MercoPress. South Atlantic News Agency

Chilean unemployment drops to 7.3%

Chilean unemployment in the December-February quarter dropped to 7.3%, which is 0.3% less than the same period a year ago, according to the latest release from the country's Statistics Institute.

But the Dec-Feb quarter also marked several milestones: for the first time six million Chileans are employed; women make up 38% of the workforce and it's the lowest unemployment rate since 1998, (5.1%). Following the Asian crisis, unemployment in Chile began surging in 1999 peaking at 8.4% and has since 2002 been gradually sliding. In the Dec-Feb quarter 160.000 new jobs were created, but 470.630 Chileans are still unemployed.

However in spite of Chile's good economic prospects and the favourable consumers and businessmen confidence index, 49% of those employed fear they could loose their jobs, according to a poll on Unemployment Perception from the conservative Freedom and Development Institute. In March 2005 the same index was 32%.

"People feel that the current good times won't last too much and this generates more fear than a year ago, since after the good performance, at sometime the party will be over", said economist Carlos Flores from the Institute.

Much of the potential disenchantment seems to be among the construction workers, a highly intensive labour industry which has been surging at 9% annually, and there's a "feeling the boom sometime will come to an end".

However among unemployed there's growing optimism that they can find jobs. According to the opinion poll, 56% of those interviewed said there are "good chances" of finding a job sometime in the coming months.

But economist Flores also pointed out that in 2005 the Chilean government with fiscal funds created a total of 113.000 jobs, but if these "family support programs" did not exist, unemployment would be closer to 9.8% than to the 8.1% average of last year. "With sustained 6% growth in the next four years, Chilean unemployment could drop another two points, but we're still far from the below 6% rate previous to the Asian financial crisis", insisted Mr. Flores.