Humanitas/ Cornerstone International Group

Chilean overview

02 2022

The Chilean economy continues to be impacted by Estallido Social (social unrest), a series of strikes and mass demonstrations launched in 2019. These disturbances prompted the country to begin writing a new Constitution.  While the details of this Constitution are being debated as of this writing (February 2022), it would replace the one which dates to the time of General Augusto Pinochet.  Understandably, changes in this foundational charter add an element of uncertainty to the social and political scenario.

Notwithstanding the turmoil, the economy is growing, fueled by a rapid vaccine rollout, a significant fiscal stimulus, high commodity prices and the short-term impact of extraordinary pension fund withdrawals on consumption. The OECD projected that GDP growth would reach 12% in 2021 but then slow towards 2% in 2023, as monetary and fiscal policies tighten. Government projections are for GDP to slowly settle on a target of 3% by early 2023.

Solid COVID-19 related government interventions cushion some of the negative aspects of the Estallido Social. Still, structural policy action is needed to prevent the aftershocks of the crisis from undoing progress in reducing poverty and inequality achieved in the past decades and strengthening economic resilience and growth in the future.

In the workforce area, many jobs were lost, especially in retail and tourism and other productive sectors. Women have been particularly affected by these losses.

The most significant growth sectors will be energy and renewable resources, mass consumption and health.

New Trends in the Search Industry

In recent years, especially in recent months, we have seen an increasing demand for digital-savvy talent, especially in areas undergoing significant transformations due to technology.  Sales, marketing, and logistics are sectors eager to attract employees with digital expertise. Therefore, candidates should recognize that they need to invest in developing new skills required by the market.

According to the Humanitas/Cornerstone International Group survey conducted in 2021, both employees and candidates need to develop often-undervalued “soft skills.” These skills are flexibility, adaptability, creativity and social awareness.

Finding talent with the right skills and aptitudes has led recruiters to adopt new methodologies.  We are now incorporating AI, Big Data and predictive analysis into the talent search and assessment process.  For example, Big Data tools can search through open-source networks to evaluate the public presentations of candidates in these social media networks.

Thus, the candidate can be evaluated more deeply and but at the same time, will become more aware of the scope that working at the organization entails.

Whether they operate at the local or on a global level, organizations must also ensure that they incorporate sustainability, diversity, and inclusivity into their policies and cultures.  The new economy can represent a learning curve for both employers and employees.

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