MercoPress. South Atlantic News Agency

Chilean unemployment unchanged at 7.9%

The unemployment rate in Chile reached 7.9% in the first quarter of 2006, the same rate as in similar period of 2005 mainly because a larger number of people are looking for jobs in coincidence with an economic expansive cycle.

However market analysts were expecting a rate closer to 7.7 or 7.5%.

The Chilean work force expanded 3.1% which represents an additional 198.890 people, while the economy created 3.1% more jobs equivalent to 181.170.

The women's participation in the labour market signalled a record 38.2%, since they are more sensitive to job market cycles and growing expectations, indicated Tomas Flores, Deputy Director of the Freedom and Development Studies Institute.

The expansion of the work force in the first quarter of 2006 is the strongest since the second half of 2005, indicated Guillermo Pattillo from the Santiago University who also pointed out that unemployment among women was 10.3%, a tenth higher than similar period in 2005.

The total number of unemployed in Chile in the first three months of 2006 was 518.620.

Furthermore and in line with the strong expanding economy, formal employment in Chile keeps expanding with a 5.1% increase in the number of employed with a similar 0.6% reduction in the number of those defined as self employed.

Employment surged in all industries with the exception of public utilities which actually saw a 3.9% contraction in the last twelve months according to the latest statistics.

The most dynamic sector for employment was mines and quarries surging 16.8% and construction with 3.8%.