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21/09/2005 | Argentina formal private sector jobs up 1.1% on month in August

Drew Benson

The number of people in registered private-sector jobs grew in August by 1.1% on the month, and up 9.5% on the year, Labor Minister Carlos Tomada announced Tuesday.

 

During a brief news conference, Tomada said that 88 or 89 of every 100 new positions created were registered work, up from the 62 out of 100 that he reported a year ago.

"They have registered 35 months of sustained employment growth, such has been unknown in previous times," he said.

Tomada added that construction "is the real engine of employment growth" and that "for each point that gross domestic product goes up, job creation climbs a point."

Argentina's statistics agency reported this month that the economy grew 10.1% year-on-year in the second quarter, exceeding a consensus forecast of 9.1% and showing the economy is still running strong after expanding for 2 1/2 years.

Last week, the government also reported that the unemployment rate was 12.1% in the second quarter, down from 13% in the first three months of the year. Unemployment reached a high of 21.5% in May 2002, when Argentina reached the nadir of its economic and financial meltdown.

Although the economy has regained much lost ground, job creation remains a leading concern among Argentine voters. And the improving numbers come as Argentines head to the polls next month for key congressional elections that will help determine how much control President Nestor Kirchner will have during the second half of his four-year term.

Since taking office in May 2003, Kirchner has spoken repeatedly of trying to get Argentines back to work and his administration has launched several work plans and a national program aimed at reducing the informal sector.

Dow Jones International News (Estados Unidos)

 


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