Caribbean unemployment forecast to rise

Caribbean unemployment forecast to rise

Friday, January 30, 2009

Caribbean unemployment rates are expected to increase to between 7.8 per cent and 8.1 per cent this year from 7.5 per cent last year because of the global economic crisis, according to a report from the United Nations.

"Economic growth in Latin America and the Caribbean is expected to slow markedly in 2009," stated the World Economic Situation and Prospects 2009 report. "The key drag is the fall in commodity prices. In addition, domestic credit is expected to tighten in many economies. Inflationary pressures, which surged during 2008 owing to the increasing costs of energy, transportation and food, should decelerate in 2009."

The report added that the increase in unemployment is set to revert the positive trend of recent years, when employment quality had improved and the unemployment rate had fallen to 7.5 per cent.

The predictions come amidst planned cuts at companies all across the Caribbean. These include businesses in telecommunications, hotel and tourism, and bauxite production.

- Caribworldnews
http://www.jamaicaobserver.com/magazines/Business/html/20090129T190000-0500_145456_OBS_CARIBBEAN_UNEMPLOYMENT_FORECAST_TO_RISE_.asp