View from the Ground
The political-economic framework in Chile has advanced a lot over the last decade and the country has been one of the fastest-growing economies in Latin America, as well as one of the most stable. The political situation abroad, mainly in South America, represents a significant challenge to Chile, as this impacts the volume of expats and workers in the country – even though there are plenty of opportunities at the moment. The Government’s efforts to rationalise the tax system, facilitate employment mobility, reduce bureaucracy, improve the pension system and strengthen the financial system will be crucial for maintaining growth and reducing Chile’s vulnerability to external risks. Despite predictions, the big employment boom, which was expected across several industries such as mining, lithium and antimony tin oxide, didn’t happen as fast as anticipated. However, now that a number of major projects are set to start, the demand for professionals is expected to increase.
Luis Fernando Martins, Managing Director, Hays Chile & Colombia
Key Skills in Demand
- Key Account Managers
- Digital Marketing Managers
- Industrial Managers/ Engineering, Maintenance
- HSE Managers (Mining & Energy)
Chile’s economy grew rapidly in 2018, with GDP expanding by 4.5%. The outlook appears positive, with growth expected to be average 2.6% over the coming five years. The risks to this benign outlook are mainly external, including rising global protectionism, a tightening of global financial conditions, and unexpectedly low growth for Chile’s main trading partners.
Strong immigration caused the growth in the size of the labour force to outpace employment growth in 2018, resulting in the unemployment rate rising to 7%. The increase in the unemployment rate is expected to be reversed by the growth in demand, falling to 6.6% in the medium term.
The Government has introduced initiatives to encourage greater female labour force participation and has amended the curricula of vocational schemes with the objective of addressing the needs of the new digital economy.