MercoPress. South Atlantic News Agency

Formal employment in Argentina increases 0,5%

Formal employment in Argentina increased 0,5% last July accumulating 8,9% in the last twelve months, although the creation of new jobs in the construction industry, one of the most dynamic sectors, seems to have reached a plateau.

Argentine Minister of Labour Carlos Tomada revealed that July employment in the construction industry actually contracted 0,7%, after having expanded 28,7% in the last twelve months pushed by the overall recovery of the economy and a public works program. In manufacturing, retailing and services, employment increased between 0,5 and 0,6%

Mr. Tomada added that the latest Labour Indicators Poll showed that employment growth remains strong, "having increased uninterruptedly for the last 33 months", which is directly related to the expansion of the domestic market.

Last week the Argentine government announced that second quarter unemployment reached 12,1% which represents a one point drop compared to the previous (first) quarter, but a similar level to the last quarter of 2004. The current unemployment means that 1,2 million Argentines are out of a job or looking for one.

The Argentine official also underlined that the "job creation process in industry in 2003 and 2004, and so far in 2005, is the strongest since the seventies", which "is based on the re-industrialization process promoted by the current administration".

But job creation was not evenly distributed in the country's main metropolitan areas: in Buenos Aires the index was 0,5%; in Cordoba 1,8%; Rosario remained unchanged and in Mendoza it actually dropped 0,3%.

In the last twelve months there were also disparities, Cordoba reached 12,6%; Buenos Aires 9,2%; Mendoza 5,4% and Rosario 5,1%.