Unemployment up in Central America

Dominican Republic: Central America and the Dominican Republic will see their average jobless rate up by three percent in 2009 due to the impact of the global economic crisis, alerted today the International Labor Organization (ILO).

A report of ILO's office for the region indicates that unemployment will go up from six percent in 2008 to nine percent this year. It adds the jobless population of these countries will increase from 1.2 million people in 2008 to almost 1.7 million in 2009. Under the title of Impact of World Crisis on the labor market of Central America and the Dominican Republic, the study expresses that Costa Rica could reach an unemployment rate of 7.9 percent.

Follow El Salvador (7.7 percent), Honduras (4.7), Nicaragua (4.7), Panama (6.7) and the Dominican Republic (17.8). Without the economic crisis, the jobless rate in most of these countries would be half of what was projected for 2009, with the exception of the Dominican Republic. Leonardo Ferreira, ILO expert for Central America and the Dominican Republic commented the effect of the economic crisis is strong in all the countries, but it will be more evident in El Salvador and Costa Rica.

Regional economy will slow up in 2009 and the sectors most hit will be construction, manufacturing industry, retail, hotels and restaurants.

ILO explained the study was made with data of different state entities of each country excluding Guatemala for not having updated figures of its labor market.

It is also expected that in 2009 the amount of persons not covered by social security and informal jobs will increase, although no figures were given. San Jose, Prensa Latina