UPDATE 3-Chile jobless rate 6.1 pct, lowest in nearly six years

Thu Jan 31, 2013 11:55am EST

Related Topics

* Average 2012 jobless rate was 6.4 percent
    * Tight labor market luring European professionals


    By Antonio De la Jara
    SANTIAGO, Jan 31 (Reuters) - Chile's jobless rate for the
last quarter of 2012 dropped to 6.1 percent, the lowest level in
almost six years, amid brisk economic growth and an expansion of
seasonal agricultural jobs, the INE statistics agency said on
Thursday.
    The unemployment rate, which hit 6.2 percent in
September-November period, was forecast to have dropped to 6.0
percent, according to the median forecast of 10 analysts and
economists polled by Reuters. 
    "There is a seasonal (agricultural) effect during the last
quarter, which boosts employment," the INE said. Agricultural
jobs traditionally increase in the Southern Hemisphere's spring
and summer months.
     The fourth-quarter jobless rate was Chile's lowest since 
the November 2006 to January 2007 period, INE data showed.
     The jobless rate has been pulled lower by growth in
employment outpacing the expansion of the labor force.
    "Since this government took office (in March 2010), some
700,000 new jobs have been created ... the ability of our
economy to continue creating jobs remains solid and firm,"
President Sebastian Pinera told reporters after the jobless data
was released, drawing contrasts with crisis-hit Spain's jobless
rate.
    Chile's average unemployment rate in 2012 was 6.4 percent,
well down from an average of 7.1 percent in 2011, the INE said.
    "Annual increases (in employment) occurred in the sectors of
teaching, public administration and defense, and mining and
quarrying, while the chief negative impact came from retail,"
the agency said in its report.
    In the last quarter of 2011, the jobless rate was 6.6
percent.
   
    A tight labor market, along with firm domestic demand and
strong economic growth, has prompted Chile's central bank to
keep its key interest rate on hold since a surprise
cut in January 2012.
    Chile's small, export-dependent economy has generally fared
better than expected despite slowing demand from top trade
partner China and fallout from the euro zone crisis.
    "The Chilean economy continues to perform at a high level.
Despite the exuberance of demand against a backdrop of a closed
output gap, the central bank is unlikely to hike (rates) in the
near term, given benign below-target inflation and growing
concerns with (the peso's) strength," Goldman Sachs economist
Alberto Ramos said in a note to clients.
     A buoyant economy, low unemployment and rising wages have
been luring foreign professionals to the copper-exporting Andean
nation of 16.6 million people, which is in desperate need of
skilled workers. 
    The country's economic activity probably grew at its slowest
monthly pace in over a year in December as manufacturing
production and copper output fell, though domestic demand
remained strong, a Reuters poll showed on Wednesday.
 
    Chile, the world's top copper miner, also exports wine,
fruit and salmon.
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