Unemployment and Sectorial Data

CHILE - In Brief 03 Jul 2016 by Igal Magendzo

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Labor MarketIn the March-May rolling quarter, labor market continued to show signs of deterioration. Unemployment reached 6.8%, its highest level for this rolling quarter since 2011. The 12-month growth of employment went from 1.5% in April to 1.3% in May. In the last year, about 102,000 jobs were created. The most dynamic sectors were Wholesale, Retail and Accommodation Activities, and Food Services, while the sectors that depressed most jobs were Mining, Health Care, Social Welfare and Manufacturing. As it has been the trend in recent months, the Construction sector continues to create jobs, although less than in the past 11 rolling quarters. The labor market will continue to deteriorate and the unemployment rate will continue to rise. Source: National Institute of Statistics. Sectorial activity In May, sectorial data confirmed the weakness of the economy, both in the consumption and the production front. The 12-month growth indices related to Domestic Consumption (retail and supermarket sales), had a kickback compared to the previous month. In real terms the 12-month variation in retail sales remained in positive territory (3.6%). This was due to sales of durable goods, since non-durables fell. On the other hand, the index of manufacturing production rose 2.1% in the 12 months to May. However, this year May had three working days more than May 2015. The trading-day adjusted 12-month change actually was a meager -1.1%. Mining production fell 5.7% yoy in May, while the Electricity, Gas and Water production index increased 2.0% yoy. Source: National Institute of Statistics. Source: National Institute of Statistics. Source: National Institute of Statistics.