The latest report from Uruguay’s INE indicates a rising unemployment rate of 8.1%, though this shows improvement from the previous year’s 8.6%. The employment rate stands at 59.4%, with a notable number of workers unregistered with social security. The labor market is currently strained due to issues like bureaucracy and strong union influences.

Uruguay’s National Institute of Statistics (INE) reported an increase in unemployment from 7.4% to 8.1% over the last month, although it represents a year-on-year improvement from 8.6%. Employment levels vary significantly across regions, with Montevideo reporting 7.1% unemployment compared to 8.7% in other areas. Furthermore, 21.3% of the workforce is unregistered with social security, indicating a rise in informality.

The overall employment rate in Uruguay is at 59.4%, reflecting a marginal decrease of 0.4% since December but a yearly increase of 0.6%. Despite the addition of approximately 27,000 jobs, about 1,750,000 individuals are employed, with 154,000 actively seeking work, which is 7,000 less than last year. Both urban and rural areas saw a rise in employment rates.

The employment situation is complex, impacted by events such as the Yazaki crisis and challenges within the labor market, including excessive bureaucracy and strong union influence, which hinder investment prospects. Yazaki’s recent exit from Uruguay was attributed to “constant production stoppages ordered by the union, which jeopardize the delivery of products to Yazaki’s customers.”

Uruguay’s recent employment report reveals a slight rise in unemployment while showing improvements compared to last year. The report highlights regional disparities in joblessness and an increase in unregistered workers, signifying a growing problem of informality. Factors such as bureaucratic challenges and union pressures are influencing the labor market landscape and affecting investment opportunities.

Original Source: en.mercopress.com