MercoPress. South Atlantic News Agency

Significant drop in Chilean unemployment

Unemployment in Chile reached 8,6% in the May-July quarter of this year, which represent a considerable drop from the 9,7% of a year ago, according to the latest release from the Chilean Statistics Institute.

Compared to the previous April-June quarter unemployment contracted 0,1 points.

The release shows that in the last twelve months 266.850 jobs were created in Chile, which represented a 4,8% increase in the employed labour force that now totals, 5.774.800 people. It is estimated that women captured 142.640 of the new jobs representing 53,5% of the total.

On the other end 8,6% unemployment means 545.410 Chileans are out of a job, with the percentage among women representing 10,1% (a 0,7 points drop from a year ago) and among men 7,8% (1,3 points less than in 2004).

The age group with the highest unemployment is 15 to 24 years, with 21,5%.

In metropolitan Santiago, with 40% of Chile's labour force, unemployment was 8,1%, a significant drop from 9,8% in May-July 2004 and lower than the previous April-June quarter.

Among the newly employed, 49,5% have technical or professional education, 69,5% men and 31,9% women, By age the highest portion of new jobs, 18%, went to the 45/49 year group, followed by 16% to the 30/34 group and 14,8% for the 15/29 age group.

Regionally Magallanes and neighbouring Aysen have the lowest unemployment rates, 6,1% and 6%, and Valparaiso the highest with 12%.

As to the most dynamic sectors in the last twelve months, financial services, 10,2%, and retailing, 7,5% lead the pack. On the other end public utilities and agriculture suffered the greatest jobs reduction, 11,5% and 1,4%.

Chilean Finance Minister Nicolas Eyzaguirre said that the 266 thousand new jobs means the economy is creating jobs at an annual rate of 4,5%, "which is highly positive, although we must not remember that half a million Chileans still are out of a job".

However the minister indicated that even with the economy slowing down to an annual growth of 4%, job creation would remain in the range of 3,5%.