Chile Unemployment rate likely rose to 6.4% in February

In January, the unemployment rate rose - although modestly - for the first time in five months to 6.2% (6.15% unrounded).

However, this rise was less than expected and was entirely due to the base effect. Both labour force growth and employment growth fell to 1.1% (vs six month averages of 1.9% and 1.2% respectively).
 
The changes in these rates should have led to a further fall in the unemployment rate, but the base effect from January 2014 contributed to raising the unemployment rate. That said, the strength of the labour market continues to defy the weak economic environment.

The economy continues to grow well below its potential, and do not see this changing any time soon

"we expect employment growth to continue to lag labour force growth, resulting in a higher unemployment rate through this year. In February, we estimate unemployment rate to have risen to 6.4% on the back of 1.4% yoy growth in the labour force and 1.2% growth in employment", said Societe Generale in a report on Tuesday.