Friday , January 15 2021

Chile is the third job creation despite the region's leading GDP growth

The economic growth that will register the country in 2018, about 4%, the anticipated expansion of 2019, 3.6% and 3.5% in 2020 (according to the Central Bank's expectations survey) The government proudly presents after four years of poor dynamism of the previous administration.

In fact, the expectations of both the LatinFocus Consensus Forecast and the above expectations survey show that the domestic economy has better returns than average global growth (with an expected GDP of 3.3% this year, 3.1% in 2019 and 2.9% in 2020) , And in relation to Latin America, which forecasts an average of only 1.7% this year, 2.3% in 2019 and 2.6% in 2020.

However, and as has been evident in recent months, the labor market has shown weaknesses and especially the creation of jobs have been at the center of controversy over the diagnosis of the central bank that official surveys underestimate the impact of immigration in the country.

Given this scenario, according to official data available in September and October show that Chile is in third place in terms of creating jobs after economies like Mexico and Brazil.

Thus, according to the data, the creation of employment of the domestic economy increased 1.01%, while the Mexican economy shows an increase of 6.49% and the Brazilian 1.48%.

In any case, Chile surpasses the creation of jobs in Peru (0.83%) and Colombia (0.71%).

According to the data, Labor Minister Nicholas Munkberg said that "any objective analysis of the creation of this government should consider the conditions under which we get work when we arrive in March," he said.

"Exactly a year ago, private contracts in Chile were destroyed," he said, adding that more than 150,000 private contracts are being created with contributions, according to INE, more than 80,000. "This change is very important, .

And he added, referring to the differences in data revealed by the Central Bank in relation to employment surveys, that "we are confident that everything used to measure, it is on the rise" and that in the coming months, better job creation will look.

"We are reactivating the economy, with activity growing to 4% and investments increasing as it grows, if it looks better, and it will probably look stronger in the coming months," he said.

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