MercoPress. South Atlantic News Agency

Improving employment situation in Chile

Unemployment in Magallanes Region during the December-February quarter increased 0,7 to 6,3%, compared to the same period a year ago (5,6%), but dropped against the previous quarter 6,5%. Chile's national average was 7,6%.

According to the Chilean Statistics Institute this means that 4,180 people have no jobs in Magallanes Region and 3,320 in Punta Arenas where unemployment stands at 6,5%.

Economy Ministry representative in Magallanes Bernardo Troncoso argued that the tendency can be explained by the constant increase of the work force and the fact that women in growing numbers are looking for employment.

However the 2005 Dec-Feb unemployment index in Magallanes is the highest since 1999, with male unemployment at 6% (0,8 above a year ago) and female unemployment is 6,9%, with a 0,3 increase.

The quarterly report also indicates that the greatest decline in jobs was among administrative workers and public and heavy transport drivers.

Mr. Troncoso indicated that the latest employment index proves a greater number of jobs are returning to the "formal" economy as the overall situation improves and anticipated even better times following President Ricardo Lagos recent announcement of subsidies for businessmen who create jobs during April/October, with a total target for the whole country of 70,000 new jobs.

"I believe that these measures together with an overall surge of the regional economy, exports and improved supermarket sales will help us end 2005 with a lower unemployment index than in 2004", forecasted Mr. Troncoso.

At national level Chile's unemployment averaged 7,6% in the Dec-Feb quarter, 0,2 above the same period a year ago with the total employed reaching 5,845,520 and the unemployed 482,580.

However in the last twelve months the Chilean economy created almost 200,000 new jobs with a strong participation of women employment, meaning that females now represent 37,4% (1,8 points increase) of the working force.

Furthermore a public opinion poll among unemployed showed that 60% believe they have a chance of finding a job in 2005 and the number of families with an unemployed member has dropped from 47 to 42%.

Tomas Flores Deputy Director of the Libertad and Desarrollo Institute, a conservative economics think tank, predicts that Chile will end 2005 with an overall average unemployment of 7,9%, a considerable advance from the 8,8% of 2004.