The crisis affecting the Chilean economy since March 2020 has had a strong and rapid impact on the labor market, with a disproportionate impact on women, who lost more than 930,000 jobs between February and July 2020. Women’s jobs were affected in a greater proportion than men’s, which points to an unequal distribution of the consequences of the crisis. b. This phenomenon can be partly explained on the labor demand side, since the shock generated by Covid19 and related sanitary restrictions had a stronger impact on sectors (personal services, trade, and restaurants and hotels) and types of work (self-employment, household help) where employment is more intensive in hiring women. c. However, just as important as the demand side is the supply side. This is largely reflected in the fact that the crisis brought not only an increase in unemployment, but especially a drop in the labor force, but mostly concentrated in women. Thus, between February and July, the female participation rate fell from 53 to 41 percent, standing at 46 percent in the last measurement (February-April 2021).
When the Referendum was being held, the global economy was emerging from a long period of financial repair and lacklustre growth. Over the subsequent two years, a widespread and increasingly vigorous global expansion took hold. For the first time since the financial crisis, business investment and foreign trade grew strongly across all major regions. Economic uncertainty diminished, and consumer and business confidence firmed. In economies close to full employment, real wages finally began to grow. A new beginning seemed possible. In the past few quarters, however, these trends have largely reversed. After peaking a year ago around 4%, global momentum is now weakening in all major regions and downside risks have intensified. The proportion of the global economy growing above trend has fallen from four-fifths to one-third. Trade growth has slowed and the export outlook has dimmed. Capital goods orders are stagnating, investment growth has become more tepid, and business confidence is diminished (Chart 1). Chart 1: Global momentum is weakening Index, amplitude adjusted, Long-term average=100 102  Percentage change, 3 months on 12 months ago 20 15  OECD Business confidence 101  10  World trade in goods  5 100  0  US & EA capital goods orders 99 2010  -5 -10  2011  2012  2013  2014  2015  2016  2017  2018  Sources: ECB, Conference Board, CPB, OECD, and Markit Economics and Bank calculations.