Job crisis: people over 50 take more than a year to find employment

The labor market is the main variable the government wants to tackle. The 9.8% recorded in the July-September quarter raised alarms. In that same measurement, employment fell 1.1%, its largest contraction since early 2021, which in numbers translates into the destruction of 102,875 jobs, the largest drop since early 2021. The unemployed increased 15.3% in a year and surpassed one million people. Specifically, in this quarter they totaled 1,007,976, the highest figure since the July-September quarter of 2020, in the midst of the Covid pandemic, when there were 1,037,582 people without work in the labor market. This scenario heightened the government's concern, and for that reason it launched a plan to boost job creation through the delivery of 100,000 subsidies, since those becoming unemployed are taking more months to find a job. An analysis by Horizontal addresses this situation of longer months in which people are searching for employment. If in 2019, those aged 15 to 29 took 5.6 months, now, in 2026, that age group has a delay of 6.3 months. Among those aged 30 to 39, it rose from 6.9 months in 2019 to 7.5 months in the July-September quarter of 2026. The same trend is reflected among people aged 40 to 49. If in 2019 they were in the labor market seeking to re-enter, now in the July-September quarter they take 7.9 months. But the most complex situation is faced by people aged 50 or older, since they are the ones who spend the most time looking for employment. According to the study, people between 50 and 59 years old had a timeframe of 9.1 months searching for work in 2019; now, that period rose to 12.2 months, while among those aged 60 or older it rose from 10.5 months in 2019 to 12.4 months now in this quarter ending in July. What explains it? Franco Antonucci, a researcher at Horizontal, states that "generally, this type of phenomenon is due to many causes, but one of the reasons is certainly the lack of economic growth and the stagnation of productivity," he says. He also suggests that "it could be that the increase in automation and the use of AI has accelerated the change in demand for work toward people who know how to use these tools, and this age group could face more friction in adapting." Women are the most affectedNow, when analyzing by sex, it is women who spend the most time looking for employment. Looking at the July-September quarter of 2019, women spent 7.4 months searching for employment before finding it. Now, in 2026, it rose to 8.9 months. Meanwhile, among men, it rose from 6.4 months to 7.6 months between 2019 and 2026 for the same period. "Commonly, women find themselves in a worse situation than men, that is, they show gaps in their disadvantage versus men, both in unemployment and in participation, employment, and duration of unemployment, for example," said Antonucci. The Horizontal researcher maintains that "the deterioration becomes evident after the pandemic. Although unemployment rose across all ages, women over 50 were the most affected: their rate increased by nearly 2.7 points, more than double the average for women. And for men and women aged 50 to 59, the most concerning aspect is the duration: today they spend between 11 and 13 months looking for work, the largest increase among all age groups." For the coming months, the outlook at Horizontal will depend on the behavior of the economy. "If we grow more, we should observe that the duration of unemployment falls, at a general level. However, we could continue to see heterogeneities between age groups, that is, not everyone would adapt at the same speed." The executive director of Horizontal, María José Abud, argues that public policies are lacking that aim at greater inclusion for this age group. "This group not only loses their jobs more, but it is much harder for them to find a new one. To address this, training and job reconversion programs for those over 50 are needed, as well as workplaces adapted to their trajectories, that consider occupational health and their preferences for continuity." To that, the economist believes there should be "more personalized support at the Municipal Labor Information Offices (OMIL), that accompanies these people in their job search." NEWSLETTERPulso PMLMonday to Friday, 12:30 PMThe most relevant news in markets, companies and business: timely information, context and content to make better decisions. By subscribing you are accepting the Terms and Conditions and Privacy Policies of La Tercera.