Uruguay unemployment falls to 7.3 percent in 2009

MONTEVIDEO Feb 3 (Reuters) - Uruguay's unemployment rate fell to 7.3 percent in 2009 from 7.6 percent a year earlier, reflecting modest economic growth despite the impact of the global crisis, government data showed on Wednesday.

The South American country's unemployment rate is now at its lowest level since 1986, and the economy looks set for its seventh straight year of growth.

"This is another sign that the international crisis had a limited impact that was tied to specific sectors," said economist Hugo Bai from the Cuesta Duarte trade union institute.

"The challenge now is to look for policies to resolve issues related to employment quality, policies that reduce under-employment," he added.

Uruguay's small economy expanded 8.9 percent in 2008 and is expected to show growth of 2.0 percent in 2009, according to official forecasts.

Gross domestic product data for the full year has not been published yet, but GDP rose 1.9 percent in the third quarter compared with the same period of 2008 and rose 1.7 percent in the first nine months of the year. (Reporting by Conrado Hornos; Writing by Luis Andres Henao; Editing by Kenneth Barry)