Chile has announced a public investment and employment plan worth around $1.3 billion as the government seeks to accelerate job creation and support economic activity.

The initiative, known as “Chile Despega, con más pega,” is expected to mobilize about 1.3 trillion Chilean pesos (roughly US$1.3–1.35 billion) and aims to generate more than 100,000 employment opportunities through a combination of public investment, employment incentives and measures designed to support businesses.

The plan comes as Chile continues to face elevated unemployment. The country’s unemployment rate stood at 9.5% for the May-July 2026 period, according to official figures cited by the government.

Public investment at the center of the plan

A major part of the initiative focuses on bringing forward public investment projects that can generate employment relatively quickly.

Government agencies are expected to accelerate infrastructure, housing, reconstruction and municipal projects. Authorities will also prioritize projects based on factors such as local unemployment levels, infrastructure needs, project readiness and their potential to create jobs.

The approach is intended to direct investment toward regions and communities where employment pressures are particularly significant.

Employment incentives and support for workers

The government also plans to strengthen employment subsidies and other hiring incentives as part of the strategy.

These measures are designed to encourage businesses to hire workers while directing support toward areas and groups facing greater difficulties in the labor market.

The employment component will work alongside increased public investment rather than relying solely on government-funded positions.

Measures aimed at businesses

The package also includes steps intended to improve liquidity for businesses, particularly smaller companies.

Authorities plan to accelerate payments to suppliers in the health sector and strengthen FOGAPE, Chile’s state-backed guarantee program, to improve access to financing for small and medium-sized businesses.

The government expects these measures to support business activity while helping companies maintain or expand employment.

Government targets more than 100,000 jobs

Chile’s government has said the measures could contribute to the creation of more than 100,000 jobs.

That figure represents a government projection and target rather than employment already created. The eventual impact will depend on how quickly public projects are implemented, how businesses respond to hiring incentives and broader economic conditions.

The plan is expected to have effects extending from late 2026 into 2027 as investment projects and employment measures are implemented.

What the plan means for Chile’s economy

The initiative represents a combination of fiscal investment, employment incentives and business support aimed at addressing Chile’s prolonged employment challenges.

By accelerating projects that are already prepared for implementation and directing resources toward areas with higher unemployment, the government is seeking to produce a relatively rapid impact on employment while continuing to support economic activity.

The effectiveness of the Chile public investment and employment plan will ultimately depend on implementation and the number of jobs that materialize as projects and private-sector hiring measures move forward.