Chile’s jobless rate rose in the three months through June from the year earlier as economic growth slowed to the weakest pace in four years.
The unemployment rate climbed to 6.5 percent from 6.3 percent in the month-earlier period and 6.2 percent a year earlier, the National Statistics Institute said in a report released in Santiago today.
The increase was in line with the median estimate of 13 analysts surveyed by Bloomberg. The central bank has cut interest rates five times in the past 10 months, citing a sharper-than-expected slowdown in growth and an inflation rate that it expects to drop to the 3 percent target over the next year.
Rising unemployment may ease pressure on inflation, which accelerated to a five-year high of 4.7 percent in May before slowing in June.
“The labor market continues to adjust with its usual delay,” one policy maker said in the minutes of the July 15 rate meeting released today.While the labor market is showing signs of “greater slack,” it was still not evident in the unemployment rate or wage growth, he said.
Wages rose 6.5 percent in May from the year earlier, up from 5.8 percent at the beginning of the year. When inflation is taken into account, wages climbed 1 percent.
Still, the weaker labor market may be having an impact on consumer demand. Retail sales rose 2.3 percent in June from the year earlier, the second-weakest pace since 2009. Manufacturing output has declined in eight of the past 12 months.
GDP Report
The central bank will report second-quarter growth on Aug. 18. Gross domestic product expanded 2.6 percent in the first quarter from the year earlier, the slowest pace since 2010.
The workforce rose by 1.6 percent in the past year, while the number of people in work climbed by 1.3 percent, the statistics institute said today.
Employment in the mining industry led declines, tumbling 8.5 percent, at the same time that the number of people working in social and health services climbed 8.7 percent.
The number of self-employed rose 5.9 percent over the year, while those with contracts gained 0.4 percent.
The central bank resumed an easing cycle on July 15 when it cut the benchmark interest rate a quarter point to 3.75 percent. It was the fifth quarter-point reduction since October.
bloomberg.com
The unemployment rate climbed to 6.5 percent from 6.3 percent in the month-earlier period and 6.2 percent a year earlier, the National Statistics Institute said in a report released in Santiago today.
The increase was in line with the median estimate of 13 analysts surveyed by Bloomberg. The central bank has cut interest rates five times in the past 10 months, citing a sharper-than-expected slowdown in growth and an inflation rate that it expects to drop to the 3 percent target over the next year.
Rising unemployment may ease pressure on inflation, which accelerated to a five-year high of 4.7 percent in May before slowing in June.
“The labor market continues to adjust with its usual delay,” one policy maker said in the minutes of the July 15 rate meeting released today.While the labor market is showing signs of “greater slack,” it was still not evident in the unemployment rate or wage growth, he said.
Wages rose 6.5 percent in May from the year earlier, up from 5.8 percent at the beginning of the year. When inflation is taken into account, wages climbed 1 percent.
Still, the weaker labor market may be having an impact on consumer demand. Retail sales rose 2.3 percent in June from the year earlier, the second-weakest pace since 2009. Manufacturing output has declined in eight of the past 12 months.
GDP Report
The central bank will report second-quarter growth on Aug. 18. Gross domestic product expanded 2.6 percent in the first quarter from the year earlier, the slowest pace since 2010.
The workforce rose by 1.6 percent in the past year, while the number of people in work climbed by 1.3 percent, the statistics institute said today.
Employment in the mining industry led declines, tumbling 8.5 percent, at the same time that the number of people working in social and health services climbed 8.7 percent.
The number of self-employed rose 5.9 percent over the year, while those with contracts gained 0.4 percent.
The central bank resumed an easing cycle on July 15 when it cut the benchmark interest rate a quarter point to 3.75 percent. It was the fifth quarter-point reduction since October.
bloomberg.com
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