MercoPress. South Atlantic News Agency

Uruguay's INE reports unemployment on the rise

Unemployment grew year-on-year despite the creation of 27,000 new jobs, the INE report found

Uruguay's National Institute of Statistics (INE) released a report Tuesday showing that last month's unemployment rose from 7.4% to 8.1% from the previous month. However, this figure represented an interannual improvement against last year's 8.6%. Joblessness was not as harsh in Montevideo (7.1%) but it was indeed noticeable elsewhere in the South American country (8.7%). In addition, 21.3% of workers were detected not to be registered with social security authorities, which was tantamount to an increase in informality.

On the other hand, the employment rate stood at 59.4%, or 0.4% below December's data but 0.6% above its level a year ago despite the creation of some 27,000 new jobs.

The total number of workers was determined to stand around 1,750,000, while those seeking employment amounted to some 154,000, or 7,000 fewer than a year ago. The employment rate was found to have grown both in Montevideo and in the rest of the country alike.

The new report was issued in the aftermath of the Yazaki crisis and other threats facing the Uruguayan labor markets, where excessive bureaucracy coupled with disproportioned unionism deter would-be employers from investing in the country. In a statement announcing its departure from the country earlier this month, the Japanese autopart maker spoke of “constant production stoppages ordered by the union, which jeopardize the delivery of products to Yazaki's customers.”