MercoPress. South Atlantic News Agency

Unemployment in Chile drops to 8,5%

Unemployment in Chile dropped to 8,5% during the July-September quarter from 9,7% in the same period a year ago, according to the latest release from the Statistics Institute.

The drop was mainly because of the increase in the number of new jobs created, 221.890, --compared to the third quarter of 2004--, and also represents the largest job creation quarter since 1993.

In twelve months the number of people with jobs increased 4%, the work force 2,6% and the number of unemployed dropped to 10,5%.

The 8,5% unemployment rate is the lowest for a third Q since 1998. The total number of unemployed in the third Q was 536.410, which is also the lowest since 1998.

At national level the unemployment rate dropped in nine of Chile's thirteen regions, with two remaining stable, and two experiencing a slight increase.

Only two regions recorded unemployment above 10% while at the other end another two were the lowest, below 5,3%.

However the opposition think tank Libertad y Desarrollo argues that adjusted unemployment actually reached 11%, since to the 536.410 out of a job must be added 155.000 people contracted in emergency employment programs.

Tomas Flores, Deputy Director of L&D admits an improvement in employment compared to the third quarter of 2004, which proved above their original estimates (8,6%), while the work force increased 2,6%.

As to gender participation, 70,4% is men and 36,7% women with employment growth recording 3,1% and 5,8%. This works out at 7,7% unemployment for men and 10% for women.