UPDATE 1-Chile jobless rate falls in May-July amid recovery

* Fall in jobless rate underscores economic recovery

* President Pinera sees GDP growth over 5 pct in 2010

* Peso unmoved by jobs data
(Updates with INE comment, data)

SANTIAGO, Aug 31 (BestGrowthStock) – Chile’s jobless rate fell to a
lower-than-expected 8.3 percent in the May-July period
(CLUNR=ECI: ), the government said on Tuesday, underscoring the
economy’s recovery from a massive earthquake and the global
financial crisis.

Analysts polled by Reuters had forecast a jobless rate of
8.55 percent as the economy recovers from an 8.8-magnitude
quake that killed hundreds and pummeled industries in
south-central Chile in February. The rate compared with 8.5
percent for the three months to end-June reported last month.

State statistics department INE cited an 0.8 percent
increase in job creation, and said employment in agriculture
fell less than in previous periods despite seasonal factors.

Foreign exchange dealers said the peso (CLP=CL: ), which was
slightly weaker in early trade, retreating further from 7-month
highs, was unmoved by the jobless data.
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Chile July industry grows, president ups GDP view
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The data came after INE reported Monday that Chilean
industry grew less than expected in July from June but surged
from a year ago on strong copper output — which prompted
President Sebastian Pinera to slightly raise his 2010 economic
growth view.

Industrial production grew 1.1 percent in July from the
immediately prior month. Analysts surveyed by Reuters had
expected output (CLIP=ECI: ) to rise a seasonally adjusted 2.45
percent in July.

The INE said productive capacity had yet to return to
“normal” levels prior to Chile’s devastating Feb. 27
earthquake. It said food and drink as well as chemical and wood
product output drove the rise. Paper and refined oil products
fell.

For the Reuters poll on the jobless rate, see
[ID:nN27210807].
(Reporting by Fabian Cambero; editing by Simon Gardner and
Jeffrey Benkoe)

UPDATE 1-Chile jobless rate falls in May-July amid recovery