MercoPress. South Atlantic News Agency

Unemployment in Magallanes Region soars to over double a year ago

Contraction in seasonal activities is hitting hard a Chilean region quite stable in employment terms

Unemployment in Magallanes Region, extreme south of Chile surged to 6.3% in the March-May quarter which is more than double the same period a year ago, 2.6%, and higher than the previous immediate quarter, 5.8%, according to the latest release from the regional Statistics Office.

Jose Gabriel Parada head of the Statistics Office seated in Punta Arenas said this was one of the highest unemployment rates in the last ten years. In 2000, March-May quarter unemployment reached 6.4%.

In numbers this means that there are 4.460 people out of a job, which is 430 over the previous period and 2.730 more than a year ago. º

Unemployment in Punta Arenas was 6.8%; in Puerto Natales, 6.6% and in Porvernir, 2.7%, which is the lowest rate in Chile. However discriminated by gender, women unemployment reached 8.5% and among men, 5.3%.

Compared to the previous fiscal year, sectors which most contraction experienced were agriculture, mines and quarries, construction, retailing, transport and social and personal services.

Mr. Parada said that the latest data have pushed Magallanes from second to third place in the list of regions with lowest unemployment. Top of the list is Aisen region with 4.8% followed by Tarapacá, 5.5%. Bottom of the list is Araucaria with 14.5% while the national average for Chile was 10.2% and increasing.

“The coming quarter can be expected to show even worse results” anticipated Parada, close to 7% “since at this time of the year several sectors suffer strong contractions of economic activity such as retailing and construction”.

Parada also pointed out that in the last two decades unemployment in Magallanes region never reached the two digits.

The local branch of Chile’s Workers Unity Central, CUT expressed concern over the latest data and called on the government to implement through town halls and even in rural areas “emergency plans” since many households are headed by women.

“They work, send the children to school where they are fed, but what happens over weekends? Who pays for transport and decent meals for the kids? Asked Clemente Galvez CUT spokesperson.

Parada revealed that the workforce in Magallanes according to the latest census is over 70.000 “which is above the historic average of 67.000. This means we have migrant labour that has come looking for jobs in our region. It’s a form of under cover unemployment”.

In Santiago the head of Chile’s Banks and Financial Institutions Association said that the surge in unemployment at national level to 10.2% “can’t be attributed only to the crisis, there are also structural policies involved”.

Hernan Somerville said “we forgot to do our homework in times of bonanza and now we are challenged by these numbers. We need more flexible legislation and I’m not proposing redundancies. On the contrary I would like to see programs were workers are re-educated, prepared for new technologies jobs. That is the big challenge ahead”.