Venezuela Labor Boss: 10% Will Lose Jobs This Year -Paper

sg.biz.yahoo.com Friday March 7, 10:37 PM

CARACAS -(Dow Jones)- A million Venezuelans, or about 10% of the workforce, will lose their jobs this year, said Manuel Cova, the secretary general of Venezuela's Fedecamaras labor group, according to a report Friday in local daily El Nacional.

Cova blamed the problem on political instability combined with plunging confidence in the country's judicial system - both of which deter investment necessary for job maintenance and creation, according to the report.

Cova couldn't be reached for further comment.

The comments come on the heels of the biggest industry chamber, Conindustria, saying unemployment will rise as high as 27% as more businesses cut production of goods subject to price controls the government recently introduced.

Unemployment currently stands at about 17%, according to the government, with the informal sector accounting for just over half the workforce.

Anything from street vendors to household servants and even small businesses with up to five employees make up the segment, which consists of unregistered workers who don't pay any form of taxes.

The government's unemployment figures are significantly lower than private estimates that put it as high 20%. Analysts have attributed the difference to polling methods.

El Nacional Web site: www.el-nacional.com

-By Jehan Senaratna, Dow Jones Newswires; 58212-564-1339; jehan.senaratna@dowjones.com