The present paper investigates the dynamics in the chilean labor market during the first quarter of 1996 and the third quarter of 2016. It estimates the unemployment flows following Shimer (2016) in order to characterize labor market variables in the bussisnes cycle. According to our results, during the last two decades in Chile, recessionary in- creases in unemployment are driven by the outflow from unemployment than the inflow. Using structural Vector autorregresive analysis (SVAR), we estimate a model to identify several shocks that affect the economy and labor market. An aggregate supply shock generates greater variance in the inflow also shows greater persistance to the variety of shocks examined; meanwhile an aggregate demand shock generates greater variance in the outflow.