MercoPress. South Atlantic News Agency

Unemployment in Argentina dropped to 10.4%

Unemployment in Argentina dropped from 11.4% to 10.4% in the second quarter of 2006 and stands 1.7 points less than a year ago for the same period according to the latest release from the country's Statistics and Census Institute, Indec.

However the index soars to 12.8% of active population in urban areas if all those benefiting from unemployment programs are included.

INDEC figures also point out that in spite of the strong performance of the Argentine economy for at least three years running averaging 9% growth, 2.5 million Argentines still have employment problems.

This is also the third time running that the unemployment index drops in the second quarter: 2.7 points in 2005 and 3 points in 2004.

The partial employment index also contracted and now stands at 12%, which means that the total population unemployed and partially employed adds to 2.466.000 in Argentina's 28 main urban centers.

The second quarter employment improvement means that 137.000 people found jobs in the country's main cities.

The Argentine Labour Ministry said that the latest figures not only show an improvement in the labour market but also that many people are moving from the "underground" economy to stable jobs.

Argentine president Nestor Kirchner last July anticipated an improvement in employment but cautioned that in spite of the encouraging showing "we're still trying to leave hell behind".

In related news the Argentine government announced that the budget primary surplus in July was 13.7% above the same month a year ago, totalling in the seven first months of 2006 a sum in the range of 4 billion US dollars, which is 9.4% higher than in 2005.

"The current values show that the budget primary surplus in the first seven months of the year is 20% above estimates in the Budget Bill and represent 75% of the total estimate for the year", indicated a release from the Finance Ministry.

However in the budget growth was estimated in 4% when the economy is actually expanding at an annual rate of 8%.

Total revenue in the first seven months totalled the equivalent of 29.4 billion US dollars, up 22.5%, while expenditure was equivalent to 26 billion US dollars, with a 21% expansion.

Argentina's July exports also showed a surplus, 940 million US dollars, although less than originally estimated. Trade surplus in the first seven months of 2006 reached 6.9 billion US dollars and 11.5 billion in the last twelve months.

Exports in July totalled 3.8 billion and imports 2.8 billion, up 21%.

Argentine authorities admit that exports in the second half of the year could begin to slow down but the overall sum for 2006 will be in the range of 45 billion US dollars.