MercoPress. South Atlantic News Agency

Unemployment in Magallanes region soars in first quarter

Unemployment in the extreme south Chilean region of Magallanes more than doubled during this year’s first quarter having reached 5.6% compared to the same period a year ago according to the latest official Statistics Office release.

The latest release is particularly disturbing since the Magallanes region and its capital Punta Arenas have enjoyed for years the lowest unemployment rates in Chile.

This in practical terms means that out of a working force of 68.840 people, 3.850 are out of a job, that is 2.420 more than the same period a year ago. The number is made up of 2.090 who lost their jobs and 330 first time seekers.

The 3.5 percentage points increase over the first quarter of 2008 and 2.4 percentage points over the previous quarter had alarm bells ringing and an emergency meeting has been scheduled between the local branch of Chilean unions, CUT and Punta Arenas Production and Commerce Confederation.

The Punta Arenas business organization said the figures were particularly shocking since they occurred during the region’s “employment peak”, when the tourism industry is in season as well as fisheries and construction.

Jose Gabriel Parada head of the regional INE (Statistics Office) branch said that the unemployment rate has returned to “its historic rate” as registered between 2000 and 2005 when the jobless stood between 5.3% and 6%.

“The seasonal condition of Magallanes region employment was absent in 2007 and 2008 when rates were below 3%”, added Parada.

INE identified three industries which helped bulge unemployment, construction (100 jobs less), financial services (840 lost) and in the mining and quarry sector with another 870 lost jobs.

Parada recalled that at this time last year several major construction works had been started: the casino, a new shopping mall and expansion of the regional hospital.

At national level unemployment in Chile during the first quarter of this year reached 9.2% which is 1.6 percentage points above the same period a year ago (7.6%) and 0.7 percentage points over the fourth quarter of last year (8.5%).