Labor Markets Employment figures will slightly improve in the short term as economic activity slowly speeds up. The labor force has increased 1.8% over the last year, amounting to 8.3 million. Low growth Employment figures will slightly improve in the short term as economic activity slowly speeds up. rates in most developed economies will influence Chile's export-oriented industries. This, combined with a cautious domestic expansion in fixed investments and consumption, will yield tiny job gains throughout 2013, which could translate into an average 6.5% unemployment rate for the whole year. In any case, improvements in the labor market usually lag those in economic activity. The unemployment rate remained at 6.2% in the April–June moving quarter, down from the 6.6% rate showed in the same quarter of 2012. The unemployment rate is expected to decrease slightly because IHS estimates that an important number of people will continue to re-join the labor force on good economic expectations in the short term. Thus, job creation will absorb a larger labor force, but not necessarily reduce the unemployment rate significantly. Higher employment in the commerce sector influences figures in the last quarter of the year because of higher activity during the holiday season. The labor force has increased 1.8% over the last year, amounting to 8.3 million. The Chilean economy has recorded an annual increase of 169,590 in the number of employed during the second quarter of 2013 relative to the previous year. The commercial sector employs the largest number of Chileans (about 20%), followed by manufacturing (11%), the primary sector (10%), and construction (9%). The participation of women in the Chilean economy is low by international
Created on 05 Sep 2013 Page 8 of 19 standards at 48%, remaining on a flat trend. Participation of men reaches 72%, also on a flat trend. The unemployment rate for women is higher than the average at 7.1%, while that for men is 5.5%. Long-awaited reforms, which could introduce flexibility in labor regulations, especially regarding working hours of students and women, could increase participation in the labor force. Nonetheless, as long as the Chilean economy continues to grow, the participation of women in the labor force should increase over the medium term, regardless of pending reforms. Inflation Inflation is expected to remain below the 3.0% target by year-end. Volatility of the exchange rate will not contribute to keep prices of imported goods from increasing, while domestic prices will remain contained. The outlook for Chile calls for low inflation in 2013, Inflation is expected to remain below the 3.0% target by year-end. projecting a benign inflationary environment in the upcoming months. Inflation is expected to remain below the 3.0% target by December. Our oil price forecast is unchanged. Supply and demand fundamentals should lead to lower prices in the year ahead, with Brent prices projected to decline through 2015 as rising production leads to more spare capacity and further oil price declines.
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