MercoPress. South Atlantic News Agency

Magallanes only region in Chile where unemployment was up in Feb/April

Punta Arenas receives substantial support from the central government

Magallanes Region in the extreme south of Chile has seen unemployment in the February-April mobile increase 0.8 percentage points to 5.4%. Although still one of the lowest rates in Chile, this time Magallanes was the exception since in the rest of the country unemployment was down.

The only other region that suffered a similar situation (down 0.7 percentage point) was Bio-Bio but it was the epicentre of the devastating February earthquake.

According to Chile’s Statistics Institute, INE, the number of unemployed in Magallanes reached 3.820 people, of which 69.2% men and 30.8% women.

Regional INE director Jose Gabriel Parada said the latest index was elaborated according to a new format and compiles far more information on jobs’ duration, quality and expectations which also helps to gauge the job market perception.

Although no specifics were mentioned for the poor showing compared to the rest of the country, the commerce and construction chambers will be holding talks with the local government to express their concern, according to La Prensa Austral.

Apparently there are no major infrastructure projects in the pipeline once the new Punta Arenas hospital building is finished which means many jobs will see the end of their contracts.

Parada admits that there is growing concern among the local work force because the new conservative government not only has frozen hiring but is also letting contracts end and even allegedly sacking some civil servants.

The government of President Sebastián Piñera denies any firing of public employees but admits “political appointees” yes, have had their contracts finalized.

Furthermore, Magallanes region in the extreme south as well as Atacama in the north of Chile receives ample support from the central government given their strategic locations under an “extreme regions promotion program”.

There are fears that many of those funds could be diverted to the massive recovery effort for the regions worst hit by the February earthquake (Bio-Bio and Maule).

Parada said he has no information to that effect but won’t deny or confirm the intense rumours circulating in Punta Arenas, according to La Prensa Austral.

Unemployment in Chile for the period was 8.6%, down 0.4 percentage point from the previous mobile quarter.

INE points out to an overall increase in employment in all sectors with the exception of Agriculture and Fisheries. Those sectors linked to recovery efforts from the earthquake are particularly bullish.