CORRECTED - UPDATE 1-Venezuela jobless rate rose to 19.8 pct in March

Reuters, 05.29.03, 11:33 AM ET

In Caracas story headlined "UPDATE 1-Venezuela jobless rate rose to 19.8 pct in March," please read date in dateline as May 29 instead of May 28. A corrected version follows. (Adds background on economic crisis)

CARACAS, Venezuela, May 29 (Reuters) - Venezuelan unemployment climbed to 19.8 percent in March from 15.1 percent a year earlier, the government said on Thursday, as a two-month strike drove the economy deeper into recession, The jobless rate, down slightly from 20.7 percent in February, rose from a year earlier as the economy of the world's No. 5 oil exporter contracted 29 percent in the first quarter, a spokesperson for the National Statistics Institute told Reuters by telephone.

The opposition strike against leftist President Hugo Chavez in December and January disrupted Venezuela's vital oil production and forced many companies out of business.

Some private analysts say the official unemployment rate underestimates the actual jobless figure.

The government in February introduced strict currency controls to halt capital flight and restore economic stability after the shutdown. But many analysts and private sector leaders have warned that the curbs have worsened the nation's economic crisis.