The rate of unfilled vacancies has fallen substantially below historical levels. This suggests that firms are more able to find workers with the right skills.
Wages in high-skill occupations fell faster than in lower-skill ones, narrowing occupational wage gaps.
The growth in labour market participation is expected to slow this year.
Regional Director, Hays Chile
As a consequence of the Presidential elections last year, we saw a low level of foreign investment in 2017. However, things have now picked up and we have seen more in investment in just the first quarter of 2018 than the whole of 2017. As a result, the shortage of skilled labour has intensified as businesses look to increase their output. In order to improve the situation, Chile needs to tackle two issues in the short-term: wage inflation and removing barriers to allow organisations to access talent from abroad. The new immigration policy has restricted low-skilled entrants in an eff ort to limit underemployment, but the Government is yet to take any action to attract new talent. With regards to the mining sector, there are some concerns about talent mismatch. We are expecting an increase in activity in the sector in the next six to 12 months, making the search for talent more competitive.
Luis Fernando, Regional Director, Hays Chile
Chile’s economy picked up rapidly through 2017 and into 2018, with annual growth standing at around 5% in the first quarter of the year.
This is a marked turnaround from the brief economic contraction seen in the first quarter of 2017, helping to keep the unemployment rate relatively low near the 6.5% mark, which it is has hovered around for several years.
However, there are some signs of potential labour market conditions are easing, as wage growth has been declining since the final quarter of 2017, and the fall in the central bank’s Job Vacancy Index in 2018 relative to its level of a year earlier.