MercoPress. South Atlantic News Agency

Unemployment remains stubbornly high.

Unemployment in Chile during the May-July quarter reached 9,7%, a tenth of a point above the April-June quarter and six tenths higher than in the same period a year ago.

The figure which is very bad news for the ruling coalition that faces municipal elections next October is also above market expectations which estimated that unemployment would drop to 9,5%.

According to the Chilean Statistics Institute sectors most punished with the loss of jobs compared to the previous quarter are Agriculture, Hunting and Fisheries (23.964); Community, Social and Personal services (11.262) and Commerce (6,985).

However manufacturing had a positive reaction with the creation of 10,728 new jobs.

In the last twelve months the areas which showed an employment recovery are Community, Social and Personal Services and Financial Services.

The Chilean Chamber of Commerce, Services and Tourism described the national unemployment figure for the May-July quarter as "disappointing" adding that these numbers are not compatible with the recovery of the Chilean economy.

Regarding specifically commerce unemployment, which remained unchanged at 8,7%, the Chamber of Commerce was equally disappointed since this is the highest recorded in the last four years meaning the sector "has been unable to create new jobs, because of labor inflexibility".

"Commerce can continue to create jobs, but we need an urgent labor flexibility bill regarding working hours and a legal framework to reduce labor costs", said James Raby president of the Chamber of Commerce in Santiago.

In related news a report from the Chilean-Canadian Chamber of Commerce reveals that the number of Chileans living below the poverty line has dropped 44% between 1987 and 2000.

This means 2,5 million Chileans have been recovered in that period, according to the report which also points out that "economic growth has played a vital role in drastically cutting the number of poor people".

Magallanes figures among the regions with the lowest percentage of Chileans below the poverty line.-