argue that the overall unemployment figures hide the weaknesses.

According to analysts, in the Bloomberg survey in December, unemployment in South America's richest country fell to 6.7 percent. However, the increase with a seasonal adjustment of up to 7.1 percent indicates a weak labor market.

Other information published by the National Statistical Institute on Thursday also showed that manufacturing and manufacturing increased by 1% and 0.8%, respectively, compared to the previous year.

It says analysts:

Andrés Abadía, senior economist, Pantheon Economics

Unemployment declined in December, but the adjusted basic unemployment trend is on the rise, suggesting that the economy is far from being overrun. The unemployment rate is still too high to be comfortable. in the first quarter of this year, when the economy is accelerating, there are better overall indicators.

Alberto Ramos, Paulo Mateus, Gabriel Fritsch, Economist, Goldman Sachs:

In December, manufacturing was driven by the manufacture of machinery and equipment, which shows that investment has remained positive, with seasonally adjusted unemployment reaching a new cyclical peak of 7.1%. The private sector was extended for twelve months in a row. However, despite stronger job creation, December's overall labor market conditions remained weak

Matías Solorza, economist, Banchile

Improvements in the labor market in the future depend on paid employment. Job creation in the construction sector shows positive investment prospects in 2019.

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