May 2006 Financial News

Cement shortage set to push up Jamaica's jobless rate

May 26, 2006

THE UNEMPLOYMENT rate for the second quarter of calendar year 2006 is expected to show a sharp rise over previous quarters as a result of the cement crisis, which left widespread dislocation in the construction and related sectors.

Already, results in the Planning Institute of Jamaica's quarterly review for the January to March quarter showed that the critical shortage of cement had a negative effect on the goods producing sectors, reducing growth in the gross domestic product over the period.

It is estimated that tens of thousands of persons in the construction and hardware sectors were left without jobs, particularly during the three-month period of March to May, when the cement drought dried up construction projects, leading to temporary closures. These developments follow a decline in the unemployment rate last year, which stood at 10.9 per cent in October 2005. This figure represents the lowest recorded in nearly 15 years, falling by about four percentage points in the last two-and-a-half years.

Jamaica Gleaner
Friday, 26th May, 2006.
http://www.jamaica-gleaner.com/gleaner/20060526/lead/lead5.html