UPDATE 2-Argentina joblessness stays below double-digits

(Updates with analyst quote, details)

BUENOS AIRES, May 22 (Reuters) - Argentina's unemployment remained below double-digits in the first quarter, falling to 9.8 percent from 11.4 percent in the same period a year ago, the government reported on Tuesday.

President Nestor Kirchner had announced first-quarter unemployment of 9.7 percent in public comments nearly a month ago.

The Economy Ministry said the measure of Argentines out of work rises to 11.1 percent in the first quarter if those who receive government welfare are counted as unemployed.

In the fourth quarter of 2006, Argentina's jobless rate fell to 8.7 percent compared with the same period in 2005 -- its lowest level since October 1992.

In a report, the Buenos Aires-based consultancy group Economia & Regiones said joblessness rose 1.1 percentage points from the fourth-quarter compared to the first three months of the year, but the increase was expected because of seasonal reasons.

"Looking at industry, many sectors close plants during the summer months and as a result, work demand falls. Something similar happens in construction, one of the biggest sectors to generate jobs in recent years, where activity also falls in the summer months," the group said.

Healthy economic growth topping 8 percent in the last four years has helped Argentina to steadily lower the unemployment rate after it peaked at 21.5 percent in 2002 during the country's economic crisis.

The central bank forecasts growth this year of 8 percent.

In a central bank poll last month, analysts forecast the first-quarter jobless rate to fall to 9.7 percent.

Underunemployment -- people who work less than 35 hours a week when they would rather work more -- also dropped to 9.3 percent in the first quarter from 11 percent last year, the ministry said, the first time it has dropped to less than 10 percent since 2001.