Chile Public Employment Programs
Sources: The Library of Congress Country Studies; CIA World Factbook
Two public employment programs affected the labor market during the period of economic reforms between 1975 and 1987. The Minimum Employment Program (Programa de Empleo M�nimo--PEM) was created in 1975 at a time when unemployment had reached record levels. The program, administered by local governments, paid a small salary to unemployed workers, who, for a few hours a week, performed menial public works. At first, the government tightly restricted entry into the program. Gradually, most of these restrictions were lifted, and a larger number of unemployed people were allowed to participate. Thus, the proportion of the labor force employed by the program remained virtually constant between 1977 and 1981, despite the economic recovery and a reduction in the real value of PEM compensation.
When Chile entered a new and more severe recession, the number of individuals employed by PEM in the Metropolitan Region of Santiago increased from about 23,000 in May 1982 to 93,000 in May 1983. An Employment Program for Heads of Households (Programa de Ocupaci�n para Jefes de Hogar--POJH), created in October 1982, employed about 100,000 individuals in the greater Santiago area by May 1983. The two programs combined absorbed more than 10 percent of the labor force of the greater Santiago area in May 1983. These programs were also implemented in other regions of the country. The PEM program was cut back drastically in February 1984. Likewise, by December 1988, there were only about 5,000 individuals employed by the POJH in the entire country.
Data as of March 1994
NOTE: The information regarding Chile on this page is re-published from The Library of Congress Country Studies and the CIA World Factbook. No claims are made regarding the accuracy of Chile Public Employment Programs information contained here. All suggestions for corrections of any errors about Chile Public Employment Programs should be addressed to the Library of Congress and the CIA.