Join our smart investors - Get the best stock directories in  blockchain, cannabis, crypto, AI, IoT, cleantech. Daily podcasts in cannabis and crpto. Just $99  a year

Chile: unemployment increased in Jul-16, despite a relevant self-employment creation


August 31, 2016 ( Newswire) Today, the INE released the employment figures for the May/Jul-16 quarter. The unemployment rate increased to 7.1% (from 6.9%), close to market consensus and our forecast (7.0% both). Lower private and public jobs creation was offset again by a relevant increase in self-employment. By economic sectors, weakness remains with the exception of manufacturing, as a decrease of jobs creation was observed in agriculture and construction. We expect that lower fiscal spending and usual self-employment volatility could add some pressure over employment figures in the coming months.

Unemployment rose to 7.1%, slightly above the markets’ expectation and our forecast (7.0% both). The unemployment rate reached a level above 7.0% for the first time since Nov-11, mainly due to an increase in male’s unemployment (6.9% vs. 6.6% previously). The number was explained by a small decrease in employment (-0.04% q/q) and a 0.2% q/q increase in labor force.

Private and public jobs creation lost strength, with ~30,000 lesser workers. In the last five quarters, private wage earners lost job positions, meanwhile public jobs creation posted its first decline since Mar-16. Considering recently released figures, public investment is not showing signs of deceleration (+4.2% YTD vs. -0.5% y/y expected). We expect lower growth of public jobs in coming quarters amid lower fiscal investment.

Self-employment keeps on track, adding some downside risk for coming quarters. The previous negative figures have been offset by a relevant increase in self-employment, which added more than 120,000 job positions in the last year. This employment source is usually accompanied by significant volatility, thus implying a downside risk for next quarters.

Relevant increase in manufacturing employment counteracts overall sectors weakness. During Jul-16, manufacturing added more than 26,000 jobs, well-above its seasonal pattern, which was offset by an overall deterioration in other sectors. Particularly, we highlight the fact that agriculture experienced more than 33,000 jobs losses. Moreover, construction kept its downward trend, losing more than 13,000 jobs in the last quarter. We expect this trend could continue in coming quarters due to lower dynamism expected for the sector after tax reform effect dissipates.

Rising unemployment on the horizon. Despite the seasonal effects that are affecting employment figures, most of the relevant sectors are creating less jobs positions than the previous year’s average. We assume that some transitory effect persists, including fiscal job creation and high self-employment, which could not persist in the remaining months of 2016. Hence, we cannot rule out the possibility of higher unemployment in next releases.

For charts, tables and the full report, see the attached file.


Daniel Velandia O., CFA
(571) 3394400 Ext. 1505

Felipe Guzmán C.
+(562) 265 19 385

Este mensaje y sus anexos pueden contener información confidencial o legalmente protegida y no puede ser utilizada ni divulgada por personas diferentes a su destinatario. Si por error recibe este mensaje, por favor avise inmediatamente a su remitente y destruya el correo y sus adjuntos. Cualquier uso, divulgación, copia, distribución, impresión o acto derivado del conocimiento total o parcial de este mensaje sin autorización de Credicorp Capital Ltd. y/o cualquiera de sus afiliadas o subsidiarias será sancionado de acuerdo con las normas legales vigentes. El presente correo electrónico sólo refleja la opinión de su remitente y no representa necesariamente la opinión oficial de Credicorp Capital Ltd. y/o de sus afiliadas y/o subsidiarias. Los correos electrónicos son susceptibles de alteración. Ni Credicorp Capital Ltd., ni ninguna de sus afiliadas o subsidiarias serán responsables por el contenido del mensaje. Gracias por su cooperación. This message and its attachments may contain confidential or legally privileged information and may not be used or disclosed by anyone other than the intended recipient. If by mistake, you receive this message, please notify the sender immediately and destroy the message and its attachment. Any use, disclosure, copying, distribution, printing or action arising from the total or partial knowledge of this message without the authorization of Credicorp Capital Ltd. and/or its affiliates or subsidiaries will be punished in accordance with legal regulations. This email only reflects the opinion of the sender and do not necessarily represents the official views of Credicorp Capital Ltd. and/or its affiliates or subsidiaries. E-mails are susceptible to alteration. Neither Credicorp Capital Ltd nor any of its affiliates or subsidiaries is liable for the content of the message. Thank you for your cooperation.

More Info: Newswire

This news is published on the Newswire - a global digital news source for investors and business leaders

Disclaimer/Disclosure: is a digital publisher of third party sourced news, articles and equity research as well as creates original content, including video, interviews and articles. Original content created by investorideas is protected by copyright laws other than syndication rights. Our site does not make recommendations for purchases or sale of stocks, services or products. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. All investment involves risk and possible loss of investment. This site is currently compensated for news publication and distribution, social media and marketing, content creation and more. Contact each company directly regarding content and press release questions. Disclosure is posted for each compensated news release, content published /created if required but otherwise the news was not compensated for and was published for the sole interest of our readers and followers. More disclaimer info: Learn more about publishing your news release on the newswire

Additional info regarding BC Residents and global Investors: Effective September 15 2008 - all BC investors should review all OTC and Pink sheet listed companies for adherence in new disclosure filings and filing appropriate documents with Sedar. Read for more info: Global investors must adhere to regulations of each country.

Please read privacy policy: