Chile launches $1.3 trillion emergency jobs plan

President José Antonio Kast presented the "Chile Despega" plan on Monday, mobilizing $1.3 trillion in public investment, hiring subsidies, and financing for small businesses to tackle a deepening labor crisis. The initiative aims to generate more than 100,000 jobs, with effects expected in coming months and more intensely in 2027.

Unemployment stands at 9.5%, affecting nearly one million people, marking 43 consecutive months above 8%. Economic activity fell 0.4% between January and July, with full-year GDP projected below 1%. Kast described the situation as a national cause transcending political sectors.

“What we want to present today is a cause for Chile, not a cause for a political sector.”

The plan rests on three pillars: expanding the hiring subsidy rather than the existing Unified Employment Subsidy (SUE), accelerating public works in housing and infrastructure, and providing financial support to SMEs. Interior Minister Claudio Alvarado and Finance Minister Jorge Quiroz will oversee implementation.

Kast warned there is no "magic wand" for immediate recovery, emphasizing that sustainable employment depends on restoring private investment confidence. The government noted 179 projects worth US$35.8 billion have received environmental approval since March as a foundation for growth.