Chile's labor market is pulling in two directions at once. The Economic Context Observatory at Universidad de Diego Portales reports that about 57,000 Venezuelans exited the labor force during the past year, a drop of 8.1%. "The data indicate that a gradual process of emigration among the Venezuelan population has begun, impacting labor market figures," said Juan Bravo, who leads the OCEC-UDP.
With fewer foreign workers looking for jobs, unemployment among non-Chilean workers slipped by 1.3 percentage points to 6.8%. At the same time, the jobless rate for Chilean-born workers reached 10% in the June - August window.
The pullback in Venezuelan participation is mainly among people who have been in Chile under five years, hold higher-education credentials, are between 25 and 49, and are men, according to the report. Over the last decade, Chile saw a historic influx of migrants, with Venezuelans becoming the largest immigrant community.
Migration flows change labor supply and wages faster than policy does. Market Briefs covers labor economics free every morning.
Chile is nearing a demographic pivot that will reshape its workforce over time. The National Statistics Institute projects that starting in 2028, deaths will exceed births and the share of people older than 64 will surpass those younger than 15. As the population ages, questions about labor supply, including how migration fits in, will take on more weight.
President José Antonio Kast took office on March 11 with vows to crack down on irregular migration, including more deportations and tighter borders. In a recent interview, he said he expects that, as conditions improve there after the removal of Nicolás Maduro, many among the several hundred thousand Venezuelans living in Chile will return home. INE's latest population figures, published in 2026 based on the 2024 census, estimate net migration at about 100,000 people in 2024, compared with a peak near 200,000 in 2018.
For everyday budgets, these flows matter. Changes in who is working and who is looking for work can influence wages, reshape consumer demand, and ripple through sectors that rely on migrant labor, from services to construction.
Jobless rates shift when the workforce itself shifts. Get the free Market Briefs daily newsletter and read the numbers.
