MercoPress. South Atlantic News Agency

Latinamerica employment recovering.

Urban unemployment in Latinamerica dropped to an average 10,9% during the first half of 2004 with the most significant reductions in Argentina, Uruguay and Venezuela, according to the latest release from the International Labour Office.

In the same period a year ago unemployment stood at 11,3%, but "the rate still is relatively high" points out the ILO release.

The ILO Latinamerica and Caribbean branch with offices in Lima, Peru added that during the first six months of 2004, real income for minim and industrial wages increased 10,9% and 6,6%. "Normally employment news is bad, but this time they are really positive so we are actually moderately optimistic", admitted Daniel Martinez head of the Lima ILO. "At this rate by the end of the year unemployment should stand at 10,6% compared to 11,1% last year", added Mr. Martínez.

The report covers nine of the region's countries representing 93% of GDP and 90% of economically active population.

Argentina outstands among the nine countries with an unemployment drop from 20,4 to 14,4%, followed by Uruguay' performance from 18,1% to 13,5% and Venezuela, 19,7 to 17,3%. However the report also indicates that once the benefits programs for unemployed heads of family are deducted, unemployment in Argentina actually stands at 19,5%.

A country with a moderate drop was Colombia where unemployment fell from 16,5% to 15,4%.

In Chile and Brazil unemployment during the first half remained almost unchanged: 8,7% to 8,9% and 12,2% to 12,3% respectively.

Countries where unemployment actually increased include Ecuador, from 6,7% to 8,1%; Peru from 9,7% to 10,1% and Mexico, 2,9% to 3,8%.

The ILO reports indicates that the improved employment market in Latinamerica comes in the context of a strong regional economic recovery speared by a solid demand from United States, China and Japan, growing international prices for oil and commodities, plus sound fiscal and monetary policies geared to reduce inflation.

According to ILO the regional economy expanded at an annual rate of 5,7% during the first quarter of 2004, considerably higher than the 1,6% of the same period last year.

However two increasing concerns are highlighted in the report: juvenile unemployment is double the average rate, and the gender gap punishing women with a 1,4 multiplier.