What Does the Future Hold for Hiring Trends in Chile?
With its highly educated labor force, stable political institutions, and growing economy, it’s no surprise that hiring trends in Chile are taking off – with increasing numbers of foreign investors looking to start a business in the South American country.
What factors are contributing to growth in hiring trends in Chile?
- Highly educated labor force
- High proficiency in English
- Rich in natural resources
- Stable political system/society
- Robust capital investment in tech startups
SEE ALSO: Find a Professional Employer Organisation (PEO) in Chile
1. Highly educated labor force
Large and sustained investments in education in Chile over the past decade have paid off. Chile boasts a large and well-educated labor force, and the hiring trends in Chile demonstrate this. There’s no shortage of tech/IT professionals, engineers, business administrators, and legal and marketing professionals in the Latin American country.
2. High proficiency in English
The hiring trends in Chile have also been influenced by the country’s many people who possess some English proficiency. This is particularly true among young urban professionals. Only Argentina and Costa Rica rank higher than Chile in terms of English speakers in the region.
3. Rich in natural resources
The Chilean government under the young center-left president, Gabriel Boric, is staking the future on copper mining and renewable energies such as green hydrogen and lithium mining (the latter is a key component in electric car batteries). Regarding hiring trends in Chile, engineers – especially those in the mining industry – represent the second most in-demand job in the country. Only programmers and IT professionals are in higher demand.
4. Stable economy, political institutions, society
Chile is a safe bet for foreign investors regarding social, economic, and political stability. While there have been violent and prolonged street protests in years past, Chile has since stabilized since the last presidential election. There is little risk in investing or domiciling in the country, and it’s quite possibly the safest nation in Latin America. Little wonder then, the figures surrounding hiring trends in Chile remain strong.
5. Robust capital investment in tech startups
Spurred by the Covid pandemic and lockdowns, Chile is moving forward with laying the foundation for a 5G network. While low growth and high inflation remain a problem in the region, Chilean startups in the country have been weathering the storm. Capital flows to the nation’s tech startups grew from $60 million USD in 2019 to $400 million USD in 2021, with some even achieving unicorn status (meaning having a valuation of $1 billion USD or more). Expanding the 5G network will boost the tech startup environment in Chile.
Hiring trends in Chile: What do I need to do to incorporate there?
According to the World Bank’s Doing Business Guide, the steps to be taken to officially form a company in Chile, which can be concluded within a few days, are as follows:
- Register the company online and obtain an authentication number
- Notarize company statutes and have them signed digitally by the notary
- Obtain a RUT number by registering with the Internal Revenue Service (SII in Spanish)
- Print receipts/invoices at an authorized printing company
- Seal accounting books and other documents with the IRS
- Acquire a municipal working license from the municipality in which the business is located
- Register for labor-related accident insurance
SEE ALSO: Business: Why and How to Set Up a Company in Chile
Before contributing to hiring trends in Chile, what should I know about the country’s work culture and labor laws?
Like any new move into a new country, it’s essential to get a feel of the work culture and the rights and responsibilities both workers and employers have under the law, as hiring trends in Chile are influenced by these conditions.
What follows is a snapshot of how Chileans work:
1. Work Week – Chileans are hard workers, and hiring trends in Chile show it. A full-time work week is 45 hours a week, which must be spread out over 5 or 6 days.
2. Salary and Wages – As of 2020, Chile’s monthly minimum wage was $320,500 Chilean pesos (about $360 USD), but this is likely to increase under the Boric government. On the other hand, skilled professionals like engineers or programmers/developers can make upwards of 2.25 million pesos per month ($2,500 USD).
3. Vacation Time – Labor laws in Chile dictate that employees receive a minimum of 15 days of paid vacation per year.
4. Social Security – Employees must pay into several social security schemes in Chile. For employers, this means withholding the correct amounts from employees’ paychecks. Fortunately, employers themselves are required to pay relatively little.
5. Health Insurance – The South American nation’s health care system blends public and private services. Employees must pay into a private health insurance scheme from the health provider ISAPRE. Foreign investors looking to take advantage of hiring trends in Chile will have to contribute to an employee’s health coverage.
Biz Latin Hub can help you with hiring trends in Chile
At Biz Latin Hub, we provide integrated market entry and back-office services throughout Latin America and the Caribbean, with offices in Bogota and Cartagena, as well as over a dozen other major cities in the region. We also have trusted partners in many other markets.
Our unrivaled reach means we are ideally placed to support multi-jurisdiction market entries and cross-border operations.
As well as knowledge about hiring trends in Chile, our portfolio of services includes hiring & PEO accounting & taxation, company formation, bank account opening, and corporate legal services.
Contact us today to learn more about how we can assist you in finding top talent or doing business in Latin America and the Caribbean.
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