Chile rolls out $1.3 billion public investment plan to create 100,000 jobs

President José Antonio Kast unveiled a $1.3 billion initiative to stimulate Chile’s lagging economy and curb a persistent unemployment problem that has stayed above 8% for 43 months. The program allocates $800 million for new public-investment projects in 2026-27, including ports, water infrastructure and airports, and provides $91 million in subsidies for hiring, along with state guarantees to improve SME working capital.

The government hopes the effort will create roughly 100,000 jobs in 2026 and 2027, while the Central Bank has lowered its growth outlook for 2026 to between 0.25% and 0.75%. Business groups such as the Confederation of Production and Commerce and the Santiago Chamber of Commerce praised the infrastructure focus but said the package is insufficient without broader growth policies. Economists noted that even if the job target is met, unemployment may only fall by half to one percentage point. The plan follows a sharp deterioration in the labor market during Kast’s first six months in office.