The report “The world of work requires a new boost”, by the Observatorio Perspectivas, analyzed the sectors most affected by the weakness of the labor market.
According to the document, men have an average of 26.9% informality, versus 30% for women. A similar phenomenon occurs with foreigners, with 30.5% for men and 34.3% for women.
The study points out that “self-employed women continue to be the most informal, reaching almost 73%, followed by domestic workers with 60%. Meanwhile, informality increased by more than 11 points in the category of female employers, going from 8.6% to 19.6%.”
The executive director of the Observatorio Perspectivas, Gabriel Cestau, explained that “informal employment is increasing and is even higher among foreigners. Many factors may be behind this, but some of the main causes are limitations on working hours, the increase in labour costs due to legal impositions and rigidities in visa processing.”
Another aspect addressed is labour underutilization, or the mismatch between supply and demand for jobs. The labour underutilization rate is 20.8%, which represents a year-on-year increase of 0.4 points. The most affected regions are La Araucanía (31.3%), Los Ríos (28.3%) and Ñuble (27.8%).
The document indicates that, in the case of Ñuble, although the increase in underutilization of labor compared to the previous year was limited (0.8 pp), this indicator remains high because there are 34 thousand people within the potential labor force (+13.6%). Additionally, the number of employed people looking for work increased by 21.1% compared to the previous year.
“At the national level, involuntary part-time employment, that is, those employed who would work more hours if they had the possibility, has increased by 19.1% compared to the previous year, being the main driver of the increase in labour underutilization,” explained Cestau.
The report concludes that, in order to boost the labour market, it is necessary to implement public policies that focus on reducing informal employment among women and foreigners, especially in the segments of domestic workers and self-employed workers; curbing underutilization of employment and increasing productivity.
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