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Costa Rica Unemployment Rate Is Better than Expected - Better Than USA Rate

The rate of open unemployment increased from 7.3 to 8.1 percent during 2009, less than originally feared, said the Economic Commission for Latin America and the Caribbean and the International Labour Organization in a bulletin published this month.

In their third joint bulletin, the organizations examine the impact of the global crisis and gradual economic recovery on the labor market in Latin America and the Caribbean during 2009, concluding that the impact on labor was not as strong as initially predicted.

Although the crisis caused a drop in employment, an increase in unemployment rates and the deterioration of the quality of employment, the impact was mitigated by the signs of economic recovery as of mid-2009 around the globe, the countercyclical policies adopted in many countries and the stability of the purchasing power of wages due to decreasing inflation, which restrained the fall in domestic demand.

Moreover, unemployment increased less than expected, partly due to the fact that many youths stopped searchingfor jobs given the unfavourable conditions of the labour market, the bulletin said.

Towards the end of 2009, labour indicators in many countries were improving, and by the last quarter of the year, the employment rate in the region had reached the same levels as that of the same quarter in 2008. This process was accompanied by better quality of employment, given that in all of the countries with available data, formal employment began to rise.

The improvements in the labour market continued through the beginning of 2010, although several countries are far from overcoming the impact of the crisis and the degree of economic recovery differs significantly from one country to another, said the bulletin.

The bulletin also examines some of the policies adopted during the crisis and that have increased opportunities for women and promoted gender parity. Among them are the measures geared at protecting the income of the most vulnerable workers, which indirectly benefit women given their high concentration in those income groups, and programs to retain and promote jobs especially aimed at the inclusion of women.
Published Friday, June 11, 2010 10:59 PM by Nick Halverson
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