MercoPress. South Atlantic News Agency

Unemployment in Santiago 13,4%

Unemployment in Santiago last September reached 13,4%, a 0,2% drop from the last quarter (April-June) and 0,3% less that a year ago, according to the Economics Department of the University of Chile.

"The slight improvement reflects a still modest recovery of the Chilean economy and as we move on to the last quarter and 2004, a further drop in unemployment can be expected, however so far expectations are above results", said Joseph Ramos Dean of the Economics Department.

By age group, 14/19 years, unemployment grew from 35,6% in June to 37,9% in September, while the 20/24 years dropped from 27,2% to 21,8%.

By activity, construction had the highest unemployment, 23,7%, followed by Goods production, 18,1%; manufacturing 14,8%; commerce 10,8%; transport, communications and public utilities, 10,4%.

"If the current growth tendency consolidates and as expected the economy expands 4,5% next year, unemployment at the end of 2004 should drop to one digit", added Mr. Ramos.

The national unemployment rate in Chile last September was 9,4%, 0,3% less than the same month a year ago.

Meantime in Magallanes Region unemployment in the July-September quarter was 6,8%, the lowest quarter in six years; actually 1,6 less than the previous quarter and 0,5 less than the same quarter a year ago. Jose Gabriel Parada, regional director of the Statistics Office said that the 6,8% was made up of 5,9% and 0,9% of first time job seekers.

The number of people employed increased 1,3% over the previous Q and 4,8% over the same Q in 2002.

Compared to the previous Q, social, community and personal services was the most dynamic sector followed by Construction, while employment in transport and communications actually dropped.

Compared to a year ago, employment in services and commerce increased while it dropped in manufacturing and financial services.

Mr. Parada pointed out that most unemployment is concentrated in Punta Arenas since in the rest of the Magallanes Region only 800 people are jobless.