The labour market in Chile

Chile is 3rd among 32 countries in the Americas region for economic freedom according to the Heritage Foundation Index of Economic Freedom 2019 and comes up as the 18th freest in the world according to the same report.

Wages in Chile

Unfortunately, labour wages are on the low side. The minimum wage for unskilled workers in 2019 is 301,000 CLP which is about 415 USD per month. Approximately 50% of the country earns about 400,000 CLP per month (or less), which is around 550 USD. Just 20% of employees in Chile earn more than 750,000 CLP or approximately 1,030 USD after taxes. 

For a contracted employee (as opposed to someone who is an independent contractor or self-employed), typical benefits include an employer contribution to the pension system plus healthcare insurance and 15 days of paid vacation every year. Employees do not have to file and pay taxes like in the USA; freelance workers do, however.

Promising sectors in Chile

The most significant sectors of the economy are mining (mainly copper), business services and personal services, manufacturing and wholesale and retail trade. Mining represents 59.5% of exports while the manufacturing sector accounted for 34% of exports, concentrated mainly in food products, chemicals, pulp and paper. The labour force consists of 9.383 million as of 2019 and of that number agriculture is 9.2%, industry is 23.7%, and services are 67.1%.

Agriculture

Chile is the second-largest producer of salmon in the world, after Norway. Salmon farming is mainly in southern Chile and has provided over 70,000 jobs.

Besides mining, the forestry industry is one of the largest export sectors for Chile. Most timber is grown in the Bio Bio and Araucania regions where over 170,000 people have been employed.

Chile's unique geography and climate make it ideal for winegrowing, and the country has made the top ten list of wine producers many times in the last few decades. Chile also exports many fresh fruits during its summer season when the northern hemisphere is in winter. Exports include apples, pears, grapes, blueberries, raspberries, plums, and kiwis.

Industry

Mining is one of the pillars of the Chilean economy. The Chilean government strongly supports foreign investment in this sector and has modified its mining industry laws and regulations to create a favourable investment environment for foreigners. Thanks to the considerable copper resources, the progressive legislation, and a healthy investment environment, Chile has become the copper mining capital of the world, producing over 1/3 of the global copper output. The northern town of Calama (1,200 km from Santiago) is home to the largest open-pit copper mine in the world, Chuquicamata. Trade unions in Chile have said at least 600,000 technical professionals are needed in fields ranging from construction to mining in the world's top copper producer. Here is a link with a bit more information about mining in Chile from the This is Chile website. 

Services

Chile has grown quickly and consistently in recent decades with the help of rapidly developing communication and information technology, access to education, and an increase in specialist skills and knowledge among the workforce. The service sector has also grown to include: retail services, construction and engineering, and health and education.

Tourism

Tourism in Chile has experienced sustained growth over the last decades. Chile was named one of the top tourist destinations for 2018 by Lonely Planet Travel magazine as well as several awards from the Latin American World Travel Awards in 2019 including best place for adventure tourism, best nature destination, and best romantic destination (Atacama Desert). 

 Useful links:

Heritage Foundation
This is Chile - Agriculture
This is Chile - Mining
This is Chile - Tourism