At the national level, in the quarter from January to March 2024, informal workers in Chile experienced a 5.8% increase in twelve months, reaching a total of 2,614,641 people working under this modality. This places the national informality rate at 28.1% (lower than the rate in Aysén).
Informal employment, which is clearly linked to the lack of sufficient job creation, carries risks for both the economy and the national market. One effect is lower tax collection, as informal workers do not contribute to the tax payment system, which affects the State’s income and limits its capacity to finance public services and social programs, increasing the tax burden on those who do pay taxes. Informal employment also generates precarious working conditions, as it is usually associated with low wages, no social protection (health and pensions) and unsafe and unstable working conditions. Finally, it generates a negative impact on the economy, as informal workers generally work in small companies, with low productivity and high turnover, in conditions of poor physical safety, in an irregular manner with respect to social protection in case of accidents and, frequently, in an irregular migratory situation.
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